The document provides an overview of the Indian telecom industry and Vodafone's operations in India. It discusses the history and growth of the telecom sector in India. It then focuses on Vodafone, describing its history in India since 1994, mission, objectives, stakeholders, financial performance, and environmental policies. Porter's Five Forces model and PEST analysis are also applied to understand Vodafone's business environment and key influences.

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IIMT SCHOOL OF MANAGEMENT
(ISM)
Business Environment
Semester – 2
Academic Year 2013-14
Module Leader
Ms. Neetu Ahmed
Submitted By
Rishabh Shukla
Post Graduate Diploma in
Management

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INDEX
1 Introduction of Indian Telecom Industry
2 History of Indian Telecom Industry
3 Introduction and History of Vodafone
4 Mission and Vision
5 Objective of Vodafone
6 Stakeholder engagement
7 Influence of Stakeholder
8 Financial Result of Vodafone
9 PEST Analysis
10 Porters Five Forces Model
11 Environmental Policy
12 Market Strategies
13 Organizational Structure
14 Awards and Recognition
15 Executive Summary
16 Conclusion
17 Reference

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1. Introduction
The Indian telecom industry is the fastest growing industry in the world. India is a world second
largest telecom market after the china. Telecom means is transfer information between two
people or two distance points in a space. Telecom regulatory authority of India (TRAI) have
provided an environment for service providers and implemented an all types of government
policy and regulatory framework. This sector is a very competitive. Because telecom sector is a
affordable tariffs to the consumer. Telecom sector are 898 million subscribers as on March 2013.
Telecom infrastructures are expected to increase a compound annual growth rate of 20% during
2008-15 to reach a 571000 tower in 2015. India has opportunities for telecom operator and is
one of the best markets for a telecom business. Telecom sector growths are also attracting a new
player in the telecom industry with the result that intensity of competitions is also increased.
Cellular services are divided into a two categories GSM (Global System for Mobile
Communication) and CDMA (Code Division Multiple Access). GSM company are basically in
India are Airtel, Idea, Vodafone, and a CDMA are provided by a Reliance, Tata Indicom.
www.trai.com (as on 27/03/2014)
Indian telecom markets are basically divided into a two parts, the Fixed Service provider and the
Cellular Service. Fixed Service network comprise a land lines basic service. BSNL and MTNL
are two major players in a fixed line service. BSNL and MTNL are covered a 90% of customer
in India.
Second types of service are available in India is a cellular Service and it’s basically divided into
a two category GSM (Global System for Mobile Communication) and CDMA (Code Division
Multiple Access). GSM sector, the major players are Vodafone, Airtel, Idea, Aircel and so on.
The national company BSNL are also provided a GSM service named “Cellone”. BSNL has a
large number of shares in semi urban and rural areas. The major companies are provided a
CDMA services in India are Reliance communication, Tata Indicom and so on.
www.cci.in (as on 27/03/2014)
Snapshot of Indian telecom industry
Data As on 31st
March, 2013
Telecom Subscribers (Wireless + Wire line)
Total Subscribers 898.02 Million
Urban Subscribers 548.80 Million

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Rural Subscribers 349.22 Million
Market share of Private Operators 85.51%
Market share of Public Sector Operations 14.49%
Wireless Subscribers
Total Subscribers 867.80 Million
Urban subscribers 523.30 Million
Rural Subscribers 342.50 Million
Market share of Private Operators 87.76%
Market share of Public Sector Operators 12.24%
Wire line Subscribers
Total Subscribers 30.21 Million
Urban Subscribers 23.50 Million
Rural Subscribers 6.71 Million
Market share of Private Operator 87.76%
Market share of Public Sector Operator 12.24%
Internet / Broadband Subscribers
Total Subscribers 164.81 Million
Subscribers accessed internet through wireless
phone
143.20 Million
Telecom Financial Data (March 2013)
Gross Revenue Rs. 54283.78 Crore
Adjusted Gross Revenue during the quarter Rs. 35279.50 Crore
Monthly Average Revenue Per User for access
service
Rs. 104
www.trai.com (as on 27/03/2014)
2. History of Indian Telecom Sector
Indian telecom history can be started with the telegraph. Indian telecom and postal sector is the
world oldest. First electric telegraph was started in 1850 in between Calcutta and Diamond
Harbour. In 1851 telegraph opened for a use of British East India Company. Just after
construction was started of 4000 miles of telegraph lines between Kolkata and Peshawar with the
along of Mumbai, Agra, Chennai and Bangalore and it’s started on 1853. In 1854 telegraph
opened for a public. In 1880 Oriental Telephone Company and Anglo- Indian Telephone
company approaches to Indian government to opened a telephone exchange. Governor General
of India declared to open a Telephone exchange in India. The named of this exchange is Central
Exchange.

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Year wise telecom sector history
 Pre-1902 – Cable Telegraph.
 1902- Established a first wireless telegraph station between Sagar Island and Sandhead.
 1913-14 – Started a first Automatic Exchange in Shimla.
 1927- Started a first Radio- telegraph between Indian and UK.
 1953- Introduced a 12 channel carrier system.
 1960- Started a first subscriber trunk dialling commissioned between Kanpur and
Lucknow.
 1976- Introduced a first digital microwave junction.
 1980- Established a first satellite earth station for domestic communication at
Sikandarabad (UP)
 1995-Stated a first mobile telephone service for non commercial basic n 15 August 1995
in Delhi.
 1995- Internet introduced in India in 15 August 1995. Internet started in Mumbai,
Calcutta, Chennai and Pune.
www.cci.in (as on 27/03/2014)
3. Introduction and History of Vodafone
Vodafone India is a public limited company in a telecommunication sector. Vodafone founded in
1984 in London, United Kingdom. Vodafone are provided a different type of product in world
such as fixed line and telephony service, internet service and digital television. Vodafone stated
in India 1994 in Mumbai, Maharashtra. Vodafone are operating its operation in all over the India.
Today time Vodafone is a second largest company in India with a 153 million customers.
Vodafone has a very long term planning in India. Vodafone are saying that they are wanted to
provided an innovative, customer friendly products in India.
Hutchison Max telecom Ltd. is started in 1992 after a joint venture of Hutchison Whampoa and
Max group. Hutchison are getting a licence in Mumbai circle for its operations in 1994.
Hutchison was starting its operations in Delhi circle in 1999 and Kolkata in 2000. In 2005
Hutchison are renamed in Hutchison Essar Ltd. they are getting a licence in 13 circles in India.

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In 2007 Vodafone are purchase a 67% share in Hutch. Vodafone buy a rest of the share in 2011.
www.vodafone.com (As on 27/03/2014)
Key Milestone of Vodafone-
1992- Hutchison and Max group established a Hutchison Max.
2000- They are started its operation in Delhi, Calcutta and Gujarat through a acquisition.
2001- They are getting licences to operate its operation in Karnataka, Andhra Pradesh and
Cheenai.
2003- They are purchased an AirCel Dig link which is already operated in a Rajasthan, Haryana
and UP East.
2005- They are acquired a BPL company licence in three other circle.
2007- Vodafone company purchase a 67% share of Hutch for $ 10.7 billion.
2008- Vodafone is getting a licence in remaining the entire circle and stated its operation in
Madhya Pradesh, Orissa, Bihar and North East state.
2011- In 2011 Vodafone buy out a rest of the share of Hutch in $5.46.
www.vodafone.com (As on 28/03/2014)
4. Mission and Vision
Mission-
Vodafone mission is be are make a diverse and ethical company, operating a responsibility very
well and providing a services that are very suitable for society and customer.
Vision-
Vodafone vision is to enrich a customer through a unique power of mobile communication.
www.vodafone.com (As on 28/03/2014)
5. Objectives of Vodafone
 Vodafone says that they want to be the top mobile service provider of India.
 Vodafone strategic objectives are innovating and deliver on customer’s total
communication needs.
 Creating brand awareness.
www.indiaserver.com (As on 29/03/2014)
6. Stakeholder engagement
Stakeholder are affected the all of the company. Vodafone are listen and communicating with
stakeholder. They are always receiving a feedback from its stakeholders. Vodafone is providing
an all of the benefits to its stakeholders. In any of the cases stakeholders are positively respond

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so they are explain a position of the company in honestly and openly. Our stakeholders are
included an investor, employees and suppliers etc. Stakeholders are directly affected a company
business.
www.vodafone.com (As on 30/03/2014)
Stakeholder
Group
How we engage
Customer Vodafone communicated with their consumer in time by time in different
medium such as retail outlet, customer care and conducting a different type of
survey for knowing to consumer.
Employees Employees are a very important part of any of the organization so they are
always getting a feedback to employees through conducting a survey.
Shareholders They are always conducted a meeting through a events, conferences call and
one-to-one meetings form knowing a different point of view its shareholders.
Supply chain
partner
Vodafone always tries to make a very good relationship with their suppliers.
Vodafone always conducting a different type of workshops and events for
maintain a relationship with their suppliers.
Government Vodafone always follow a government rules and regulations. Vodafone always
tries to follow a government rules and regulations.
Community Vodafone consult with their local people for understanding their services and
facility.
www.vodafone.com (As on 30/03/2014)
7. Influence of Stakeholders-
Stakeholders are a part of the any of organization. How the stakeholders are influenced a
organization. Vodafone are a different stakeholder.
Customer- Vodafone always tried to provide a good care of services to its consumer because
Vodafone are expect a consumer is a cash cow. So they are always tries to not an overcharge to
consumer. They are always tried to making a consumer happy.

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Employees- Vodafone beliefs that after a consumer employee is a very important part of the
organization. So Vodafone tries to staff is well trained and proper knowledge of their product
and services which they are offered. Vodafone always recruiting a best people and investing
money for improving their skills. Vodafone always motivated to its employees by setting up a
goal and providing a reward.
Shareholders- shareholders is a very important part of the any of the organization because
they are invested a money and time in company. And they are always tried to get a good return
for its investment.
Supply chain partner- suppliers is a important part Vodafone always tried to deal a very
effectively with their suppliers and paid a timely because if you are not make a good relationship
with their suppliers so they are effect a image of the company.
Local community- Vodafone always participated in a different types of local and national
charity programme. Vodafone always tries to reduce a impact on environment so Vodafone
always participated in waste and energy saving activities and always concerns with a local
community.
Government- government is control a organization through a different laws and regulations
such as making a new regulations and increase and decrease a taxes etc.
www.vodafone.com (As on 30/03/2014)
8. Financial Result of Vodafone-
Key Financial Summary
Feb. 12(INR Millions) Feb. 13(INR Million)
Service Revenue 153,538 174,189
Total Revenue 155,116 175,813
EBITDA 39,638 49,930
Capital expenditure 24,261 17,047
Service Revenue breakup
Feb. 12 (INR Million) Feb. 13 (INR Million)
Voice 118,778 136,462
Messaging 7871 6393
Data 12,908 14,511
Fixed line 428 767
Other service 13,554 16,055
www.vodafone.com (As on 30/03/2014)

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9. PEST Analysis
Political Factors-
Political factor are affected a all of the industry. If government change so its policy also changed
and makes an effect of its functions. If any of the company want to open its business in outside
of country so company firstly check a political situation of country. India recently government
has launched a new telecom policy. In this policy government are planned a different new policy
such as government has planned a only one licence for operating a services in India. if only one
licences policy is started in India so its affect a operation of Vodafone in India because some of
the company are not have a licence to operate a all over the India but this policy they are receive
a licence for operating to all over the India. And the some other policies are maintained in this
policy such as Roaming free, providing a secure and high quality of services etc.
Economic Factor-
Indian economy is a growing at a faster rate in today time. India most of the population is youth
so investment in Indian market is a good for company. India most of the population is youngster
so its encouraged to company to focus on low cost products and services because young person
have a less money. The foreign trade component of India’s GDP is now 55 %. The Indian
government allow a FDI in India Telecom sector. Attractive investment policy and lucrative
incentives are attractive a telecom equipment suppliers and service provider. In the period of
recession Vodafone are affected by a recession. Vodafone are not only affected in India but it’s
affected in globally.
Social Factor- Most of the population is India is youngster so most of the company are

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making a policy according to the youngster needs. They make the scheme with low call rates and
message scheme. As we are now that today time consumer taste is change and price war is
opened in Indian market. Today time consumer changes a brand according to their needs and
preferences. Many of the telecom company work for a social welfare for example Idea Cellular
co. collected money for the victims 26/11 attack by the subscribers of idea when any call was
made. Indian government providing a different type of benefits such as tax benefits. Indian
government also opened a various research institute with the collaboration of private research
companies.
Technological Factor- Technology are always affects a telecom sector or Vodafone. Today
times many type of communication alternatives are available. Such as online chatting, yahoo
messenger, Skype, face book, what app, Line and many of the alternative software are available.
In a recent time viber are launched a service to free call in viber to viber so these type of
technology are always affected a Vodafone. And some other technological changes such as 3G,
4G technology are come in India so if you are want to lead a market so you are a need to
providing very good services. So theses types of technological changes are increase a company
cost and make an effect on company operations.
www.vodafone.com (As on 30/03/2014)
10. Porter’s Five forces Model
Porters five forces model we will be find out at which type of problems we are faced in business
and they are how to affect a business.
Bargaining power of customer- in case of Vodafone bargaining power of customer is very
high because there are many are many of the telecom operator are available in India so if
consumer are not satisfied with their services so they are joining a another network. For this
reason Vodafone always tried to provide good services in low quantity.

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Bargaining power of Suppliers- Vodafone existence in a globally and Vodafone is a one of
the world leading telecom company. Vodafone has very good controls to its suppliers so
bargaining power of suppliers is low.
Threat of substitute- Vodafone is one of the company launch a very good products and
services in a lower rate. Vodafone always up to dated for a market and technological changes. So
it’s very difficult to other company to make a similar substitute and services. So threat of
substitute is low.
Threat of entry- Threat of entry possible in when your product and service are not according
to the consumer needs and price is higher. Vodafone always study a market condition and change
prices according to the compared of other competitors. So it’s make a Vodafone to stay in a
market.
11. Environmental policy of Vodafone-
Vodafone is one of the companies who are taking a climate change in very seriously. So
Vodafone awarded a “green” brand in 2010. After receiving an award Vodafone started working
in the different initiatives:
Handset recycling
Universal and solar charges
Reduced packaging
E-billing
Environment sustainability is a part of the organization where company worked. Vodafone give a
one motto responsible business is one that is good for a environment. Vodafone are worked in a
different type of policy such as waste management, increasing a operational efficiency and
adopting a green initiatives. Vodafone want to be positive economic and social challenges
through a services and products. Last year Vodafone started a NGO with a partnership of Digital
green. This NGO dedicated to increasing a agriculture and productivity. This NGO provided a
information to farmer in every Sunday in Karnataka.
www.vodafone.com (As on 30/03/2014)
12. Marketing Strategies of Vodafone-
1- Targeting a rural market-
2- Offering cheap handset
3- Free support and services
4- Strong logistic and supply chain management
5- Target a youngster

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13. Economic contribution of Vodafone in India
Currently Vodafone are approximately 10% contribution in economy. Vodafone current revenue
is 36,000 Crore as on 31 March 2013. Vodafone say that their contribution is increased in 15-16
% in next 4-5 years in Indian economy.
www.timesofindia.com (As on 02/04/2014)
14. Organizational Structure of Vodafone-
Chairman- Sir John Bond
Executive Director- Vittorio Colao
Andy Halford
Michel Combes
Stephen Pusey
Deputy Chairman and Independent director- John Buchanan
Non-Executive Director- Alan Jebson
Samuel Jebson
Nick Land
Anne Lauvergeon
Luc Vandevelde
Anthony Watson CBE
Philip Yea
Renee James
Gerard Kleisterlee
www.vodafone.com (As on 30/03/2014)
15. Awards and Recognition of Vodafone
 2007 company get a The Global 2000 award for Forbes.
 In 2006 company are achieving an award in Caring company award by the Hong Kong
council of social services.
 2005 company are listed in Asia top 150 company and getting an Asia’s Best
Conglomerate award.
 2004 company are received an award Best Asian Country award.

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16. Executive Summary
Indian telecom sector has a fastest growing industry of the world. Indian telecom industry is
a second rank after a China. Indian telecom industry many of the players are available.
Vodafone is a one of the major player of the Indian telecom industry. Basically Vodafone
started its operation in India 2007 but before 2007 Vodafone are provided a service through
a different companies tie up. Vodafone is a British company and named Vodafone comes in
a world of voice, data and fone. Vodafone say that they are want to be a top service provider
in India. Vodafone are a different stakeholder such as consumer, employees, local
community, government etc. They all of the stakeholder affect a company business and
operation. But Vodafone are manage an all type of stakeholders are very well. Vodafone are
doing a work in a different type of environmental policy so they are achieved a different
awards for work in the field of environment. Vodafone contribute in India economy is very
well.
17. Conclusion
Vodafone is a second largest telecom company in India after an Airtel. Vodafone company
main aim is to providing a full satisfaction to its stakeholders. Vodafone Company is
provided a clear mission and vision. Vodafone tries to different types of work in the field of
environment and Vodafone contributed in India economy is a very well. Vodafone has a
different types of factor are affected such as political, economical, legal and technological
factor. Vodafone are achieved a different type of awards.
18. Reference
1- Welcome to the corporate Website of Vodafone group plc- Vodafone. 2014 Welcome to
the corporate website of Vodafone Group plc- Vodafone [ONLINE] Available at:
http://www.vodafone.com/content/index.html. [Accessed 28 March 2014].
2- Telecom Market ripe for consolidation: Vodafone India’s Marten Pieters- The Economic
Times. 2014 Telecom market ripe for consolidation: Vodafone India’s Marten Pieters- The
economics Times [Online] Available at:
http://economicstimes.indiatimes.com/industery/telecom/telecom-market-ripe-for-
consolidation-vodafone-indians-marten-pieters/articlehow/33477812.cms. [Accessed 29
March 2014]

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3- Indian Telecom Industry, Telecom Industry in India, Telecommunication. 2014. Indian
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http://indiatelecom.org/opportunities.php [Accessed 01 April 2014].
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http://economicstimes.com/topic/indian-telecom-industery [Accessed at 01 April 2014].
7-Progress against objectives- Vodafone 2014. Progress against objectives- Vodafone
[Online] Available at:
http://www.vodafone.com/contenet/index/about/sustanablity/sustanabilityreport/issue/enviro
nemntfootprint/progressagaimstobjectives.html. [Accessed on 28 of March 2014]