8/3/2019 Vodafone Part A
1/43
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.
1
8/3/2019 Vodafone Part A
2/43
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
2
8/3/2019 Vodafone Part A
3/43
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.
3
8/3/2019 Vodafone Part A
4/43
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
4
8/3/2019 Vodafone Part A
5/43
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.
5
8/3/2019 Vodafone Part A
6/43
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
6
8/3/2019 Vodafone Part A
7/43
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
7
8/3/2019 Vodafone Part A
8/43
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
8
8/3/2019 Vodafone Part A
9/43
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
9
8/3/2019 Vodafone Part A
10/43
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
10
8/3/2019 Vodafone Part A
11/43
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
11
8/3/2019 Vodafone Part A
12/43
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
12
8/3/2019 Vodafone Part A
13/43
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,
13
http://www.theoriginof.com/gsm-technology.htmlhttp://www.dotellall.com/local/dallas-tx--Business-Phone-Systems.htmlhttp://www.dotellall.com/local/dallas-tx--Business-Phone-Systems.htmlhttp://www.theoriginof.com/gsm-technology.html8/3/2019 Vodafone Part A
14/43
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
14
8/3/2019 Vodafone Part A
15/43
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
15
8/3/2019 Vodafone Part A
16/43
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)
16
8/3/2019 Vodafone Part A
17/43
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
17
8/3/2019 Vodafone Part A
18/43
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.
18
8/3/2019 Vodafone Part A
19/43
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
19
8/3/2019 Vodafone Part A
20/43
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
20
8/3/2019 Vodafone Part A
21/43
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
21
8/3/2019 Vodafone Part A
22/43
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
22
8/3/2019 Vodafone Part A
23/43
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
23
8/3/2019 Vodafone Part A
24/43
% 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
24
8/3/2019 Vodafone Part A
25/43
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%
25
8/3/2019 Vodafone Part A
26/43
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.
26
8/3/2019 Vodafone Part A
27/43
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
27
8/3/2019 Vodafone Part A
28/43
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
8/3/2019 Vodafone Part A
29/43
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
8/3/2019 Vodafone Part A
30/43
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
30
Quality parameters(audit team)
8/3/2019 Vodafone Part A
31/43
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 .
31
8/3/2019 Vodafone Part A
32/43
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.
32
8/3/2019 Vodafone Part A
33/43
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
33
8/3/2019 Vodafone Part A
34/43
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:
34
8/3/2019 Vodafone Part A
35/43
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:
35
8/3/2019 Vodafone Part A
36/43
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.
36
8/3/2019 Vodafone Part A
37/43
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
37
8/3/2019 Vodafone Part A
38/43
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
38
8/3/2019 Vodafone Part A
39/43
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
39
8/3/2019 Vodafone Part A
40/43
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:
40
8/3/2019 Vodafone Part A
41/43
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
41
8/3/2019 Vodafone Part A
42/43
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
42
8/3/2019 Vodafone Part A
43/43
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
Top Related