BALANCE SCORE CARD ON

TELECOMM SECTOR

BY:
Deepshikha Mewati
Hemant Guhe
Sandeep Kumar
Siddharajsinh Rana
Tushar Fegde
 UNDERSTANDING BALANCE
SCORE CARD
• Translates an organization`s mission &
strategy ..set of performance measures
that provides the framework for
implementing its strategy
• Focuses on Finanacial & Non-financial
performance to evaluate short run &
long run performance
• Measures an organization`s performance
from 4 perspective …financial…
customer…internal business process
..learning & growth
The Balanced Scorecard

© Oxford University Press 2008. All rights reserved. 3

 INTRODUCTION
• The Indian Telecommunications network with 110.01
million connections is the fifth largest in the world and
the second largest among the emerging economies of
Asia. It is the fastest growing market in the world
• Estimated contribution of nearly 3% to India’s GDP.
• According to the Telecom Regulatory Authority of
India (TRAI), the total number of telephone
connections (mobile as well as fixed) had touched
385 million as of December 2008, taking the
telecom penetration to over 33 per cent.
• Largest in the world and the second largest among
the emerging economies of Asia.
• The Indian telecom industry has been growing
rapidly at a CAGR of 40.63 per cent from 2003
to 2008. Telecom sector contributed 3.4 per
cent to India’s gross domestic product in for
the year 2008 and is expected to contribute
5.4 per cent by 2010.
• The (GSM) and Code Division Multiple Access
(CDMA). There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom
 Products offered by the telecomm sector

Some of the products which are being offered :



 Prepaid
 Postpaid
 3G phone
 Magic Box handsets
 World Calling Cards
 Gulf Calling Cards
 Home Calling cards
 Recharge home calling cards online
 pco
 Data Card
 Business Solution

 FINANCIAL PERSPECTIVE
• GDP growth rate - Averaged around 7.9 % from 2002-
2008
•
• Rising Tele-density – Target of 45% by 2010
•
• Growing per capita income/disposable Income
•
• Falling Handset Prices
•
• Moderate inflation levels which were prevalent during
the past 7 years – around 5-6%...right now its
almost nil.
•
 Market share of major players

Name of Total no % Market

company of subscribers
Bharti Airtel 2808277 32.57
Vodafone-Essar 2848096 23.85
BSNL 2,503,169 16.19
IDEA 1504186 14.92
Aircel 1,001,363 6.41
Reliance Comm - 3.86
MTNL 92097 1.45
BPL 91027 0.75
All India 10848215 100
Reliance figures are based on notional subscriber base and do not include incremental increases and expansion in new markets
 Internal perspective
• Focuses on internal operations that create
value for for customers there by increasing
shareholders value
• Co-relating the operation with strategy…
 product or cost differentiation
Differentiation in terms of quality..such as

signal strength, call drop,roaming, call

rejection ..

Response time at the customer care …
generating revenues fron non voice


services such as GPRS,Edge

technology,

• Idea Cost leadership…high response
time ..
• Vodafone blend of both…
•
• Focusing on lower call tariffs..there
by increasing
•
•
 AMOU & ARPU Stats
Minutes of Usage per Month – Mobile
Services

USA 838
Despite a low teledensity of approximately
19 percent, India has the second highest
India 461
minutes of usage per month. This offers huge
China
growth opportunity to telecom companies.
303

Russia 88

ARPU * in India – Mobile

Services
10

8
ARPU (USD per month)

4 The declining ARPU implies that India Inc.

2 is tapping a large market at the bottom of
the pyramid by reducing tariffs; thereby,
0
enhancing affordability.
Q 1 2006 Q2 2006 Q3 2006 Q 4 2006 Q1 2007
GSM CDMA

GROUP 7 10
 LEARNING AND GROWTH
PRESPECTIVE
OBJECTIVESMEASURES INITATIVES
Align employee and Employee-satisfaction Employee participation
Organization goals rating and suggestions program
to build teamwork

Empower % of line workers Have

workforce empowered to supervisors act
manage processes as coaches rather
Develop process % of employee than decision
Employee
skill trained in process makers
training
and quality programs
Enhance % of
management Improve online
information manufacturing and offline data
system processes with gathering
capabilities real-time
feedback
• Continuosly increasing services…
bringing new tariffs ….launching of
3G services
• Change in Employee Turnover Ratio
due to new Telecom players
• Employee empowerment
• Employee Satisfaction
• Employee Training of new services
offered by the company
•
 Changing DemogrIIIIaphics

ØD e m a n d fo r V A S &
B ro a d b a n d se rvice s A m o n g
Yo u th
Ø
Ø28 % Urban Population
Ø
ØRapid Urbanization
Ø
ØRising Income level
Ø

Source: Mckinsey Report

Technology
CDMA – Already there are
big players in this
segment Reliance , Tata

3G – Value added services

potential still to be
tapped fully

2G/3G – GSM Currently

commands 70% of mobile
subscribers in India
 CUSTOMER PERSPECTIVE
• To satisfy customers to generate more
revenue
• Goal::
– Provide quality customer
service(handling queries)
– Timely information(about tariffs)
– Good Network


• Measures::
– Feed back(about billing services &
queries handled)
 - Will lead in increased Market share