Market Survey Of

Mobile Service Providers

(With special reference to Retailers & End Users)

Location: SURAT (South Gujarat Circle)

Submitted To :

External Guide:

Mr. Shubham SoodenZonal Manager, Tata DOCOMO Teleservices Ltd

Internal Guide:

Prof. D. Zacharich Samuel

Marketing Department, SDA College, Surat

Declaration

I, Anand Lakker, Seventh Day Adventist College, Project Trainee, hereby declare that the following project report titled: Market Survey of Mobile Service Providers (with special reference to Retailers and End Users) is an authentic work done by me.

The information and data given in this report are true and to the best of my knowledge. I also acknowledge that I took the help of both primary and secondary data collection through various available resources.

Anand LakkerSeventh Day Adventist College, SuratProject Trainee TATA DOCOMO.

Acknowledgement

Exchange of ideas generates a new object to work in a better way. Whenever a person is helped and co-operated by other, his heart is bound to pay gratitude and obligation to them.

We are honored to be attached with prestigious organization. We extend our sincere gratitude to the management of “Tata Docomo Teleservice Limited” for availing us and giving us an opportunity to work with them and assisting us in our project whenever required.

We thank Mr. Shubham Sooden, Zonal Manager –Tata DOCOMO Teleservices Ltd. who spared his valuable time and gave us opportunity to work and undertake this project in Tata Teleservices Ltd. and guided us throughout this project.

We would like to express our sincere gratitude towards Mr. Imran Khan (Senior Marketing Executive-TATA DOCOMO), for providing us the opportunity to work and learn with them. We are extremely grateful to my esteemed project guide, Mr. Imran Khan (Senior Marketing Executive-TATA DOCOMO) for giving us an opportunity to work with him and his indispensable help and guidance throughout this project and for inspiring us to strive to achieve the best in difficult situations.

This acknowledgement would be incomplete without thanking Mr. Jimmy Modi (Senior Executive, TATA DOCOMO), who helped us in all possible manner at all possible time during the course of this project and all the above we would like to give special thanks to Mr. Aayush Makharia (Trainee, Christ College, Bangalore), Co-partner in project & our Institute faculty Prof. D. Zacharich Samuel whose timely guidance and support at crucial junctures made the undertaking of this project an enriching learning experience. Last but not least we would like to thank all our friends who have been work with us in a special project, with their innovative ideas and suggestions.

Preface

The research provides an opportunity to a student to demonstrate application of his/her knowledge, skill and competencies required during the technical session. Research also helps the student to devote his/her skill to

analyze the problem to suggest alternative solutions, to evaluate them and to provide feasible recommendations on the provided data. Identifying the telecom sector as one of the prime movers to the Indian economy, new telecom policies and regulation by Government of India aims at establishing world-class telecommunications infrastructure in the country. Ranked sixth among the world telecom sectors Indian telecom services are the fastest growing of all the telecom sectors in the world. The mobile phone industry in India is growing rapidly and has even left China behind by some measures, whereas wireless operators are competing for the available and expanding spectrum.

A record 5.9 Million new mobile phone subscribers were drawn by the Telecom sector in India in the month of August 2006, according to the COAI (Cellular Operators Association of India).

The rise in the overall tele-density follows the increase in overall penetration of mobile phones in the country. The subscriber base has already gone above the 90 Million mark. India is likely to have 21.3 Million 3G users by the year 2010. Within the coming two years, India is expected to become the 3rd largest mobile market in the world, replacing Japan, after US and China. In the future, 3G technology needs to be harnessed fully for enhancing the penetration of broadband in the congested urban areas.

The rise in demand for telecom services in India is not restricted only to the basic telephony services. It has rather expanded its horizon to cellular, radio paging, value-added services, Internet, and global mobile communication by satellite (GMPCS) services in the country. Predicting the growth many analysts envision that the demand of Indian telephony and cellular services are expected to rise further over the next few years.

Table of Contents

Topic Page No

1. Synopsis-------------------------------------------------------------------------------

2. Indian Telecom – An Insight----------------------------------------------------

History of Telecom-----------------------------------------------------------

Indian Telecom Industry – A New Horizon--------------------------------------

Market Share in All India---------------------------------------------------------

3. Government Policy-----------------------------------------------------------------------

4. New Trends--------------------------------------------------------------------------

5. Background of TATA DOCOMO----------------------------------------------------------

Tata---------------------------------------------------------------------

TTSL--------------------------------------------------------------------------

TATA DOCOMO---------------------------------------------

TATA DOCOMO PREPAY----------------------------------------------------------------------

6. SWOT Analysis---------------------------------------------------------------------

Marketing Mix---------------------------------------------------------------------

7. Perceptual Mapping------------------------------------------------------------------

8. Porter’s Five Force Analysis-------------------------------------------------------

9. Research Methodology--------------------------------------------------------------

Methodology-----------------------------------------------------------------

Data Analysis of Market ------------------------------------------------

10. Findings, Recommendations & Conclusion---------------------------------

Retailers Findings----------------------------------------------------------------

Recommendations---------------------------------------------------------------

Conclusion-------------------------------------------------------------------------

11. Appendix---------------------------------------------------------------------------

Bibliography--------------------------------------------------------------------------

Questionnaires & Fact Sheet-------------------------------------------------

Synopsis

Objective¨ To study the market potential of Mobile Services in Surat Region of South Gujarat Circle.¨ Customers/Retailers requirements with respect to products offered in mobile industries.¨ To discover ways to Enhance Acquisition & Revenue.¨ To create an awareness about the services and products of TATA DOCOMO.

Scope of Study¨ We have conducted this research in order to study what kind of services the customers/retailers prefer in Surat region and it will be useful to the organizations for making new products.

Research Design¨ We have used Exploratory Research and used Strata Sampling (Non-Probability Sampling) & Random Sampling (Probability Sampling) to serve

the purpose, with the Customers/retailers of Mobile Phones in the vicinity of Surat.

Limitations¨ Although we have tried our level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy. But there may be a possibility of some error in our report also.¨ As whole of our project and our findings are based on the information gather through survey fact sheet, hence there might be a possibility that respondent may have given wrong or partially correct information.¨ The research was conducted in a limited area.¨ Less time was a major constraint.¨ The respondent were limited so cannot be treated as a whole population.

History of TelecomIndian Telecommunication – A Timeline

1851

First operational land lines were laid by the government near Calcutta (seat ofBritish 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 CommunicationCompany (IRCC)

1947

Nationalization of all foreign telecommunication companies to form the Posts,Telephone and Telegraph (PTT), a monopoly run by the government's Ministryof Communications

1985

Department of Telecommunications (DOT) established, an exclusive provider

of domestic and long-distance service that would be its own regulator (separatefrom the postal system)

1986

Conversion of DOT into two wholly government-owned companies: theVidesh Sanchar Nigam Limited (VSNL) for international telecommunicationsand Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitanareas.

1997

Telecom Regulatory Authority of India created.

1999

Cellular Services are launched in India. New National Telecom Policy isadopted.

2000

DoT becomes a corporation, BSNL

Cellular Telephony in India

1992

Telecommunication sector in India liberalized to bridge the gap throughgovernment spending & to provide additional resources for the nation’s telecomtarget. Private sector allowed participating

1993

The telecom industry gets an annual foreign investment Rs 20.6 million

1994

License for providing cellular mobile services granted by the government ofIndia for the Metropolitan cites of Delhi, Mumbai, and Kolkata & Chennai.Cellular mobile service to be duopoly (i.e. not more than two cellular mobileoperators could be licensed in each telecom circle), under a fixed license feeregime for 10 years.

199 19 more telecom circles get mobile licenses

5 (August) Kolkata became the first metro to have a cellular network

1997

Telecom Regulatory Authority of India is set up

1998

Annual foreign investment in telecom stands at Rs 17,756.4 million.

1999

FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million Tariff rebalancing exercise gets initiated

2000

(June) FDI inflow drops further down to Rs 918 million coming (January) Amendment of TRAI Act.

Indian Telecom Industry – A New Horizon

The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP.The 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. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers.Consequently, wireless in FY 2005-2006 accounted 54.6% of the total telephone subscriber base. 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 in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. There are 172.23 million GSM subscribers (73.72%) and 61.39 million CDMA subscribers (26.28%) at the end of December 2007.

Market Share of Wireless (GSM + CDMA) Operators

The market share of different GSM Service Providers is given below:

GSM Group No of Subscribers (In Millions) Market Share (%)Bharti 141.25 29.33Vodafone 113.77 23.62BSNL 70 14.55Idea 72.7 15.11Aircel 18 3.7Reliance 28.8 6Spice 0.8 0.16MTNL 4.99 1.03TATA 30 6.2Uninor 1 0.2Total 481 100

The market share of different CDMA Service Providers is given below:

Company No of Subscribers (In Millions) Market Share (%)Reliance 34.96 56.95Tata (Indicom+Virgin) 21.74 35.41BSNL 4.09 6.66MTNL 0.25 0.41HFCL 0.25 0.41Shyam Telelink 0.10 0.16Total 61.39 100

Major Players

There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Communication, Tata

Teleservices,)

Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Idea Cellular, BPLMobile, 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 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 July7, 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 the leading integrated elecommunications 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, and 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.

RELIANCE COMMUNICATIONS

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.ril.com/newsitem2.html). 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 India Mobile, the first of Infocomm 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.

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. Thecompany 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.

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 Teleservice and is likely to acquire Tata Broadband.

VODAFONE

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 licences. 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 licence 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

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 .

Major Market Trends

The telecoms trends in India will have a great impact on everything from the humble PC, internet, broadband (both wireless and fixed), and cable, handset features, talking SMS, IPTV, soft switches, and managed services to the local manufacturing and supply chain.

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 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 haveonly 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, coloured 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.

New Circles

There is a significant number of tier-2 and tier 3 cities that can accommodate more players weexpect aggressive response by the companies to such opportunities as and when they are created.

Constraints

Some constraints that should be taken into consideration are: 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 olderplayers. 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.

COMPANIES MARKET SHARES IN ALL OVER INDIA

The Top five companies, on the basis of ‘Market Share’ as on 31st May, 2010 are:

1. Bharti Airtel Ltd.2. Reliance Communications Ltd.3. Vodafone Essar Ltd.4. BSNL5. Idea Cellular + Spice

The Bottom five companies, on the basis of ‘Market Share’ as on 31st May, 2010 are:

1. Aircel Cellular Ltd. + Dishnet2. Mahanagar Telephone Nigam Ltd. (MTNL)3. BPL Mobile Communications Ltd.4. HFCL Infotel Ltd.5. Shyam Telecom Ltd.

Government policy

INTRODUCTION

As the sector is open for both private and public players there are huge number of players in the market which requires a proper picturing of rules and regulation to play a fair game. India has been very strong in case of rules and regulation; it has created body like DOT, TRAI, DTS who takes care of the rules and regulation. Apart from them it keeps issuing policy and act which checks the events happening in the industry. The government has been issuing policy like Broadband Policy 2004, new telecom policy1999, National Telecom Policy 1994. There are more agencies like ITU, TDSA, TCIL, ICSIL, and MCOCA, which helped it regulating their work. With increasing number of players in market the government and its agencies have to function more carefully.

GOVERNMENT REGULATION

Department of Telecommunications

Until October 2000, the Department of Telecommunication (DOT) was the authority ingranting licences and service provision. It also operated domestic basic telephone services throughout India. The policy making functions and the service providing function were segregated into two different entities during 2000.The two service providing department of telecom sector were corporatized-the department of telecom service and the department of telecom operation . The state owned corporation BSNL took over all service providing functions of these two departments.

National telecom policy, 1994

The new economic policy adopted by the Government aims at improving India's competitiveness in the global market and rapid growth of exports. Another element of the new economic policy is attracting foreign direct investment and stimulating domestic investment. Telecommunication services of world class quality are necessary for the success of this policy. It is, therefore, necessary to give the highest priority to the development of telecom services in the country.

Objective

o The focus of the Telecom Policy shall be telecommunication for all and telecommunication within the reach of all. This means ensuring the availability of telephone on demand as early as possible.

o Another objective will be to achieve universal service covering all villages as early as possible.

o The quality of telecom services should be of world standard. Removal of consumer complaints, dispute resolution and public interface will receive special attention. The objective will also be to provide widest permissible range of services to meet the customer's demand at reasonable prices.

o Taking into account India's size and development, it is necessary to ensure that India emerges as a major manufacturing base and major exporter of telecom equipment.

The Telecom Regulatory Authority Of India Act, 1997

Powers & functions of the TRAIo Recommend the need and timing for introduction of new service

provider;o Ensure technical compatibility and effective inter-connection between

different service providers;o Recommend the terms and conditions of license to a service provider;o Regulate arrangement amongst service providers of sharing their

revenue derived from providing telecommunication services;o Ensure compliance of terms and conditions of license;o Recommend revocation of license for non-compliance of terms and

conditions of license;o Lay down and ensure the time period for providing local and long

distance circuits of telecommunication between different service providers;

o Facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services;

o Protect the interest of the consumers of telecommunication service;o Monitor the quality of service and conduct the periodical survey of

such provided by the service providers;o Inspect the equipment used in the network and recommend the type of

equipment to be used by the service providers;o Maintain register of interconnect agreements and of all such other

matters as may be provided in the regulations;o Keep register maintained under clause (l) open for inspection to any

member of public on payment of such fee and compliance of such other requirements as may be provided in the regulations;

o Settle disputes between service providers;o Render advice to the Central Government in the matters relating to the

development of telecommunication technology and any other matter relatable to telecommunication industry in general;

o Levy fees and other charges at such rates and in respect of such services as may be determined by regulations;

o Ensure effective compliance of universal service obligations;Perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act.

New telecom policy, 1999

Objectives and targets of the new telecom policy, 1999

o Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy.

o Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy

o Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country.

o Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower

o Convert PCO's, wherever justified, into Public Teleinfo centers having multimedia capability like ISDN services, remote database access, government and community information systems etc.

o Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities

o Achieve efficiency and transparency in spectrum managemento Protect defense and security interests of the countryo Enable Indian Telecom Companies to become truly global players.

TARGETS SET BY THE GOVERNMENT

Network expansion

a. 500 million connections by the year 2010b. Provision of mobile coverage of 90% geographical area by 2010

Rural telephony

a. One phone per two rural households by 2010 (about 80 million rural connections)b. Reduce urban-rural digital divide from present 25:1 to 5:1 by 2010

Broadband

a. Broadband with minimum speed of 1 mbpsb. Broadband coverage for all secondary & higher secondary schools and publichealth care centres by the end of year 2008c. Broadband coverage for all Grampanchayats by the year 2010

Infrastructure Sharing

a. USO subsidy support scheme for shared wireless infrastructure in rural areas withabout 18,000 towers by 2010b. Increase sharing in urban areas to 70% by 2010

Introduction of Spread of IPTV and Mobile TV

a. IPTV in 600 towns by 2010

Manufacturing

a. Making India a hub for telecom manufacturing by facilitating more and moretelecom specific SEZsb. Quadrupling production in 2010c. Achieving exports of 6 times from present level of 0.5 billion in 2010

Research & Development

a. Pre-eminence of India as a technology solution providerb. Comprehensive security infrastructure for telecom networkc. Tested infrastructure for enabling interoperability in Next Generation Networkd. Doubling the telecom equipment R&D by 2010 from present level of 15%

NEW TRENDS

INTRODUCTION

The recent development in information technology and science has made a great difference in telecom industry by increasing its efficiency and opening doors to major developments of sector. CDMA, GSM, 2G&3G SPECTRUMS, WIMAX etc are some of the technology which have discussed. Both development and problem walks hand in hand, with increasing development the industry is facing huge challenges and problems. The industry will have to work more efficiently in order to overcome the problems. The industry in total has got a great future and has a lot of untapped potential market.

TECHNOLOGIES

Technology is very much related to the way we conduct business. Today everything that we talk about in business, like, the way we conduct business, the way we do things, the way we deliver to the customers, etc. is using some form of technology. Therefore, role of technology cannot be defined because it is a mindset and it happens over a period of time. The various technologies used by the Telecom Service Providers are as follows:

GSM (Global System for Mobile Communication)

GSM, first introduced in 1991, is the leading digital cellular system. It uses narrowband TDMA (Time Division Multiple Access). Eight simultaneous calls can occupy the same radio frequency. GSM simplifies data transmission to allow laptop and palmtop computers to be connected to GSM phones. It provides integrated voice mail, high-speed data, fax, paging and Short Message Services (SMS) capabilities, as well as secure communications. It offers the best voice quality of any current digital wireless standard.Originally a European standard for digital mobile telephony, GSM has become the world's most widely used mobile system and is now being used in more than 100 countries. GSM networks operate on the 900MHz, 1800MHz and 1900MHz wavebands all over the world.

GPRS (General packet radio service)

GPRS is a packet oriented mobile data service available to users of the 2G cellular communication systems global system for mobile communications (GSM), as well as in the 3G systems. In the 2G systems, GPRS provides data rates of 56-114 kbit/s.GPRS data transfer is typically charged per megabyte of traffic transferred, while data communication via traditional circuit switching is billed per minute of connection time, independent of whether the user actually is using the capacity or is in an idle state. GPRS is a best-effort packet switched service, as opposed to circuit switching, where a certain quality of service (QoS) is guaranteed during the connection for non-mobile users.

2G cellular systems combined with GPRS are often described as 2.5G, that is, a technology between the second (2G) and third (3G) generations of mobile telephony. It provides moderate speed data transfer, by using unused time division multiple access (TDMA) channels in, for example, the GSM system. Originally there was some thought to extend GPRS to cover other standards, but instead those networks are being converted to use the GSM standard, so that GSM is the only kind of network where GPRS is in use. GPRS is integrated into GSM Release 97 andnewer releases. It was originally standardized by European Telecommunications Standards Institute (ETSI), but now by the 3rd Generation Project Partnership (3GPP).

EDGE (Enhanced Data rates for GSM Evolution)

EDGE, Enhanced GPRS (EGPRS), or IMT Single Carrier (IMT-SC) is a backward-compatible digital mobile phone technology that allows improved data transmission rates, as an extension on top of standard GSM. EDGE is considered a 3G radio technology and is part of ITU's 3G definition, [1]. EDGE was deployed on GSM networks beginning in 2003— initially by Cingular (now AT&T) in the United States.EDGE is implemented as a bolt-on enhancement for 2G and 2.5G GSM and GPRS networks, making it easier for existing GSM carriers to upgrade to it. EDGE is a superset to GPRS and can function on any network with GPRS deployed on it, provided the carrier implements the necessary upgrade.EDGE requires no hardware or software changes to be made in GSM core networks. EDGE compatible transceiver units must be installed and the base station subsystem needs to be upgraded to support EDGE. If the operator already has this in place, which is often the case today, the network can be upgraded to EDGE by activating an optional software feature. Today EDGE is supported by all major chip vendors for both GSM and WCDMA/HSPA.

CDMA (Code division multiple access)

CDMA is a channel access method utilized by various radio communication technologies. It should not be confused with the mobile phone standards called cdma One and CDMA2000 (which are often referred to as simply "CDMA"), which use CDMA as an underlying channel access method.One of the basic concepts in data communication is the idea of allowing several transmitters to send information simultaneously over a single communication channel. This allows several users to share a bandwidth of frequencies. This concept is called multiplexing. CDMA employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. By contrast, time division multiple access (TDMA) divides

access by time, while frequency-division multipleaccess (FDMA) divides it by frequency. CDMA is a form of "spread-spectrum" signaling, since the modulated coded signal has a much higher data bandwidth than the data being communicated.

HSDPA (High-Speed Downlink Packet Access)

HSDPA is a 3G (third generation) mobile telephony communications protocol in the High-Speed Packet Access (HSPA) family, which allows networks based on Universal Mobile Telecommunications System (UMTS) to have higher data transfer speeds and capacity. Current HSDPA deployments support down-link speeds of 1.8, 3.6, 7.2 and 14.4 Mbit/s. Further speed increases are available with HSPA+, which provides speeds of up to 42 Mbit/s downlink. The High-Speed Downlink Shared Channel (HS-DSCH) lacks two basic features of other WCDMA channels—variable spreading factor and fast power control. Instead, it delivers the improved downlink performance using adaptive modulation and coding (AMC), fast packet scheduling at the base station, and fast retransmissions from the base station, known as hybrid automatic repeat-request (HARQ).

WLL (Wireless Local Loop)

Wireless local loop (WLL), is a term for the use of a wireless communications link as the "last mile / first mile" connection for delivering plain old telephone service (POTS) and/or broadband Internet to telecommunications customers. Various types of WLL systems and technologies exist. WLL (Wireless in Local Loop) is a communication system that connects subscribers to the public Switched Telephone Network (PSTN) using radio frequency signals as a substitute for conventional wires for all or part of the connection between the subscriber and the telephone exchange. It is useful for those subscribers who are located in pockets where immediate telephone connections cannot be provided due to lack of underground cable network but radio coverage is available. Other terms for this type of access include Broadband Wireless Access (BWA), Radio In The Loop (RITL), Fixed-Radio Access (FRA) and Fixed Wireless Access (FWA).

WiMax

WiMax (Worldwide Interoperability for Microwave Access) is a technology designed to give people high speed access to the net over relatively long distances. A typical WiMax system could theoretically give users in an area three to 10 kilometers wide a 40 Mbps connection to the net. This technology

already deployed in some urban centres like Chennai (Madras) and Mumbai (Bombay) would overcome the need to lay expensive cables or fibre optics to villages.At the moment there is a wired backbone throughout India but many villages are 30 to 40km away from the nearest connection. WiMAX services can overcome that. One or two WiMax base stations are enough to connect three or four villages. The government telecoms operator BSNL is also in the process of rolling out some WiMax services. But it is still expensive and at the moment are aimed squarely at large businesses that need a quick-fix solution to broadband access.

3G TECHNOLOGIES

3G or Third Generation technology is a convergence of various Second Generation telecommunication systems. The technology is intended for SMARTPHONES - multimedia cell phones. Video broadcasting and other e-commerce services such as, stock transactions and elearning will now are made possible much faster. It offers 3 Mbps speed for downloading, which is very high as compared to that of the 2G technology. The 3G technology provides for internet surfing, downloading, e-mail attachment downloading, audio-video conferencing, fax services and many other broadband applications.3G Technology was implemented in Japan for the first time in the world. Today the technology is serving 25 countries over more than 60 networks having its existence in Asia, Europe and USA. Video conferencing has been a major factor in the success of the technology.

3G Technology in Indian Telecom Industry

From the time of telegraphs Indian telecom sector has witnessed an immense growth and has diversified into various segments like, Fixed Line Telephony, mobile telephony, GSM, CDMA, WLL etc. The telecom industry is growing at a fast pace introducing newer technologies. Even the network operators and handset providers are also coming up with newer value added services and advanced technology cell phones with multimedia applications. Now it's time to welcome the much-awaited 3G Technology. Bharat Sanchar Nigam Limited is all set to launch the technology by December 2007. Not only the network providers but also the handset providers in India are waiting eagerly for the launch of 3G to earn very high revenues from the value added services provided by the technology.The technology is initially being launched on CDMA platform. The technology is being tested over various platforms and cellular networks.

4G TECHNOLOGY

4G (also known as Beyond 3G), an abbreviation for Fourth-Generation, is a term used to describe the next complete evolution in wireless communications. A 4G system will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an "Anytime, Anywhere" basis, and at higher data rates than previous generations. As the second generation was a total replacement of the first generation networks and handsets, and the third generation was a total replacement of second generation networks and handsets, so too the fourth generation cannot be an incremental evolution of current 3G technologies, but rather the total replacement of the current 3G networks and handsets. The international telecommunications regulatory and standardization bodies are working for commercial deployment of 4G networks roughly in the 2012-2015 time scale. At that point it is predicted that even with current evolutions of third generation 3G networks, these will tend to be congested.There is no formal definition for what 4G is; however, there are certain objectives that are projected for 4G. These objectives include: that 4G will be a fully IP-based integrated system. 4G will be capable of providing between 100 Mbit/s and 1 Gbit/s speeds both indoors and outdoors, with premium quality and high security. Many companies have taken self-serving definitions and distortions about 4G to suggest they have 4G already in existence today, such as several early trials and launches of WiMAX. Other companies have made prototype systems calling those 4G. While it is possible that some currently demonstrated technologies may become part of 4G, until the 4G standard or standards have been defined, it is impossible for any company currently to provide with any certainty wireless solutions that could be called 4G cellular networks that would conform to the eventual international standards for 4G. These confusing statements around "existing" 4G have served to confuse investors and analysts about the wireless industry.

HOW IS 3G DIFFERENT FROM 2G AND 4G

While 2G stands for second-generation wireless telephone technology, 1G networks used are analog, 2G networks are digital and 3G (third-generation) technology is used to enhance mobile phone standards. 3G helps to simultaneously transfer both voice data (a telephone call) and non-voice data (such as downloading information, exchanging e-mail, and instant messaging. The highlight of 3G is video telephony. 4G technology stands to be the future standard of wireless devices.Currently, Japanese company NTT DoCoMo and Samsung are testing 4G communication. 3G services will enable video broadcast and data-intensive services such as stock transactions, elearning and telemedicine through

wireless communications. All telecom operators are waiting to launch 3G in India to cash in on revenues by providing high-end services to customers, which are voice data and video enabled. India lags behind many Asian countries in introducing 3G services.

COMPANY PROFILE

TATA GROUP

Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 percent is from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics.The business operations of the Tata Group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Group’s 27 publicly listed enterprises have a combined market capitalization of some $60 billion, among the highest among Indian business houses, and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications.The Group’s major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and LandRover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world’s second largest manufacturer of soda ash. Tata Communications is one of the world’s largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Business week ranked the Group sixth amongst the .World’s Most Innovative Companies. And the Reputation Institute, USA, recently rated it as the .World’s Sixth Most Reputed Firm.. Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by the spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Group’s pioneering spirit has been showcased by companies like Tata Consultancy Services, India’s first software company, which pioneered the international delivery model, and Tata Motors, which made India’s first indigenously developed car, the Indica, in 1998 and recently unveiled the world’s lowest-cost car, the Tata Nano, for commercial launch by end of 2008.The Tata Group has always believed in returning wealth to the society it serves. Two thirds of the equity of Tata Sons, the Tata Group’s promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the Trusts and the companies amounts to around 4 per cent of the Group’s net profits.Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 is ranked the world’s fourth fastest. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders, its employees and wider society.

JRD Tata Biography

Born: July 29, 1904Died: on November 29, 1993Achievements: He had the honor of being India's first pilot; was Chairman of Tata & Sons for 50 years; launched Air India International as India's first international airline; received Bharat Ratna in 1992.JRD Tata was one of the most enterprising Indian entrepreneurs. He was a pioneer aviator and built one of the largest industrial houses of India.JRD Tata was born on July 29, 1904 in Paris. His mother was French, while his father was Parsi. JRD's full name was Jehangir Ratanji Dadabhoy Tata and

he was popularly known as Jeh to his friends. JRD's father Ratanji Dadabhoy Tata and Sri Jamsetji Tata shared their greatness from the same great-great-grandfather, Ervad Jamshed Tata; a priest of Navsari.JRD Tata was the second of four children. He was educated in France, Japan and England before being drafted into the French army for a mandatory one-year period. JRD wanted to extend his service in the forces but destiny had something else in store for him. By leaving the French army JRD's life was saved because shortly thereafter, the regiment in which he served was totally wiped out during an expedition in Morocco. JRD Tata joined Tata & Sons as an unpaid apprentice in 1925. He has great interest in flying. On February 10, 1929, JRD became the first Indian to pass the pilot's examination. With this distinctive honor of being India's first pilot, he was instrumental in giving wings to India by building Tata Airlines, which ultimately became Air India. His passion for flying was fulfilled with the formation of the Tata Aviation Service in 1932.In 1938, at the age of 34, JRD was elected Chairman of Tata & Sons making him the head of the largest industrial group in India. He started with 14 enterprises under his leadership and half a century later on July 26, 1988, when he left, Tata & Sons was a conglomerate of 95 enterprises which they either started or in which they had controlling interest.JRD was the trustee of Sir Dorabji Tata Trust from its inception in 1932, which remained under his wings for over half a century. Under his guidance, this Trust established Asia's first cancer hospital, the Tata Memorial Center for Cancer, Research and Treatment, Bombay, 1941. It also founded the Tata Institute of Social Sciences, 1936 (TISS), the Tata Institute of Fundamental Research, 1945 (TIFR), and the National Center for Performing Arts.In 1948, JRD Tata launched Air India International as India's first international airline. In 1953, the Indian Government appointed JRD as Chairman of Air-India and a director on the Board of Indian Airlines-a position JRD retained for 25-years. For his crowning achievements in Aviation, JRD was bestowed with the title of Honorary Air Commodore of India. In 1956, JRD Tata initiated a program of closer JRD TATA "employee association with management" to give workers a stronger voice in the affairs of the company. He firmly believed in employee welfare and espoused the principles of an eight-hour working day, free medical aid, workers' provident scheme, and workmen's accident compensation schemes, which were later, adopted as statutory requirements in India.JRD Tata cared greatly for his workers. In 1979, Tata Steel instituted a new practice; a worker is deemed to be "at work" from the moment he leaves home for work till he returns home from work. The company is financially liable to the worker if any mishap takes place on the way toand from work. Tata Steel Township was also selected as a UN Global Compact City because of the quality of life, conditions of sanitation, roads and welfare that were offered by Tata Steel.JRD Tata received a number of awards. He received the Padma Vibhushan in 1957 on the eve of silver jubilee of Air India. He also received the

Guggenheim Medal for aviation in 1988. In 1992, because of his selfless humanitarian endeavors, JRD Tata was awarded India's highest civilian honor, the Bharat Ratna-one of the rarest instances in which this award was granted during a person's lifetime. In the same year, JRD Tata was also bestowed with the United Nations Population Award for his crusading endeavors towards initiating and successfully implementing the family planning movement in India, much before it became an official government policy.JRD Tata died in Geneva, Switzerland on November 29, 1993 at the age of 89. On his death, theIndian Parliament was adjourned in his memory-an honor not usually given to persons who arenot Members of Parliament.

CHAIRMAN’S CHAMBER

Ratan N Tata has been chairman of Tata Sons, the Tata promoter company, since 1991. He is also chairman of other Tata companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices.Mr. Tata joined Tata Steel in December 1962. After serving in various other Tata companies, he was appointed director-in-charge of National Radio & Electronics Company Limited (NELCO) in 1971. In 1981, he was named chairman of Tata Industries, the second Tata promoter company. Mr. Tata is also the

chairman of two of the largest philanthropic trusts in the private sector in India.Mr. Tata is associated with various organizations in India and abroad. He is chairman of the Government of India’s Investment Commission and a member of the Prime Minister’s Council on Trade and Industry, the National Hydrogen Energy Board and the National Manufacturing Competitiveness Council.Mr. Tata also serves on the International Investment Council set up by the President of the Republic of South Africa and the UK Prime Minister’s Business Council for Britain. He is a member of the International Advisory Council of Singapore’s Economic Development Board, the Asia-Pacific Advisory Committee to the board of directors of the New York Stock Exchange and of the international advisory boards of the Mitsubishi Corporation, the American International Group, JP Morgan Chase and Rolls Royce. He also serves on the boards of Fiat SpA and Alcoa.Mr. Tata is president of the court of the Indian Institute of Science and chairman of the Council of Management of the Tata Institute of Fundamental

Research. He is a member of the board of trustees of Cornell University and the University of Southern California and of the Foundation Board of the Ohio State University. Additionally, he is a member of the Global Business Council on HIV/AIDS and the Programme Board of the Bill & Melinda Gates Foundation's India AIDS Initiative.Mr. Tata received a Bachelor of Science degree in architecture with structural engineering from Cornell University in 1962 and worked briefly with Jones and Emmons in Los Angeles before returning to India later that year. He completed the Advanced Management Program at Harvard Business School in 1975.The Government of India honored Mr. Tata with its second highest civilian award, the Padma Bhushan, in 2008. Earlier, in 2000, he had been awarded the Padma Bhushan. He has also been conferred an honorary doctorate in business administration by the Ohio State University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok, an honorary doctorate in science by the University of Warwick, and an honorary fellowship by the London School of Economics.

Promoter Companies

Tata SonsSubsidiaries / Divisions:

Tata Financial Services Tata Quality Management Services Tata Sky TCE Consulting Engineers THDC Tata Petrodyne SerWizSol

Tata IndustriesDivisions:

Tata Interactive Systems Tata Strategic Management Group

The Seven Business Sectors Engineering Materials Energy Chemicals Services Consumer Products

Information Systems, Communications

The Tata Group has a leadership position in many industries.The world's largest integrated tea operation- Tata TeaAsia's largest software exporter- TCSThe world' sixth largest manufacturer of watches - TitanIndia's largest private sector steel producer- Tata SteelLargest 5-star chain of luxury hotels in India- Indian HotelsIndia's largest manufacturer of soda ash- Tata ChemicalsIndia's largest private sector power utility- Tata Power

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.

CORE VALUES OF TTSL

PurposeAt Tata our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of economic significance, to which the group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business. Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from our employees and companies. The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance group synergy and becoming globally competitive is our chosen route to sustained growth and long-term success.

ValuesTata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:· Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.· Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.· Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.· Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.· Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

Our Vision

Looking FartherInto a new world of communication

VisionDeliver a new world of communications to advance the reach and leadership of our customers.

CommitmentInvest in building long-lasting relationships with customers and partners and lead the industry in responsiveness and flexibility.

StrategyBuild leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and leadership in emerging markets.

TATA DOCOMO

Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the

GSM platform-arising out of the Tata Group's strategic alliance with Japanese

telecom major NTT DOCOMO in November 2008. Tata Teleservices has

received a pan-India license to operate GSM telecom services, under the

brand Tata DOCOMO and has also been allotted spectrum in 18 telecom

Circles. TTSL and has already rolled out its services in various circles.

The launch of the Tata DOCOMO brand marks a significant milestone in the

Indian telecom landscape, as it stands to redefine the very face of telecoms

in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile

operators-in the Japanese market, the company is clearly the preferred

mobile phone service provider in Japan with a 50 per cent market share.

NTT DOCOMO has played a major role in the evolution of mobile

telecommunications through its development of cutting-edge technologies

and services. Over the years, technologists at DOCOMO have defined

industry benchmarks like 3G technology, as also products and services like

the i-modeTM, mobile payment and a plethora of lifestyle-enhancing

applications. Today, while most of the rest of the industry is only beginning

to talk of LTE technology and its possible applications, DOCOMO has already

started conducting LTE trials in physical geographies, not just inside

laboratories!

DOCOMO is also a global leader in the VAS (Value-Added Services) space,

both in terms of services and handset designs, particularly integrating

services at the platform stage. The Tata Group-NTT DOCOMO partnership will

see offerings such as these being introduced in the Indian market under the

Tata DOCOMO brand.

Tata DOCOMO has also set up a 'Business and Technology Cooperation

Committee, comprising of senior personnel from both companies. The

committee is responsible for the identification of key areas where the two

companies will work together. DOCOMO, the world's leading mobile operator,

will work closely with the Tata Teleservices Limited management and provide

know-how on helping the company develop its GSM business.

Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already

established its presence and is the fastest-growing pan-India operator.

Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA

1x technology platform in India. Today, Tata Teleservices Limited, along with

Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in

more than 320,000 towns and villages across the country offering a wide

range of telephony services including Mobile Services, Wireless Desktop

Phones, Public Booth Telephony and Wire-line Services.

Press Release:

“TATA DOCOMO is a natural choice of GSM brand-name for us, since it will provide customers a dual advantage—trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO,” Mr Anil Sardana, Managing Director of Tata Teleservices Limited, said.

“TATA DOCOMO will bring to the country products and services that will redefine the Indian telecom experience. Our pan-India rollout should be completed this year,” he added.

In his address, Mr Toshinari Kunieda, Senior Vice-President and Managing Director, Global Business Division, NTT DOCOMO, said: “NTT DOCOMO has provided technical inputs to make the TATA DOCOMO GSM network world-class. Progressively, NTT DOCOMO shall bring to India the various products and services that we offer in Japan—such as i-modeTM, LBS and mobile payment—and give TATA DOCOMO customers a flavor of tomorrow. We are closely working with Tata Teleservices on future technologies like 3G and Long-Term Evolution (LTE).”

The company unveiled a strikingly different logo—one that underscores the brand’s promise of providing ‘refreshingly different and a liberating experience’. “As a partnership of two pioneering brands, TATA DOCOMO promises to deliver relevant new applications and services that will make everyday life simpler and more enjoyable for the consumer,” Mr Deepak Gulati, President, GSM Business, Tata Teleservices Limited, said. “In a market that is cluttered with many operators and confusing options, we will offer simplicity to consumers by being the country’s most transparent, innovative and liberating telecom brand,” he added.

Superior Technology and Network

From the day of the launch itself, the reach and coverage of the TATA DOCOMO GSM network will be far greater than that of any other operator in India at the launch stage. TATA DOCOMO GSM mobile service will have extensive coverage in cities and towns, on national and state highways, at airports and along rail routes, and at places of tourist interest, etc. TATA DOCOMO looks forward to mobile number portability so that Indian consumers can move to their service provider of choice, while retaining their phone numbers.

NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. Over the years, technologists at NTT DOCOMO have defined industry benchmarks for 3G technology, as also products and services such as i-mode and a plethora of lifestyle-enhancing applications. Today, while most global telecom players are only beginning to talk of 4G technology and its possible applications, NTT DOCOMO has already recorded a downlink transmission rate of 250 Mbps over a high-speed wireless network in an outdoor test of an experimental system for Super 3G, also known as LTE, and is targeting to complete the commercial development by the end of 2009.This will hold TATA DOCOMO in good stead as it launches GSM services.

TTSL and NTT DOCOMO are closely engaged in integrating technology, value-added services, products and applications through the mechanism of Business and Technology Cooperation Committee (BTCC). BTCC, which meets regularly, comprises of senior management representatives from both companies.

More About NTT DOCOMO

NTT DOCOMO is Japan's premier provider of leading-edge mobile voice, data and multimedia services. With more than 55 million customers in Japan, the company is one of the world's largest mobile communications operators.DOCOMO also is an influential force in the continuing advancement of mobile technologies and standards. In 1999, DOCOMO launched i-mode™, the world's most popular platform for mobile Internet services including e-mail, browsing, downloading and more. Over 48 million DOCOMO subscribers now use i-mode. In 2001, DOCOMO introduced FOMA™, the world's first 3G commercial mobile service based on W-CDMA, which has transformed the mobile landscape in Japan while bringing the DOCOMO brand global recognition. The role of mobile phones as "lifestyle tools" was cemented when DOCOMO launched Osaifu-Keitai™, a mobile wallet platform enabling quick, contactless transactions for cash, credit, ID, and more. More than 36 million phones equipped for Osaifu-Keitai services are now in use.

Building on a solid foundation of research and development, and guided by its customer-first philosophy, the company leverages the power of mobile communications to enable customers to enrich their lives. DOCOMO is expanding its global reach through offices and subsidiaries in Asia, Europe and North America, as well as strategic alliances with mobile and multimedia service providers in markets worldwide.

Quick Facts

President and CEO: Ryuji YamadaHeadquarters: 2-11-1 Nagata-cho, Chiyoda-ku, Tokyo, Japan 100-6150 Capital: 949.68 billion yenEmployees: 22,937 (NTT DOCOMO Group)

With more than 100 million users in Japan, the market for mobile phones has entered a mature phase. During the high-growth era, market demand was driven by early adopters, who want to be the first to have all the latest features. Now that the spectrum of users is broader than ever, needs are much more diverse.In reflection of these changing market conditions, a new paradigm has been established: "the mobile phone business has changed from being carrier-

driven to user-driven." But diversification of customer needs is not the only change facing the industry. We have also come to understand that product differentiation is no longer a question of mere technology; in addition to appealing to users through the latest technologies and features, growing importance is being placed on the ability to meet the precise needs of each individual customer in terms of design, network quality, rates, and customer service at the point of sale, among others.In very simple terms, we conceive of DOCOMO as being a "relations service company" - a company that helps strengthen ties between people, or between individuals and their lifestyles. Because mobile communications has become so closely integrated into our daily lives, we have chosen to use the word "relations" to express this concept of deeper personal relationships with other people and one's environment. Positioning ourselves as a "relations service company" is also an expression of our dedication to providing flexible, customer-focused service.Creating relationships and connections that meet the needs of each individual customer represents a new form of brand value for DOCOMO. To express this corporate vision more clearly, we have created the following "New DOCOMO Commitments".

New DOCOMO Commitments

(1) We will revamp our brand and strengthen ties with our customers.(2) We will actively seek out the voices and opinions of our customers so that we can continue to exceed their expectations.(3) We will continue to drive innovation so that we can earn the respect and admiration of people worldwide.(4) We will become an organization whose energetic staff is capable of overcoming all challenges in pursuit of our corporate vision.

We will take specific steps to implement each of these four visions for change.

First, we will redefine our concept of the DOCOMO brand and its image, developing a brand statement and corporate logo to embody this new vision. Among the concepts to be promoted through our business activities is "Loyalty".

Next, we will solicit and implement feedback from customers so that we can continue to be a company that both understands customer needs and exceeds their expectations. For this purpose, we will reinforce all points of contact with customers; will reflect the opinions of front-line staff in our business activities; and will create deep relationships with users of our services.

We are also driven to remain a company valued for its contributions around the globe. We will achieve this by creating an environment that delivers convenience to customers worldwide; that fosters both technological and operational innovation; and that reinforces our environment-related initiatives, such as reduction of CO2 emissions.

Finally, we will continue to recruit a diversity of talent so that together we can effectively respond to the increasingly more diversified needs of customers while adapting to changes in market conditions and trends. We will also simplify our organizational structure, becoming a more nimble operation able to respond flexibly to customer and market demands. Furthermore, we will energize our organization so that all employees can work in unison toward a shared vision; to achieve this goal, we will strengthen communication at all levels.

Looking ahead, we would like DOCOMO to continue to evolve as a company that consistently earns the trust and loyalty.

Tata DOCOMO PREPAY

All set to DO the new? Welcome to the whole new world of Tata

DOCOMO Prepay. Here's all the information that you may need to get going.

We are the first Mobile Service provider in India to have a 'per second' pulse.

Unbelievable but true! So now if you talk for 67 seconds you pay for 67

seconds and not 2 minutes because your mobile service provider doesn't

know how to count! As always a small step in our mission of changing the

rules of the game.

Ok so let's DO!

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Free Airtime on Pack (Rs.) 0

Other Key Details

Incoming Calls (Rs.) Free while in home network

Monthly Charges (Optional)

Nil

Local & STD Rates

Local Rates

Paise/sec

Tata DOCOMO 1

Tata CDMA 1

Other GSM 1

Landline/CDMA 1

STD Rates

Paise/sec

Tata DOCOMO 2

Tata CDMA 2

Other GSM 2

Landline/CDMA 2

Now Enjoy STD tariff @ 1p/sec - Limited period Offer Only

SMS

Local Rs.0.60

National Rs 1.20

International Rs.5.00

*First SMS of the day charged and thereafter 200 Local or National SMS free

for the day#

WAP Portal (Dive-in)

• Portal Browsing free on Tata DOCOMO Home Network & Tata DOCOMO

National Roaming Network.

• Portal Browsing 10p/10KB on Non-Tata Roaming Network.

• Internet Browsing (msn, facebook, orkut etc.) 1p/1KB on Tata Home

Network.

• Internet Browsing (msn, facebook, orkut etc.) 10p/10KB on Tata and

Non-Tata Roaming Network.

GPRS Internet Browsing - No Rental.

• 1p/1KB on Tata home network.

• 10p/10KB on Tata and non-Tata roaming network.

Other Details

• Customer can avail the "Pay per use" plan, i.e., 1 paisa per sec plan by

making a recharge on standard starter pack,

• Lifetime validity is limited to TTSL's license period. TTSL reserves the

right to modify tariff and / or validity as per directions / regulations

issued by TRAI.

• Minimum recharge condition: sum of all recharges within 180 days

should add up to atleast INR 100/-

• TataDOCOMO reserves the right to withdraw / amend tariff offer as per

the relevant TRAI regulations.

• This plan is not for commercial use.

• “ In case of non resolution of complaints please call our Nodal Officer

on 9033099384 or email at nodal.gj@tatadocomo.com during working

hours (9.30 am to 5:30 pm) Monday to Friday excluding National &

Regional Holidays”

• Tata includes the services of Tata DOCOMO, Tata INDICOM and Virgin

Mobile services.

• To avoid unwanted telemarketing calls, register your telephone

number with NDNC Registry - call 1909 or send SMS 'START DND' to

1909.

• Weekend is defined as Saturdays and Sundays.

• The SMS charge as applicable is per 160 characters.

• SMS packs will not be applicable on the following days - New Year: 1st

Jan 10, Valentine’s Day: 14th Feb 10, Diwali Eve: 4th Nov 10, Diwali: 5th

Nov 10, New Year Eve: 31st Dec 10.

• ISD Calls to US, Canada and UK fixed line @ 3p/sec for 180 days for all

subscribers acquired before

30th April,2010 (Tariff applicable on FRC of 51/56/101)

• Local On-net calls between 11pm-7am @ 1p/4sec for 180 days for all

subscribers acquired before

30th April,2010 (Tariff applicable on FRC of 51/56/101)

SWOT Analysis

Strengths: attributes of the organization those are helpful to achieving the objective.Weaknesses: attributes of the organization those are harmful to achieving the objective.Opportunities: external conditions those are helpful to achieving the objective.Threats: external conditions that is harmful to achieving the objective.

Strength· Strong Brand· Fast Activation Process· Network· Connectivity· Data GPRS· Employees With Experience

Weakness· Distribution problem· Lack of Competitive Strength

· Technical Problem in Handset· Poor Service· Low Customer Retention Power

Opportunity· Preference of GSM Over CDMA· New Special Offers· Sub-Urban & Rural Telephony· Image Makeover to Capture New Market

Threat· TRAI Policies· New Entrants· New Technology can Change the Market Dynamics· New Plans Launched by Competitors· Dissatisfied Competitor’s Customers· Increase Competition in Distributor and Retailer’s

Commission.

Marketing Mix

What is marketing mix?

The ‘marketing mix’ is a set of controllable tactical marketing tools that work together to achieve company’s objective.

What are 4ps ?4ps is also called marketing mix.4ps consists of¨ Product¨ Price¨Place¨Promotion

PRODUCTTATA DOCOMO having good range of Services: Tata Docomo provides both postpaid and prepaid services. TATA DOCOMO Quality network: Tata DOCOMO having good quality network which provide clarity in voice.

PRICEIt having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid.

PLACEIt having good range of channels of distribution: As Tata already exist in this field of telecommunications as Tata Indicom. It has wide range of channels of distribution to sell TATA DOCOMO services.

PROMOTION¨ Advertising: TATA DOCOMO following different style of advertising pattern in TV’s and newspapers. Due to that reason it was reaching public very fast.¨ Sales promotion: due to unique feature of TATA DOCOMO it helps the sales people to decrease burden.

Perceptual Mapping

According to survey, Ist quadrant show that Tata Docomo is 2nd in connectivity and activation,

ACTIVATION

Voice/Call Drop

Connectivity/ Network

V.A.S.

IDEA

TATA Docomo

Airtel

RelianceAircel

VodafoneBSNL

Airtel have greater activation process. IInd show that Idea is 1st in terms of connectivity and V.A.S. of Idea greatly used by customers. IIIrd show that Vodafone provide good V.A.S. but at the same time they face voice/call drop problem, BSNL face this problem mostly in evening. IVth show that Reliance and Aircel as they newly launched have great activation pace but lacking because of voice/call drop problem. Company should adopt integrated marketing (communication) mix to properly promote the product and increase sales.

Focusing on Porter’s Five Force Model

As Porter's 5 Forces analysis deals with factors outside an industry that influence the nature of competition within it, the forces inside the industry (microenvironment) that influence the way in which firms compete, and so the industry’s likely profitability is conducted in Porter’s five forces model. A business has to understand the dynamics of its industries and markets in

order to compete effectively in the marketplace. In addition to rivalry among existing firms and the threat of new entrants into the market, there are also the forces of supplier power, the power of the buyers, and the threat of substitute products or services.

Force 1: The Degree of Rivalry:

Degree of rivalry among competitive companies is very high in Telecom industry, as there are number of Telecom companies like Reliance, Tata Indicom, Airtel, Idea, BSNL, Vodafone etc. It is most likely to be high in those industries where there is a threat of substitute products; and existing power of suppliers and buyers in the market. Rivalry can be understood as, Telecom companies introduces different products and schemes frequently in order to attract new customers and advertising battles between companies. Competitive rivalry can be tapped down if the company focuses on hiring great sales person having customer gaining skills and company should try to break apart few good sales person from rival companies.

Force 2: The Threat of New Entrants:

As the customer base is huge in telecom industry, the threat of new entrants is high and the good example of this is the entry Aircel. Tata’s GSM as Tata DOCOMO, which become threat to other GSM operators. As the new player comes in the market, they capture certain share in the market to move, this means that somebody lose their market share.

Force 3: The Threat of Substitutes:

The potential major substitutes for telecom industry are as follows: VOIP (Skype, Messenger etc.), Online Chat, Email, Satellite phones etc. All of these technologies have a huge potential, though none of the above a major threat in current scenario. So, company has to keep a close look on these substitutes.Other major substitute are CDMA and GSM, this threat compel the companies like Reliance and Tata Teleservice Ltd. to make the presence in GSM segment.

Force 4: Buyer Power:

There is a huge bargaining power of customer in Telecom industry because of increased competition. Buyer bargaining down price, forcing higher quality at lower price, and they can easily switch over to other company products. In order to attract customer, company should provide the differentiated products, if the product are undifferentiated then customer can buys it from other sellers.

Force 5: Supplier Power

Supplier power is a mirror image of the buyer power. Bargaining power of supplier is also high, as there is a high competition in the industry, the major dealers and distributors will cash on this opportunity and company will have to give them greater margin and schemes to maintain & increase market share. Supplier exerts power when they have more alternatives or substitute in the industry.The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power.

# These five forces help the company to tackle the competition.

RESEARCH METHODOLOGY

Research Objective:

To create an awareness about the newly launched GSM services of TATA DOCOMO in south Gujarat circle.

To study the market potential of Mobile Services in SURAT CITY. Customers/Retailers requirements with respect to products offered in

mobile industries.

Survey Design:

The study is an exploratory research study and we have used Strata Sampling (Non-ProbabilitySampling) & Random Sampling (Probability Sampling) to serve the purpose. For the purpose of present study a related sample of population was selected on the basis of convenience.

Survey:

Survey was made in SURAT region to get primary data. Our Project covered the main textile market area of the city which is one of most busy and highly denser area in this region. We have our main focus on the following textile markets of this area: Shreeji Textile Market, Shivshakti Textile Market, Silk City Textile Market, New Adarsh Textile Market, Sai Ram Textile Market and Heera Panna Textile Market.

Sample Size and Design:

A sample of 1000 people (Retailers & Customers) was taken on the basis of convenience.

Research Period:

Research Work is carried for 4 Weeks, the project started on 15th Apr, 2010 and was completed on 15th May, 2010 in the Surat City.

Research Instrument:

This work is carried out through self-administered questionnaires and also by distributing free activated sample sim cards and brochures. The questions included were: Dichotomous questions, Closed ended questions, Multiple choice questions. We have distributed around 4000 to 5000 brochure in 6 markets i.e. Shreeji Textile Market, Shivshakti Textile Market, Silk City Textile Market, New Adarsh Textile Market, Sai Ram Textile Market and Heera Panna Textile Market in order to create an awareness about the services and best affordable calling plans to be offered in the target markets. A sample of each brochure is attached along side of this page. A sample of around 600 free activated Tata Docomo sim cards were also distributed in various locations of the market including shops, working labours and the market management offices to enhance the utility of the IBS. The sample sim cards were activated with all the best calling schemes which included BuddyNet plan, SMS plan, GPRS plan, ISD plan, NIGHTcalling plan and a balance of Rs.45/- with a lifetime validity.

Contact Method:

Through Personal Interviews.

Data Collection:

The data, which is collected for the purpose of study.

Primary Source:

The data has been collected directly from respondent with the help of structured questionnaires.

Secondary Source:

The secondary data was collected from internet, magazines and company.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques. Thetechniques that we have used is bar graphs, pie charts etc.

Hypothesis:

1. The sources of data collection are limited in this research.2. The primary data will be collected in limited area.3. Time limitation will be there.4. The respondent may be biased.5. Area of study was limited to Surat, but Tata DOCOMO provides services all acrossIndia.

Result:

Our work in the company’s zonal office as trainee under the guidance and support of the zonal manager and the marketing executive was a wonderful experience and a good training. With the help of the marketing officer and the zonal manager we were successful in completing our project. Through various marketing strategies we were able to cover around six textile markets in the city where the IBS(In-Building System) utility was minimum.

UTILIZATION BEFORE THE COMENCEMENT OF THE PROJECT

Date Hour Cell Town Name Dist NameActivated

TRXsRadio

Utilization

4/16/2010 15:00:00 T_GJ_SUR_SURAT_I_SRIJI_TXTLMKT-1 Surat Surat 2 6.92%

4/16/2010 19:00:00 T_GJ_SUR_SURAT_I_ADARSH_MARKET-1 Surat Surat 2 3.01%

4/16/2010 18:00:00 T_GJ_SUR_SURAT_I_SILK_CITY_MKT-1 Surat Surat 2 3.05%

4/16/2010 10:00:00 T_GJ_SUR_SURAT_I_SVSKTI_TXTMKT-1 Surat Surat 2 2.91%

4/16/2010 13:00:00 T_GJ_SUR_SURAT_I_HIRA_PNA_MRKT-1 Surat Surat 2 0.48%

4/16/2010 17:00:00 T_GJ_SUR_SURAT_I_SAI_RAM_MRKT-1 Surat Surat 2 0.15%

UTILIZATION AFTER THE COMPLETION OF THE PROJECT PERIOD

Date Hour Cell Town Name Dist NameActivated

TRXsRadio

Utilization

5/17/2010 12:00:00 T_GJ_SUR_SURAT_I_SRIJI_TXTLMKT-1 Surat Surat 2 9.74%

5/17/2010 17:00:00 T_GJ_SUR_SURAT_I_ADARSH_MARKET-1 Surat Surat 2 4.28%

5/17/2010 19:00:00 T_GJ_SUR_SURAT_I_SILK_CITY_MKT-1 Surat Surat 2 4.25%

5/17/2010 11:00:00 T_GJ_SUR_SURAT_I_SVSKTI_TXTMKT-1 Surat Surat 2 4.21%

5/17/2010 12:00:00 T_GJ_SUR_SURAT_I_HIRA_PNA_MRKT-1 Surat Surat 2 1.01%

5/17/2010 18:00:00 T_GJ_SUR_SURAT_I_SAI_RAM_MRKT-1 Surat Surat 2 0.45%

As a result of our work and training we were able to increase the average IBS utility from 2.8% to 4% that is the total increase in the utility is 30%. This led to the increase in mark of the awareness of the services and the radio utilization.

Analysis of MarketOn the basis of retail tracking survey we came across with certain interesting facts that areimportant to us and these facts are:

➢ Market share of different Telecom companies in Surat:Share of Market is important to each and every company GSM based companies are leading themarket with Idea toping the chart with 26% followed by Hutch 24%, Airtel 20%, with DOCOMO as a new entrant and if we consider the market share in CDMA category Reliance is ahead of Tata Indicom.

➢ Type of Connection prefers: From the sample of 300, 285 people have Prepaid connection and 15 people have Postpaidconnection. This shows that Prepaid connections dominate the mobile market.

➢ Starter kit prefers:From the sample 300, 249 people used lifetime kit and rest 51 people used yearly kit. This shows that lifetime connection is mostly preferred by people.

➢ STV Packs prefer:From the sample of 300, 54% prefer local low tariff, 42% prefer Local+STD tariff, and 2%prefer STD & local free.

➢ Innovative SMS packs:50% prefer local 1000 SMS in Rs.50, 40% prefer STD+Local 500SMS in Rs.75 and 10% preferSTD 1000 SMS in RS.100.

➢ Special connection packs:From the sample of 300, 138 people want Friends pack, 84 people want Family+Friend pack, 33 people want business client pack (retailers), 27 people want Jodi pack, 18 people want Family pack.

➢ Type of Value added service used:From the sample of 300, 90 people said they mostly used caller tones, 75 people used internet, 60 people used ringtones, 45 people used info packs, and 15 people used video clips and wallpapers.

➢ Monthly spending by people on mobile:From the sample of 300, 30% people spend Rs. (700-1000), 25% spend Rs.(500-700), 23%spend Rs.(<500)student, 20% spend Rs.(1000-2000), 2% spend Rs.(>2000).

➢ Service Satisfaction:From the sample of 300, 150 people are satisfied with the service, 90 people dissatisfied withcustomer care, 60 dissatisfied with signals/network. This shows that customer care centre is need to improve.

Awareness Of TATA DOCOMO

Yes75%

No25%

Respondents

Information About TATA DOCOMO is Through?

Family 5%

Friends27%

Media68%

Respondents

Opinion Towards Paisa/Second Pulse

Satisfied27%

Strongly Sat-isfied60%

Dissatisfied8%

Strongly Dissatisfied5%

Respondents

Connectivity Of TATA DOCOMO

Excellent43%

Average27%

Good30%

Sales

Retailers Finding

The study was conducted in the various parts of Surat city in the time frame of one month starting from 15th APR 2010 to 15th MAY, 2010. The major findings of the Retail Tracking are summarized below.

Services provided by Retailers: -All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and TariffVoucher of all the cellular service companies present in Meerut zone. Also most of them provide only pre-paid connection.

Satisfaction: -Most of the retailers i.e. around 70% of respondents are satisfied with Tata Docomo brand, 10%of them push Tata Docomo brand to the customer and rest 20% retailers are not satisfied withTata Docoom brand due to claim pending and the distributor. The retailers don’t get schemescommunicated in time by distributor and distributor does not provide RCV & E-Top properly.

Problems: -Lack of communication between retailers and distributor, Lack of proper distribution channelCompetitors companies, No regular visit of DSE and Runner, All retailers are not aware of newscheme, Retailer doesn’t get claim at proper time, POP Material not available with the retailers,Sim card activation take more time some time more than one day.Around 20% retailers which are under V.S. Associates projected problem with distributors. They don’t get schemes communicated in time by distributor and distributor does not provide RCV & E-Top.

WHAT DOES COMPANY EXPECT BY SOLVING THE PROBLEMCustomer Satisfaction, Retailer Satisfaction, Increase in Sale, Proper Distribution Channel

Claim process:-The claim process services of Tata Docomo are fairly good i.e. 88% is being finalized in timelimit of 0-30 days.

Recommendations:On the basis of extensive study and research, here are some recommendation and suggestion

which may help the company to market the product and service more profitability and increase its share in the Telecom market.Tata Teleservices have vision ‘Deliver a new world of communications to advance the reach and leadership of our customers’. This vision could be fulfill only when company should really think on doing something in order to create a line of demarcation between them and their competitors to sustain cut-throat competition in the market. Hence, TTSL should follow ‘Do More Live More’ criteria.

¨ Go for Market Penetration: The Company should follow market penetration strategy in order to capture big market share company should go for low cost handsets and good pre-paid offerings and should focus on retaining the customer.

¨ Good network and efficient coverage: Company should setup a strong network in orderto provide better coverage. For the same company can go for sharing of network with companies having a better coverage in a particular state & company should also try to setup its own network as soon as possible due to the demand in the market.

¨ Efficient customer care: Customer care is one area of concern that company should focus on. There have been complaints from the market that customer care is not that efficient as of the other competitors. Company should realize that this is the time to follow customer centric approach, and should also understand that customer is the king. A satisfied customer is unpaid sales force; hence company should care for its customers and make a simple customer care process.

¨ Effective repair & maintenance services: Repair and maintenance of handsets are another area of concern for the company. Company should try to establish its own maintenance and repair center or it can be outsourced but should focus on providing better and efficient services to the customers.¨ Localize the Marketing Plan: Company should understand the fact that Sales and Marketing are the two faces of same coin and without marketing it is not possible to sell the products efficiently and without sales revenue we cannot have Marketing and Promotion plans. It is also important to have a co-ordination between both of these i.e. promotion of any product should be before the launch of the product or scheme not on the closing dates. Marketing is the phenomena where understanding of various demographic factors is important; we should understand what kind of customers we are dealing with. Hence, we should use local lingo, i.e. local language, in the promotion or print media and should have consistency throughout the advertisement.

¨ Advertising – Advertising should have a clear objective and message, which has not been found in recent ads. Tata Docomo is a faster growing service provider in each state. Every offers and schemes they should show with proper message for benefit to the customer. In busy life customer do not remembered any offers and which service we can provided for the customer therefore they should by force showing advertisement in growing market and among customer. Customers want continuously exposure in Cable and Local newspapers.

¨ Form Retailer and Distributors forum on company level (with company’sinvolvement): Retailers and Distributors are our channel partners and hence we should have the forums where we can meet and discuss the problems that we are facing and try to go to the roots of the problem.

¨ Constant feedback from market: Although all the companies do the same and TTSL also does it but this feedback can help the company to come out with better plans and with better marketing and sales strategies. Company should try to convert voice of the customer into a product in order to cater market better.

¨ Company should provide better margin to Retail Partners and DistributionPartners: Company in order to sustain its market and capture new markets can provide competitive margins to channel partners.

¨ Opportunity in rural areas: When compared to Indian metros, there is a large gap in tele-density; - 62 percent in the metros, nearly eight times higher than 8 percent in rural areas. To capitalize on the growing population and disposable income in rural India, telecom operators will have to explore and expand into ‘uncovered' geographies.

¨ Enhancing skill sets: The sector will require specialist resources to support and sustain growth over the next four to five years. And pressure on talent is expected to increase with the deployment of 3G and WiMAX services. The private sector will need to reorient its focus on talent development through training schools and facilitation programs that cater to the needs of the telecom industry.

BIBLIOGRAPHY

BOOKS:

Marketing management : Philip Kotler Business Research Methods: Donald R Cooper

WEBSITES:

www.TATADOCOMO.com www.mbaforum.com www.marketingpractise.blogspot.com

Other Data were collected from Mr. Shubham Sooden, Manager of the zonal office under his guidance and knowledge.

Suggestions

—Increase network coverage: Few of customers not satisfy with net work coverage. If Tata increase more towers more customers are satisfy—Increase download speed of internet: the download speed of Tata Docomo is very slow. If it increases speed of download it may increase the brand image—Concentrate on SMS tariff: No difference from the competitors SMS tariff if it made slight changes it will attract more customers—Avoid black marketing of Sim’s by dealers: due to doing black marketing the brand image decreases

—More customer service centers are requiring: More customer service centers are require meeting the desires of customers.

Conclusion

Tata Docomo has good brand image.

¨ It was the first company to introduce the seconds pulse.¨ It has a good future if it improves the signal levels.¨ It has good promotion in the market.

“Good services is the way to retain the clients”

Indian economy is an emerging one and is growing very fast at the average GDP rate 8-9% so in this emerging market competition level among telecommunication services provides new players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the telecom service providers. The need for large

information capacity has grown tremendously due to the demand of real time information. Telecommunication has now become a major information transmission system and telecom has undoubtedly emerged as the most important industry in India. Indian telecom companies are putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel and MTN etc. are playing their role in synergy with the operation of the Indian companies. Process of acquisition and merger are in process and future will be only for those companies who have an edge over others in the field.Service provided and the better quality of network etc. is provided at affordable cost. In this process of competition it is assumed that only those companies will survive who adopt suitable market strategy and technology innovation and up gradation to suit the aspiration and demand of the consumer.

The technology improvement has helped the sector to perform better and has also expanded the meaning of the term “telecommunication” from just audio message transformation to virtual presence of person. The sector clearly shows a great scope for future. Increasing competition is acting like a funnel for dissatisfaction to pour down in the retailer’s hearts. Other companies are numerically more attractive then Tata Docomo, which is a bit slow in adopting the changes in environment and slow change, is no change.

Tata Teleservices a leading service provider in India is having only a market share of Ten percent in Surat City. Hence, it needs to improve its services and have a better retail distribution network, with proper network and coverage, in order to grow at a faster pace. The Company needs to focus on various pitfalls that it is having and should follow the proactive approach rather than being reactive to a particular market situation.

“To succeed be different, be daring and be there first”

Learning’s from the Project:

It was a great opportunity for me to do a project with Tata Teleservices Ltd., which is one of theprestigious companies in India. It was a starting for me to get the knowledge of real corporate world. Today experience and knowledge of things is much more different from theoretical concept. Although the learning’s were numerous in number but I have concluded a few as major ones and they are as follows:➢ During the tenure of this project I got a great corporate exposure and came closer to

working environment.

➢ I earned real marketing and sales experience during this time period. I learnt how to makegood relationships with customer, channel partners as well as colleagues. The practical aspects of marketing theories are materialized during the course of this study

➢ During this project I worked on my analytical abilities in practical situations where the customer comes to us with problem and we are suppose to give him/her a suitable solution for that problem.

➢ During this project I experience corporate busy life and urgency of reporting to boss. Thislife helps me to improve our technical skills.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Anand Lakker from Seventh Day Adventist College, Surat has been appointed for the Summer Internship Training Project Program with Tata Docomo Teleservices Limited, Gujarat with effect from 15th apr-2010.

 The detailed confirmation and certificate after project will be given to you from HR side.

Regards

Shubham Sooden

Zonal Manager, Surat

9033099006

To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.

Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.

Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom.[citation needed]

As a particular industry matures and its growth slows, all business units become either cash cows or dogs. The natural cycle for most business units is that they start as question marks, then turn into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At the end of the cycle the cash cow turns into a dog.

The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell. Managers were supposed to gain perspective from this analysis that allowed them to plan with confidence to use money generated by the cash cows to fund the stars and, possibly, the question marks. As the BCG stated in 1970:

Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. The balanced portfolio has:

stars whose high share and high growth assure the future; cash cows that supply funds for that future growth; and question marks to be converted into stars with the added funds.

[edit] Practical use of the BCG Matrix

For each product or service, the 'area' of the circle represents the value of its sales. The BCG Matrix thus offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, at least in terms of current profitability, as well as the likely cashflows.

The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned that one of the main indicators of cash generation was relative market share, and one which pointed to cash usage was that of market growth rate.

Derivatives can also be used to create a 'product portfolio' analysis of services. So Information System services can be treated accordingly.[citation needed]

[edit] Relative market share

This indicates likely cash generation, because the higher the share the more cash will be generated. As a result of 'economies of scale' (a basic assumption of the BCG Matrix), it is assumed that these earnings will grow faster the higher the share. The exact measure is the brand's share relative to its largest competitor. Thus, if the brand had a share of 20 percent, and the largest competitor had the same, the ratio would be 1:1. If the largest competitor had a share of 60 percent; however, the ratio would be 1:3, implying that the organization's brand was in a relatively weak position. If the largest competitor only had a share of 5 percent, the ratio would be 4:1, implying that the brand owned was in a relatively strong position, which might be reflected in profits and cash flows. If this technique is used in practice, this scale is logarithmic, not linear.

On the other hand, exactly what is a high relative share is a matter of some debate. The best evidence is that the most stable position (at least in Fast Moving Consumer Goods FMCG markets) is for the brand leader to have a share double that of the second brand, and triple that of the third. Brand leaders in this position tend to be very stable—and profitable; the Rule of 123.[2]

The reason for choosing relative market share, rather than just profits, is that it carries more information than just cash flow. It shows where the brand is positioned against its main

competitors, and indicates where it might be likely to go in the future. It can also show what type of marketing activities might be expected to be effective.[citation needed]

[edit] Market growth rate

Rapidly growing in rapidly growing markets, are what organizations strive for; but, as we have seen, the penalty is that they are usually net cash users - they require investment. The reason for this is often because the growth is being 'bought' by the high investment, in the reasonable expectation that a high market share will eventually turn into a sound investment in future profits. The theory behind the matrix assumes, therefore, that a higher growth rate is indicative of accompanying demands on investment. The cut-off point is usually chosen as 10 per cent per annum. Determining this cut-off point, the rate above which the growth is deemed to be significant (and likely to lead to extra demands on cash) is a critical requirement of the technique; and one that, again, makes the use of the BCG Matrix problematical in some product areas. What is more, the evidence,[2] from FMCG markets at least, is that the most typical pattern is of very low growth, less than 1 per cent per annum. This is outside the range normally considered in BCG Matrix work, which may make application of this form of analysis unworkable in many markets.[citation needed]

Where it can be applied, however, the market growth rate says more about the brand position than just its cash flow. It is a good indicator of that market's strength, of its future potential (of its 'maturity' in terms of the market life-cycle), and also of its attractiveness to future competitors. It can also be used in growth analysis.[citation needed]

[edit] Critical evaluation

The matrix ranks only market share and industry growth rate, and only implies actual profitability, the purpose of any business. (It is certainly possible that a particular dog can be profitable without cash infusions required, and therefore should be retained and not sold.) The matrix also overlooks other elements of industry. With this or any other such analytical tool, ranking business units has a subjective element involving guesswork about the future, particularly with respect to growth rates. Unless the rankings are approached with rigor and scepticism, optimistic evaluations can lead to a dot com mentality in which even the most dubious businesses are classified as "question marks" with good prospects; enthusiastic managers may claim that cash must be thrown at these businesses immediately in order to turn them into stars, before growth rates slow and it's too late. Poor definition of a business's market will lead to some dogs being misclassified as cash bulls.

As originally practiced by the Boston Consulting Group,[2] the matrix was undoubtedly a useful tool, in those few situations where it could be applied, for graphically illustrating cashflows. If used with this degree of sophistication its use would still be valid. However, later practitioners have tended to over-simplify its messages. In particular, the later application of the names (problem children, stars, cash cows and dogs) has tended to overshadow all else—and is often what most students, and practitioners, remember.

This is unfortunate, since such simplistic use contains at least two major problems:

'Minority applicability'. The cashflow techniques are only applicable to a very limited number of markets (where growth is relatively high, and a definite pattern of product life-cycles can be observed, such as that of ethical pharmaceuticals). In the majority of markets, use may give misleading results.

'Milking cash bulls'. Perhaps the worst implication of the later developments is that the (brand leader) cash bulls should be milked to fund new brands. This is not what research into the FMCG markets has shown to be the case. The brand leader's position is the one, above all, to be defended, not least since brands in this position will probably outperform any number of newly launched brands. Such brand leaders will, of course, generate large cash flows; but they should not be `milked' to such an extent that their position is jeopardized. In any case, the chance of the new brands achieving similar brand leadership may be slim—certainly far less than the popular perception of the Boston Matrix would imply.

Perhaps the most important danger[2] is, however, that the apparent implication of its four-quadrant form is that there should be balance of products or services across all four quadrants; and that is, indeed, the main message that it is intended to convey. Thus, money must be diverted from `cash cows' to fund the `stars' of the future, since `cash cows' will inevitably decline to become `dogs'. There is an almost mesmeric inevitability about the whole process. It focuses attention, and funding, on to the `stars'. It presumes, and almost demands, that `cash bulls' will turn into `dogs'.

The reality is that it is only the `cash bulls' that are really important—all the other elements are supporting actors. It is a foolish vendor who diverts funds from a `cash cow' when these are needed to extend the life of that `product'. Although it is necessary to recognize a `dog' when it appears (at least before it bites you) it would be foolish in the extreme to create one in order to balance up the picture. The vendor, who has most of his (or her) products in the `cash cow' quadrant, should consider himself (or herself) fortunate indeed, and an excellent marketer, although he or she might also consider creating a few stars as an insurance policy against unexpected future developments and, perhaps, to add some extra growth. There is also a common misconception that 'dogs' are a waste of resources. In many markets 'dogs' can be considered loss-leaders that while not themselves profitable will lead to increased sales in other profitable areas.

[edit] Alternatives

As with most marketing techniques, there are a number of alternative offerings vying with the BCG Matrix although this appears to be the most widely used (or at least most widely taught—and then probably 'not' used). The next most widely reported technique is that developed by McKinsey and General Electric, which is a three-cell by three-cell matrix—using the dimensions of `industry attractiveness' and `business strengths'. This approaches some of the same issues as the BCG Matrix but from a different direction and in a more complex way (which may be why it is used less, or is at least less widely taught). Perhaps the most practical approach is that of the Boston Consulting Group's Advantage Matrix, which the consultancy reportedly used itself though it is little known amongst the wider population.

[edit] Other uses

The initial intent of the growth-share matrix was to evaluate business units, but the same evaluation can be made for product lines or any other cash-generating entities. This should only be attempted for real lines that have a sufficient history to allow some prediction; if the corporation has made only a few products and called them a product line, the sample variance will be too high for this sort of analysis to be meaningful.