Idea Cellular is the third largest mobile service provider in India with 137 million subscribers. It operates in all 22 service areas across the country and has a 16.2% revenue market share. While leadership areas contribute 68% of its revenue, emerging and growth areas make up 26.8% and 5.3% respectively. Idea differentiates itself through quality subscribers and network coverage across 74% of India. However, competition and rising data usage pose threats. Recent developments like proposed spectrum sharing and fundraising are expected to support Idea's growth.

1. IDEA CELLULAR LTD.
CORPORATE STRUCTURE OF COMPANY
OVERVIEW
Number 7 ranked in world
3rd largest Mobile Service operator – India
Spread across 55,000 towns in India
Revenue Market Share (RMS) – 16.2%
137 million subscribers
ARPU: 174 (March 2014)
Source: Idea Cellular_Q4 report (2014)

2. DISTRIBUTION NETWORK
Has licenses to operate in all 22 service areas
Idea’s 3G service is available in 14 telecom circles
3G tie-up with Vodafone and Airtel
Idea offering 3G in Delhi and Kolkata via Vodafone’s network
Vodafone offering in Andhra, Kerala and Airtel in Gujrat through Idea’s
network
Joint venture between Airtel, Idea and Vodafone - Indus towers
SERVICE PROVIDER WISE MARKET SHARE
Source: trai.gov.in

3. B. EMERGING GEOGRAPHIES
Revenue Market Share (RMS) – 11.2%
27% of Idea Cellular’s revenue
900 MHZ spectrum (DELHI), 1800 MHz (KARNATAKA) - Recent auctions
A. LEADERSHIP GEOGRAPHIES
Revenue Market Share (RMS)- 26.8% in 8 service areas
68% of Idea Cellular’s revenue
1800 MHz spectrum in recent auctions, can be used for LTE
C. GROWTH GEOGRAPHIES
7 new service areas – TN, Kolkata, West Bengal, Orissa, J&K, Assam, North-East (1800 MHz in 2012 auction)
Represent 20% of Indian mobility market
Revenue contribution from these areas – 5.3% of Idea Cellular’s revenue
Revenue Market Share (RMS) – 4%
Source: Idea Cellular_Q4 report (2014)
REVENUE AND MARKET DYNAMICS

4. KEY DIFFERENTIATORS
Quality subscriber base is best in terms of active
subscribers (TRAI)
Highest gainer in mobile number portability
MARKET CAPITALIZATION
Idea Cellular Market Cap – 58,365 crore
Market leader Airtel (150,262 cr) followed by Idea and Reliance Communications (31,770 cr)
Source: trai.gov.in
VLR subscribers – Service provider wise
TOP 5 Public Shareholders
Promoters Holding SHAREHOLDING
49.38%
45.81%
4.81% Foreign Holding
Promoter Group
Indian, Others

5. BUSINESS
STRATEGY
Leverage
spectrum and
scale to
enhance
leadership
Sustainable
growth
Well placed to
exploit data
demand
23%
16%
36%
7%
14%
4%
Access cost
Licence fee
Network cost
Staff cost
S&M cost
Admin cost
KEY BUSINESS DRIVERS
Direct distribution model
The key to the network are local territory sales executives (TSEs)
Sons of the Soil initiative
Crack Sales System (CSS) Initiative
STRATEGIES FOR SUCCESS
Reforming organizational structure - Idea Cellular Services Limited (ICSL)
Promoting the right organizational culture
Developing unique skill specifications for local sale personnel
KEY COST DRIVERS
TOTAL cost: Rs. 181,603 million

6. • Wide Network-covers 74% of all India
population -3 lakh towns & villages
• Strong advertising and promotion
• Highest active subscriber base
• Reputed brand - Aditya Birla group
• Tower investment in Indus towers-
one of the worlds leading tower co.
WEAKNESS
• No significant presence in North-east
• D2H service not available
• Drop in voice RPM – 3.4%
• Less market share in Urban market
• High tariff compared to competitors
OPPORTUNITIES
• Indian Telecom industry is growing
rapidly
• Licence to operate in all 22 service
areas
• New entrant in broadband
• Raise 750 crore - Axiata
• Access to disputed regional permits
held by Spice Comm.
THREATS
• MNP on rise, low customer loyalty
• Cannibalization of SMS revenues
• Internet telephony on rise
• Awaiting result of Idea’s pleas against
DoT orders transferred to TDSAT
STRENGTHS WEAKNESS
OPPORTUNITIES THREATS
SWOT

7. TRAI recommends sharing of all telecom spectrum
- Benefit Bharti, Idea and Vodafone
- At present - allowed to share passive infrastructure
TRAI warns telecom companies on freedom to fix call rates
- Freedom to fix call & service rate
- Increase tariffs
Union Budget 2014 neutral for Telecom industry
- 500 crore to build infrastructure as per National Rural Internet and Tech. mission
- Creation of 100 smart cities to directly impact Telecom sector
Idea Cellular Q1 2015 net jumps 57 per cent on higher voice rates, data use
- 57 per cent jump in quarterly profit
- First-quarter profit was Rs 7.28 billion ($120.8 million)
Grant of over $1 million from US Trade & Development Agency (USTDA)
- To fund a pilot project involving deployment of Solar Hybrid Methanol-Based Fuel
Cell (SHMBFC) at telecom sites in India.
Raise 750 crore - Axiata
- Raise Rs 750 crore by issuing equity shares on preferential basis to its shareholder,
Malaysia-based Axiata for spectrum auctions later this year
MAJOR NEWS - IMPACT

8. PRESENTED BY:
Sohan Paturkar – 41
Nikhil Mahajan – 89
Sneha Rathod – 102
Pooja Pandit – 35
Sunil Yadav – 60
Chaitanya kulkarni – 87
Ankur Kesharwani – 21