Vodafone Part A

8/3/2019 Vodafone Part A

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1. INDUSTRY PROFILE

Telecommunication industry deals with the activities and services of electronic systems for

transmitting messages through cables, telephone, radio or television.

Two major factors responsible for the growth of telecommunication industry are use of modern

technology and market completion. One of the products of modern technologies is optical fibers,

which are being used as a medium of data transmission instead of using coaxial or twisted pair

cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Use

of communication satellites makes this telecommunication industry a booming industry.

The use of mobile network has a crucial role behind the growth of an improved

telecommunication industry. Leading companies are showing their interest to invest in this

telecommunication industry.

Telecommunication industry in going to be digitized one. Use of ISDN (Inter services Digital

Network) makes this telecommunication industry a total digitalized system and eventually

enhances the speed and quality of digital communication.

The introduction of these advanced technologies makes the telecommunication industry a

competitive one, where a number of multinational companies have shown their interest to invest

in this industry and consequently the prices are reduced, the quality is also improved. During theperiod of 1990, the telecommunication industry showed a speedy growth in terms of investment

and eventually increased the competition. The competition between the companies led to the

decline of revenues.

1.1 History of telecommunication

The kings used human messengers to communicate to their people in various states within their

kingdom or to people in other kingdoms.

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Julius caesar, the emperor of Rome, more than 2000 years ago, used pigeons to send messages

back home from battle.

Pigeons were enen used during the world war II as war message.

The Dawk system was started in India in the year 1688, when the first office of the company post

was established in Mumbai and Chennai

In 1876 Alexander Gram Bell spoke the first word on the telephone Mr Watson come here, I

want to see you

In 1888-1902, the first patents for the telephone with a slot for coins were field.

Mr Bell once again used the phrase Mr Watson come here, I want to see you

When he was incited to the opening of the completed transcontinental telephone line connecting

the west cost and the east cost. However, this time, Mr. Watson responded saying that it would

take him a week to get there as he was in San Francisco.

In 1915, the first wireless voice transmission between New York and Sans Francisco signaled the

beginning of the convergence of the radio and telephone

In the mid 1960s the original concept underlying the internet was developed. Wireless

communication

Pager Services

Pager communication successful launched in India in the year 1995. Pagers were looked upon as

devices that offered the much needed mobility in communication, especially for businesses.

Motorola was a major player with nearly 80 per cent of the market share. The other companies

included Mobilink, Pagelink, BPL, Usha Martin telecom and Easy call. Pagers were generally

worn on the belt or carried in the pocket.

The business peaked in 1998 with the subscriber base reaching nearly 2 million. However, the

number dropped to less than 500,000 in 2002. The pager companies in India were soon

struggling to maintain their business. While 2-way pagers could have buffered the fall, the pager

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companies were not in a position to upgrade their infrastructure to improve the ailing market.

The Indian Paging Services Association was unable to support the industry.

Pager companies in India also offered their services in regional languages also. However, the end

had begun already. By 2002, Motorola stops making or servicing pagers. When mobile phoneswere commercially launched in India, the pager had many advantages to boast. Pagers were

smaller, had a longer battery life and were considerably cheaper. However, the mobile phones

got better with time and continuously upgraded themselves.

Mobile Communication

First mobile telephone service on non-commercial basis started in India on 48th Independence

Day at countrys capital Delhi. The first cellular call was made in India on July 31st, 1995 over

Modi Telstras MobileNet GSM network of Kolkata. Later mobile telephone services are divided

into multiple zones known as circles. Competition has caused prices to drop and calls across

India are one of the cheapest in the world.

Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent

players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz

band, they are first to introduce EVDO based high speed wireless data services via USB dongle.

In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by

India Govt. officials and financial troubles.

In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by

Government owned MTNL and BSNL. Later from November 2010 private operators started to

launch their services.

Broadband communication

After US, Japan, India stands in third largest Internet users of which 40% of Internet used via

mobile phones. India ranks one of the lowest provider of broadband speed as compared countriessuch as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed above

2Mbits is still in a nascent stage.

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Year 2007 had been declared as Year of Broadband in India. Telcos based on ADSL/VDSL in

India generally have speeds up to 24Mbit max while those based on newer Optical Fiber

technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx). Broadband

growth has been plagued by many problems. Complicated tariff structure, metered billing, High

charges for right of way, Lack of domestic content, non implementation of Local-loop

unbundling have all resulted in hindrance to the growth of broadband.

Many experts think future of broadband is on the hands of wireless factor. BWA auction

winners are expected to roll out LTE and WiMAX in India in 2012.

Next Generation Network (NGN)

Next Generation Networks, multiple access networks can connect customers to a core network

based on IP technology. These access networks include fiber optics or coaxial cable networks

connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks

connected to mobile users.

As a result, in the future, it would be impossible to identify whether the next generation network

is a fixed or mobile network and the wireless access broadband would be used both for fixed and

mobile services. It would then be futile to differentiate between fixed and mobile networks both

fixed and mobile users will access services through a single core network. Cloud based data

services are expected to come.

Indian Satellites

India has launched more than 50 satellites of various types, since its first attempt in 1975. The

organization responsible for Indian satellites is the Indian Space Research Organization (ISRO).

Most Satellites have been launched from various vehicles, including American, Russian,

European satellite-launch rockets, and the U.S. Space Shuttle. First Indian satellite Aryabhata on

19th April 1975, later Bhaskara, Rohini, INSAT, Edusat, IRS, GSAT, Kalpana, Cartosat, IMS,

Chandrayaan, ResourceSat, RiSat, AnuSat, etc.

The Indian telecommunication network is the third largest in the world and the second largest

among the emerging economies of Asia. The Indian telecommunication sector has continued to

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record noteworthy success throughout the year and has emerged as one of the key sectors that

have been accountable for resurgent growth of the Indian economy.

The rapid growth of the sector has been coupled with proactive polices and decisions taken by

the Indian Government and dynamic involvement of the private sector. The liberal policies in thetelecommunication sector have facilitated easy access to telecom companies and a fair regulatory

framework offers services to the Indian consumers at affordable prices.

The wireless technologies currently in use in ' Indian Telecom Industry ' are Global System for

Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are

primarily 11 GSM and 5 CDMA operators providing mobile services in 22 telecommunication

circles, covering more than 2000 towns and cities across the country.

The Indian telecom sector is largely dominated by private operators that control a share of

88.53%. Among the top players in the telecom sector, Bharti Airtel owns the largest share at

28.71%, followed by Reliance 14.96%,tata GSM+CDMA at 13.06%, Vodafone at 12.52%,

state-owned BSNL at 11.47%, Idea at 9.65%, MTS at 3.69%, Aircel at 3.20%,Uninor at 2.69%

(data as of Nov 2011)

Over the last 5 years, nine out of every ten new telephone connections have been wireless.

Consequently, wireless now accounts over 95% of the total telephone subscriber base, as

compared to only 40% in 2003. And the numbers are still growing for ' Indian Telecom

Industry. ' Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India'

(TRAI). It has earned good reputation for transparency and competence. Three types of players

exists in ' Telecom Industry in India ' community

State owned companies like - BSNL and MTNL.

Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.

Foreign invested companies like - vodafone-Essar, Bharti Tele-Ventures, Escotel, IdeaCellular, BPL Mobile, Spice Communications etc.

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The Indian Telecom Industry services is not confined to basic telephone but it also extends to

internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc

As per statistics, the total number of mobile phone base in the country will rise to 900 million by

the end of 2012 and it is further expected that this figure will steadily rise to 1.25 billion by2015. It has also been projected that the users for the broadband base are going to reach 100

million mark by 2014, particularly after the telecom companies roll out their 3G services as per

the research study conducted by Crisil.

Telecommunication sector in india

Telecom sector contributes 1.5% to National GDP

India added 113.26 million new customers in 2008, the largest globally. The countries cellular

base witnessed close to 50% growth in 2008, with an average of 9.5 million customers added

every month.

At the quarter ending March 2009, India had a total subscriber base of 429.7 million subscribers.

In this year India witnessed the a tremendous growth in the rural subscriber base, standing at

120.29 million subscribers

In the month of May 2010 telephone subscribers reached 653.92 million, of which wireless

subscribers were 617.53 million. There were 16.30 million new additions in wireless. The

Broadband subscription was 9.24 million.

As of October 2011 there were 914.59 million telephone subscribers, of with wireless were

881.40 million, monthly wireless additions were 7.79 million. India was stated as the worlds

fourth largest internet user with over 121 million as on December 2011. India has come to be

regarded as the world's most competitive and one of the fastest growing telecom markets.

The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$53.81 billion)

for 2010-11 financial year, while revenues from telecom equipment segment stood at 117,039

crore (US$22.24 billion).

The industry is expected to reach a size of 344,921 crore by the end of 2012 at a growth rate of

over 26% and generating employment opportunity for about 10 million people during the same

period. According to analysts, the sector would create direct employment for 2.8 million people

and for 7 million indirectly.

The following table illustrates the gradual increase in monthly mobile subscriber additions(in

millions) in India since January 2002

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Year Annual Additions(in

millions)

2002 5.23

2003 17.49

2004 19.49

2005 27.86

2006 64.14

2007 85.27

2008 113.26

2009 178.25

2010 227.12

1.2growth of telecommunication industry

Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the

telecom manufacturing segment in 1991 - when India embarked on economic liberalisation.

FDI is defined as investment made by non-residents in the equity capital of a company. For

the telecom sector, FDI includes investment made by Non-Resident Indians (NRIs),

Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs),

American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) etc.

Present FDI Policy for the Telecom sector:

In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value

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Added Services and Global Mobile Personal Communications by Satellite, FDI is

limited to 49 per cent (under automatic route) subject to grant of licence from the

Department of Telecommunications and adherence by the companies (who are

investing and the companies in which investment is being made) to the licence

conditions for foreign equity cap and lock-in period for transfer and addition of equity

and other license provisions.

Foreign Direct Investment up to 74 per cent permitted, subject to licensing and

security requirements for the following:

- Internet Service (with gateways)

- Infrastructure Providers

- Radio Paging Service

FDI up to 100 per cent permitted in respect to the following telecom services:

- ISPs not providing gateways (Both for satellite and submarine cables)

- Infrastructure Providers providing dark fibre (IP Category I)

- Electronic Mail

- Voice Mail

The above is subject to the following conditions:

Foreign direct investment policies in india

- FDI up to 100 per cent is allowed subject to the condition that such

companies would divest 26 per cent of their equity in favour of Indian public

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within 5 years, if these companies are listed in other parts of the worl

- The above services would be subject to licensing and security requirements,

wherever required.

- Proposals for FDI beyond 49 per cent shall be considered by Foreign

Investment Promotion Board (FIPB) on a case-to-case basis.

In the manufacturing sector 100 per cent FDI is permitted under the automatic

route.

In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile

Personal Communications by Satellite, FDI is permitted up to 49 per cent (under

automatic route) subject to grant of license from Department of Telecommunications

Foreign direct investment up to 74 per cent permitted, subject to licensing and

security requirements for the Internet Service (with gateways), Infrastructure

Providers, Radio Paging Service

FDI up to 100 per cent permitted in respect of

- ISPs not providing gateways (both for satellite and submarine cables),

- Infrastructure Providers providing dark fibre (IP Category I);

- Electronic Mail; and

- Voice Mail

FDI up to 49 per cent is also permitted in an investment company, set up for making

investment in the telecom companies licensed to operate telecom

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services. Investment by these investment companies in a telecom

service company is treated as part of domestic equity and is not set of

against the foreign equity cap.

Manufacturing - 100 per cent FDI is permitted under automatic route.

FDI is subject to the following conditions

FDI up to 100 per cent is allowed subject to the conditions that such companies

would divest 26 per cent of their equity in favour of Indian public in 5 years, if these

companies are listed in other parts of the world.

The above services would be subject to licensing and security requirements,

Wherever required.

Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case

Basis

1.3 Following are the key players in india

Bharat Sanchar Nigam Limited (BSNL) Mahanagar Telephone Nigam Limited (MTNL)

Vodafone

Airtel

Idea

Reliance

Tata

Aircel Uninor

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1.6 Regulatory Regime relating to the telecom industry

In the year 1975 Department of Telecom (DoT) was responsible

for telecom services in entire country after separation from Indian

Post & Telecommunication. Decade later Mahanagar Telephone

Nigam Limited (MTNL) was chipped out of DoT to run the

telecom services of Delhi and Mumbai.

In 1990s the telecom sector was opened up by the Government for

private investment. In199 TRAI (Telecom Regulatory Authority of

India) was setup. This reduced the interference of Government in

deciding tariffs and policy making. The Government of India

corporatized the operations wing of DoT in 2000 and renamedDepartment of Telecom as Bharat Sanchar Nigam Limited

(BSNL).

Regulatory authority and Tribunal of telecom sector:

A. The Telecom Regulatory Authority of India (TRAI) was set up

in March 1997 as a regulator for Telecom sector. The TRAIs

functions are recommendatory, regulatory and tariff setting in

telecom sector.

B. Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

came into existence in May 2000. TDSAT has been empowered to

adjudicate any dispute

between a licensor and a licensee

between two or more service providers

between a service provider and a group of consumers

hear and dispose of appeal against any direction, decisionor order of TRAI

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Tariffs for telecommunication services have evolved from a

regime where tariffs were determined by Telecom Regulatory

Authority of India to a regime where tariffs are largely

under forbearance. TRAI intervenes by regulating the tariffs for

only those services, the

markets of which are not competitive.

1.7 SWOT analysis for telecom sector

Strength

Huge customer potential

High growth rate

Allowing FDI ranging from 74% to 100%

Liberalization efforts by the government

Lower capital expenditure: The Indian telecom market is highly a density area, which

means more population per tower

Weakness

Poor telecommunication infrastructure

Late adopters of new technology

Competitive market

A market strongly regulated by the government.

Difficult to enter because of requirement of huge financial resource.

Opportunities

4G services

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More quality services

VAS

Boost to telecom manufacturing companies

Telecom equipment export

Horizontal integration

Threats

Telecommunication policy

Declining average revenue per user

Reservation on the part of the government : allowing 3G services in the PSU before auctioning to

private sector

Content Piracy

2. COMPANY PROFILE

2.1 Background and Inception of the Company

The largest mobile telecommunications network in the world, Vodafone, was founded in 1984 as

Racal Telecom Ltd, which was a subsidiary of Racal Electronics Plc. Racal was a British radar

and electronics firm founded in 1950. It all started in 1982 when Racal Electronics Group, a

subsidiary of Racal Strategic Ltd, won its bid for the private sector UK Cellular license. This

enterprise, known as Racal Vodafone, was a joint venture between Racal, Millicom, and

Hambros Technology Trust.

Racal Strategic Radio Ltd was later renamed as Racal Telecommunications Group Ltd in 1985. Vodafone

made UKs first mobile call a few minutes past midnight on January 1, 1985 from St. Katherines Dock to

Newbury. In 1987 Vodafone was recognized as the largest mobile network of the world, the very same

year Vodata is created as the voice and data business to market Vodafones voice and mail service. In

October 1988, the then known as Racal Telecommunications Ltd, floated 20% of its share capital

in the market. On 16 September 1991 Racal Telecom was demerged from Racal Electronics Plc,

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to become an independent company as Vodafone Group Plc. The name Vodafone originates

from Voice Data Fone, which reflects provisions of voice and data over mobile phones.

After Sir Gerald Whents retirement in January 1997, Sir Christopher Gent took over as the

CEO. On 29th June 1999, after its merger with Air Touch Communications, Inc. the company

changed its name to Vodafone Air touch, Plc but then again on 28 July 2000, reverted back to its

original name after a joint approval by its share holders in its General meeting.

The story about the worlds largest telecommunications giant has been nothing short of

phenomenal, with head quarters in United Kingdom, and interests in Europe and United States of

America Vodafone Group, and Asia has marked an astonishing achievement in the cellular

business, with its major acquisition strategies and takeovers. The Groups subsidiaries operate

under the brand name Vodafone.

It became the biggest company on London Stock Exchange as on January 2000. In 2006 the

number of its live customers using 3G reaches 10 million. Vodafone currently has operations in

25 countries and partnering networks in another 45 countries.

Vodafones business unit is enabling the worlds leading multinational companies to develop and

control their entire mobile communications networks.

Vodafone Ltd. was clearly its flagship company, the Vodafone Group as a whole comprised

several wholly owned subsidiaries that supported or complemented the activities of Vodafone

Ltd. Vodafone Group International was a rapidly growing component of the group. Active in

seeking opportunities and implementing projects abroad, Vodafone International looked likely to

one day be as important to the group as Vodafone Ltd. itself. In 1993 the company was awarded

a license in Australia to operate that country's third digital mobile telephone network. In the

same year consortia of which Vodafone was a member received similar licenses to operate in

Greece and Germany. Vodafone also had substantial interests in France, Scandinavia, Hong

Kong, Fiji, Malta, and Mexico. Although start-up costs for foreign ventures were obviously high,

the field was very lucrative, and Vodafone was continually on the lookout for new possibilities.Analysts predicted that Vodafone would increase its investments with the aim of acquiring more

foreign associates and, eventually, subsidiaries. As of 1994, Vodafone operated one of the

world's largest cellular networks, with over one million subscribers. This, combined with the

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company's increasingly high international profile, made it a safe bet that Vodafone would

continue its prominent role in the expanding mobile telecommunications industry.

Vodafones entry into India

Vodafone Essar in India is a Subsidiary of Vodafone Group Plc.

Vodafone secured the operational control of Indias fourth largest

mobile company, Hutchison Essar, clearing the way for the British

firms expansion into the fast growing market. When Hutchison

Whampoa Ltd(HWL), a Hong Kong based Telecommunication

company declared its intention to sell its stake in Hutchison Essar, aleading telcom playes Vodafone had publically shown its interest in

acquiring the stake. In February 2007, it acquired 67% stake buy paying

5.7bn to Hutchison Essar. Vodafone has invested a further 2bn in

rolling out its network and building the operator into the country's

second-biggest player. Vodafone Essar now has operations in 16

circles.odafones entry into India

2.2 Nature of business Carried:

They have classified there segments as customers and Business

Customers being the retail business and Business being the wholesale

business

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2.3 Vision, Mission and Quality Policy

Vision

Our Vision is to be the worlds mobile communication leader enriching customers lives,

helping individuals, businesses and communities be more connected in a mobile world.

Mission

Driving in a wireless world Vodafone is primarily a user of technology rather than a developer of

it, and this fact is reflected in the emphasis of our work programme on enabling new applications

of mobile communications, using new technology for new services, research for improving

operational efficiency and quality of our networks, and providing technology vision and

leadership that can contribute directly to business decisions.

quality

The Quality Assurance team consists of 7 auditors for call centre, 13 auditors for backend quality

and 6 auditors for VTS & VS. In case of Call centre audit, each Auditor has to audit at least 6

audits per executive per month. The audit is done on parameters such as:

Standardization

Soft skills

Query resolution

CRM tagging

Customer Orientation

There is a program called Quality Pays that runs every fortnight. In this case, an executives

audit score defines his category in the Call centre i.e. Fresher, Amateur or Professional. There

are certain benefits and privileges that a Professional gets to enjoy as compared to an amateur

or a fresher.

There are also separate parameters on which the KRAs of a call centre executive are audited by

his team coach. These broadly include productivity, quality and knowledge. It is expected that

the audit score given by the Team Coach and the Auditor should not differ too much.

2.4 Product / Service Profile

Customer segment (retail)

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Connectivity

Postpaid: use and pay Prepaid: pay and use

Number portability Number portability

Plans Plans

Offers Topup

Roaming Roaming

Coverage Coverage

Calling card

Value added services

Entertainment

& Life style

Games, Downloads

& Application

Mail &

Messaging

Call

ManagementServices

Alerts,

updates andothers

Tones & tunes Downloads:Themes

, wallpapers and

logos and pictures

MSN &

Messaging

Call barring News and

finance

Music Application: Opera

Mini, Mshop, App

Store, Vodafone

TV, phone back up,

chhota magazine

Yahoo

messenger

Call

conference

Devotional

Movie & TV Rediff and

Indiatimes

Call divert Social

Networking

Dating SMS chat Call waiting Travel &

TransportationHumor Vernacular

SMS

Caller ID

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Competition Group

SMS

Busy

Message

Sports Picture

SMS MMS

Voicemail

Astrology

USB Stick : 3 GB USB stick

Mobile connect

EDGE data card

3G services

Video caf

Video calling

Vodafone TV

HD gaming

Faster downloads

High speed internet

Vodafone News wrap

Phones

Vodafone smart

Vodafone blue

Business solutions

Mobile working: Vodafone's advanced Mobile Xchange email and messaging services

enhance collaboration and keep the workforce in sync wherever they are. This includes

BlackBerry solutions, Vodafone mobile Exchange, USB stick, Vodafone mobile connect.

Integrated wireline communication: With a robust national fibre network of morethan86,000 km, 100 POPs, a state of the art Enterprise NOC and global connections,

Vodafone brings effective, reliable communications to the business. This includes

internal private lease circuits, internet leased lines, office wireline voice and toll free

services.

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Voice and messaging: Vodafone's efficiency-boosting mail and messaging solutions help

the company to streamline communications and keep staff connected 24/7.

They include bulk SMS, corporate callertunes, interactive SMS, missed call alerts.

Vodafone brings together voice and data, wireless and wireline to help the business harness the

power of total communications solutions.

Vodafone helps every business become more efficient and productive. They focus on providing

value through high-quality, innovative solutions, and let their customers do the talking.

Combining fixed line, mobile and data services to deliver a total communications

package.

Leveraging more than 85,000 km of state-of-the-art fibre optic network, 26,000 km of

DWDM on ASON with 3-path protection, and over 400 Gbps backbone bandwidth to

provide national connectivity.

Using the global expertise from operations in over 31 countries to help the business

overcome challenges and save on your international roaming bills.

Assigning a dedicated account manager to each Enterprise customer to act as a single

point of contact for all the telecom needs and work to understand your business and

recommend the solutions best suited to your needs.

Offering a unique Spend Tracker tool that allows you to pay bills, analyze trends and

manage all the companys telecom connections from a single desk.

Helping to find more efficient ways of doing business through connectivity, thereby

enhancing productivity and generating value for every organization

2.5 Area of operation

Vodafone Group Plc is the worlds leading mobile telecommunication company, with a

significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States

through the companys subsidiary undertaking, joint ventures, associates undertakings and

investment

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E UROPE AFRICA ASIA AUSTRALIA MIDDLE EAST

Albania Egypt Greece New Zealand Qatar

Czech Republic Ghana India

Germany South Africa

Hungary

Ireland

Italy

Malta

Netherlands

Portugal

Romania

Spain

Turkey

United Kingdom

Partner Market

Vodafone Group has entered into agreements with network operators in countries where the

group does not hold an equity share. Under the terms of these Partner Agreements, Vodafone and

its partner operators co-operate in the marketing of global products and services with varying

levels of brand association. This strategy enables Vodafone to implement services in new

territories.

REGION COUNTRY BRAND NAME

Europe Austria A1

Armenia MTS

Azerbaijan Azerfon-Vodafone

Belgium Proximus

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Bulgaria Mobiltel

Channel Island Airtel-Vodafone

Croatia VIPnet

Cyprus Cytamobile-Vodafone

Denmark TDC

Estonia Elisa

Faroe Islands Vodafone Faroe Island

Finland Elisa

France SFR

Iceland Vodafone Iceland

Latvia Bite

Lithuania Bite

Luxembourg Tango

Macedonia/FYROM VIP operator

Norway TDC

Serbia VIP Mobile

Sweden TDC

Slovenia sl.mobile Vodafone

Switzerland Swisscom

Ukraine MTS

REGION COUNTRY BRAND NAME

Russia Russia MTS

America Caribbean Caribbean

Chile Entel

Honduras Digicel

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Panama Digicel

Asia, Middle East Afghanistan Roshan

And Africa Bahrain Zain

Fiji Vodafone Fiji

Hong Kong Hutchison Telecom

Japan NTT DOCOMO

Kenya Safaricom

Libya Almadar

Malaysia Celcom

Philippines Smart

Singapore StarHub

Sri Lanka Dialog

Taiwan Chunghwa Telecom

Thailand dtac

Turkmenistan MTS

UAE du

Uzbekistan MTS

2.6 Ownership pattern of Vodafone Essar

Vodafone Board Members:

1. Gerard Kleisterlee: Became the chairman of Vodafone on 26th July 2011

2. John Buchanan: Became the Deputy Chairman of Vodafone on July 2006

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And had the member of the board since April 2003

3.Vittotio Colao: Appointed as the Chief executive on 29th July 2009

4. Michel Combes: CEO of Europe Region with effect from 1st June 2009

5. Andy Halford: Chief financial officer for Northern Europe, Middle East and Africa

6. Renee James: Non-Executive director since January 2011

7. Alan Jebson: Non-Executive director since 1st December 2006

8. Samuel Jonah: Non-executive director since April 2009

9. Nick Land : Non-Executive director since December 2006

10. Anne Lauvergeon: Non-Executive director since November 2005

11. Stephen Pusey: Chief technology officer since June 2009

12. Luc Vandevelde: Non-Executive director since September 2003

13. Anthony Watson: Non-Executive director since May 2006

14. Philip Yea: Non-Executive director since September 2005

Geographical Shareholder as of 31st March 2011

Geographical Location % Holdings

UK 46.9

North America 30.2

Europe (excluding UK) 14.4

Rest of the world 8.5

Current stake status in Vodafone Essar

% of Stake

Vodafone 66

Essar 33

IPO proposal at Vodafone India Ltd

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% of Stake

Vodafone 74

Indian Sharehoders 26

2.7 Competitors of Vodafone South Ltd:

Customer Base of the competitors

Operator Customer Base (As of Nov 2011in 000)

Airtel 15,211,683 (28.71%)

Idea 5,112,442 (9.65%)

BSNL 6,075,878 (11.47%)

Reliance 7,922,886 (14.96%)

Tata 6,920,462 (13.06%)

Aircel 1,695,442 (3.20%)

MTS 1,953,127 (3.69%)

Uninor 1,427,365 (2.62%)

Vodafone: 6,632,135

Competitors gross revenue (in Crores as of 3nd Quarter 2011)

Airtel 1,101.8

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Idea 200.4

BSNL 358.9

Reliance 182.7

TATA 33.2

Aircel 33.2

MTS 53.4

Vodafone : 316.4

Market Share of the competitors as of 3rd quarter 2011

Operator Market share %

Airtel 43

Idea 7.8

BSNL 14

Reliance 7.1

TATA 11.3

Aircel 1.3

MTS 201

Vodafone: 12.36%

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h. INFRASTRUCTURAL FACILITIES

Vodafone Essar South Ltd has three main offices in Bangalore which controls all the activities

for Karnataka circle. The three offices are located at Maruthi Infotech center (MIC), Embassy

Golf Links(EGL) and Prestige Blue chip (PBC).

MIC covers 22,500 sq feet with 161 seating capacity, EGL covers 19,484 sq feet with a seating

capacity of 201 and PBC covers 10,900 sq feet with a seating capacity of 122 employees.

The work place of Vodafone Essar South Ltd is been certified by ISRS ( International safety

rating system), hence we can say that its work environment is highly safe.

The following are the infrastructure facilities available to its employees:

Meeting rooms: there three meeting rooms available at MIC office with a seating

capacity of 3-4. These rooms are usually used by the employees to have discussions.

They have telephone lines in each of these rooms and a discussion boards and markers.

Conference rooms: there are 2 conference rooms at MIS office, one with a capacity of 12

and the other with a capacity of 20. These rooms are equipped with video conference

devices, LCD TVs, telephone lines, internet and discussion boards and markers.

Workstations are well designed ergonomically

Breakout area: This area within the work floor is used by the employees to relax and sip a

cup of coffee or tea. This area consists of a coffee machine, neatly arranged coffee mugs,

water to drink and comfortable chairs to relax on.

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Cafeteria: The cafeteria at MIC office covers 3500 sq feet, with neatly arranged chairs

and tables for employees to dine. It also has recreation area with a table tennis and a mini

library kept for the employees to reenergize.

There are about 2 fire exits with highlighting sign boards, the entire work floor is fitted

with smoke detectors and fire alarms.

The corporate standards of illumination at work place are maintained using Lux meter

i. ACHIVEMENTS /AWARDS IF ANY

SL

NoAwards

1 Best phone service provider 2011 Aegis Graham Bell

Award 2011

2 Most trusted Brand in India for 2011 Survey conducted by

Indias leadingfinancial daily

3 Most respected company for 2010 Survey conducted by

a leading business

daily

4 Zoozoo campaign won three accolades

two Gold and one Silver

Asia Marketing

Effectiveness (AME)

awards ceremony

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held at Shanghai.

Work flow (end end model)

CUSTOMER GRIEVANCE MANAGEMENT

ways in which a Customer can complain to the company :

E-mail Website custmorcare

Customer service group

28

Front line

resolution

.nodel/appelate

Customer segmentation

Parameters for subgroups

Turn around time Service request raisedBronze Silver Platinum Gold


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Call customer

29

Allocation of subgroups

Analysis of nature of

complaint

NETWORK TEAM MARKETING TEAM

Follow up and closure

Analysis of case /issues

Unknown cases

Known cases

Service request closed


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2.11 Future growth and prospects

FOCOUS ON

DATA :- 3G recently from 4 months it is being launched into

market

Both prepaid and postpaid customers can avail the

services

3G or 3rd generation mobile telecommunications is a generation of

standards for mobile phones and mobile telecommunication services

fulfilling the International Mobile Telecommunications-2000 (IMT-

2000) specifications by the International Telecommunication Union.

Application services include wide-area wireless voice telephone, mobile

Internet access, video calls and mobile TV, all in a mobile environment.

To expand its market share ii the data segment.

Several telecommunications companies market wireless mobileInternet services as 3G, indicating that the advertised service is provided

over a 3G wireless network. Services advertised as 3G are required to

meet IMT-2000 technical standards, including standards for reliability

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Quality parameters(audit team)


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and speed (data transfer rates). To meet the IMT-2000 standards, a

system is required to provide peak data rates of at least 200 kbit/s (about

0.2 Mbit/s). However, many services advertised as 3G provide higher

speed than the minimum technical requirements for a 3G service. Recent

3G releases, often denoted 3.5G and 3.75G, also provide mobile

broadband access of several Mbit/s to smartphones and mobile modems

in laptop computers.

Net cruise launched into market from 3 months and the plans are

for both prepaid and postpaid as well

TERM INALS:- The company plans to spend more than 250

crore in launching low price cell phones in India. The company's

objective in doing this is to bring in millions of low price mobile

handsets from around the world into the country and then sell them

under the Vodafone brand name in order to maximize sales. It is

expected that the company will price the handsets in the range of

666,999 and 888. In this way the company expects to attract new

customers and thus expand its customer base.

a) Samsung phones tie ups and developing future markets for

phones and telecom sector as well.

b) Blackberry tie ups and having different offers and plans for

different hand sets and wide verity of phones.

c) Basic Vodafone handsets with basic features at low price.

d) Vodafone blue (facebook phone) attracting college crowd

and youngsters as facebook is the current leading social network .

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PROSPECTS:-

Vodafone is planning to roll out the first ever IPO in India in the

near future.

1) Tax settlement :- 2500 crores is being paid by government of

INDIA to Vodafone as a matter of wrong case filings against Vodafone

by this the global outlook towards the company changes and the

companies near future aim of getting into ipo in india also will be a

great success.

2) Consolidation :- rules and regulations of government in indiaare becoming stringent and a very open news that in 2 years all the 13

small operators will be bought by big operators only 4 main operators

will be operating in india so many small players are now concentrating

on attracting more and more consumers and creating goodwill for the

company as they also know that more the number of consumers they get

and have under them the more amount of profit or income they get when

these small operators get absorbed or consolidated so they are bleeding

money and sustaining the losses and attracting more number of

consumers by leaving offers and call rates at a very low price compared

to others and acquiring subscriber base.

Technological growth:-

1) NFC- Near field communication (NFC) is a set of standards

for smartphones and similar devices to establish radio communication

with each other by touching them together or bringing them into closeproximity, usually no more than a few centimetres. Present and

anticipated applications include contactless transactions, data exchange,

and simplified setup of more complex communications such as Wi-Fi.

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Communication is also possible between an NFC device and an

unpowered NFC chip, called a "tag".

2) 4G- It seems that 4th Generation communications in India

will not be delayed and will be at a time with the global pace. Like othercountries, Indian operators favor for LTE over WiMAX. LTE has

backward compatibility and offers more economical data services.

Indian Govt auctioned for BWA spectrum and license in 2010, in

which Reliance Infotel came out as a pan India BWA winner, while

second block of 2.3GHz band was divided into Aircel, Airtel, Tikona,

Qualcomm and Augere

3)LTE- The LTE format was first proposed by NTT DoCoMo of

Japan and has been adopted as the international standards. LTE

standardization has come to a mature state by now where changes in the

specification are limited to corrections and bug fixes. The first

commercial services were launched in Sweden and Norway in

December 2009 followed by the United States and Japan in 2010. More

first release LTE networks were deployed globally during 2010 as a

natural evolution of several 2G and 3G systems, including Global

system for mobile communications (GSM) and Universal Mobile

Telecommunications System (UMTS) (3GPP as well as 3GPP2).

Being described as a 3.9G (beyond 3G but pre-4G) technology the

first release LTE does not meet the requirements for 4Galso calledIMT Advanced as defined by the International Telecommunication

Unionsuch as peak data rates up to 1 Gbit/s. The ITU has invited the

submission of candidate Radio Interface Technologies (RITs) following

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their requirements as mentioned in a circular letter. The work by 3GPP

to define a 4G candidate radio interface technology started in Release 9

with the study phase for LTE-Advanced. The requirements for LTE-

Advanced are defined in 3GPP Technical Report (TR) 36.913,

"Requirements for Further Advancements for E-UTRA (LTE-

Advanced)."These requirements are based on the ITU requirements for

4G and on 3GPP operators own requirements for advancing LTE.

Major technical considerations include the following:

* Continual improvement to the LTE radio technology and

architecture

* Scenarios and performance requirements for interworking with

legacy radio access

* Backward compatibility of LTE-Advanced with LTE. An LTE

terminal should be able to work in an LTE-Advanced network and vice

versa. Any exceptions will be considered by 3GPP

3. Mckensys 7S

Introduction:

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Waterman, Peters and Phillips (1980), working for the US

management consultancy Mc Kinsey, developed this approach. They

suggested that there were seven aspects of an organization that needed to

harmonizes with each other, to point in the same direction like the

needles of seven compasses. If each aspect supports the other aspects

then the organization can be said to be organized. As each of these

aspects can be titled with a word beginning with S, this list or web has

become known as the 7 s model.

3.2.1 Performance Management System:

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This process covers all confirmed and regular Associates on the

rolls of Vodafone Essar South Ltd as on such date defined by Corporate

HR.

Assessment Criteria

The annual appraisal process at Vodafone Essar South Ltd Is based

on the Balanced Score Card methodology. All Associates are assessed

on five performance areas. Customer Orientation, Operational

Excellence, Self Development. Financial Adherence and People

Management. The assessment is done on a 5 point scale, which is known

as SMART(S: STAR, M: MERITORIOUS, A: ACHEIVER, R:

REASONABLE and T: TRAIL)

Potential Skills for each scale:

S: Outstanding

1. The associate displays the ability/ confidence to perform the task

independently without taking help from superiors.

2. The associate display significant evidence of skills required toperform the job effectively and displays the ability to train/ coach others.

M: Exceeds Expectations

1 The associate displays the ability/ confidence to perform the task

efficiently with occasional guidance from superiors.

2 The associateconsistently displays the skills required to performthe job effectively and delivers without any deviation/escalation.

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A: Met Expectations

1. The associates displays the ability/ confidence to perform the

task efficiently with minimum guidance

2 The associate displays the skills required to perform the job

effectively but delivers inconsistently.

R: Below Expectations

1. The associate displays the ability/ confidence to perform the task

only under constant supervision.

2 The associate displays the skills but not able to deliver/perform

the job effectively

T: Significantly Below Expectations

1 The associate rarely/seldom displays the ability/confidence to

perform the task

2 The associate doesnt display the skills required for performing the job

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Stages of Appraisal:

1 Assessment: This includes: (a) Self Assessmentby the assessee and

submitted to assessor. (b) Assessment by assessor: Any discussion

regarding the assessment is done between the assessor & the assessee.

1 Normalization:

The final normalized ratings are updated in the normalization

application bythe respective Business HR Partners. They may even

trigger a PIP(Performance Improvement Plan) or the development

plan is developed.

3.2.2 Recruitment System:

Different Steps involved in Recruitment Process are:

Requirement Gathering: Information regarding the requirement is

collected from the clients

Requirement Study: Required skills and competency matching the

job description is studied carefully.

Sourcing: Sourcing the required candidates either through internal

job postings, internal references, job portals or consultants

HR Fitment: The candidates fitness for the organization and the

job to be performed is tested

On Boarding: Joining of the candidate is confirmed

3.3 Style:

Vodafone Essar South Ltd has a participative organization style.

Though the decision making is spread among the associates in the

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organization, there must be some consultation required from the higher

authority for major issues. Hence Vodafone Essar South Ltd also

exhibits an Autocratic style when in need.

3.4 Staff:

Number of employees at Vodafone Essar South Ltd are 745, of

which 480 are considered to be on role employees and the rest 265 are

contract employees who are sourced from Addeco and Manpower. There

are 12 departments in the company and each department has its own

ratio of contract and on role employees.

The male female ratio being 80:20, the main reason for the

company to have lesser female employees is the nature of job that is

carried out , mostly field work.

The majority of the work force rages with the age range of 25 to

45.

3.5 Skills:

Skills are required to perform a given task, activity, or role

successfully. They support a specific and objective assessment of

strengths and specify targeted areas for professional development.

Leadership Skills: Band specific, are common across the

organization or functions,

Stakeholder Orientation,

Holistic Thinking,

Inclusive Growth,

Leadership Capability

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Professional Skills: Role specific and helps to perform a function

or role,

Coding,

Estimation,

Forecasting,

Budgeting

Management Skills:

To define objectives

Coordinate research and development activities within group

To Supervise the performance of associates

To manage associates in an effective manner

Product skills:

It defined the product knowledge required. It also emphases on the

knowledge of the competitor products that will facilitate beingcompetitive in the market place. It specific to the following departments:

Customer Service

Marketing

Sales

Credit and collections

Enterprise sales

3.6 Strategy:

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Low cost strategy: Vodafone Essar South Ltd hirers more

than half of its employees on a contract basis, this helps them to pay

lesser benefits and compensation as compared to on roe employees.

Data market penetration: currently the company is trying tocapitalize on the data market, which has ample opportunities as it is a

growing segment. They are creating awareness about its data products.

They are giving away free trial data packs to the enterprise subscribers,

which they feel will induce them to use them permanently.

Plan differentials: They study every region that they want to

reach out to. According to the need requirement they design the tariff

plan that cater to different segments. They follow the differentialstrategy.

3.7 Shared values:

Ethical Business: Vodafone expect their employees to uphold

the high standards set out in their Code of Conduct and Business

Principles. They are committed to respecting human rights and acting

with integrity on issues such as tax.

Valuing the work force: Vodafone believes that engaged and

motivated employees drive their business success. Vodafone is

committed to developing every employees talent, recognizing the value

of their diverse experiences, and ensuring their wellbeing.

Health and safety: The health and safety of the employees

and contractors is a priority for Vodafone.

Customers: Vodafones reputation depends on earning the

trust of their customers by safeguarding privacy, promoting child safety

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online, offering accessible products and services and ensuring their

mobile advertising is responsible.

4. SWOT analysis

Strengths:

The brand name it has in the Indian market

It has the 2nd highest market share in India

It has a 2nd highest subscriber base India 1st being Airtel

Its strong advertising startiges and impact on people

Weakness:

Poor network coverage compared with Airtel which has the

highest market share

Weak in fixed network

Rural India unable to relate to the brand

Opportunities:

Products and service expansion : 4G services, and improving

the quality of the services offered

Growing data business & 3G

Value added services to increase average revenue per user

(ARPU)

Large capital can be raised by listing Vodafone Essar on

Indian stock exchange

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Tower sharing business with Indus towers

Growing Enterprise solution marker

Threats:

Highly competitive market, where the competitors provide

attractive tariffs that facilitate neck to neck competition.

Number portability has facilitated the existing customers to

change their connectivity providers without changing their numbers.

Technology advancement

Government interventions

Vodafone Part A

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Transcript of Vodafone Part A