Anil Kumar Jaiswal (MBA Dissertation/Project) - 2010 [Bad Debts Reduction in EBU Segment]

Indian Telecom Sector Research Project Report on

Bad Debts Reduction in EBU Segment(A case study of Idea Cellular Ltd, a telecom service provider of India)

By

Anil Kumar Jaiswal

(Registration No. 520618876)

A project report submitted in partial fulfillment of the requirements for the degree

of

Master of Business Administration of

Sikkim Manipal University, INDIA

INSOFT Institute of IT & Management

C – 2 SECTOR – 10, NOIDA – 201 301

Centre code – 1822

Sikkim – Manipal University of Health, Medical and Technological Sciences

Distance Education Wing

Syndicate House Manipal – 576104

Anil Kumar JaiswalRegistration No. 520618876

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DECLARATION

I hereby declare that the project report entitled

Bad Debts Reduction in EBU Segment

(A case study of Idea Cellular Ltd, a telecom service provider of India)

Submitted in partial fulfillment of the requirement for the degree of

Masters of Business Administration

to Sikkim – Manipal University, India, is my original work and not submitted for

the award of any other degree, diploma, fellowship, or any other similar title or

prizes.

Place: NOIDA, UP (Anil Kumar Jaiswal)

Date: Registration No. 520618876


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CERTIFICATE

The project report of

ANIL KUMAR JAISWAL

(Registration No. 520618876)

Bad Debts Reduction in EBU Segment

(A case study of Idea Cellular Ltd, a telecom service provider of India)

is approved and is acceptable in quality and form.

Internal Examiner External Examiners

(___________________) (___________________)


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ACKNOWLEDGEMENT

I would never have been able to finish my dissertation without the

guidance of my faculty members, help from friends, and support from

my family and wife.

I am very much thankful to the people who have helped me in

preparation of this project, directly or indirectly. I would like to give

special thanks to faculty at Sikkim Manipal University study centre,

NOIDA, who has given me the opportunity to do this project.

I am very much grateful to Mr. Umesh Vijay Rai (Product Head), Idea

Cellular Ltd, Mumbai for support for completing this project.

I am thankful to my friends giving their remarkable contribution and

special thanks to Mr. Amit Rai, Mr. Arvind Jaiswal.

My father Mr Arjun Lal Jaiswal and Mrs Lekha Jaiswal were always

supporting me and encouraging me with their best wishes.

My Wife Preeti Anil Jaiswal has been my enduring source of strength.

Beyond this, she had helped with research and writing of this

dissertation in innumerable ways. To her and our daughter, Tamanna,

I dedicate this dissertation.

Anil Kumar Jaiswal (Registration No. 520618876)


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TABLE OF CONTENTS

Part I ..................................................................................... 9

AN OVERVIEW ......................................................................... 9

INDIAN TELECOM INDUSTRY ........................................................ 9

Executive summary ....................................................................10

1. Introduction ...................................................................11

1.1. The Indian Telecom Industry ............................................11

1.2. Major Players..................................................................13

1.3. Company Market Shares ..................................................20

1.4. Telecom Policy Environment .............................................22

1.4.1. TRAI..............................................................................23

1.4.2. Unified Licensing .............................................................28

1.5. Major Market Trends........................................................30

1.6. Important Statistics.........................................................33

1.7. Constraints.....................................................................35

2. Overview of Idea Cellular Ltd ............................................36

2.1. Introduction ...................................................................36

2.2. History of the organization ...............................................42

3. Study of department related for specialization ....................47

Part II ................................................................................... 48

PROJECT OVERVIEW................................................................48

1. Introduction ...................................................................49

2. Aims and objectives.........................................................57

2.1. Problem Statement: Credit Risk and Bad Debt ....................58

3. Methodology...................................................................63

3.1. Research Methodology: Six sigma DMAIC..........................67


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3.2. DMAIC Methodology for Bad Debt Reduction.......................81

3.2.1. Defining a Project............................................................81

3.2.2. Measure.........................................................................83

3.2.2.1.Collection of Data............................................................83

3.2.2.2.Measurement of Current Bad Debts ...................................84

3.2.2.3.COCP Vs. COIP................................................................85

3.2.2.4.Process performance .......................................................87

3.2.2.5.Current Cost Per Idea Owned Site Measurement .................88

3.2.2.6.Pareto analysis: Population & Revenue contribution .............89

3.2.2.7.EBU Vs. Retail.................................................................90

3.2.3. Analysis .........................................................................93

3.2.3.1.Cause & Effect diagram....................................................93

3.2.3.2.Critical Xs after Brain storming .........................................94

3.2.3.3.Actions already taken ......................................................95

3.2.3.4.City wise contribution ......................................................96

3.2.3.5.Single Vs. Multiple connection...........................................96

3.2.3.6.Agency Feedback ............................................................98

3.2.3.7.Voice of customers(VOC) - Call centre Feedback .................99

3.2.3.8.Age on network (AON) wise Analysis ...............................100

3.2.3.9.Major Reasons ..............................................................101

3.2.4. Improve.......................................................................102

3.2.5. Control ........................................................................103

3.3. Recommendations. ........................................................103

Part III..................................................................................105

BIBLIOGRAPHY & REFERNCES ...............................................106

Bibliography ............................................................................106

References ..............................................................................108


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List of TablesTable 1 Mobile Service provoder subscriber stat .............................20

Table 2 Important statistics .........................................................33

Table 3 DMAIC Tasks and Tools....................................................66

Table 4 Measurement of Current Bad Debts ...................................84

Table 5 COCP vs COIP.................................................................85

Table 6 Bad Debt : EBU vs Retail..................................................90

Table 7 EBU Bad debt .................................................................91

Table 8 Retail Bad debt ...............................................................91

Table 9 Citywise bad debt contribution..........................................96

Table 10 Single Vs. Multiple connection.........................................96

Table 11 AON wise analysis .......................................................100

List of FiguresFigure 1 Market share distribution ................................................21

Figure 2 Indian Telecom Statistics ................................................34

Figure 3 Department Drilldown tree ..............................................47

Figure 4 DMAIC Methodology .......................................................68

Figure 5 Drilldown tree................................................................82

Figure 6 SIPOC ..........................................................................83

Figure 7 Current Bad Debts .........................................................84

Figure 8 COCP vs COIP % contribution (Customer) .........................85

Figure 9 COCP vs COIP % contribution (Amount) ...........................86

Figure 10 EBU Bad Debts Percentage ............................................87

Figure 11 Boxplot of EBU.............................................................88

Figure 12 Pareto Chart hub (Population)........................................89

Figure 13 Pareto Chart hub (Revenue) ..........................................90


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Figure 14 Cause and Effect diagram..............................................93

Figure 15 Single Vs. Multiple connection........................................97

Figure 16 Pareto chart of Agency Feedback...................................98

Figure 17 VOC - Call centre Feedback ...........................................99

Figure 18 AON Category (Bad Debt) ...........................................100


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Part I

AN OVERVIEW OF

INDIAN TELECOM INDUSTRY


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Executive SummaryThe telecom provider found the calls were resulting in an unusually

bad debt rate. In an attempt to minimize the bad debt, the

company tries imposing a credit limit on each call. However, since

the credit limits had very little intelligence behind them, a number

of customers received a credit limit that was too high, while others

received a limit too low, resulting in revenue suppression.

In the competitive business scenario sustaining the EBITA for the

organization is a big challenge. In Order to ensure the same we

need to collect the money from the market at a faster speed and

minimize the bad debts.

The purpose of the research is to discover the answers to the

questions and finding solution for the problem of bad debt through

the application of scientific procedures.


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1. Introduction

1.1. The Indian Telecom IndustryThe Indian Telecommunications network with 110.01 million

connections is the fifth largest in the world and the second largest

among the emerging economies of Asia.

Today, it is the fastest growing market in the world and represents

unique opportunities for U.S. companies in the stagnant global

scenario. The total subscriber base, which has grown by 40% in

2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9

million broadband connections and 18 million internet connections

by 2007. The wireless subscriber base has jumped from 33.69

million in 2004 to 62.57 million in FY2004-2005. In the last 3 years,

two out of every three new telephone subscribers were wireless

subscribers. Consequently, wireless now accounts for 54.6% of the

total telephone subscriber base, as compared to only 40% in 2003.

Wireless subscriber growth is expected to bypass 2.5 million new

subscribers per month by 2007. The wireless technologies currently

in use are Global System for Mobile Communications (GSM) and

Code Division Multiple Access (CDMA). There are primarily 9 GSM

and 5 CDMA operators providing mobile services.


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1851 First operational land lines were laid by the government

near Calcutta (seat of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable

Communication Company (IRCC)

1947 Nationalization of all foreign telecommunication companies

to form the Posts, Telephone and Telegraph (PTT), a

monopoly run by the government's Ministry of

Communications

1985 Department of Telecommunications (DOT) established, an

exclusive provider of domestic and long distance service

that would be its own regulator (separate from the postal

system)

1986 Conversion of DOT into two wholly government-owned

companies: the Videsh Sanchar Nigam Limited (VSNL) for

international telecommunications and Mahanagar

Telephone Nigam Limited (MTNL) for service in

metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National

Telecom Policy is adopted.

2000 DoT becomes a corporation, BSNL


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1.2. Major PlayersThere are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata

Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharti Tele-

Ventures,

• Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL

On October 1, 2000 the Department of Telecom Operations,

Government of India became a corporation and was renamed

Bharat Sanchar Nigam Limited (BSNL).

BSNL is now India’s leading Telecommunications Company and the

largest public sector undertaking. It has a network of over 45

million lines covering 5000 towns with over 35 million telephone

connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA)

mobile, Internet and long distance services throughout India

(except Delhi and Mumbai). BSNL will be expanding the network in

line with the Tenth Five-Year Plan (1992-97). The aim is to provide

a telephone density of 9.9 per hundred by March 2007. BSNL,

which became the third operator of GSM mobile services in most

circles, is now planning to overtake Bharti to become the largest

GSM operator in the country. BSNL is also the largest operator in


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the Internet market, with a share of 21 per cent of the entire

subscriber base.

BHARTI

Established in 1985, Bharti has been a pioneering force in the

telecom sector with many firsts and innovations to its credit,

ranging from being the first mobile service in Delhi, first private

basic telephone service provider in the country, first Indian

company to provide comprehensive telecom services outside India

in Seychelles and first private sector service provider to launch

National Long Distance Services in India. Bharti Tele-Ventures

Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. Its subsidiaries

operate telecom services across India. Bharti’s operations are

broadly handled by two companies: the Mobility group, which

handles the mobile services in 16 circles out of a total 23 circles

across the country; and the Infotel group, which handles the NLD,

ILD, fixed line, broadband, data, and satellite-based services.

Together they have so far deployed around 23,000 km of optical

fiber cables across the country, coupled with approximately 1,500

nodes, and presence in around 200 locations. The group has a total

customer base of 6.45 million, of which 5.86 million are mobile and

588,000 fixed line customers, as of January 31, 2004. In mobile,

Bharti’s footprint extends across 15 circles.

Bharti Tele-Ventures' strategic objective is “to capitalize on the

growth opportunities the company believes are available in the

Indian telecommunications market and consolidate its position to be


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the leading integrated telecommunications services provider in key

markets in India, with a focus on providing mobile services”.

MTNL

MTNL was set up on 1st April 1986 by the Government of India to

upgrade the quality of telecom services, expand the telecom

network, introduce new services and to raise revenue for telecom

development needs of India’s key metros – Delhi, the political

capital, and Mumbai, the business capital. In the past 17 years, the

company has taken rapid strides to emerge as India’s leading and

one of Asia’s largest telecom operating companies. The company

has also been in the forefront of technology induction by converting

100% of its telephone exchange network into the state-of-the-art

digital mode. The Govt. of India currently holds 56.25% stake in

the company. In the year 2003-04, the company's focus would be

not only consolidating the gains but also to focus on new areas of

enterprise such as joint ventures for projects outside India, entering

into national long distance operation, widening the cellular and

CDMA-based WLL customer base, setting up internet and allied

services on an all India basis.

MTNL has over 5 million subscribers and 329,374 mobile

subscribers. While the market for fixed wireline phones is

stagnating, MTNL faces intense competition from the private

players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—

in mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38

billion) in the year 2002-03, a decline of 5.8 per cent over the

previous year’s annual turnover of Rs. 63.92 billion.


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RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to

power and textiles conglomerate. It is also an integrated telecom

service provider with licenses for mobile, fixed, domestic long

distance and international services. Reliance Infocomm offers a

complete range of telecom services, covering mobile and fixed line

telephony including broadband, national and international long

distance services, data services and a wide range of value added

services and applications. Reliance IndiaMobile, the first of

Infocomm's initiatives was launched on December 28, 2002. This

marked the beginning of Reliance's vision of ushering in a digital

revolution in India by becoming a major catalyst in improving

quality of life and changing the face of India. Reliance Infocomm

plans to extend its efforts beyond the traditional value chain to

develop and deploy telecom solutions for India's farmers,

businesses, hospitals, government and public sector organizations.

Until recently, Reliance was permitted to provide only “limited

mobility” services through its basic services license. However, it has

now acquired a unified access license for 18 circles that permits it

to provide the full range of mobile services. It has rolled out its

CDMA mobile network and enrolled more than 6 million subscribers

in one year to become the country’s largest mobile operator. It now

wants to increase its market share and has recently launched pre-

paid services. Having captured the voice market, it intends to

attack the broadband market.


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TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group, which has

93 companies, over 200,000 employees and more than 2.3 million

shareholders. Tata Teleservices provides basic (fixed line services),

using CDMA technology in six circles:

Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil

Nadu, Gujarat and Karnataka. It has over 800,000 subscribers. It

has now migrated to unified access licenses, by paying a Rs. 5.45

billion ($120 million) fee, which enables it to provide fully mobile

services as well.

The company is also expanding its footprint, and has paid Rs. 4.17

billion ($90 million) to DoT for 11 new licenses under the IUC

(interconnect usage charges) regime. The new licenses, coupled

with the six circles in which it already operates, virtually gives the

CDMA mobile operator a national footprint that is almost on par

with BSNL and Reliance Infocomm. The company hopes to start off

services in these 11 new circles by August 2004. These circles

include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa,

Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.


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VSNL

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a

wholly Government owned corporation - was born as successor to

OCS. The company operates a network of earth stations, switches,

submarine cable systems, and value added service nodes to provide

a range of basic and value added services and has a dedicated work

force of about 2000 employees. VSNL's main gateway centers are

located at Mumbai, New Delhi, Kolkata and Chennai. The

international telecommunication circuits are derived via Intelsat and

Inmarsat satellites and wide band submarine cable systems e.g.

FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

The company's ADRs are listed on the New York Stock Exchange

and its shares are listed on major Stock Exchanges in India. The

Indian Government owns approximately 26 per cent equity, M/s

Panatone Finvest Limited as investing vehicle of Tata Group owns

45 per cent equity and the overseas holding (inclusive of FIIs,

ADRs, Foreign Banks) is approximately 13 per cent and the rest is

owned by Indian institutions and the public. The company provides

international and Internet services as well as a host of value-added

services. Its revenues have declined from Rs. 70.89 billion ($1.62

billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03,

with voice revenues being the mainstay. To reverse the falling

revenue trend, VSNL has also started offering domestic long

distance services and is launching broadband services. For this, the

company is investing in Tata Telservices and is likely to acquire

Tata Broadband.


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HUTCH

Hutch’s presence in India dates back to late 1992, when they

worked with local partners to establish a company licensed to

provide mobile telecommunications services in Mumbai. Commercial

operations began in November 1995. Between 2000 and March

2004, Hutch acquired further operator equity interests or operating

licenses. With the completion of the acquisition of BPL Mobile

Cellular Limited in January 2006, it now provides mobile services in

16 of the 23 defined license areas across the country. Hutch India

has benefited from rapid and profitable growth in recent years. it

had over 17.5 million customers by the end of June 2006.

IDEA CELLULAR Ltd

Indian regional operator IDEA Cellular Ltd. has a new ownership

structure and grand designs to become a national player, but in

doing so is likely to become a thorn in the side of Reliance

Communications Ltd. IDEA operates in eight telecom “circles,” or

regions, in Western India, and has received additional GSM licenses

to expand its network into three circles in Eastern India -- the first

phase of a major expansion plan that it intends to fund through an

IPO, according to parent company Aditya Birla Group.


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1.3. Company Market SharesThe number of telephone subscribers in India increased to 638.05

Million at the end of April-2010 from 621.28 Million in March-2010,

thereby registering a growth rate of 2.70%. With this, the overall

Tele-density in India reaches 54.10. Wireless subscriber base

increased from 584.32 Million in March-2010 to 601.22 Million.

Mobile Service Providers Subscriber Statistics (April 2010)

Service Provider Subscriber (Mn) Market Share (%)Bharti Airtel 130.61 21.73Reliance Com + RTL 105.15 17.49Vodafone Essar 103.75 17.26BSNL 70.62 11.75Tata Teleservices 67.88 11.29IDEA 65.28 10.86Aircel 38.46 6.4MTNL 5.12 0.85Uninor 5.02 0.84Sistema Shyam 4.21 0.7Loop Mobile 2.89 0.48STel 1.11 0.19Videocon 0.65 0.11HFCL Infotel 0.327 0.06Etisalat/Allianz 0.004 0

Table 1 Mobile Service provider subscriber stat


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Market Share (%)

Bharti Airtel23%

Reliance Com + RTL17%

Vodafone Essar17%

BSNL12%

Tata Teleservices

11%

IDEA11%

1%Others <

Aircel6%

Figure 1 Market share distribution


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1.4. Telecom Policy EnvironmentIndian telecommunications today benefits from among the most

enlightened regulation in the region, and arguably in the world. The

sector, sometimes considered the “poster-boy for economic

reforms,” has been among the chief beneficiaries of the post-1991

liberalization. Unlike electricity, for example, where reforms have

been stalled, telecommunications has generally been seen as

removed from “mass concerns,” and thus less subject to electoral

calculations. Market oriented reforms have also been facilitated by

lobbying from India’s booming technology sector, whose continued

success of course depends on the quality of communications

infrastructure.


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1.4.1. TRAIDespite several hiccups along the way, the Telecom Regulatory

Authority of India (TRAI), the independent regulator, has earned a

reputation for transparency and competence. With the recent

resolution of a major dispute between cellular and fixed operators

(see below), Indian telecommunications, already among the most

competitive markets in the world, appears set to continue growing

rapidly.

While telecom liberalization is usually associated with the post-1991

era, the seeds of reform were actually planted in the 1980s. At that

time, Rajiv Gandhi proclaimed his intention of “leading India into

the 21st century,” and carved the Department of

Telecommunications (DOT) out of the Department of Posts and

Telegraph. For a time he also even considered corporatizing the

DOT, before succumbing to union pressure.

In a compromise, Gandhi created two DOT-owned corporations:

Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and

Bombay, and Videsh Sanchar Nigam Limited (VSNL), to operate

international telecom services. He also introduced private capital

into the manufacturing of telecommunications equipment, which

had previously been a DOT monopoly.

These and other reforms were limited by the unstable coalition

politics of the late 1980s. It was not until the early 1990s, when the


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political situation stabilized, and with the general momentum for

economic reforms, that telecommunications liberalization really took

off. In 1994, the government released its National

Telecommunications Policy (NTP-94), which allowed private fixed

operators to take part in the Indian market for the first time

(cellular operators had been allowed into the four largest

metropolitan centers in 1992). Under the government’s new policy,

India was divided into 20 circles roughly corresponding to state

boundaries, each of which would contain two fixed operators

(including the incumbent), and two mobile operators.

As ground-breaking as NTP-94 was, its implementation was

unfortunately marred by regulatory uncertainty and over-bidding. A

number of operators were unable to live up to their profligate bids

and, confronted with far less lucrative networks than they had

supposed, pulled out of the country. As a result, competition in

India’s telecom sector did not really become a reality until 1999. At

that time the government’s New Telecommunications Policy (NTP-

99) switched from a fixed fee license to a revenue sharing regime

of approximately 15%. This figure has subsequently been lowered

(to 10%-12%), and is expected to be reduced even further over the

coming years. Still, India continues to derive substantial revenue

from license fees ($800 million in 2001-2002), leading some critics

to suggest that the government has abrogated its responsibilities as

a regulator to those as a seller.

Another, perhaps even more significant, problem with India’s initial

attempts to introduce competition was the lack of regulatory clarity.


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Private operators complained that the licensor – the DOT – was also

the incumbent operator. The many stringent conditions attached to

licenses were thus seen by many as the DOT’s attempt to limit

competition. It was in response to such concerns that the

government in 1997 set up the Telecom Regulatory Authority of

India (TRAI), the nation’s first independent telecom regulator.

Over the years, TRAI has earned a growing reputation for

independence, transparency and an increasing level of competence.

Early on, however, the regulator was beleaguered on all fronts. It

had to contend with political interference, the incumbent’s many

challenges to its authority, and accusations of ineptitude by private

players. Throughout the late 1990s, TRAI’s authority was steadily

whittled away in a number of cases, when the courts repeatedly

held that regulatory power lay with the central government. It was

not until 2000, with the passing of the TRAI Amendment Act, that

the regulatory body really came into its own. Coming just a year

after NTP-99, the act marks something of a watershed moment in

the history of India telecom liberalization. It set the stage for

several key events that have enabled the vigorous competition

witnessed today. Some of these events include:

• The corporatization of the DOT and the creation of a new state-

owned telecom company, Bharat Sanchar Nigam Ltd (BSNL), in

2000;


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• The opening up of India’s internal long-distance market in 2000,

and the subsequent drop in long-distance rates as part of TRAI’s

tariff rebalancing exercise;

• The termination of VSNL’s monopoly over international traffic in

2002, and the partial privatization of the company that same

year, with the Tata group assuming a 25% stake and

management control;

• The gradual easing of the original duopoly licensing policy,

allowing a greater number of operators in each circle;

• The legalization, in 2002, of IP telephony (a move that many

believe was held up due to lobbying by VSNL, which feared the

consequences on its international monopoly);

The introduction in 2003 of a Calling Party Pays (CPP) system for

cell phones, despite considerable opposition (including litigation) by

fixed operators;

And, more generally, the commencement of more stringent

interconnection regulation by TRAI, which has moved from an

interoperator “negotiations-based” approach (often used by the

stronger operator to negotiate ad infinitum) to a more rules-based

approach.

All of these events have created an impressive forward-momentum

in Indian telecommunications, resulting in a vigorously competitive

and fast-growing sector. India has also suffered from its fair share


27

of regulatory hiccups. Many operators (mobile players in particular)

still complain about the difficulties of gaining access to the

incumbent’s (BSNL) network, and the government’s insistence on

capping FDI in the telecom sector to 49% (a move made in the

name of national security) limits capital availability and thus

network rollout. In addition, ISPs, who were allowed into the

market under a liberal licensing regime in 1998, continue to

hemorrhage money, and have been pleading with the government

for various forms of relief, including the provision of unmetered

phone numbers for Internet access. Despite initially impressive

results, the growth of Internet in the country has recently stalled,

with only 8 million users. Broadband penetration, too, remains tiny.


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1.4.2. Unified LicensingBut perhaps the biggest – and, until recently, most intractable –

regulatory problem has been the drawn-out battle over “limited

mobility” telephony. This imbroglio began in 1999, when MTNL

sought permission from TRAI to provide CDMA-based WLL services

with “limited mobility.” GSM cellular operators were soon up in

arms, arguing that “limited mobility” was simply a backdoor entry

into their business. Moreover, fixed operators had paid lower license

and spectrum fees than cellular ones; were not required to pay

access charges for cell-to-fixed calls (unlike their cellular

counterparts); and, amidst accusations of cross-subsidization, were

charging considerably lower rates than the cellular operators. The

resulting conflict dragged on in the courts and in the political arena

for years.

Fixed operators including new entrants Reliance and Tata

Teleservices claimed that they were being prevented from providing

a cheap service that would drive penetration and be of benefit to

the “common man”; cellular players bitterly opposed what they

perceived as unequal regulatory treatment for two kinds of

operators who were in fact offering the same service. The real

victim, of course, was the Indian telecommunications market, which

suffered from investor perceptions of regulatory confusion and

operator in-fighting. In late 2002, for example, thousands of mobile

users in New Delhi were for a time cut off from the fixed-line

network when MTNL shut down interconnection for cellular


29

companies. (MTNL later attributed the incident to a “technical

snag.”)

It was not until late 2003 that the issue was finally resolved, under

considerable government pressure, when cellular operators agreed

to withdraw their many cases against the fixed-line operators. Fixed

operators would in effect be allowed to enter the mobile business;

in return, the government granted cellular players several

concessions, including lower revenue-share arrangements

estimated to total over $210 million. Perhaps most notably, the

government announced its intention to adopt a “unified access

licensing” regime, which would in the future provide a single,

technology-neutral license for fixed and cellular operators. The hope

is that this new license category will prevent a repeat of the recent

controversy, and allow new technologies to enter the Indian market

without requiring a wholesale rewrite of licensing laws.


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1.5. Major Market TrendsThe telecoms trends in India will have a great impact on everything

from the humble PC, internet, broadband (both wireless and fixed),

cable, handset features, talking SMS, IPTV, soft switches, and

managed services to the local manufacturing and supply chain. This

report discusses key trends in the Indian telecom industry, their

drivers and the major impacts of such trends affecting mobile

operators, infrastructure and handset vendors.

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an

average of four million subscribers added every month for the past

six months itself). They prefer wireless services compared to wire-

line services, which is evident from the fact that while the wireless

subscriber base has increased at 75 percent CAGR from 2001 to

2006, the wire-line subscriber base growth rate is negligible during

the same period. In fact, many customers are returning their wire-

line phones to their service providers as mobile provides a more

attractive and competitive solution. The main drivers for this trend

are quick service delivery for mobile connections, affordable pricing

plans in the form of pre-paid cards and increased purchasing power

among the 18 to 40 years age group as well as sizeable middle

class – a prime market for this service.

Some of the positive impacts of this trend are as follows. According

to a study, 18 percent of mobile users are willing to change their


31

handsets every year to newer models with more features, which is

good news for the handset vendors. The other impact is that while

the operators have only limited options to generate additional

revenues through value-added services from wire-line services, the

mobile operators have numerous options to generate non-voice

revenues from their customers.

Some examples of value-added services are ring tones download,

colored ring back tones, talking SMS, mobisodes (a brief video

programme episode designed for mobile phone viewing) etc.

Moreover, there exists great opportunity for content developers to

develop applications suitable for mobile users like mobile gaming,

location based services etc. On the negative side, there is an

increased threat of virus – spread through mobile data connections

and Bluetooth technology – in mobile phones, making them

unusable at times. This is good news for anti-virus solution

providers, who will gain from this trend.

MERGERS

Demand for new spectrum as the industry grows and the fact the

spectrum allocation in done on the basis of number of subscribers

will force companies to merge so as to claim large number of

subscribers to gain more spectrum as a precursor to the launch of

larger and expanded services. However it must also be noted that

this may very well never happen on account of low telecom

penetration.


32

New Circles

As mentioned earlier there is a significant number of tier-2 and tier

3 cities that can accommodate more players we expect aggressive

response by the companies to such opportunities as and when they

are created.


33

1.6. Important StatisticsJan-10 Jan-09 Aug-08

Total telephone subscriber

base

581.81 400.05 343.87

Over all Tele-density 49.50% 34.50% 29.83%

Fixed-line user base 36.76 37.75 38.63

Wireless user base

(GSM+CDMA+WLL(F))

545.05 362.3 305.24

GSM Subscribers 394.35 267.54 225.6

CDMA Subscribers 144.73 94.76 78.89

Monthly additions

(Wireline + Wireless)

19.51 15.26 9.03

Monthly additions (Wireline) -0.31

Monthly additions (Wireless) 19.9 15.41 9.16

Broadband subscribers 8.03 5.65 4.73

Table 2 Important statistics


34

Indian Telecom Statistics

-100

0

100

200

300

400

500

600

Tota

l te

lephone

subs

criber

base

Fix

ed-lin

e u

ser

base

Wirel

ess u

ser

base

(GS

M+

CD

MA

+W

LL(F

))

GS

M S

ubsc

riber

s

CD

MA

Subsc

riber

s

Month

ly a

dditio

ns

(W

irel

ine +

Wire

less)

Month

ly a

dditio

ns(W

irelin

e)

Month

ly a

dditio

ns(W

irele

ss)

Bro

adb

and

subsc

riber

s

(in

mil

lio

ns)

Jan-10

Jan-09

Aug-08

Figure 2 Indian Telecom Statistics


35

1.7. Constraints• Slow pace of the reform process.

• It would be difficult to make in-roads into the semi-rural and rural

areas because of the lack of infrastructure. The service providers

have to incur a huge initial fixed cost to make inroads into this

market. Achieving break-even under these circumstances may

prove to be difficult.

• The sector requires players with huge financial resources due to the

above mentioned constraint. Upfront entry fees and bank

guarantees represent a sizeable share of initial investments. While

the criteria are important, it tends to support the existing big and

older players. Financing these requirements require a little more

liberal approach from the policy side.

• Problem of limited spectrum availability and the issue of

interconnection charges between the private and state operators.


36

2. Overview of Idea Cellular Ltd

2.1. Introduction

IDEA CELLULAR Ltd.

Idea Cellular is a wireless telephony company operating in all the

22 telecom circles in India based in Mumbai. It is the 3rd largest

GSM company in India behind Airtel and Vodafone and ahead of

state run player BSNL.

In 2000, Tata Cellular was a company providing mobile services in

AP. When Birla-AT&T brought Maharashtra and Gujarat to the table,

the merger of these two entities was a reality. Thus Birla-Tata-

AT&T, popularly known as Bi-tata, was born. In 2001, the Batata

triumvirate agreed to merge its operations with the Rajeev

Chandrasekhar promoted BPL Communications. The merger could

have brought in regions like Mumbai, Maharashtra, Kerala and

Tamil Nadu, which seemed to be a perfect accompaniment to what

it already had. This was critical with the bid for the fourth operator

license round the corner. However, the engagement with BPL was

broken. Then Idea set sights on RPG’s operations in Madhya

Pradesh which was successfully acquired, helping Batata have a

million subscribers, and the license to be the fourth operator in


37

Delhi was clinched. In 2004, Idea (the company had by then been

rechristened) bought over the Escorts group’s Escotel gaining

Haryana, Uttar Pradesh (West) and Kerala — and licenses for three

more — UP (East), Rajasthan and Himachal Pradesh. By the end of

that year, four million Indians were on the company’s network. In

2005, AT&T sold its investment in Idea, and the year after Tatas

also bid good bye to pursue an independent telecom business. And

Idea was left only with one promoter, the AV Birla group When the

company’s stock listed on the bourses in March 2007, its subscriber

base was 13 million with presence in 11 circles. In less than three

years, the subscriber numbers have more than quadrupled. The

public issue was oversubscribed 50 times and raised Rs 2,450

crore. In June 2008, Idea Cellular bought out BK Modi’s stake in

Spice Communications for Rs 2,700 crore adding Punjab and

Karnataka circles. Modi’s joint venture partner, Telekom Malaysia,

invested Rs 7,000 crore for a 14.99% stake in Idea. Just around

then, Idea’s subsidiary, Aditya Birla Telecom sold a 20% stake to

US-based Providence Equity Partners for over Rs 2,000 crore.

The company has its retail outlets under the "Idea n' U" banner.

The company has also been the first to offer flexible tariff plans for

prepaid customers. It also offers GPRS services in urban areas.

IDEA Cellular is a publicly listed company, having listed on the

Bombay Stock Exchange (BSE) and the National Stock Exchange

(NSE) in March 2007.


38

IDEA Cellular is a leading GSM mobile services operator in India

with over 58 million subscribers, under brand IDEA. It is a pan India

integrated GSM operator covering the entire telephony landscape of

the country, and has NLD and ILD operations, integrated with IDEA

through a merger with Tata Cellular Limited.

In June 2001, the mobile operations in Madhya Pradesh Service

Area were fully integrated with IDEA through an acquisition of RPG

Cellcom Limited. In October 2001, the license for Delhi Service Area

was acquired during the fourth mobile license auction, with network

rollout and commercial launch in November 2002.

In January 2004, Escotel Mobile Communications Private Limited

("Escotel"), was acquired with its original licenses in the Service

Areas of Haryana, Uttar Pradesh (West) and Kerala. All these

Service Areas were re-branded and integrated with IDEA in June

2004.

A frontrunner in introducing revolutionary tariff plans, IDEA Cellular

has the distinction of offering the most customer friendly and

competitive Pre Paid offerings, for the first time in India, in an

increasingly segmented market. From basic voice & Short Message

Service (SMS) services to high-end value added & GPRS services

such as Blackberry, Datacard, Mobile TV, Games etc - IDEA is seen

as an innovative, customer focused brand.

IDEA offers affordable and world-class mobile services to varied

segments of mobile users. Be it high end users, or low-end, price


39

sensitive consumers - IDEA's tariff plans are designed to suit every

pocket.

With a vision of delighting its customers while meeting their

individual communication needs anytime, anywhere, IDEA offers

seamless coverage to roaming customers traveling to any part of

the country, as well as to international traveling customers across

over 200 countries. IDEA Cellular has partnership with over 400

operators to ensure that customers are always connected while on

the move, within the country or other parts of the world.

IDEA is the winner of ‘The Emerging Company of the Year Award' at

The Economic Times Corporate Excellence Awards 2008-09. The

company has received several other national and international

recognitions for its path-breaking innovations in mobile telephony

products & services. It won the GSM Association Award for “Best

Billing and Customer Care Solution” for 2 consecutive years. It was

awarded “Mobile Operator of the Year Award - India” for 2007 and

2008 at the Annual Asian Mobile News Awards.

IDEA Cellular is an Aditya Birla Group Company, India's first truly

multinational corporation. The group operates in 25 countries, and

is anchored by over 1,30,000 employees belonging to 30

nationalities. The Group has been adjudged the ‘6th Top Company

for Leaders in Asia Pacific Region' in 2009, in a survey conducted by

Hewitt Associates, in partnership with The RBL Group, and Fortune.

The Group has also been rated ‘The Best Employer in India and

among the Top 20 in Asia' by the Hewitt-Economic Times and Wall

Street Journal Study 2007.


40

Service Areas The Indian telecommunications market for mobile

services is divided into 22 "Service Areas" classified into "Metro",

Category "A", Category "B" and Category "C" service areas by the

Government of India. These classifications are based principally on

a Service Area's revenue generating potential.

IDEA is a pan-India operator with services being made available in

all parts of the country. The telecom service areas have been

divided into Established and New Service Areas.

Established Service Areas The established service areas are

Delhi, Andhra Pradesh, Gujarat, Maharashtra, Goa, Haryana,

Kerala, Madhya Pradesh and Uttar Pradesh (West).

Licenses for the Maharashtra and Gujarat Service Areas were

awarded in December 1995, with network rollout and commercial

launch achieved in 1997. In January 2001 the mobile operations in

Andhra Pradesh Service area.

New Service Areas The New Service Areas are Uttar Pradesh

(East), Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka,

Punjab, Orissa, Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata

& West Bengal, and Assam & North East.

Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh

were acquired through the acquisition of Escotel (Escorts

Telecommunications Limited).


41

Idea launched its services in Mumbai and Bihar in 2008. The

Mumbai launch was the largest Metro City launch in India. In Bihar,

Idea acquired 500,000 subscribers in just over 100 days.

Brand Idea was launched in Karnataka and Punjab, through the

acquisition of Spice Communications.

The company has expanded its pan-India presence through service

launches in Orissa, Chennai & Tamil Nadu, Jammu & Kashmir,

Kolkata & West Bengal, and the North East states in FY10.


42

2.2. History of the organization

IDEA CELLULAR Ltd.

The chronology of key events of the Company from incorporation

is set out below:

Calendar year Events

2009

Subscriber base as on December 31, 2009: 57,611,872

Idea becomes a pan-India operator

Emerging Company of the Year - fastest growing mobile

operator in the world’s fastest growing telecom market

2008


Idea acquired 9 licenses for Punjab, Karnataka, Tamil Nadu &

Chennai, West Bengal, Orissa, Kolkata, Assam, North East

and Jammu & Kashmir

Acquired Spice Communications with the operating circles of

Punjab and Karnataka


43

Launched services in Mumbai metro in the largest single

metro city launch, ever

Launched services in Bihar

2007


Won an award for the "CARE" service in the "Best Billing or

Customer Care Solution" at the GSM Association Awards in

Barcelona, Spain

Initial Public Offering aggregating to Rs. 28,187 million and

Listing of Equity Shares on the Bombay Stock Exchange and

the National Stock Exchange

Merger of seven subsidiaries with Idea Cellular Limited

Reached the twenty million subscriber mark

2006


Became part of the Aditya Birla Group subsequent to the

TATA Group transferring its entire shareholding in the

Company to the Aditya Birla Group

Acquired Escorts Telecommunications Limited (subsequently

renamed as Idea Telecommunications Limited)

Restructuring of debt


44

Launch of the New Circles

Reached the 10 million subscriber mark

Received Letter of Intent from the DoT for a new UAS License

for the Mumbai Circle.

Received Letter of Intent from the DoT for a new UAS License

for the Bihar Circle through Aditya Birla Telecom Limited.

ABNL, the parent of Aditya Birla Telecom Limited, pursuant to

a letter dated November 22, 2006, agreed to transfer its

entire shareholding in Aditya Birla Telecom Limited to the

Company for the consideration of Rs. 100 million.

2005


Reached the five million subscriber mark

Turned Profit Positive

Won an Award for the "Bill Flash" service at GSM Association

Awards in Barcelona, Spain

Sponsored the International Indian Film Academy Awards

2004

Completed debt restructuring for the then existing debt

facilities and additional funding for the Delhi Circle.

Acquired Escotel Mobile Communications Limited

(subsequently renamed as Idea Mobile Communications


45

Limited)

Reached the four million subscriber mark

First operator in India to commercially launch EDGE services

2005

2003

Reached the two million subscriber mark

2002

Changed name to Idea Cellular Limited and launched "Idea"

brand name

Commenced commercial operations in Delhi Circle

Reached the one million subscriber mark

2001

Acquired RPG Cellular Limited and consequently the license

for the Madhya Pradesh (including Chattisgarh) Circle

Changed name to Birla Tata AT&T Limited

Obtained license for providing GSM-based services in the

Delhi Circle following the fourth operator GSM license bidding

process

2000


46

Merged with Tata Cellular Limited, thereby acquiring original

license for the Andhra Pradesh Circle

1999

Migrated to revenues share license fee regime under New

Telecommunications Policy ("NTP")

1997

Commenced operations in the Gujarat and Maharashtra

Circles

1996

Changed name to Birla AT&T Communications Limited

following joint venture between Grasim Industries and AT&T

Corporation

1995

Incorporated as Birla Communications Limited

Obtained licenses for providing GSM-based services in the

Gujarat and Maharashtra Circles following the original GSM

license bidding process.


47

3. Study of related department for specialization

Figure 3 Department Drilldown tree

Drilldown Tree

Business Profitability

Sales Collection Operational Cost Reduction

Reduction of Bad Debts

Collection cost reduction

EBU Customers Bad

Debts

Retails Customers Bad

Debts


48

Part II

PROJECT OVERVIEW


49

1. IntroductionA telecom firm, Idea Cellular Ltd providing call services to

correctional facilities nationwide.

Every telecom company wants to create a great experience for its

customers. But in practice, companies need to recognize who the

high value customers are, in order to invest in improving their

experience. Likewise, it’s important to identify risky customers who

may not be able to pay their bills.

Recent advances in technology have made it possible to manage

customer analytics closer and closer to real time, helping telecom

companies to make better decisions about the services they offer.

Idea Cellular Ltd is even using this analytic capability at the

moment customers are making calls, dramatically reducing bad call

debt and improving profitability.

Struggling with Unusually High-Risk Customers

The telecom company Idea Cellular Ltd, is a primary provider of

calling solutions to correctional facilities nationwide.

Not surprisingly, the telecom provider found the calls were resulting

in an unusually bad debt rate.

In an attempt to minimize the bad debt, the company tried

imposing a credit limit on each call. However, since the credit limits


50

had very little intelligence behind them, a number of customers

received a credit limit that was too high, while others received a

limit too low, resulting in revenue suppression.

Further, the lack of intelligence behind the credit limit caused

unneeded routing of consumers to customer service, which was

costly to the company and resulted in an unhappy experience for

many.

The company needs to develop a solution that would optimize the

credit limit based on true credit worthiness. This would allow them

not only to reduce bad debt from risky customers, but to optimize

revenue from good customers while enhancing the customer

experience.

The business challenge

The dynamic telecommunications market is seeing an almost

unprecedented level of customer delinquency.

Pressure to grow and retain the subscriber base, combined with

higher bills resulting from the convergence of services, as well as

growing use of third party content, mean that telecommunications

operators are facing escalating write-off amounts.

This has led to increased pressure on the debt management

operation to recover these outstanding amounts.


51

However, in a highly competitive environment, it is easy for

customers to switch between suppliers and leave debts behind

them, meaning a close management of the customer relationship

during collections is essential, to ensure retention and reduce

churn.

The Answer

A need of customer debt management solution specifically designed

for telecommunications providers.

Proposition for debt management in telecommunications places

intelligent customer segmentation at the heart of the processes and

activities to drive dynamic, tailored collections strategies for each

delinquent customer.

Customers are finely segmented to create an accurate profile and,

using behavioral scoring, each customer is assigned a risk score,

which is used throughout the collections activities to drive the most

appropriate strategy.

Using the profile, collections actions can be effectively prioritized,

such as leaving habitual late payers to self-cure and focusing

resources on high risk, high value customers.

Both automatic and manual provisioning can be achieved, so that

suspension, termination and re-activation, barring and debarring


52

and throttling and download restrictions can easily be applied to

both encourage and reward payments.

With a large volume of lower value debts, automation can have a

significant impact on operational costs. The system automates

collections activities to minimize manual intervention, and enables

staff to concentrate on higher value, higher risk collections.

Operators can benefit from:

• Minimizing collections costs and time to collect

• Increasing cash flow

• Improving recovery rates and reduce bad debt write-offs

• Improving staff productivity and focus collections resources

• Protecting future revenue streams and reduce churn

"The India mobile market is increasingly competitive. Debt

Management will enable Idea Cellular to improve the way we

interact with customers behind on their bills. By treating them in a

more thoughtful and personalized way and will able to retain and

attract new customers who appreciate good service.”


53

Identifying the Challenges

The company was experiencing high levels of bad debt, losing

potential revenue, and creating poor customer experiences due to

an inaccurate credit scoring approach.

After assessing the company’s data and system, the Idea Cellular

team uncovered several challenges:

• Addresses and names were not available for many of the

people the inmates were phoning, which made it difficult to

profile those responsible for paying the bill.

• Most calls were billed by the local exchange carriers, which

meant there was little visibility into whether an actual payment

had been made, with such details as an individual call payment

date and payment amount.

The availability of historical data varied greatly. While a number

of customers had several previous calls and payment

transactions, which could be used to generate future payment

predictors, other customers were first-time callers.

Based on the data that was available, the Idea Cellular team

found that, not surprisingly, one of the most powerful indicators

of future payment was previous call and payment behavior.


54

Idea Cellular experts worked with the company to build a multi-

tier analytic system with several models depending on the

number of previous calls (historical behavior) a customer may

have had. At the same time, they identified outside data sources

for identifying call recipients, to enhance the ability to score new

customers.

Once the credit models were complete, the Idea Cellular team

have developed a historical sample of customers, scored their

payment performance, and used that data to help establish the

proper credit limits to optimize revenue.

Idea Cellular’s analytic and technical consultants then can work

with the telecom’s internal IT team to deploy the models in a

real-time scoring and credit-limit application module that

possibly will be able to adjust credit limits dynamically during

call.

There is a need for a strategic approach to debt management in

the telecommunications sector.


55

The issues of debt management

Telecommunications operators have faced increasing pressure

over recent years to grow the subscriber base in a highly

competitive market, only to find that their customers have been

able to switch between providers, leaving their debts behind and

making customer churn a significant challenge.

Added to that the growth in third party content and the losses

from bearing those costs, and it is clear that debt management

is becoming a key driver for telecommunications operators.

Operators who take a strategic approach achieve a significant

reduction in the cost to collect the higher volume, lower value

debts that are typical of this industry and, at the same time,

reduce the levels of churn.

A strategic approach will optimize collections by:

• Maximizing profit by increasing the recovery of cash collected

using efficient automated strategies and actions

• Improving cash flow by ensuring earlier recovery of the debt

• Reducing costs through improved automation of decisions,

actions and the use of best practice collections techniques


56

• Increasing customer retention through debtor rehabilitation

and management by profiling the debtor and using the most

appropriate collection technique

• Ensuring rapid ROI by utilizing an agile deployment and

optimized ability to further enhance the solution.

The aim is to enable a rapid reaction to changing customer needs

and market demands, as well as managing portfolio growth.


57

2. Aims and objectivesThe telecom company, Idea cellular Ltd, provider found the calls

were resulting in an unusually bad debt rate. In an attempt to

minimize the bad debt, the company tries imposing a credit limit on

each call. However, since the credit limits had very little intelligence

behind them, a number of customers received a credit limit that

was too high, while others received a limit too low, resulting in

revenue suppression.





The purpose of the research is to discover the answers to the

questions and finding solution for the problem of bad debt through

the application of scientific procedures.


58

2.1. Problem Statement: Credit Risk and Bad DebtUnderstanding Receivables Management problems and solutions for

the Telecommunications, Media and Entertainment sectors.

In the Telecommunications, Media and Entertainment sectors,

products and services are sold on both pre-paid and post-paid (i.e.

credit) terms. Where credit-terms are given, there are inherent

risks to payment:

• Those who (unintentionally) cannot afford to pay (genuine

bad-debt)

• Habitual late payment

• Those who can pay but refuse (maybe a dissatisfied

customer)

• Those who have been deceptive and do not intend to pay

(fraud)

It is important to differentiate between these types of payment risk

as the way of dealing with them will be quite different. Treating all

payment risks in a similar way is a common problem and will lead

to increased costs, reduced effectiveness of operations and

disgruntled customers. All types of customer might fall into any of

these categories – Consumer, Corporate, SME etc. Identifying,

preventing and managing exposure at the point of sale and

throughout a customer lifecycle (through behavioral


59

scoring/analytics) has to be constantly in focus for a Service

Provider to maintain manageable debt levels.

Increasingly, it is not only the level of credit risk exposure or bad

debt that is in focus, but also the efficiency and effectiveness of the

business operations, directly affecting operating costs. A well-

designed, thoughtful and innovative receivables management

process and operating parameters will reduce credit risk, improve

on-time payments and recover more from the bad-debt provision

than the competition. In doing so, Service Providers create a

distinct opportunity to allocate resources to other business needs,

or simply reduce overall operating costs.

Various benchmarking exercises have demonstrated a common

bad-debt to revenue ratio range of between 1-6%, with the ‘best-

average’ position at around 2%. Some Service Providers can get to

the magic 1% threshold with sophisticated and pragmatic

approaches to credit management, but many jump between peaks

and troughs as they fail to align marketing and product

management activities with a sensible credit management policy

and operational plans.

Note: Although pre-paid services are aimed at reducing credit-risk

and targeted at certain market sectors, there are a number of

issues with pre-paid services that need to be managed – see our

separate document on Pre-paid Risks.


60

The issues

To grow market share of the higher-ARPU (Average Revenue Per

User) post-paid customer segment, many Service Providers are

aggressively targeting both business and consumer segments. The

strategy has many potential benefits:

• Leveraging existing infrastructure such as mediation and billing

systems, reducing average costs and improving margin (AMPU)

potential.

• Reducing attrition rates, allowing longer-term relationships and

efficiencies in managing known-customers (e.g. tailored

collection treatment plans).

• Improved revenues through higher average usage and cross-

selling of products and services that is easier with loyal

customers and up-to-date contact information.

The business implications of bad debt

Many companies simply assume that bad debt is the cost of doing

business. However, senior executives are now frequently asked to

explain bad debt to stakeholders, making this a risk that not only

impacts the organization’s bottom line, but its reputation among

shareholders and credit agencies as well.

Consider these ratios in order to understand how seriously bad debt

impacts your company’s profitability:


61

• The ratio of debtors to total current assets illustrates effect on

cash flow if even an average sized debt cannot be collected.

• The ratio of debtors to pretax profits exposes vulnerability of

the company’s profitability to a medium or large bad debt.

• The ratio of debtors to shareholders’ equity demonstrates how

a company can be owed more than it has invested in itself.

• The ratio of bad debt provisions to accrual receivables is an

example of how bad debt can mount.





In the last 6 months Enterprise Business Unit (EBU) bad debts

contribution % to the total EBU revenue is 4.4%. Whereas over all

circle bad debt~2.5% in a month.

Project Goal Statement

* Reduction of Bad debts from 4.4% to 2.5%


62

In Scope

Only EBU customer

Out of Scope

• Retail customer base in Post paid

• All Prepaid customers

• Customer retention and ARPU

Business Case

Reduction of bad debts in EBU segment.

Measurement Matrix:

Bad debts % of total EBU revenue.

Targeted Financial Benefit

Annualized Benefits:

Total Financial Benefit = % Change in Bad Debts * EBU

Revenue


63

Profitability

Revenue

Operational Excellence

Financial Benefit Definitions

Goal/Target Benefit – opportunities for benefit are not known;

project will define opportunities for financial benefit; objective is

based on current position

Estimated Benefit – opportunities for benefit are estimated; figure

is based on calculation of estimated opportunities for benefit

Actual Benefit – actual opportunities for benefit are known based

on currently available data; figure is based on calculation of

known opportunities for benefit.

3. MethodologyResearch methodology is one without which it is almost impossible

to reach at any tangible decision. Although various methods are

adopted to undertake this activity but the goal is almost same i.e.

to reach on a final decision or solution of the problem.

Solution of the problem comes when we have a proper framework

for the particular job. Hence to carry out any work of necessary to

chalk out a framework.


64

Research Methodology is the way of systematically solving the

research problem. It may be understood as a science of studying

how research is done scientifically. In it we study the various steps

that are generally adopted during the course of research along with

the logic behind them. It is necessary for the research to know not

only the research methods but also the methodology.

To carry out this research project, I found Six sigma DMAIC

methodology useful and the same has been used for this project.

Step Tasks Tools

Define 1. Identify changes to

improve processes

and reduce waste

process and reduce

waste

2. Reduce cycle times

Improve quality and

speed

3. Focus on customer

expectations

1. High level process map

(SIPOC)

2. Process flow chart

3. Customer surveys,

interviews, focus

4. Project management

tools

Measure 1. Define and measure

process inputs and

process outputs

2. Collect data on

process performance

1. Pareto Charts

2. Statistical methods and

sampling

3. Value Stream mapping

4. Capability analysis


65

3. Define process

capability

5. Total efficiency

6. Process efficiency cycle

Analysis 1. Analysis sources of

variation

2. Analyze data and

processes

3. Determine root cause

to improve processes

1. Statistical tools

2. Cause and effect

diagram

3. Pareto Chart

4. Simulation models

5. Root cause analysis

6. Failure Mode effects

analysis (FMEA)

Improve 1. Identify changes to

improve processes and

reduce waste process

and reduce waste

2. Reduce cycle times

3. Improve quality and

speed

4. Focus on customer

expectations

1. Brainstorming solutions

2. Simulation models

3. The 5s method of Lean

4. Error proofing

5. Failure Mode effects

analysis (FMEA)

6. Verify new process

meets project goals and

voice of customer

Control 1. Prepare control plan

foe ensure

improvements hold

2. Implement monitor of

key variables

3. Identity measures,

1. Control chart

2. Training requirements

3. Documented new

processes

4. Scorecard to track

targets and control limits


66

targets and control

limits

4. Estimate financial

benefits from improves

processes

5. Pareto charts for key

variables

6 Calculate return on

investments (ROI)

Table 3 DMAIC Tasks and Tools


67

3.1. Research Methodology: Six sigma DMAIC

The Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control)

methodology can be thought of as a roadmap for problem solving

and product/process improvement. Most companies begin

implementing Six Sigma using the DMAIC methodology, and later

add the DFSS (Design for Six Sigma, also known as DMADV or

IDDOV) methodologies when the organizational culture and

experience level permits. You can read the main differences

between DMAIC and DMADV, but we'll focus on the DMAIC in this

article.

Define, Measure, Analyze, Improve and Control. Incremental

process improvement using Six Sigma methodology.

D Define a problem or improvement opportunity.

M Measure process performance.

A Analyze the process to determine the root causes of poor

performance; determine whether the process can be improved or

should be redesigned.

I Improve the process by attacking root causes.

C Control the improved process to hold the gains.


68

Figure 4 DMAIC Methodology


69

DMAIC refers to a data-driven quality strategy for improving

processes, and is an integral part of the company's Six Sigma

Quality Initiative. DMAIC is an acronym for five interconnected

phases: Define, Measure, Analyze, Improve, and Control.

Each step in the cyclical DMAIC Process is required to ensure the

best possible results. The process steps:

Define the Customer, their Critical to Quality (CTQ) issues, and

the Core Business Process involved.

• Define who customers are, what their requirements are for

products and services, and what their expectations are.

• Define project boundaries the stop and start of the process

Define the process to be improved by mapping the process

flow

Measure the performance of the Core Business Process involved.

• Develop a data collection plan for the process.

• Collect data from many sources to determine types of defects

and metrics.

• Compare to customer survey results to determine shortfall.


70

Analyze the data collected and process map to determine root

causes of defects and opportunities for improvement.

• Identify gaps between current performance and goal

performance.

• Prioritize opportunities to improve Identify sources of

variation.

Improve the target process by designing creative solutions to fix

and prevent problems.

• Create innovate solutions using technology and discipline.

• Develop and deploy implementation plan.

Control the improvements to keep the process on the new

course.

• Prevent reverting back to the "old way".

• Require the development, documentation and implementation

of an ongoing monitoring plan.

• Institutionalize the improvements through the modification of

systems and structures (staffing, training, incentives)


71

• Improvement teams use the DMAIC methodology to root out

and eliminate the causes of defects:

The Six Sigma methodology follows the Define, Measure,

Analyze, Improve, Control (DMAIC) roadmap for process

improvement.

While the DMAIC methodology presented below may appear

linear and explicitly defined, it should be noted that an iterative

approach may be necessary -- especially for Black Belts and

Green Belts that are new to the tools and techniques that make

up DMAIC. For instance, you may find that upon analyzing your

data (Analyze phase) you did not gather enough data to isolate

the root cause of the problem. At this point, you may iterate

back to the Measure phase. In addition, prior knowledge of the

tools and techniques is necessary in determining which tools are

useful in each phase. Remember, the appropriate application of

tools becomes more critical for effectiveness than correctness,

and you don't need to use all the tools all the time.


72

DMAIC Phase Steps Tools Used

D - Define Phase: Define the project goals and customer

(internal and external) deliverables.

Define Customers and

Requirements (CTQs)

Develop Problem

Statement, Goals and

Benefits

Identify Champion,

Process Owner and Team

Define Resources

Evaluate Key

Organizational Support

Develop Project Plan

and Milestones

Develop High Level

Process Map

Project Charter

Process Flowchart

SIPOC Diagram

Stakeholder Analysis

DMAIC Work Breakdown

Structure

CTQ Definitions

Voice of the Customer

Gathering

Define Tollgate Review

M - Measure Phase: Measure the process to determine

current performance; quantify the problem.


73

Define Defect,

Opportunity, Unit and

Metrics

Detailed Process Map

of Appropriate Areas

Develop Data

Collection Plan

Validate the

Measurement System

Collect the Data

Begin Developing

Y=f(x) Relationship

Determine Process

Capability and Sigma

Baseline

Process Flowchart

Data Collection

Plan/Example

Benchmarking

Measurement System

Analysis/Grage R&R

Voice of the Customer

Gathering

Process Sigma Calculation

Measure Tollgate Review

A - Analyze Phase: Analyze and determine the root

cause(s) of the defects.

Define Performance Histogram


74

Objectives

Identify Value/Non-

Value Added Process

Steps

Identify Sources of

Variation

Determine Root

Cause(s)

Determine Vital Few

x's, Y=f(x) Relationship

Pareto Chart

Time Series/Run Chart

Scatter Plot

Regression Analysis

Cause and Effect/Fishbone

Diagram

5 Whys

Process Map Review and

Analysis

Statistical Analysis

Hypothesis Testing

(Continuous and Discrete)

Non-Normal Data Analysis

Analyze Tollgate Review

I - Improve Phase: Improve the process by eliminating

defects.

Perform Design of

Experiments

Develop Potential

Brainstorming

Mistake Proofing

Design of Experiments


75

Solutions

Define Operating

Tolerances of Potential

System

Assess Failure Modes

of Potential Solutions

Validate Potential

Improvement by Pilot

Studies

Correct/Re-Evaluate

Potential Solution

Pugh Matrix

House of Quality

Failure Modes and Effects

Analysis (FMEA)

Simulation Software

Improve Tollgate Review

C - Control Phase: Control future process performance.

Define and Validate

Monitoring and Control

System

Develop Standards

and Procedures

Implement Statistical

Process Sigma Calculation

Control Charts (Variable

and Attribute)

Cost Savings Calculations

Control


76

Process Control

Determine Process

Capability

Develop Transfer

Plan, Handoff to Process

Owner

Verify Benefits, Cost

Savings/Avoidance, Profit

Growth

Close Project, Finalize

Documentation

Communicate to

Business, Celebrate


77

SIPOC

SIPOC is a six sigma tool. The acronym SIPOC stands for

Suppliers, inputs, process, outputs, customers. A SIPOC is

completed most easily by starting from the right ("Customers")

and working towards the left.

For example:

1. Suppliers - grocers and vendors

2. Inputs - ingredients for recipes

3. Process - cooking at a restaurant kitchen

4. Outputs - meals served

5. Customers - diners at a restaurant

Establishment of CTQ Characteristics

Who is the customer in your project?

• MH Circle

• Other departments

What is the Customer CTQ?

• Reduction of bad Debts.

• Quality Customer.

• Profitability

• Minimize Collection cost


78

Pareto analysis

Pareto chart is a bar graph. The lengths of the bars represent

frequency or cost (time or money), and are arranged with longest

bars on the left and the shortest to the right. In this way the chart

visually depicts which situations are more significant.

When to Use a Pareto Chart

• When analyzing data about the frequency of problems or

causes in a process.

• When there are many problems or causes and you want to

focus on the most significant.

• When analyzing broad causes by looking at their specific

components.

• When communicating with others about your data.

Box Plot

Box Plot is an efficient method for displaying a five-number data

summary. The graph is called a boxplot and summarizes the

following statistical measures:

• Median

• Upper and lower quartiles

• Minimum and maximum data values


79

The plot may be drawn either vertically as in the above diagram,

or horizontally.

Interpreting a Box plot

The boxplot is interpreted as follows:

• The box itself contains the middle 50% of the data. The upper

edge (hinge) of the box indicates the 75th percentile of the

data set, and the lower hinge indicates the 25th percentile.

The range of the middle two quartiles is known as the inter-

quartile range.

• The line in the box indicates the median value of the data.

• If the median line within the box is not equidistant from the

hinges, then the data is skewed.

• The ends of the vertical lines or "whiskers" indicate the

minimum and maximum data values, unless outliers are

present in which case the whiskers extend to a maximum of

1.5 times the inter-quartile range.

• The points outside the ends of the whiskers are outliers or

suspected outliers.

Boxplots advantages

• Graphically display a variable's location and spread at a

glance.

• Provide some indication of the data's symmetry and

skewness.


80

• Unlike many other methods of data display, boxplots show

outliers.

• By using a boxplot for each categorical variable side-by-side

on the same graph, one quickly can compare data sets.


81

3.2. DMAIC Methodology for Bad Debt Reduction

3.2.1. Defining a Project

SIPOC• SIPOC is a data collection form that assists in gathering

information about suppliers, inputs, processes, outputs, and

customers of a process.

• It is used before constructing a flowchart since it helps gather

relevant information about the process.

When to use SIPOC

• When first starting to investigate a process and a team needs

to understand the basics that make up the process.

• When a team needs a way to record collective knowledge

about a process in an easy-to-view format.


82

Figure 5 Drilldown tree

Drilldown Tree

Business Profitability

Sales Collection Operational Cost Reduction


Collection cost reduction

EBU Customers Bad

Debts

Retails Customers Bad

Debts


83

High Level Process Map: S I P O C

Figure 6 SIPOC

3.2.2. MeasureThis step involves developing a data collection plan for the

process and collecting data from many sources to determine

types of defects and metrics.

3.2.2.1. Collection of DataData has been collected from both primary and secondary

sources.

Most data has been collected from Idea Cellular Head Office

located at Pune and Mumbai and also from Internet, magazines

and journals. Owing to time and cost constraints the Research

was restricted to limited respondents. The consequent research

limitations are obvious.

Output• Due Amount Collected

Customer

Process

Process Boundary


• Billing Done

•Payment Collected

• Circle Management Team

Suppliers

•Management Team

• Collection Team

•CRM & Retention

•Sales team

• IT

Input• Collectionsdata• Customer Information• Reports


84

3.2.2.2. Measurement of Current Bad DebtsS.No Month EBU Bad

Debts (Rs)Total EBU

Revenue (Rs)% Bad Debts

1 Jul - 09 3449332 93144656 3.70%2 Aug - 09 3808256 94632070 4.02%3 Sep - 09 4211949 96195478 4.38%4 Oct - 09 3400366 98409966 3.46%5 Nov - 09 3752574 107276122 3.50%6 Dec - 09 2674489 100166341 2.67%

Total 21296966 589824633Table 4 Measurement of Current Bad Debts

EBU Bad Debts (Rs)

EBU Bad Debts

3%

Total Revenue(Rs),

97%

1

2

Figure 7 Current Bad Debts


85

3.2.2.3. COCP Vs. COIPCOCP - Company owned & Company Paid

COIP - Company owned & Individual Paid

COCP Vs. COIP % Contribution (Customer)

COCP Contribution

8%

COIP Contribution

92%

Figure 8 COCP vs COIP % contribution (Customer)

Month

COCP COIP % Contrib (Customer)

% Contrib (Amount)

Count Amount Count Amount COCP COIP COCP COIP

Nov-09 527 279587 5697 3762412 8.47% 91.53% 6.92% 93.08%

Dec-09 417 557723 5438 3830580 7.12% 92.88% 12.71% 87.29%

Jan-10 418 179550 4957 2970449 7.78% 92.22% 5.70% 94.30%

Total 1362 1016860 16092 10563441 7.80% 92.20% 8.78% 91.22%

Table 5 COCP vs COIP


86

COCP Vs. COIP % Contribution (Amount)

COIP Contribution

92%

COCP Contribution

8%

Figure 9 COCP vs COIP % contribution (Amount)

Major problem Area is COIP as contributing to more than 93%


87

3.2.2.4. Process performance

Figure 10 EBU Bad Debts Percentage

Data is Normal and Current performance Level is 3.62%.


88

3.2.2.5. Current Cost Per Idea Owned Site Measurement

Figure 11 Boxplot of EBU


89

3.2.2.6. Pareto analysis: Population & Revenue contribution

Figure 12 Pareto Chart hub (Population)


90

Figure 13 Pareto Chart hub (Revenue)

3.2.2.7. EBU Vs. Retail

Month EBU Bad Debts (Rs)

Total EBU Revenue

% Bad Debts

Retail Bad Debts (Rs)

Total Retail Revenue

% Bad Debts

Jul-09 3449332 93144656 3.70% 3379757 200769984 1.68%Aug-09 3808258 94632070 4.02% 4229631 202795207 2.09%Sep-09 4211949 96195478 4.38% 3717224 205854994 1.81%Oct-09 3400366 98409966 3.46% 5528508 206732618 2.67%Nov-09 3752574 107276122 3.50% 4246661 221326640 1.92%Dec-09 2674489 100166341 2.67% 3620643 208832641 1.73%Jan-10 2812500 103749900 2.71% 3023803 218009008 1.39%

Total 24109468 693574533 3.48% 27746227 1464321092 1.89%Table 6 Bad Debt : EBU vs Retail

EBU Bad Debts (Rs)

EBU Total Revenue(R

s), 97%

EBU Bad Debts (Rs),

3%

Table 7 EBU Bad debt

Retail Bad Debts (Rs)

Total Revenue

(Rs) , 98%

Retail Bad Debts (Rs) ,

2%

Table 8 Retail Bad debt


92

Major problem Area is COIP as contributing to more than 93%

February EBU Bad-Debts – 24 Lakhs @ 2.4%

Retail Bad Debts % is less compare to EBU


93

3.2.3. Analysis

3.2.3.1. Cause & Effect diagram

Description

The fishbone diagram identifies many possible causes for an

effect or problem. It can be used to structure a brainstorming

session. It immediately sorts ideas into useful categories.

When to Use a Fishbone Diagram

• When identifying possible causes for a problem.

• Especially when a team’s thinking tends to fall into ruts.

Figure 14 Cause and Effect diagram

Bad Debts

Customer Sales

Service Competition

Moving out Job Changed

Forced Sale

Over commitment

Customer’s voice remains unheard

Billing disputeNot willing to pay

Better Tariffs

Better Network

Better Service

System /Process Failure

Unwanted VAS Enrollment

COCP to COIP conversion

Network issues

Educating customer on payment modesOther advantages (premium nos,

entry cost, higher influence)

Tariff Plan mismatch

Poor /lower than expected Service

Conservative credit limitapproach

On-boarding process


94

3.2.3.2. Critical Xs after Brain storming• Entry cost not charged – easy entry; easier exit

• Inadequate documents /contact information about the

customer

• Lack of drop boxes / awareness of payment options

availability

• No single point of contact to address concerns (esp. for IOIP

cases)

• Out called barring (OCB) release w/o payments at other

touch points

• Profile mismatch

• Lack of coordination amongst the various teams / functions

Procedural Gaps

• LPC was a part of Bad Debts for Permanent disconnect (PD)

accounts as per Corporate SOP

• Incorrect output from the system on customer ageing


95

3.2.3.3. Actions already taken• Entry cost introduced for IOIP connections wef Nov. Process

formulated, all approval rests with Marketing

• Local residential address is been made mandatory wef

January’ 09.

• Joint efforts by sales/ collection to resolve issues at

problematic A/Cs wef Feb’ 09.

• Continuous monitoring on OCB release wrt to payment made

• Ageing correction.

• Late payment charges (LPC) Charges were reversed from the

Bad debts.


96

3.2.3.4. City wise contribution

HUB Bad Debts Customer (%)

Contribution to Bad Debts (%)

Count Amount Count AmountA'Bad 6.81 6.99 8.64 7.02Akola 5.38 4.34 0.96 0.66Goa 1.29 0.76 0.64 0.48Kolhapur 3.28 2.68 3.24 2.02Nagpur 7.3 6.27 11.17 8.54Nasik 5.32 4.61 11.49 7.34Pune 3.16 3.3 55.96 62.98Sangli 4.85 5.26 0.32 0.24Satara 3.68 3.78 1.5 1.11Solapur 5.08 4.75 2.44 1.68U'nagar 2.41 2.75 0.61 0.79

Table 9 Citywise bad debt contribution

• Top 80 accounts, across 6 Zones, result in 93% of the EBU

bad-debts

• While responsible for 33% of gross adds

3.2.3.5. Single Vs. Multiple connection

No of Contract Count Bad Debt (Rs) % Contrib.1st 6000 3239924 57%2nd 2850 2270849 40%3rd 167 132184 2%4th 29 26790 0%

Grand Total 9046 5669747Table 10 Single Vs. Multiple connection


97

Single Vs. Multiple connection

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

1st 2nd 3rd 4th

No of Contract

Bad

Deb

ts (

Rs)

Figure 15 Single Vs. Multiple connection

• Taking Entry cost in initial one/two connections itself holds

the key


98

3.2.3.6. Agency Feedback

Figure 16 Pareto chart of Agency Feedback

• Alternate sources of customer contact is the key


99

3.2.3.7. Voice of customers(VOC) - Call centre Feedback

Figure 17 VOC - Call centre Feedback

• Bills not received (BNR) & After Sales Service are the two

critical factors.


100

3.2.3.8. Age on network (AON) wise Analysis

Subs Bad DebtsAON Category Count % Amount (Rs) %0-6 months 4000 53% 3029457 53%7-12 months 1570 21% 1134350 20%13-24 months 1542 21% 1163099 20%> 24 months 375 5% 349673 6%Total 7487 5676579

Table 11 AON wise analysis

AON Category (Bad Debt)

0-6 months54%

7-12 months20%

13-24 months

20%

> 24 months6%

Figure 18 AON Category (Bad Debt)

• Monitoring the 0-6 month’s customer and prolonging their AON

would reduce the bad debts.


101

• Initial Credit limit assignment /process needs to be re-looked

at.

3.2.3.9. Major ReasonsReasons Source80 A/Cs in 3 cities City wise and A/C wise dataInferior quality of sales / service

AON wise analysis / Call centre feedback

No entry cost for 1st two connections

Single vs multiple connection analysis

No contractibility / Entry restricted / Employee left theorganization

Agency feedback

Conservative approach on credit card limits

HUB Barring

Functional silos Data mismatch and feedback discrepancy


102

3.2.4. ImproveProposed Action for Improvement

Actions Ownership

RM to take care of the COCP /IOIP

connections in these 80 accounts

Service Desk at all 80 accounts

Service and

Quality (SDQ)

Entry cost and callback

Service Help Desk

Sales /SDQ

More stringent approach on Entry cost Sales /Mktg

Joint service camps by Sales /Collections /

Retention Teams

Sales / Service

delivery & quality

(SDQ)

To follow corporate credit policy for initial

credit limit assignment

Credit Risk

Managment/

Credit risk

assurance (CRM

/CRA)

Structured joint monthly reviews on

acquisitions /collections /churn at zonal

levels

Zonal Business

Managers (ZBMs)


103

3.2.5. Control1. Prepare control plan foe ensure improvements hold tasks

2. Implement monitor of key variables

3. Identity measures, targets and control limits

4. Estimate financial benefits from improves processes

3.3. Recommendations.• Service camps and mailers to educate and promote ECS.

• Incentivizing ECS registration.

• Salary slips mandatory for class 4 employees; minimum salary

norms defined

• Availability of multiple drop boxes at all the 80 accounts.

• Timely SMS blast /e-mailers on publicizing the help line numbers

and email ids.

• To offer Discounted Premium nos. to Individual Owned

individual Paid (IOIP) customers in critical 80 A/Cs to increase

stickiness and pride in ownership

• Drop boxes to be installed in the guise of Recharge Stations


104

• Go the prepaid way, i.e. submit the residential documents with

20 days AND Contact Point Verification (CPV) only /also at

residential premises.

• Permanent address proof to be collected and verified.


105

Part IIIBIBLIOGRAPHY & REFERNCES


106

Bibliography TRAI (March 20, 2006), Recommendations on Issues relating to

Broadcasting and Distribution of TV channels.

Economic Survey, Annual Reports of the Department of

Telecommunications, Ministry of Communications and

Technology and the Telecom Regulatory Authority of India

(TRAI)–various issues.

Business Standard: August 22, 2007

Panagariya, Arvind (2004). "India in the 1980s and 1990s: A

Triumph of Reforms".

"That old Gandhi magic", The Economist, November 27, 1997.

Ahluwalia, MS. 2001, "State level performance under economic

reforms in India" Working Paper No. 96, Center for Research on

Economic Development and Policy Reform, Stanford University

Department of Telecommunications, Annual Report 2002-2003,

Ministry of Communication and Information Technology, New

Delhi

Department of Telecommunications "Indian Telecommunication

Statistics: Policy Framework, Status and Trends", Economic


107

Research Unit (Statistics Wing), Ministry of Communications,

New Delhi.


108

ReferencesTelecom India Daily http://www.telecomindiadaily.in

Assuring Business

Credit Risk and Bad

Debt

http://www.assuringbusiness.com

Telecom Regulatory

Authority of India

http://www.trai.gov.in/

Idea Cellular Ltd http://ideacellular.com/IDEA.portal?_nfpb

=true&_pageLabel=IDEA_Page_AboutIde

a

Internet Center for

Management and

Business Administration

http://www.netmba.com/

American Society for

Quality

http://www.asq.org

Emasoft SRL is

specialized in Project

Management Consulting

http://www.econsultanta.ro

author STREAM http://www.authorstream.com/Presentati

on/surozar-181941-dmaic-tools-

education-ppt-powerpoint/

Six Sigma Institute http://www.sixsigmainstitute.com


Quality

http://www.asq.org/learn-about-quality/


Quality (Pareto Chart)

http://www.asq.org/learn-about-

quality/cause-analysis-


109

tools/overview/pareto.html


Quality (Pareto Chart)

http://www.sixsigma-advantage.com/

Department of

Telecommunication

http://www.dot.gov.in

Reliance Infocomm http://www.ril.com/newsitem2.html

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