Strategic Analysis Of Vodafone

An Analysis of Vodafones current strategic position, and how Vodafone will develop these strategies in the future. (3000 words) Introduction For this report I have analysed Vodafones current strategic position and how they will these strategies in the future. To do this I have looked at Vodafones strategies in terms of its marketing, competitors, their core competencies and capabilities, and resources strategies. I have also looked at their internal and external environ Strategic Analysis Of Vodafonement using tools such as a SWOT and PESTLE analysis and also Porters five forces model. Finally I have made recommendations on how Vodafone will develop these strategies in the future. Background Vodafone UK is a mobile network operator headquartered in Newbury, England. It is the largest telecommunications network company in the world by turnover and has a market value of about one hundred billion pounds. Vodafone currently has equity interests in twenty-five countries and Partner Networks in another forty-one countries. It is the second largest mobile telecom group in the world behind China Mobile and has more than ten million customers in the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States. Current strategy Vodafones current business strategy is to grow through geographic expansion, acquisition of new customers, retention of existing customers, and increasing usage through innovations in technology. (vodafone.co.uk) Analysing the general environment To analyse Vodafones current strategic position some important factors influencing Vodafone both internally and externally need to

be examined. The following PESTLE analysis looks at the external environment of Vodafone in its current position. Political Factors Regulations mobile phone licences are tightly controlled and access to the spectrum is limited. In addition political pressure may be brought about regarding the use of mobile phones by children and the possible health issues associated with mobile phone use. Infrastructure - Building the infrastructure needed to support the network usually requires permission from the government and statutory bodies to use their lands. Health issues there is still no definitive public opinion on the effect of mobile phone usage by people and also the possible health effects of the closeness of phone masts to schools. Economical Factors

Cost of licences the cost of acquiring mobile phone licences is very high. 3G the bidding war for 3G licences happened at the height of an economic boom and consequently the price paid for them was extreme. This with the cost of building the network will require a lot of revenue to break even, but if the price is too high, the standard will not take off. Cost of calls being driven down there are constant price wars between the providers and there are very few markets where there is monopoly controlling the mobile market. Socio-cultural Factors

Health issues if mobile phones are shown to be harmful both with the masts and handsets, there may be a move away from their use and a campaign to ban the masts.

 Demographics mobile phones tend to be used by the younger members of society. In a country where the population is ageing, which is the trend across the EU, the demographics may shift to a more aged population who may have less use for mobile phones. Social trends a lot of take up of mobile phones has been down to fashion and peer pressure. If a trend of not having a phone was to occur this could seriously impact on their usage, although unlikely to happen. Technological Factors The mobile phone industry has seen a great deal of technological change and will continue to do so. Mobile phones were originally used for telephone conversations but since text messaging became available the usage has increased dramatically. As technology developed, it has become possible to swap information between mobiles and other devices via Bluetooth technology. However, this can be used inappropriately to send anonymous and unwanted texts; this is known as blue jacking and can be distressing particularly if the recipient is a child or young person. The introduction of 3rd generation (3G) mobile phone technology is bringing with it a better mix of content and providing more services. These further raise the issue of ethics as Vodafone can now offer a wide variety of content to mobile phones with this new technology 3G will help to increase their sales revenues. However, Vodafone recognises that it brings additional responsibility, including the need to protect young people from inappropriate content, including violent games and gambling. Legal Factors Laws regulating businesses e.g. The Sales of Goods Act 1974 stating all products must be fit for the purpose they are intended. A mobile phone must therefore work. Certain laws are created to

regulate particular industries, examples include the ban on using a phone while driving introduced in 2003. Environmental Factors Vodafone have established a handset recycling program that encourages customers to dispose of handsets and accessories in a safe and responsible way by advertising their return programmes, providing incentives to customers and by making it easy to return unwanted phones through pre-paid envelopes or recycling points in retail outlets. SWOT Analysis To identify Vodafones internal strengths and weaknesses and its external opportunities and threats which the environment brings to a company a SWOT analysis is needed. The following SWOT analysis shows Vodafones internal strengths and weaknesses and its external opportunities and threats. Strengths Global experience and Vodafones ability to set up across many countries. Their global brand, Vodafone has introduced its brand into the existing brands of its controlled networks and retains the Internet value of existing brand in each country. Sponsor of Ferrari Formula One team which enables Vodafone to develop its own global presence. Vodafone has a good global platform which brings together existing future network systems and enhances the companys ability to introduce products with a focus on both speed to the market and the ability to deliver this across the groups network. Standardised customer relation management is also a feature of Vodafone. The company is developing a group-wide standard in customer relation management to ensure an awareness of its customer base and their preferences in order to help the efficient sales of its new services and products. High operations margin of at least thirty per cent has been recorded over the past five years.

 They offer data services that a customer can access using the highly evolved third generation network that it is has rolled out in many markets. Weaknesses With the network continuing rollout Vodafones capital expenditure is high. In the past five years net cash spent on fixed tangible assets has on average exceeded the depreciation charge by fifty-eight per cent and represented a large fifty per cent of operating profits so the company might meet a cash shortage. Exploring new technology needs huge research and development and infrastructural costs. If the take-up of the service is not as expected, these costs cannot be recovered. In addition the company is not as flexible when it comes to switching to alternative technologies if the underlying infrastructure will not support it. Vodafone is facing the legal issue in terms of differentiation as the sector of telecommunications is still immature to be receptive to the rapid changes in legal issues. Opportunities Third Generation Mobile Phone is expected to be one of the major products of the telecommunications industry as it will allow for much faster and higher quality data transmissions which will facilitate videophones, mobile Internet at broadband speeds, and enhanced multimedia messaging. The current trend is towards having at least one mobile, mobile phones have now entered the popular perception as a must have. This provides Vodafone with an opportunity to continue to increase the size of the market as well as their share of the market. Threats New technologies for example, if you make the wrong choice in a standards war and build an infrastructure that cannot be adopted, this leaves the company with a problem of having to take apart a network that cost a lot to build and having to build a new network to provide the new standard.

 As the industry is regulated, mobile telecoms companies have to accept decisions that may be made for political or social reasons without taking into account the effect on the companies in the industry. Examples of this would include further mobile phone licences, the banning of phones in certain circumstances and price regulations. If the trend towards the use of mobile phones was to be reversed for any reason, Vodafone would be in trouble. Competitors coming from O2, Orange, T-Mobile etc who all have extremely good services and offers. Porters generic strategies Relating to the SWOT analysis, Porter (1980) identified three generic strategies for competitive advantage, which can represent a distinctive strength of a company. These are shown in the diagram below: Vodafone use the cost leadership strategy and differentiation but do not adopt the focus strategy as they do not focus on a niche market. Vodafone needs to compete on a cost leadership strategy because number portability means that people will move to whoever can provide a reliable service the cheapest and by becoming the lowest cost producer in the industry through economies of scales allows Vodafone to compete on price with other producers to earn higher unit profits which in turn achieves competitive advantage through driving down costs. Vodafone also differentiate them selves through providing customers with added value through their product features and quality that are unique and different from their competitors. Marketing strategy In order to retain market leadership, Vodafone has established a set of marketing objectives. These are to: Obtain new customers Keep the customers it already has Introduce new technologies and services Continue to develop the Vodafone brand.

Vodafone is achieving these objectives by continually updating their range of phones and services offered to keep ahead of its competitors. Vodafone also communicates with its customers to keep them well informed of the benefits of all Vodafone products. Marketing mix The marketing mix consists of many different factors, which are grouped together into four main categories: product, place, price and promotion. Product Vodafones products have many different features which provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information and view video clips and send video messages. Place Vodafone UK operates over 300 of its own stores it also sells through independent retailers e.g. Carphone Warehouse and Phones 4 U. Customers are able to see and handle products they are considering buying and staff are on hand to ensure customers needs are matched with the right product and to explain the different options available to them. Price Vodafone offer various pricing structures to suit different customer groups, monthly price plans are available as well as prepay options and phone users can top up their phone online. Also Vodafone gives NECTAR reward points for every one pound spent on calls, text messages, picture messages and ring tones. Promotion Vodafone has worked with icons in the past such as David Beckham to communicate its brand values they use advertising on TV, billboards, magazines and in other media outlets to reach large audiences and spread their brand image and message effectively. Their stores have special offers, promotions and point of sale posters to attract customers inside the stores to buy and Vodafone actively develop good public relations through sending press

releases to national newspapers and magazines to explain new products and ideas. Also relating to the product aspect of the marketing mix, the Boston matrix represents the companys portfolio according to where the products stand regarding market share and growth. Vodafones Boston matrix Stars Multimedia messaging Problem child 3G Vodafone Live! Cash cows SMS Dogs Analogue services Looking at this diagram, it shows that Vodafones portfolio seems to be quite well balanced, however Vodafone seem to having major difficulties with its 3G and Vodafone live and can be described as a problem child. A possible strategy Vodafone may decide to choose is to reduce its investment into its dogs analogue services and instead use the money from its cash cow SMS to restructure the problem child and keep the star multimedia messaging in the high market share/high market growth area. Competitor analysis Porters five forces

By using the five forces model of completion, competitor analysis takes place by understanding how the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes and the rivalry among competing firms will effect competitors in an industry. These five forces have a direct effect on Vodafones strategic competitiveness. Competitive rivalry Competition is intense in this market, coming from O2, Orange, Virgin, 3 and T-Mobile. Rivalry is high when there is no brand loyalty i.e. little differentiation other than price. Buying power Vodafones measure of how many customers disconnect during the year shows the rivalry existing is significant. Customers have more choices from new packages in terms of new phones and new tariffs through newspaper advertisements and the internet from its competition. Power of suppliers Suppliers of the mobile telephone industry are strong. Vodafone, by being cost leader operates with margins greater than their competitors which in turn allow them to attract price increases from its suppliers easier than its competitors. By being a large, focused competitor of the mobile telephone industry, Vodafone could hold suppliers costs down and it could make a profit even if its competitors are making above average returns. Threat of substitutes Vodafone faces a low threat of product substitutes. The focused cost leadership strategy that Vodafone operates under makes it difficult for a similar substitute to be produced at a lower rate by their use of economies of scale, their buying power and their use of temporary price increases that come from suppliers that do not need to be passed on to the consumer. Threat of entry While the threat of new entrants is weak, Vodafone must continue to reduce costs below that of their competitors. By maintaining high levels of efficiency, Vodafone can help make the entrance

into the mobile telephone industry unattractive to its potential competitors. Sustainable competitive advantage Vodafone competes against its competitors through the use of a focused strategy; this strategy allows Vodafone to produce services that service the entire mobile phone segments. Their strategy of producing services to the entire mobile phone segment has been maintained and updated with the changing technology in the mobile industry. In order to maintain a sustainable competitive advantage Vodafone will have to continuously update their service with the ever changing technology that exists in the mobile market. The mobile market has many different competitors each with their own competitive advantages and specialities, each within their own market. In order to expand into new markets they would have to constantly provide a better service through improved technology and higher quality. The costs of replication to these technologies by the smaller companies will make it hard for them to imitate the service structure that Vodafone provides. The high quality of service will make it non-substitutable and become the new standard of what mobile phone customers expect from their service providers. Vodafones competitive strategy works in their competitive structure but needs to be constantly updated to stay at the front of the technology curve and not fall behind to its competitors who will also be attempting to constantly improve on their current services and technologies. Vodafones strongest resources are their intangibles such as human resources, innovation and knowledge which are most important for them to stay ahead of their competitors and are the main source of competitive advantage. By definition these resources are more costly and harder to copy as these resources are fixed deep in the companys history by staying focused in mobile markets and not expanding into other technologies that would lose the companys primary focus through its core competencies. Human Resources

Vodafones managerial goals seemed to be in line with their company goals. Managerial experience is important and leads to numerous successful acquisitions and mergers. Vodafone has a very detailed and experienced knowledge of the market and technology that it is involved in. They have applied this knowledge to the many markets it has entered and has proven successful. Vodafone has a focus on improving its trust with customers because it does not have alternative businesses to rely on to bring in the business like Internet services or fixed-line systems. Vodafones most valuable intangible resource is their knowledge and experience in the mobile phone industry and their international presence and these things define the company as a great investment and a name you can trust. Knowledge and experience will take them further at the edge of technology and their international presence leads to more universal understanding and networking of the business itself. Vodafones capabilities and core competencies By using the resource based model, to assess Vodafone, their unique resources and capabilities should be considered the basis for their strategy. Vodafones capabilities are their ability for management to compete successfully and their research and development to enable innovation technology. Vodafones management has the ability to merge with other companies while maintaining an effective, low cost organisational structure. Through their research and development, Vodafone is able to maintain technological leadership in mobile phone systems. Vodafones capabilities in management and research and development should also be considered their core competencies because these abilities give them a source of competitive advantage over its competitors. Merging with companies has allowed Vodafone to grow their customer base internationally by investing in research and development and next generation platforms for mobile phones for both voice and data that allow Vodafone to maintain a competitive advantage. Vodafone has valuable, rare, costly methods to imitate capabilities but these

capabilities were substitutable, therefore they had a temporary competitive advantage. However, if Vodafone finds a way to successfully differentiate itself to become non-substitutable it will have a sustained competitive advantage. This is important for Vodafone because they stick to what they know best, which is mobile phones and has not ventured into fixed-line telephones or providing content, they created value for their customers by being the best and most focused. Vodafones ability to develop innovative technology and successfully merge are rare capabilities, however, Orange a competitor also has these rare capabilities. The organisational culture of Vodafone must be strong to successfully complete mergers, while at the same time developing innovative technology. These capabilities have developed over time and the expertise gained will be very difficult for other firms to develop. Conclusion The success of Vodafone comes from its good investments, continuous innovation, and its focusing on customer services. They have taken a number of strategies like, branding, using value added services to adapt to the changing environment and customer tastes. However, there are still a number of problems for Vodafone at present for example; fierce competition in the European market, the product life cycle point of view for Vodafone is in a matured stage, and the fact that the Japanese and Germany market restricts Vodafones goal of being a global leader. Also, Vodafone was late to invest in 4G and high speed broad band market, which exists for new innovative technology right now, and some other companies such as Skype, O2, and T-mobile have already started to target broad band users and its technology. Even though Vodafone owns a large market share and customer base in developed countries they need to concentrate more on the developing markets as well if they want to remain global leader in the mobile phone industry.

Vodafone In India - Brand Management

ABSTRACT In the year 2007, the world's largest telecom company in terms of revenue, Vodafone Plc (Vodafone) made a major foray into the Indian telecom market by acquiring a 67 percent stake in the Indian telecom company, Hutchison Essar Ltd, through a deal with the Hong Kong-based Hutchison Telecommunication International Ltd. It was the biggest deal in the Indian telecom market. Vodafone's main motive of going in for the deal was its strategy of expanding into emerging and high growth markets like India. In 2007, India had emerged as the fastest growing telecom market in the world outpacing China. But it still had low penetration rates, making it the most lucrative market for global telecom companies. Though Hutchison Essar was one of the established players in this market, Hutchinson Telecommunication International Ltd. had exited India as the urban markets in the country had become saturated. This brand management project aims to track Vodafones success in the Indian market right through its launch on 21st September 2007. The report is divided into three parts: Introduction, Analysis and Conclusion. The introduction section mainly gives an overview of the Indian Telecom industry, and about the company Vodafone. The Analysis section deals with competitors of Vodafone, and also giving an outline of the competitive growth of the telecom companies. It also discusses the various re-branding strategies adopted by Vodafone in order to successfully penetrate into the Indian market. A detailed analysis of the telecom brand Vodafone is done for the purpose of the study. INTRODUCTION

Vodafone, the British mobile company that entered India after buying Hutchs share and by creating Vodafone Essar in July 2007, has embarked on a major rebranding exercise in the country. The history of Indian mobile industry is not very old, not to mention the industry as a whole in itself is very new to the whole world. Telephones have been serving mankind for quite a long now and can boast of the worlds largest redundant legacy system. Thousands of miles of underground cables run through oceans to connect all the continents. Telecommunication industry as a whole has not seen a major revolution for a long time with the exception of a few new innovations in the type of services and call rated. The advent of wireless communication has brought about a slew of path breaking technological advancements in the way people use and see telephones. From being an equipment kept on the side table for talking, it has walked to occupy every persons pocket for all his information needs. Furthermore, the revolution has not ceased and it promises to bring even more of comfort and connectivity while on the move. Recognizing the crucial role that can be played by the telecommunication sector in Indias development, the Government of India in 1999 initiated a number of changes in the telecommunication and regulatory and policy framework. Through these the Government hoped to facilitate an increase in telecommunication penetration, which stood at 1.3% in 1995. The reforms, with an eye on a telecommunication penetration of 15% by 2010, resulted in a flurry of private operators entering the market breaking the monopoly of the incumbent operator Bharat Sanchar Nigam Limited (BSNL). Indias 1.1 billion population currently boasts a mobile telephone penetration rate of just 13 per cent. But it is growing by more than

six million subscribers every month, making it the fastest growing market in the world and the focus of the industry. At the start of the decade, India was pretty much a telecom backwater. But now, Indias tele-density has grown by about 100 per cent to 17.16 per cent over the past two years. Last year it actually grew at a faster rate than China for the first time in new mobile phone connections. Even as the mobile telephony market in India is booming, the number of fixed line telephone subscribers dropped, suggesting that first-time users of telephones are opting for mobile phones. The number of fixed line subscribers was down to 40.43 million in December as compared to 48.43 million a year ago. Mobile penetration in India is growing rapidly and it is becoming increasingly rare to see anyone without a 'hand-phone' as they are known, whereas growth of internet access at home is much slower. Rather than listing a web address, many billboard ads offer an SMS short-code which people can text to get more information. There are expected to be somewhere around 200 million subscribers by the end of the year, with around six million customers being added every month, so the Indian market is certainly a growth one, with increased mobile internet access expected to push up average revenues per user. Although the average Indian mobile user remains cost-conscious because of low-income living and huge size of mobile subscriber in India uses only SMS or voice services; new and more multifunctional handset with features like cameras, FM radio and mobile video. Also, India is the largest untapped market where the 20% of the total world's population lives. The Indian telecom industry recently witnessed its biggest deal - Vodafone bidding for 67% stake in Hutch-Essar.

The telecom market is at a stake with $22 billion which is expected to double by 2010. The dramatis personae include leading names of India IncSunil Bharti Mittal, Anil Ambani, Kumar Mangalam Birla, Ratan Tata and A K Sinha (of BSNL) not to mention the 51-year-old Arun Sarin of Vodafone, whom the Hutch puppy will follow dutifully henceforth. But for a nation of 1.3 billion people, Indias tele-density of 17% is dreadful. And therein lies both the opportunity and the challenge. About Vodafone Vodafone is the world's leading international mobile communications company. It presently has operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and Construction. The Group has an asset base of over Rs.400 billion and employs over 20,000 people. Launch of Vodafone Essar Vodafone Essar was launched in India on 21st September 2007. Vodafone was welcomed in India with the Hutch is now Vodafone campaign. The popular and endearing brand Hutch was transitioned to Vodafone across India. This marked a significant chapter in the evolution of Vodafone as a dynamic and evergrowing brand. This brand unveiled nationally through a high profile campaign covering all important media. Vodafone, the worlds leading mobile telecommunication company, completed the acquisition of Hutchison Essar in May

2007 and the company was formally renamed Vodafone Essar in July 2007. The transition from Hutch to Vodafone is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. It is even larger than Hutchs own previous brand transitions. The migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the history of the Vodafone Group, with 400,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores, over 35 mobile stores and over 3,000 touch-points rebranded in two months, with 60% completed within 48 hours of the launch. The Vodafone mission is to be the communications leader in an increasingly connected world enriching customers lives, helping individuals, businesses and communities be more connected by delivering their total communication needs. ANALYSIS The major reasons for Vodafone to make a move in the Indian market was that, India, among the European investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents a huge potential for overseas investment and is vigorously encouraging the entrance of foreign players into the market. No company, of any size, aspiring to be a global player can, for long ignores this country which is expected to become one of the top three emerging economies. Success in India will depend on the correct estimation of the country's potential, underestimation of its difficulty or overestimation of its possibilities can lead to failure. While calculating, due consideration should be given to the factor of the inherent difficulties and uncertainties of functioning in the Indian system. Entering India's marketplace requires a well-designed plan

backed by serious thought and careful research. India is an opportunity for long-term growth. India is the fifth largest economy in the world and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations. India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. Vodafone after completing the acquisition of Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007 was granted for good in Indias market place. Vodafone is to be the leading telecommunication company in India, by making customers uses their mobile communications and making their life more fulfilled due to their experience; and by making mobile communications the primary means of personal communications. Vodafone has a strong aim to help people find information, entertainment or assistance wherever they are. Over the past few years they have worked hard to build a company capable of delivering innovative and compelling mobile services to all customers throughout the world. Right now, they are introducing new mobile services that will make Vodafone an even more important part of customers' lives. COMPETITORS OF VODAFONE PLAYERS OF INDIAN TELECOM Vodafone Airtel Reliance Communications IDEA/Spice Aircel

 TATA Indicom BSNL MTNL HFCL Group BPL Mobile Shyam Telecom Ltd. AIRTEL Sunil Bharti Mittal promoted Airtel, has been a leader among the private players with a 23% market share. The companys idea to focus on marketing and services by outsourcing everything else including network management, customer care and IT infrastructure, is a case study in itself. According to the Joint Managing Director of Airtel, they have always believed that telecom runs on economies of scale. In this process, they bring down the cost per minute and pass it on to customers. Vodafone also benefited from closely watching Airtel in action, and this is also a reason why both companies have not parted ways completely. RELIANCE Reliance Communications, though a late entrant, has climbed the subscriber charts, riding on its data-efficient CDMA networks. The Rs. 500 Monsoon Hungama scheme speaks volumes of the companys marketing acumen as it roped in a million customers in one stroke. Reliance today has a centralised data centre and over 20,000 software and application developers. It has also successfully played the value added services game by offering over 2,500 mobile content applications over its Reliance Mobile World platform. The company currently has a CDMA 1X network, which is good for data services and can deliver Internet speeds up to 144 kbps. Their strength is in the ubiquity of our networks, the coverage and the voice and data quality that they offer. Their

bouquet of services and content meet the customers needs, and the demand will remain unmatched for some more time to come. Basically Reliance knows how to slice and dice the market. They are better placed with CDMA to offer 3G or data services. But with SIM cardsabsent in CDMA handsets nowbeing commoditised, and GSM adding more customers, they would like to take on GSM players on their own turf. However, with other companies too spelling out their strategies for rural areas, it remains to be seen how the company will maintain its current growth rate. TATA INDICOM Tata Teleservices (TTSL), the other CDMA operator, has been slowly but steadily gaining market share. The company, with 16 million subscribers and presence in 20 circles together with its sister concern Tata Teleservices Maharashtra, operates under the Tata Indicom brand. Their present market share is about 10% and by 2011, they estimate to have a 20% market share. If they get there, they will be among the top 2-3 players in the industry. Unlike Reliance, the company has lagged in marketing and customer awareness about its offerings. TTSL had won 242 short distance charging areas under the universal service obligation tender and claims to have taken teledensity in these areas from 0.1% to 20%. This experience had taught them a lot and they plan to apply this learning to tap the rural opportunity. BSNL In terms of subscriber numbers, BSNL is among the top three, having gained market share by default, as it is the only operator in many rural areas. The recent tender for 60 million GSM lines is just one pointer to the companys scale of operations. But it is

losing out fast to private players and has to really wake up from its slumber. However, the power supply unit can give any company a run for its money with the copper it has sunk over the years throughout India. IDEA Idea Cellular is the dark horse in the telecom race. The company got listed only recently and raised $480 million after its IPO was oversubscribed 57 times. Though present in 13 select circles, the company has managed a fair market share in rural areas; in Haryana, Maharashtra and UP (West), it is ahead of the big four with over 20% market share. They are among the leaders in eight circles, which make up half the national market and enjoy preference compared with many big names. Mobile telecom in India is an aggregation of circle markets and is not one homogeneous market. Quality of service holds the key to retaining customers and reducing the churn rate. Unlike developed markets where quality of service defines the customer retention capacity of a telecom operator, this differentiator has been missing in India and the entry of Vodafone has helped in raising the bar. It is at the quality of service level that regional players like Aircel and Spice who are planning an all-India rollout or HFCL and Shyam Telecom can play a differentiator. With significant consolidation being ruled out for the next three to four years, the fight would be decided on how one operator is relevant and different from others. With 3G round the corner, the big players would like to make that their USP. But for operators who are concentrating on rural markets, a lot will depend on the spectrum cost and licence fee and 3G could be limited to select areas. With the game evenly poised, it would be interesting to watch how companies play their cards in the coming years. COMPETITIVE GROWTH OF TELECOM COMPANIES

Vodafone, worlds No. 1 mobile telecom company, by revenue face intense competition from incumbents as well as new entrants in India. It is said that Vodafone can see much as 12% of its global revenues to be coming from the Indian mobile phone market by 2012. In the third quarter which was around at the end of December, Vodafone reported a 4.2% increase in revenues, that is, around Rs. 71,992 crores. This helped in having almost 56% growth in Vodafone Indias revenues. In the initial three months till December, Vodafone saw its global mobile subscriber base grow by around 10.8 million to 252.3 million. While India contributed 4.2 million to this number, all Europe, including the UK, Germany, Italy and Spain, contributed to 2.58 million. In May 2007, Vodafone acquired a 52% stake in Indias Hutchison Essar Ltd for $10.7 Rs4,2061 crores in order to gain a foothold in the Indian mobile market, which adds around 8 million subscribers every month. By September 2007, Vodafone Essar Ltd had overtaken the staterun Bharat Sanchar Nigam Ltd in terms of number of mobile subscribers. As of 31st December, the companys market share of 17.3% put it behind Bharti Airtel Ltd at 23.6% and Reliance Communications Ltd. at almost 18%. Vodafone, much like other telecoms in India will face competition in the coming months with as many as nine new companies such as Unitech Ltd. and Reliance Communications set to offer GSMbased phone services in India. GSM is the dominant wireless technology platform in India. In December, Bharti Airtel, Idea Cellular Ltd and Vodafone Essar formed a joint venture called Indus Towers Ltd with some 70,000

towers being shared by the operators in 16 Indian states. By sharing more telecom infrastructure, Vodafone is looks to offer phone services at lower costs, even as average revenue per user continues to fall. Vodafones India operations have recorded a 50% growth in turnover at Rs 15,288 crore in fiscal 2007-08. In contrast, its global operations have grown by only 14 per cent during this period. India accounts for 5 per cent of its global revenues. For Vodafone, India has been the fastest growing market, even ahead of geographies such as Turkey. The country also scores well on the profit margin front, with Indian operations registering higher profitability than the UK and the Netherlands markets. But in terms of subscriber base and revenues, the performance puts Vodafone behind Bharti and Reliance Communications. The monthly subscriber additions have been healthy at the rate of 1.5 million subscribers, resulting in a subscriber base of 44.1 million as of March 2008. Bharti Airtel and Reliance Communication, however, have better operating margins on a higher revenue base. Vodafone has attempted to shed its premium image with offers such as chota recharge. While this would have aided customer additions, it could have also resulted in lower realisations. The packaging of services along with low-priced handsets, to cater to the mass market and Vodafones high decibel ad campaign to establish its new identity, may also explain lower margins. Average revenue per user has come down over the year for Vodafone, but is still higher than that of Reliance Communications and Idea Cellular. In India, as with other operators, Vodafones rural foray will mean more strain on margins; but once it consolidates margins may

improve. As a partner in Indus Towers, along with Bharti and Idea, the company may expect savings on tower infrastructure expenditure too. PRODUCTS AND SERVICES PRODUCTS Post-paid Services Pre-paid Services Magic Box Handsets World Calling Cards World Calling Card from Vodafone is a Pre-paid long distance calling card that one can use with their Vodafone Prepaid and Postpaid mobile phones to make ISD & STD calls. Home Calling Cards Vodafone Home Calling Card is a Pre-paid calling card that allows one to make calls from landlines, PCOs & mobile phones from over 100 countries. And helps save up to 90% as compared to International Roaming charges. So talk more, spend less and always stay connected. Handyphone Vodafone Handyphone is a landline thats loaded with all the features of a cell phone - including low call rates. And Vodafone Handyphone isnt that expensive either. One can make it theirs for Rs 1999. SERVICES Tunes & downloads Entertainment Devotional Sports News & Updates Call Management Services

 Astrology Finance Travel Mail, messaging & more Dial in Services Bill Info RE-BRANDING STRATEGIES Hutch to Vodafone MARKETING STRATEGIES Vodafones new advertising campaign in India carried on with the same popular pug that has become a brand ambassador for Hutch. Where ever you go, our network follows, was the previous slogan with the pug following the child wherever he goes. Now, with Hutchison Essar becoming part of the Vodafone Group, the new campaign had started with Vodafone Essar earmarking Rs. 2.5 billion on the transition from Hutch to Vodafone. The main message of the brand transition exercise: The new Vodafone is the same old Hutch. In the advertisement, the pug sees a new home when it returns after an outing and feels the change is better. The new catch phrase will be Make the most of now. Vodafone had tied up with Star India to run a complete roadblock of its fresh campaign on the entire network by unveiling the 24hour nationwide rebranding campaign. Vodafone used all of the commercial airtime across all 13 channels in five languages (Hindi, Tamil, Bengali, Marathi and English) from 9 pm on 20 September to 9 pm on September 21. This exercise included TV commercials, transition bumpers and contest spots to promote the Vodafone Essar brand. Commercial spots had also been purchased on Sony. Conventionally awareness for a new brand takes some time to build. However, Vodafone wanted to achieve this task at the shortest possible time. Hence, Maxus and Star Network worked closely to address this challenge and came up with the idea wherein during the day of the launch a complete roadblock on the

Star Network channels was conceptualized. Considering that the Star Network is the lead network in India, this was the most apt platform for Vodafone launch. This strategy helped not only in achieving build rapid brand awareness but also breaks the clutter during such an important launch in the most happening category telecom. This is a first of its kind mega media initiative in India by any brand. While the campaign was heavy on television, it also included all other media vehicles. The print campaign kicked off on 21 September, a day after the television splash. While the brand campaign had been addressing the transformation, the Company, on the other hand was swiftly preparing for a price war in the Indian telecom space. Indeed, it was preparing to provide mobile handsets to new subscribers at ultra-cheap prices, ranging from about $19 to $25. Vodafone Essar launched low priced cell phones in India under the Vodafone brand, and also co-branded handsets sourced from major global vendors. By bringing in millions of low-cost handsets from across the globe into India, Vodafone Essar distributed bundled handsets through its existing 400,000 distribution outlets. By flooding the market with its low-cost handsets, Vodafone also became a mass mobile phone brand like Nokia, Samsung, Motorola, and Sony Ericsson in addition to continuing as telecom services provider. Previously, similar handset-driven expansion strategies to grow subscriber bases were adopted by CDMA players, like RCOM and Tata Teleservices. Vodafone is the first GSM operator to follow suit. The Vodafone mission is to be the communications leader in an increasingly connected world - enriching customers' lives, helping individuals, businesses and communities be more connected by delivering their total communication needs. Vodafone's logo is a

representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. ADVERTISING STRATEGIES Advertising is probably one of the most frequently used vehicles for Rebranding, as it is fairly easy, flexible and quick to change. It is a powerful way of reaching a broad or targeted audience quickly and is effective at signalling a change in positioning, however real or broad that may be. There are many examples of where advertising has either repositioned or strengthened brands, other good examples of where advertising has built a new position for a brand or built a strong emotional link with the public are where companies have created a sort of soap opera out of their advertising. The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had a two-fold task to achieve: announce the entry of Vodafone into India and highlight the metamorphosis of Hutch into Vodafone. O&M realised that they had a fantastic property in the Hutch pug, which they had been using for about five years. Therefore, to show the transition from Hutch to Vodafone, O&M launched a rather direct, thematic ad showing the trademark pug in a garden, moving out of a pink coloured kennel which symbolised Hutch making his way into a red one that is the Vodafone colour. A more energetic, chirpier version of the You and I tune associated with Hutch was played towards the end, and it concludes with Change is good. Hutch is now Vodafone. O&M has also rolled out four Commercials featuring Hutchs animated boy and girl, introducing the new brands logo to consumers. The four creatives which were of five seconds each included the duo peeping over a wall to see the logo; parasailing with the logo flying high behind them; releasing a rocket bomb wherein the explosion reveals the logo; and lastly, drawing curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second spots cast the dog in situations where he, literally, saw red, using the colour as a visual mnemonic to remember the brand by. The pug was shown in a red basket, popping up from a red cart, drying himself on a red mat, and hiding in a red blanket. Each of these made use of the Hutch is now Vodafone tagline. The print ads, in all major languages in several leading dailies, were kept unbelievably simple: a still shot of the pug inside a red kennel. The same creative was used in outdoor hoardings as well, in all the 16 circles in which Vodafone now operates. It wasnt easy integrating Vodafone with Hutch; the latter, as is known, is a subtle, understated brand, while globally, Vodafone represents high energy, dynamism and young vitality all represented by its bright red speech mark logo. And so they put in elements such as a more energetic tune and feel to the ads. A few advertisements include: Hutch is now Vodafone If you watch any of the star channels or tuned into 20-20 world cup, you would have seen this ad. On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Cheung Kong Holdings in Hutch-Essar for US$11.1 billion and now had to rebrand itself so it has decided to run a new ad series which piggy banked on Hutch's dog mascot and the theme "Change is Good". This required nearly 250 crores of spending by Vodafone but they have successfully painted the town red. An interesting part of this campaign was on the opening day roadblock where they made a deal with Star India so that besides them no other commercials were aired (apart from in-channel promos) on the Star India's channels for 24 hours.

Valentine Day Special Ads: Vodafone Vodafone had released a simple and sweet ad for musical greetings targeted at couples during the valentine week the feature of this campaign is its simplicity and believability and is quite well received. It uses the positioning "Make the most of now" enjoy the video Vodafone Chota Credit Ink Ad This new ad had come as refreshing change and more so that this ad takes a very refreshing look at school and at fountain pens. This ad creates a wonderfully subtle message which really puts the point of chota (small) credit across. PESTEL Analysis Political Political factors play an important role in the development of the network operating industry. Political factors could include the provisions of certain laws, and pressures from certain pressure groups. The licensing of certain frequencies plays an important role in the development of the mobile operating network. A Company could only begin to use a frequency once they have been granted to them by the local authority. There are other Governmental and legal issues affecting basically how the company operates. For instance it can be regulation, infrastructure, and banning of phone use in certain circumstances. Economical The economic environment is dependent and influenced by the countrys economic policies. These include the rates of economic growth, inflation; consumption patterns, income distribution and many other economic trends determine the nature of the products and services provided by Vodafone. High-income levels will result in an increase of usage of the Vodafone mobile services. There are

other factors that influence the purchasing power of customers and the company, like cost of capital and cost of 3G licenses. Social Social factors look at the structure of the population and the impact of which it has on the demand for the product and the supply of labour. There are certain demographic and cultural aspects of the environment which influence customer needs and the market size. Social trends and other mobile etiquettes are factors that any mobile customer would follow. This is because among this crowd going with the mobile trend is more of a fashion statement. There are people for whom camera phones, high memory space, etc come under the latest trends. Technological The success of technological development plays the most important role in the success of telecommunication companies. In the network operating industry, technological development is based on the increase in efficiency and quality in the transfer of voice calls, and data between mobile phones. Vodafone's competitors are now offering the same GSM handsets as Vodafone. This shows that technology is feasible in the market of network operators. Also, Vodafones competitors like Airtel, Idea, etc are planning to come out with the 3G technology which further increase the competition to a great extent. Environmental Environmental factors also play an important role in the development of network operating industry. The government is forcing Vodafone and other telecom operators to become more environmentally conscious. For instance, while putting up towers, they have to keep various factors in mind. The action of the companies is being monitored making sure they are environmentally friendly. Any negative externalities given out will have to be paid by a full social cost by Vodafone.

Legal The market in which Vodafone is in has only one Legal force that is to provide safety in the use of its services through the handsets they sell and provide. This means that development cost will need to be done to produce handsets that attract low radiation. STP ANALYSIS Segmentation Vodafones services are spread wide across India. Therefore, the segmentation can be done based on the geographical conditions. Also, segmentation by Vodafone is done based on the service usage by the customer. For instance, usage in terms of Post-paid or Pre-paid and further, services can be defined as the customers who would prefer caller tunes, or know about the financial, or interested in astrology. To an extent, the nature of customer also a segmentation strategy as a customer can be defined as a sole customer who purchases the connection on his name and uses it himself, and the other can be defined as Institutional where a company or any corporate purchases the connection and gives it to their employees whereby the bills expense would be borne by the company. Targeting Vodafone is adopting a multi-segment approach. They are offering a series of differentiated products to their respective markets. For instance, they have come out with Home calling cards for the family to those professionals who use to work abroad. They are targeting middle class customers which can be clearly justified by their products they are offering like Rs. 10 chota recharge, inexpensive SMS facility for the youth. Positioning Initially, Hutch positioned themselves as Where you go the network follows you. Hutch is a brand that always tried to

connect with customers in a simple, honest and real manner, while Vodafone is a more of a young and a fun brand. The positioning strategies have been highly successful for Vodafone as they made a wise decision of restraining the PUG dog which was a very powerful visual imagery. Also, actor Irfan Khan has been restrained for the brand promotions. Vodafone have always talked about the exclusivity of the network, and the services they are offering to the customers very effectively. CONCLUSION The acquisition of interests in Hutchison Essar accelerates Vodafone's move to a controlling position in a leading operator in India, and this has significantly increased their presence in emerging markets. With market penetration of around 14% and with a population of over 1.1 billion, India provides a very significant opportunity for future growth. The transition of Hutch to Vodafone is estimated to be a mega Rs 200-crore campaign with multiple media channels being used to convey the message. Coincidentally, both brands already have an upmarket image in their respective markets and so transferring the values and emotions was not difficult for the mobile telephony brand. To move seamlessly from one brand name to the next, bringing in a familiar mascot is what is expected to do the trick in convincing consumers. The important element in the changeover was to move without a glitch from Hutch to Vodafone with a positive attitude, while carrying our customers along with them. The pug is synonymous with Vodafones robust network and is the most endearing symbol of the brand. The baseline, Change is Good, implies that even if a well-loved brand changes, there are always positive aspects to it in the long run.

Vodafone says it wants to make its Indian unit the number one mobile provider in India by 2010. It has already moved up to third from fourth place since being acquired, overtaking state-owned Bharat Sanchar Nigam Ltd (BSNL). So far India's "mobile revolution" has been mainly confined to the cities, but there are certain analysts who say that the real prize lies in its vast rural areas, where nearly 70 percent of the country's 1.1 billion population live. Hence, Vodafones focus will be on rural markets and this is the reason why Vodafone has tied up with Chinese handset maker ZTE for low-cost handsets.

Vodafone-International Marketing
Introduction Corporate Social Responsibilities Vodafone Group International Marketing Behavior Michael Porters Generic Strategy Ansoff Matrix SWOT Conclusion Reference Introduction: Vodafone is the biggest telecom company around the globe, who is serving the customers in Middle East, Asia, Europe and United States, with the company joint ventures, partnership, undertaking and speculation. Vodafone was established in 1984 as a subordinate of Rascal electronics plc and in 1991 after becoming an independent company it was named as Vodafone group plc. Today Vodafone employs more than 66,000 employees around the globe. The ordinary shares of Vodafone group are programmed in London stock exchange and Vodafones American depositary shares are programmed in United States in New York stock exchange. In September 2007 the company was ranked 4th largest company in the financial stock exchange index.

As per the reports company has 270 million customers today. As per the survey of brands 100 top survey Vodafone has got 1st rank in the most valuable brands in United Kingdom, Vodafone is fourth rank in Europe and 22nd rank around the world as a most valuable brand. Corporate Social Responsibilities: Vodafone has given this task to their managers for the corporate social responsibility and to recruit the particular manager for this. The director of the Vodafone group social responsibility and the similar management keep meeting with the other manager time to time. Every year Vodafone organizes global social responsibility meetings and seminars where the management comes from round the globe. Meetings, seminars and discussions are the key point of this these seminars and its a good way to interact and to share the knowledge. Training and coaching is one of the key factor uses by the Vodafone to inject good corporate social responsibility in his management. Vodafone groups marketing behavior: The motto behind this is to analyze the changeable focus in the expansion of their telecom industry around the globe. In this report I have discuss about the marketing expansion of the company and the growth and implementation of their strategies around the globe from the point of view of India. As Vodafone is one of the biggest telecom operators round the globe but the key factors which stimulate the global expansion of the company in Indian marketing strategy is the political, economical, socio cultural and economical factors. The main factors which are affecting the Vodafone market in India are the government regulations, taxes, international business laws and duties. The advantageous feature of the Vodafone group is the level of foreign development investment, the growth rate, the way

Vodafone invest in technology, the fluctuation in the money, total gross domestic product and the Vodafones moral values. Since the time Vodafone launch it self in India its gaining good profit and giving a good competition to its competitors. The international marketing of the company in India is money-making from the point of view of research and development. In the international cell phone market in India Vodafone has got a very bright future in terms of increasing the business, in developing and launching the new products and with the excellent services and finally the gathering of customers. The Vodafones strategy is based on product-led approach: Vodafone always keep changing and experiment its products and try to covert them into a new product after using the latest technology. As in todays world the consumers are getting sophisticated and genuine in the use of mobile phones and they always make new demand and improvement in the product as well. To stand on top of the competitors Vodafone will have to adopt this in to its product strategy and to listen and to full fill the demand of their consumers as they are getting more demanding. Talking about the telecom market in United Kingdom which comes to its maturity stage in a very short span of time especially because of young generation. To avoid this Vodafone keep adding on the values to its services and in the tariffs and packages to its consumers. In order to keep hold of its market leadership Vodafone has made some of the marketing objectives which are as follows: *To get the new customers. * to hold of the existing customers of Vodafone *to keep introducing the latest technologies and services such as: internet and wap *keep innovating the product to for the development of Vodafone brand

The vision of the company is to be the number one telecom company in the world and to accomplish all the services of the customer which they are getting from the other network users. Vodafones strategy of India is to hold the services like video conferencing, voice and other e commerce and data transmission. In the international and complicated market in India Vodafone has launched itself with an e commerce technology just because of small barriers and the strict standards of digital media. To improve its strength around the world after saturation in United States, in Europe and in other countries now company has a great expectation from the business in India. What makes Vodafone a leader in telecommunication field is the market strategy development in a particular country or region to achieve the goals of the company by their excellent speed and technology with the modernization. As Vodafone is become one of the leading telecom company after a forceful diversification of one of the web base company in India Michael Porters Generic Strategies: [pic] MICHAEL PORTERS GENERIC STRATEGIES As per the Michael Porters Generic Strategies, As a part of Vodafones international expansion in India is to target the broad market with the lower cost leadership strategy. From the point of view of economics of scale the cost leadership strategy is helpful to supply large number of customers in low cost to supply. As in India the expenditures on the promotions of the company product is low, maintaining an excellent quality and excellent customer services which always keep stand Vodafone in benefit and gives a good turn over to accomplish the cost leadership in the world market.

Ansoff Product Matrix: [pic] ANSOFF PRODUCT MATRIX FOR VODAFONE INTERNATIONAL MARKET EXPANSION OF INDIA One of the biggest advantages for sales which Vodafone has got is the state brand awareness in India which is very useful in the international growth of Vodafone. Vodafone does its promotion through different ways such as: media, through internet, through different sponsorships. Last year in 2008 Vodafone cut off its staff in Germany because of loss over there. The above model indicates the development in the existing products of Vodafone as a part of their development in new products. As an example Vodafone has upgrade its 3g technology to 4g, their Wi-Fi information card technology and Vodafone live. The market development chart of Vodafone defines about the new markets and the open products in the existing market of India as a aimed market strategy to increase the profit of Vodafone and the global observation is that Vodafone is the largest telecom company in the world and it is majorly engaged with the combination and acquisition. Finally the diversification of the latest products which are associated with the products like broadband with BT and universal serial bus 3g modems. The ansoff matrix model is a useful tool to analyze the risk in the market and the development of the new marketing strategies which is executed to increase the sales of Vodafone in India. At the current stage the products of Vodafone in India requires and new technology and some new facilities as well. SWOT analysis of the Vodafone: [pic]

Strength: Leading market situation: Vodafone is one of the most renowned group in the world market of telecom who has spread its roots in united states, Africa, India Europe and united kingdom with the help of its acquisitions, mergers, joint ventures, investments and take on. The Vodafone group has equity interest in more than 26 countries. By the year 2008 in March Vodafone had more than 260.5 million of customers around the globe. The market share of the Vodafone group is also as follows in different countries: Spain(32%), UK(28%), Africa(59%), united states(27%), Egypt( 47%) and in Australia(21%) in middle east and Asia(23%). The strong market share holding helps the Vodafone to become a leader in the establish markets and helps in increasing the brand image of the company. Apart from that gives a strong foundation to Vodafone to exist in the new markets. Wide global reach and expand revenue base: Vodafone has strategically spread them around the globe after scheming their stakes in various companies and associates in different countries. By the end of 2008 in March the company had the equity interests in 26 countries and it would be 42 countries with the help of partner market arrangements. Vodafone has a major operations running in different countries like: Europe, U.K., Africa and India. Apart from that the company has a expended revenue base. The Vodafones reach around the globe along with the diversification in revenue base allows offsetting loss along with the risk which are related to the business. Strong network communications: Vodafone has a very strong network for communication which supports its functions. The mobile network which provides the

voice and another data services to the customer. Vodafone provides 2 g technology to all of its subsidiaries with the help of gsm networks which provides the basic communication facilities and the basic data facilities. Vodafone also provides GPRS network. Vodafone also provides 3G network facilities with the CDMA hand sets which has a feature of mobile broadband access. apart from that it enables the fast internet access, downloading. In the year 2008 the total expenditure of the Vodafone on 3G networks was 825 million pounds. This facility mainly supports the business functions and it supply to increase the customer needs. Weakness: Poor returns: In the last few years the Vodafone has got a big amount of poor returns. On the assets the Vodafone group has recorded a downfall in returns. In 2007 the Vodafone has record the downfall of 4.6% on assets. Same with the case of return on equity the Vodafone didnt make any major improvement in this. in the year 2003 Vodafone has got the negative return on equity of 7.6% which was the same in 2007 of 7.1%. As the competitors of Vodafone such as: British telecom, AT& t got the better returns. In 2007 the British telecom get the return on assets of 11.7% and return on equity was 98.4% same with the group AT& T whose return on assets was 3.5% and return on equity was 8.6%. Opportunities Cost cutback proposal: Vodafone implement the cost cutback scheme from last financial year. In some of those schemes the company was outsourcing the developments, apart from that safeguarding for the IT system of the company for this the company had the agreement with EDS and IBM to provide these services.

Acquisition of Hutchison Essar: After launching in India the Vodafone has an acquisition of 52% with one the leading the telecom operator Hutchison Essar. As a part of this acquisition the Vodafone has obtained the stakes in Omega telecom and Telecom Investments. As there are more than 7.5 million new subscribers are in India. India which is considers one of the fastest growing markets in the world. India where the penetration growth is still very low of 13% and hutchstion essar who has got the license of 22 states out of 23 in India. Reason behind Stake in Hutchstion essar was just to take a hold and access to most of the parts of the country and to earn the revenue from the emerging Indian markets. Technological developments: The Vodafone has got a very professional research and development which company applied in upgrading its products and networks. At present the Vodafone is doing a research on the wireless technique because its running beyond the generation. Apart from that Vodafone is researching on the mobile T.V. and internet and service enabler technology. Threats: Powerful competition: As Vodafone is always deals in a market which changes rapidly from the point of view of technology and very highly competitive. The flavor of marketing is changing very rapidly from customer acquisition to customer maintenance just because of highly penetrated markets. Vodafone operates round the world and deals in different types of markets and deal with different competitors and dealers. Major competitors of the Vodafone group are Airtel, France Telecom, T-Mobile and so many others as well. that intense competition increase the mix rates and provoke the pricing strategy of the mobile groups which they charge for their mobile services.

Mature markets: Vodafone group is majorly present in the European countries and majorly generates the revenue for the company has high penetration rates. The estimated penetration rates in Germany is 104%, Spain143%, Italy110%, and U.K.137% high penetration rate shows that how many people are using the telecommunication and products. Vodafone majorly earns its maximum revenue from the European countries last year in 2008 it was 80%.in 2007 there was a slum in the revenue of Vodafone from Germany it was 5.2%. Italy 2.9% and from other countries of Europe it was 9.3%. EU laws on international roaming: In 2006 there was a new law passed by the European Commission for the roaming regulation under the article 95 of the European Union agreement to lees down the excessive prices charged by the companies for the roaming services. These agreements were accepted by the Europe parliament in 2007.according to the regulation as per the new tariffs in Europe the calls with in the UK will cost 49 eurocents per and tariff for receiving the calls would be 24 eurocents per call. Those who hasent takes the roaming tariff will cover automatically under this agreement. Conclusion: Vodafone is facing a big competition around the globe in each and every country. in domestic markets Vodafone is facing indirect competition from its competitors. There are some new category of competitors as well it includes the land line operators who provides the mix and match including land line and mobile services together and the internet companies who made the land lines necessity for the connection. The pressure of competitors increases the level of mix customers. So the Vodafone has concentrated on the tariff and customer acquisition and the maintenance initiatives. What Vodafone believes in that the competition will be keep going on like this with the existing competitors and with the new entrants as

well . Including who are getting the new technology like 3G and MVNO. Vodafone is a premium company in the market of telecommunication because of aggressive acquisitions and because of industrial background. Vodafone is actually a primary base business, with the attractive benefits for the consumer demand and web base technology. The step of diversification in the Indian market global strategy is a part to avoid the bankruptcy and to corporate the cheating as well. The investment of Vodafone in the international market is not appropriate which 227.15 dollars is which is very high as comparison to other companies. The business of Vodafone in India can control corresponding such as UK. If Vodafone can implement of the staff working together for a long time in the same organization with a good coordination of group work so the success can be accomplished easily. Reference: Kotler P. (2006), Principles of marketing , NJ. : Pearson/Prentice Hall Doole, Isobel (2001), International marketing strategy: analysis, development and implementation 3rd Ed. Chee, Harold (1983), marketing: a global perspective, London: pitman Piercy F.N.(2001) Market Led Strategic Change Heinemann: Butterworth Cateora R.P.(2002) International Marketing New York: Irwin McGraw-Hill http://web.ebscohost.com/ehost/detail? vid=1&hid=13&sid=74b9a110-f8db-48fc-861044cbf0732575%40sessionmgr7 http://www.vodafone.com/start/responsibility/performance___co mmitments.html .

----------------------COMPETITIVE ADVANTAGE LOWER COST DIFFERENTIATION BROAD TARGET NARROW TARGET COST LEADERSHIP DIFFERENTIATION FOCUSED COST LEADERSHIP FOCUSED COST DIFFERENTIATION CONSOLIDATION MARKET PENETRATION DOWNSIZED IN BELGIUM SWITZERLAND & GERMANY JOB SIZING IMAGE OF BRAND

NEW PRODUCT VODAFONE LIVE M-COMMERCE MOBILE OFFICE MODIFIED PRODUCT COMPLEMENTARY DEALS 3G to 4G Wi-Fi DATA CARD RELATED UNRELATED USB 3G MODEMS BROADBAND WITH BT INTERNATIONAL NATIONAL PRODUCTS EXISTING NEW

MARKETS EXISTING N EW NIL WORLDS LARGEST TELECOMMUNICATION COMPANY MERGERS & AQUISITION UNFAMILIARTY MARKETIN INDIA MARKET SEGMENTATION GOOD TECHNOLOGY 59 COUNTRIES

Vodafone Finanacial Analysis

Shareholder information

Financial calendar for th Vodafone Finanacial Analysise 2010 financial year Interim management statement 24 July 2009 Half-year financial results announcement 10 November 2009 Further details will be available at www.vodafone.com/investor, as they become available. The Company does not publish results announcements in the press; they are available online at www.vodafone.com/investor. Dividends Full details on the dividend amount per share can be found here. Set out below is information relevant to the final dividend for the year ended 31 March 2009. Ex-dividend date 3 June 2009 Record date 5 June 2009 Dividend reinvestment plan last election date 17 July 2009 Dividend payment date(1) 7 August 2009 Note: (1) Payment date for both ordinary shares and American Depositary Shares (ADSs). Dividend payment methods Currently holders of ordinary shares and ADSs can: have cash dividends paid direct to a bank or building society account; or have cash dividends paid in the form of a cheque; or elect to use the cash dividends to purchase more Vodafone shares under the dividend reinvestment plan (see below) or, in the case of ADSs, have the dividends reinvested to purchase additional Vodafone ADSs. In relation to holders of ordinary shares only, the Company proposes that, after payment of the final dividend in August 2009,

it will pay future dividend payments only by direct credit into a nominated bank or building society account, or alternatively, into the Companys dividend reinvestment plan. The Company will no longer pay dividends by cheque to holders of ordinary shares with effect from February 2010. By withdrawing cheque payments, the Company is seeking to improve the security of dividend payments to shareholders, by avoiding the risk of cheques being lost in the post and fraud. Shareholders will also benefit by receiving their dividend on the date of payment. Shareholders will continue to receive a tax voucher in respect of dividend payments. Ordinary shareholders resident outside the UK and eurozone can have their dividends paid into their bank account directly via the Companys registrars global payments service. Details and terms and conditions may be viewed at www.computershare.com/uk/investor/GPS. For dividend payments in euros, the sterling: euro exchange rate will be determined by the Company shortly before the payment date, in accordance with the Companys articles of association. The Company will pay the ADS depositary, The Bank of New York, its dividend in US dollars. The sterling: US dollar exchange rate for this purpose will be determined by the Company up to ten New York and London business days prior to the payment date. Cash dividends to ADS holders will be paid by the ADS depositary in US dollars. Further information about the dividend payments can be found at www.vodafone.com/dividends or, alternatively, please contact the Companys registrars for further details. Dividend reinvestment

The Company offers a dividend reinvestment plan which allows holders of ordinary shares, who choose to participate, to use their cash dividends to acquire additional shares in the Company. These are purchased on their behalf by the plan administrator through a low cost dealing arrangement. For ADS holders, The Bank of New York Mellon maintains a Global BuyDIRECT Plan for the Company, which is a direct purchase and sale plan for depositary receipts, with a dividend reinvestment facility. Final B share redemption date In accordance with the terms of the 2006 return of capital and share consolidation, the Company redeemed and cancelled all outstanding B shares in issue on 5 August 2008 at their nominal value of 15 pence per share. Telephone share dealing A telephone share dealing service with the Companys registrars is available for holders of ordinary shares. The service is available from 8.00 am to 4.30 pm, Monday to Friday, excluding bank holidays, on telephone number +44 (0)870 703 0084. Detailed terms and conditions are available on request by calling the above number. Registrars and transfer office If private shareholders have any enquiries about their holding of ordinary shares, such as a change of address, change of ownership or dividend payments, they should contact the Companys registrars at the address or telephone number below. Computershare Investor Services PLC maintain the Vodafone Group Plc share register and holders of ordinary shares may view and update details of their shareholding via the registrars investor centre at www.computershare.com/uk/investorcentre.

ADS holders should address any queries or instructions regarding their holdings to the depositary bank for the Companys ADR programme at the address or telephone number below. ADS holders can view their account information, make changes and conduct many other transactions at www.bnymellon.com/shareowner. (Holders of ordinary shares resident in Ireland): Computershare Investor Services (Ireland) Limited PO Box 9742 Dublin 18, Ireland Telephone: 0818 300 999 http://www.investorcentre.co.uk/contactus The registrars Computershare Investor Services PLC The Pavilions Bridgwater Road, Bristol BS99 6ZY, England Telephone: +44 (0)870 702 0198 www.investorcentre.co.uk/contactus ADR depositary The Bank of New York Mellon BNY Mellon Shareowner Services PO Box 358516 Pittsburgh, PA 15252-8516, USA Telephone: 1 800 233 5601 (toll free) or, for calls outside the USA, +1 201 680 6837 (not toll free) and enter company number 2160 Email: shrrelations@bnymellon.com Internet share dealing An internet share dealing service is available for holders of ordinary shares who want either to buy or sell ordinary shares. Further information about this service can be obtained from the Companys registrars on +44 (0)870 702 0198 or by logging onto www.computershare.com/dealing/uk. Online shareholder services

The Company provides a number of shareholder services online at www.vodafone.com/shareholder, where shareholders may: register to receive electronic shareholder communications. Benefits to shareholders include faster receipt of communications, such as annual reports, with cost and time savings for the Company. Electronic shareholder communications are also more environmentally friendly; view a live webcast of the AGM of the Company on 28 July 2009. A recording will be available to view after that date; view and/or download the 2009 annual report; check the current share price; calculate dividend payments; and use interactive tools to calculate the value of shareholdings, change registered address or dividend mandate instructions, look up the historic price on a particular date and chart Vodafone ordinary share price changes against indices. Shareholders and other interested parties can also receive company press releases, including London Stock Exchange announcements, by registering for Vodafone news via the Companys website at www.vodafone.com/media. Registering for Vodafone news will enable users to: access the latest news from their mobile; and have news automatically e-mailed to them. Annual general meeting The twenty-fifth AGM of the Company will be held at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1 on 28 July 2009 at 11.00 am. A combined review of the year and notice of AGM, including details of the business to be conducted at the AGM, will be circulated to shareholders and can be viewed at the Companys website at www.vodafone.com/agm.

The AGM will be transmitted via a live webcast and can be viewed at the Companys website at www.vodafone.com/agm on the day of the meeting and a recording will be available to view after that date. ShareGift The Company supports ShareGift, the charity share donation scheme (registered charity number 1052686). Through ShareGift, shareholders who have only a very small number of shares, which might be considered uneconomic to sell, are able to donate them to charity. Donated shares are aggregated and sold by ShareGift, the proceeds being passed on to a wide range of UK charities. Donating shares to charity gives rise neither to a gain nor a loss for UK capital gains tax purposes and UK taxpayers may also be able to claim income tax relief on the value of the donation. ShareGift transfer forms specifically for the Companys shareholders are available from the Companys registrars, Computershare Investor Services PLC, and, even if the share certificate has been lost or destroyed, the gift can be completed. The service is generally free. However, there may be an indemnity charge for a lost or destroyed share certificate where the value of the shares exceeds 100. Further details about ShareGift can be obtained from its website at http://www.sharegift.org/ or at 17 Carlton House Terrace, London SW1Y 5AH (telephone: +44 (0)20 7930 3737). Asset Checker Limited The Company participates in Asset Checker, the online service which provides a search facility for solicitors and probate professionals to quickly and easily trace UK shareholdings relating to deceased estates. For further information, visit http://www.assetchecker.co.uk/. Share price history

Upon flotation of the Company on 11 October 1988, the ordinary shares were valued at 170 pence each. On 16 September 1991, when the Company was finally demerged, for UK taxpayers the base cost of Racal Electronics Plc shares was apportioned between the Company and Racal Electronics Plc for Capital Gains Tax purposes in the ratio of 80.036% and 19.964% respectively. Opening share prices on 16 September 1991 were 332 pence for each Vodafone share and 223 pence for each Racal share. On 21 July 1994, the Company effected a bonus issue of two new shares for every one then held and, on 30 September 1999, it effected a bonus issue of four new shares for every one held at that date. The flotation and demerger share prices, therefore, may be restated as 11.333 pence and 22.133 pence, respectively. The share price at 31 March 2009 was 122.8 pence (31 March 2008: 150.9 pence). The share price on 18 May 2009 was 127.5 pence. The following tables set out, for the periods indicated, (i) the reported high and low middle market quotations of ordinary shares on the London Stock Exchange, and (ii) the reported high and low sales prices of ADSs on the NYSE. On 31 July 2006, the Group returned approximately 9 billion to shareholders in the form of a B share arrangement. As part of this arrangement, and in order to facilitate historical share price comparisons, the Groups share capital was consolidated on the basis of seven new ordinary shares for every eight ordinary shares held at this date. Share prices in the five and two year data tables below have not been restated to reflect this consolidation. London Stock Exchange Pounds per ordinary share NYSE

Dollars per ADS Year ended 31 March High Low High Low 2005 1.49 1.14 28.54 20.83 2006 1.55 1.09 28.04 19.32 2007 1.54 1.08 29.85 20.07 2008 1.98 1.36 40.87 26.88 2009 1.70 0.96 32.87 15.30 London Stock Exchange Pounds per ordinary share NYSE Dollars per ADS Quarter High Low High Low 2007/2008 First quarter 1.69 1.36 33.87 26.88 Second quarter 1.79 1.47 36.52 29.13 Third quarter 1.98 1.67 40.87 34.32 Fourth quarter 1.94 1.46 38.27 29.27 2008/2009 First quarter 1.70 1.40 32.87 27.72 Second quarter 1.58 1.18 31.21 21.01 Third quarter 1.41 0.96 23.06 15.30 Fourth quarter 1.48 1.13 21.88 15.46 2009/2010 First quarter(1) 1.33 1.19 19.64 17.68 London Stock Exchange Pounds per ordinary share NYSE Dollars per ADS Month High Low High Low November 2008 1.30 1.07 19.85 16.62 December 2008 1.39 1.21 20.44 17.56

January 2009 1.48 1.29 21.88 18.15 February 2009 1.38 1.20 20.50 17.17 March 2009 1.27 1.13 17.96 15.46 April 2009 1.33 1.19 19.48 17.68 May 2009(1) 1.29 1.19 19.64 18.03 Note: (1) Covering period up to 18 May 2009. The current authorised share capital comprises 68,250,000,000 ordinary shares of US$0.113/7 each and 50,000 7% cumulative fixed rate shares of 1.00 each and 38,563,935,574 B shares of 0.15 each and 28,036,064,426 deferred shares of 0.15 pence each. Inflation and foreign currency translation Inflation Inflation has not had a significant effect on the Groups results of operations and financial condition during the three years ended 31 March 2009. Foreign currency translation The following table sets out the pounds sterling exchange rates of the other principal currencies of the Group, being: euros, or eurocents, the currency of the European Union (EU) Member states which have adopted the euro as their currency, and US dollars, US$, cents or , the currency of the United States. 31 March Change Currency (=1) 2009 2008 % Average: Euro 1.20 1.42 (15.5) US dollar 1.72 2.01 (14.4) At 31 March: Euro 1.08 1.26 (14.3) US dollar 1.43 1.99 (28.1)

The following table sets out, for the periods and dates indicated, the period end, average, high and low exchanges rates for pounds sterling expressed in US dollars per 1.00. Year ended 31 March 31 March Average High Low 2005 1.89 1.85 1.96 1.75 2006 1.74 1.79 1.92 1.71 2007 1.97 1.89 1.98 1.74 2008 1.99 2.01 2.11 1.94 2009 1.43 1.72 2.00 1.37 Month High Low November 2008 1.60 1.47 December 2008 1.55 1.44 January 2009 1.52 1.37 February 2009 1.49 1.42 March 2009 1.47 1.38 April 2009 1.50 1.44 Markets Ordinary shares of Vodafone Group Plc are traded on the London Stock Exchange and, in the form of ADSs, on the NYSE. The Company had a total market capitalisation of approximately 66.9 billion at 18 May 2009, making it the third largest listing in The Financial Times Stock Exchange 100 index and the 31st largest company in the world based on market capitalisation at that date. ADSs, each representing ten ordinary shares, are traded on the NYSE under the symbol VOD. The ADSs are evidenced by ADRs issued by The Bank of New York Mellon, as depositary, under a deposit agreement, dated as of 12 October 1988, as amended and restated as of 26 December 1989, as further amended and restated as of 16 September 1991, as further amended and restated as of 30 June 1999, and as further amended and restated as

of 31 July 2006 between the Company, the depositary and the holders from time to time of ADRs issued thereunder. ADS holders are not members of the Company but may instruct The Bank of New York Mellon on the exercise of voting rights relative to the number of ordinary shares represented by their ADSs. See Memorandum and articles of association and applicable English law Rights attaching to the Companys shares Voting rights. Shareholders at 31 March 2009 Number of ordinary shares held Number of accounts % of total issued shares 1 1,000 440,296 0.21% 1,001 5,000 81,147 0.31% 5,001 50,000 25,850 0.56% 50,001 100,000 1,149 0.14% 100,001 500,000 1,123 0.46% More than 500,000 1,817 98.32% 551,382 100.00 Geographical analysis of shareholders At 31 March 2009, approximately 54.3% of the Companys shares were held in the UK, 30.3% in North America, 11.9% in Europe (excluding the UK) and 3.5% in the rest of the world. Major shareholders The Bank of New York Mellon, as custodian of the Companys ADR programme, held approximately 11.7% of the Companys ordinary shares of US$0.113/7 each at 18 May 2009 as nominee. The total number of ADRs outstanding at 18 May 2009 was 618,284,295. At this date, 1,258 holders of record of ordinary shares had registered addresses in the United States and in total held approximately 0.008% of the ordinary shares of the Company.

At 18 May 2009, the following percentage interests in the ordinary share capital of the Company, disclosable under the Disclosure and Transparency Rules, (DTR 5), have been notified to the directors: Shareholder Shareholding AXA S.A. Legal & General Group Plc 4.61% 4.43% The rights attaching to the ordinary shares of the Company held by these shareholders are identical in all respects to the rights attaching to all the ordinary shares of the Company. The directors are not aware, at 18 May 2009, of any other interest of 3% or more in the ordinary share capital of the Company. The Company is not directly or indirectly owned or controlled by any foreign government or any other legal entity. There are no arrangements known to the Company that could result in a change of control of the Company. Memorandum and articles of association and applicable English law The following description summarises certain provisions of the Companys memorandum and articles of association and applicable English law. This summary is qualified in its entirety by reference to the Companies Act 1985 of England and Wales, as amended and the Companies Act 2006 of England and Wales as in force, and the Companys memorandum and articles of association. Information on where shareholders can obtain copies of the memorandum and articles of association is provided under Documents on display. All of the Companys ordinary shares are fully paid. Accordingly, no further contribution of capital may be required by the Company from the holders of such shares.

English law specifies that any alteration to the articles of association must be approved by a special resolution of the shareholders. The Companys objects The Company is a public limited company under the laws of England and Wales. The Company is registered in England and Wales under the name Vodafone Group Public Limited Company, with the registration number 1833679. The Companys objects are set out in the fourth clause of its memorandum of association and cover a wide range of activities, including to carry on the business of a holding company, to carry on business as dealers in, operators, manufacturers, repairers, designers, developers, importers and exporters of electronic, electrical, mechanical and aeronautical equipment of all types as well as to carry on all other businesses necessary to attain the Companys objectives. The memorandum of association grants the Company a broad range of powers to effect its objects. Directors The Companys articles of association provide for a Board of directors, consisting of not fewer than three directors, who shall manage the business and affairs of the Company. The directors are empowered to exercise all the powers of the Company subject to any restrictions in the articles of association. Under the Companys articles of association, a director cannot vote in respect of any proposal in which the director, or any person connected with the director, has a material interest other than by virtue of the directors interest in the Companys shares or other securities. However, this restriction on voting does not apply to resolutions (a) giving the director or a third party any guarantee, security or indemnity in respect of obligations or liabilities incurred at the request of or for the benefit of the Company, (b) giving any guarantee, security or indemnity to the director or a

third party in respect of obligations of the Company for which the director has assumed responsibility under an indemnity or guarantee, (c) relating to an offer of securities of the Company in which the director participates as a holder of shares or other securities or in the underwriting of such shares or securities, (d) concerning any other company in which the director (together with any connected person) is a shareholder or an officer or is otherwise interested, provided that the director (together with any connected person) is not interested in 1% or more of any class of the companys equity share capital or the voting rights available to its shareholders, (e) relating to the arrangement of any employee benefit in which the director will share equally with other employees and (f) relating to any insurance that the Company purchases or renews for its directors or any group of people, including directors. The directors are empowered to exercise all the powers of the Company to borrow money, subject to the limitation that the aggregate amount of all liabilities and obligations of the Group outstanding at any time shall not exceed an amount equal to 1.5 times the aggregate of the Groups share capital and reserves calculated in the manner prescribed in the articles of association, unless sanctioned by an ordinary resolution of the Companys shareholders. The Company can make market purchases of its own shares or agree to do so in the future, provided it is duly authorised by its members in a general meeting and subject to and in accordance with Section 166 of the Companies Act 1985. In accordance with the Companys articles of association, directors retiring at each AGM are those last elected or re-elected at or before the AGM held in the third calendar year before the current year. In 2005, the Company reviewed its policy regarding the retirement and re-election of directors and, although it is not

intended to amend the Companys articles of association in this regard, the Board has decided, in the interests of good corporate governance, that all of the directors should offer themselves for reelection annually. No person is disqualified from being a director or is required to vacate that office by reason of age. Directors are not required, under the Companys articles of association, to hold any shares of the Company as a qualification to act as a director, although executive directors participating in long term incentive plans must comply with the Companys share ownership guidelines. In accordance with best practice in the UK for corporate governance, compensation awarded to executive directors is decided by a remuneration committee consisting exclusively of non-executive directors. In addition, as required by The Directors Remuneration Report Regulations, the Board has, since 2003, prepared a report to shareholders on the directors remuneration which complies with the regulations. The report is also subject to a shareholder vote. Rights attaching to the Companys shares At 31 March 2009, the issued share capital of the Company was comprised of 50,000 7% cumulative fixed rate shares of 1.00 each and 52,483,872,615 ordinary shares (excluding treasury shares) of US$0.113/7 each. Dividend rights Holders of 7% cumulative fixed rate shares are entitled to be paid in respect of each financial year, or other accounting period of the Company, a fixed cumulative preferential dividend of 7% per annum on the nominal value of the fixed rate shares. A preferential dividend may only be paid out of available distributable profits which the directors have resolved should be distributed. The fixed

rate shares do not have any other right to share in the Companys profits. Holders of the Companys ordinary shares may, by ordinary resolution, declare dividends but may not declare dividends in excess of the amount recommended by the directors. The Board of directors may also pay interim dividends. No dividend may be paid other than out of profits available for distribution. Dividends on ordinary shares will be announced in pounds sterling. Holders of ordinary shares with a registered address in a eurozone country (defined, for this purpose, as a country that has adopted the euro as its national currency) will receive their dividends in euros, exchanged from pounds sterling at a rate fixed by the Board of directors in accordance with the articles of association. Dividends for ADS holders represented by ordinary shares held by the depositary will be paid to the depositary in US dollars, exchanged from pounds sterling at a rate fixed by the directors in accordance with the articles of association, and the depositary will distribute them to the ADS holders. If a dividend has not been claimed for one year after the date of the resolution passed at a general meeting declaring that dividend or the resolution of the directors providing for payment of that dividend, the directors may invest the dividend or use it in some other way for the benefit of the Company until the dividend is claimed. If the dividend remains unclaimed for 12 years after the relevant resolution either declaring that dividend or providing for payment of that dividend, it will be forfeited and belong to the Company. Voting rights The Companys articles of association provide that voting on substantive resolutions (i.e. any resolution which is not a procedural resolution) at a general meeting shall be decided on a poll. On a poll, each shareholder who is entitled to vote and is

present in person or by proxy has one vote for every share held. Procedural resolutions (such as a resolution to adjourn a General Meeting or a resolution on the choice of Chairman of a general meeting) shall be decided on a show of hands, where each shareholder who is present at the meeting has one vote regardless of the number of shares held, unless a poll is demanded. In addition, the articles of association allow persons appointed as proxies of shareholders entitled to vote at general meetings to vote on a show of hands, as well as to vote on a poll and attend and speak at general meetings. Holders of the Companys ordinary shares do not have cumulative voting rights. Under English law, two shareholders present in person constitute a quorum for purposes of a general meeting, unless a companys articles of association specify otherwise. The Companys articles of association do not specify otherwise, except that the shareholders do not need to be present in person, and may instead be present by proxy, to constitute a quorum. Under English law, shareholders of a public company such as the Company are not permitted to pass resolutions by written consent. Record holders of the Companys ADSs are entitled to attend, speak and vote on a poll or a show of hands at any general meeting of the Companys shareholders by the depositarys appointment of them as corporate representatives with respect to the underlying ordinary shares represented by their ADSs. Alternatively, holders of ADSs are entitled to vote by supplying their voting instructions to the depositary or its nominee, who will vote the ordinary shares underlying their ADSs in accordance with their instructions. Employees are able to vote any shares held under the Vodafone Group Share Incentive Plan and My ShareBank (a vested share account) through the respective plans trustees.

Holders of the Companys 7% cumulative fixed rate shares are only entitled to vote on any resolution to vary or abrogate the rights attached to the fixed rate shares. Holders have one vote for every fully paid 7% cumulative fixed rate share. Liquidation rights In the event of the liquidation of the Company, after payment of all liabilities and deductions in accordance with English law, the holders of the Companys 7% cumulative fixed rate shares would be entitled to a sum equal to the capital paid up on such shares, together with certain dividend payments, in priority to holders of the Companys ordinary shares. The holders of the fixed rate shares do not have any other right to share in the Companys surplus assets. Pre-emptive rights and new issues of shares Under Section 80 of the Companies Act 1985, directors are, with certain exceptions, unable to allot relevant securities without the authority of the shareholders in a general meeting. Relevant securities as defined in the Companies Act 1985 include the Companys ordinary shares or securities convertible into the Companys ordinary shares. In addition, Section 89 of the Companies Act 1985 imposes further restrictions on the issue of equity securities (as defined in the Companies Act 1985, which include the Companys ordinary shares and securities convertible into ordinary shares) which are, or are to be, paid up wholly in cash and not first offered to existing shareholders. The Companys articles of association allow shareholders to authorise directors for a period up to five years to allot (a) relevant securities generally up to an amount fixed by the shareholders and (b) equity securities for cash other than in connection with a rights issue up to an amount specified by the shareholders and free of the restriction in Section 89. In accordance with institutional investor guidelines, the amount of relevant securities to be fixed by shareholders is normally restricted to one third of the existing issued ordinary share capital,

and the amount of equity securities to be issued for cash other than in connection with a rights issue is restricted to 5% of the existing issued ordinary share capital. Disclosure of interests in the Companys shares There are no provisions in the articles of association whereby persons acquiring, holding or disposing of a certain percentage of the Companys shares are required to make disclosure of their ownership percentage, although such requirements exist under rules derived by the Disclosure and Transparency Rules (DTRs). The basic disclosure requirement upon a person acquiring or disposing of shares carrying voting rights is an obligation to provide written notification to the Company, including certain details as set out in DTR 5, where the percentage of the persons voting rights which he holds as shareholder or through his direct or indirect holding of financial instruments (falling within DTR 5.3.1R) reaches or exceeds 3% and reaches, exceeds or falls below each 1% threshold thereafter. Under Section 793 of the Companies Act 2006, the Company may, by notice in writing, require a person that the Company knows or has reasonable cause to believe is, or was during the preceding three years, interested in the Companys shares to indicate whether or not that is correct and, if that person does or did hold an interest in the Companys shares, to provide certain information as set out in the Companies Act 2006. DTR 3 deals with the disclosure by persons discharging managerial responsibility and their connected persons of the occurrence of all transactions conducted on their account in the shares in the Company. Part 28 of The Companies Act 2006 sets out the statutory functions of the Panel on Takeovers & Mergers (the Panel). The Panel is responsible for issuing and administering the Code on Takeovers & Mergers and governs disclosure requirements on all parties to a takeover with regard to dealings in the securities of an offeror or offeree

company and also on their respective associates during the course of an offer period. General meetings and notices Annual general meetings are held at such times and place as determined by the directors of the Company. The directors may also, when they think fit, convene other general meetings of the Company. General meetings may also be convened on requisition as provided by the Companies Act 2006. An annual general meeting and any other general meeting called for the passing of a special resolution needs to be called by not less than twenty-one days notice in writing and all other general meetings by not less than fourteen days notice in writing. The directors may determine that persons entitled to receive notices of meetings are those persons entered on the register at the close of business on a day determined by the directors but not later than twenty-one days before the date the relevant notice is sent. The notice may also specify the record date, which shall not be more than forty-eight hours before the time fixed for the meeting. Shareholders must provide the Company with an address or (so far as the Companies Acts allow) an electronic address or fax number in the United Kingdom in order to be entitled to receive notices of shareholders meetings and other notices and documents. In certain circumstances, the Company may give notices to shareholders by advertisement in newspapers in the United Kingdom. Holders of the Companys ADSs are entitled to receive notices under the terms of the Deposit Agreement relating to the ADSs. Under Section 336 of the Companies Act 2006, the annual general meeting of shareholders must be held each calendar year and within six months of the Companys year end. Electronic communications

The Company may, subject to and in accordance with the Companies Act 2006, communicate all shareholder information by electronic means, including by making such information available on a website, with notification that such information shall be available on the website. Variation of rights If, at any time, the Companys share capital is divided into different classes of shares, the rights attached to any class may be varied, subject to the provisions of the Companies Acts, either with the consent in writing of the holders of three fourths in nominal value of the shares of that class or upon the adoption of an extraordinary resolution passed at a separate meeting of the holders of the shares of that class. At every such separate meeting, all of the provisions of the articles of association relating to proceedings at a general meeting apply, except that (a) the quorum is to be the number of persons (which must be at least two) who hold or represent by proxy not less than one third in nominal value of the issued shares of the class or, if such quorum is not present on an adjourned meeting, one person who holds shares of the class regardless of the number of shares he holds, (b) any person present in person or by proxy may demand a poll, and (c) each shareholder will have one vote per share held in that particular class in the event a poll is taken. Class rights are deemed not to have been varied by the creation or issue of new shares ranking equally with or subsequent to that class of shares in sharing in profits or assets of the Company or by a redemption or repurchase of the shares by the Company. Limitations on voting and shareholding As far as the Company is aware, there are no limitations imposed on the transfer, holding or voting of the Companys shares other than those limitations that would generally apply to all of the shareholders. No shareholder has any securities carrying special

Vodafone Entry In Indian Market

India hails Vodafone entry in telecom market * Comments 0 * Rating Unrated (0) * EMAIL * PRINTI * RSS * SHARE * TEXT SIZE: A A A By Surojit Chatterjee, AP 17 February 2007 @ 9:45 am IST New Delhi - Vodafone's winning bid of $ 18.8 billion for Hutchison-Essar Ltd., India's fourth largest private mobile services operator, has been hailed by Indian corporate honchos, increase in competition notwithstanding. "We are pleased to welcome Vodafone and congratulate them on their Hutch acquisition. The Indian telecom sector is one of the

most sought after in the world and the bid is a strong endorsement of the government policy to promote the telecom sector," said Bharti Airtels Sunil Mittal. Airtel is the largest private mobile services operator in India having about 32 million mobile phone subscribers. "Bharti and Vodafone have enjoyed a very fruitful partnership and both companies will work with the industry towards connecting millions of people across India," he added. Vodafone, which has a 10 percent stake in Bharti Airtel, has sold back 5.6 percent to the promoter Sunil Mittal's group for $ 1.6 billion. "Vodafone has sold its 5.6 percent direct stake in Bharti Airtel to the group," Mittal said, elaborating that the deal was on a deferred payment basis. Vodafone will, however, continue to hold an indirect 4.4 percent stake in the company, as a financial investor and will neither have any representation on Bharti Airtel's board nor any management rights. As per the telecom norms, an operator cannot hold more than 10 percent stake in two service providers. This is why Vodafone is shedding its stake in Bharti. Bharti Airtel and Vodafone have also entered into a comprehensive memorandum of understanding (MoU) on a range of significant areas, including infrastructure sharing, roaming and long distance services. Bharti Airtel will be the preferred vendor of Vodafone for NLD, ILD and leased line services. Vodafone will also give 50 percent of its in-bound international roaming traffic to Bharti Airtel for three years. The two companies will also work on a comprehensive range of significant infrastructure sharing options, including around 70,000 towers in India, enabling rapid network expansion to connect sub urban and rural areas across the country and reducing costs. However, Bharti is in no mood to relinquish its dominant position in the telecom market.

"If Vodafone ups aggression and goes for further acquisitions (in India), we will have to up our ante... we would like to defend our legacy... we are market leaders," Mittal warned. Reliance Communications Ltd.'s chairman Anil Ambani has also welcomed Vodafone to India, after the UK giant emerged the top bidder for Hutch-Essar. "We congratulate Vodafone and welcome them to India. Vodafone's participation is a further endorsement of the exciting future growth potential, and the progressive policies, prevailing in the Indian telecom sector," Ambani said. Interestingly, Ambani was one of the rival bidders in the HutchEssar buyout. "Reliance's bid was made in line with our publicly declared and consistent philosophy of sustainable value creation, and financial conservatism, in the face of truly challenging acquisition valuations," he said. A consortium led by NRI business group Hindujas and Essar, were the other bidders in the fray for Hutch-Essar. "The entry of Vodafone in India will increase competition, bring global practices and better services to the domestic market, which will benefit the end consumers," industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement. There are large business opportunities in India and more cross border corporate deals may take place in the future as well, it said. Terming the Vodafone development as highly beneficial for the country and consumers, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) Telecom Committee chairman C.S. Rao said, "Vodafone is the largest global mobile service provider and has already mastered innovative services for subscribers be it in voice, data or video streaming." India would be benefited by the experienced player's entry in the domestic market, since the telecom sector is set for high growth, he said.

The next growth target of 250 million subscriber-base is expected to come from tier III and tier IV towns of hinterland India, Rao added. ASSOCHAM said innovation, coupled with right business model and affordable services, would be required for the semi-urban and rural Indian market, which is different from the European market. Congratulating Vodafone on its winning bid, Union Commerce and Industry Minister Kamal Nath said that the entry of Vodafone as a major player in the telecom sector reflect the growing global confidence in India. "It reflects the growing global confidence in India, its strong fundamentals and the resilience of the Indian economy," Nath said in a statement. "The developments underline the tremendous value creation by Indian ventures which are now being recognized by the world," he added.

Vodafone
Advertising History

First global communications campaign launched in August. The campaign features TV, cinema, print, online and outdoor media, each version asking the question, 'How are you?'. First Vodafone Partner Agreement with TDC Mobil A/S, Denmark's leading mobile operator. The agreement is the first of its kind in the mobile industry and means Vodafone and TDC Mobil will cooperate in developing, marketing and advertising international roaming products and services to international travelers and corporate customers. Making the word's first 3G roaming call (between Spain and Japan). Vodafone launches first global communication campaign "How are you?" 30 August 2001 Group Press Releases - 2001 Vodafone Group Plc today announces the launch of its first global communication campaign. The campaign, the largest in Vodafone's history, will be introduced on 1st September,initially on national TV in the UK and on Pan-European TV. Over the next few months it will rollout in all key markets.

The global branding campaign will feature TV, cinema, print and outdoor media. Each version will ask the question "How Are You?". Commenting Sir Christopher Gent, Vodafone's Chief Executive, said: "This campaign is a key next step in our plans to establish Vodafone as a truly global brand and we aim to run "How Are You?" in all our major markets across all types of media. The weight of the campaign is such that we are expecting to be in the top three brand advertisers in each of the markets where it is launched." The new global brand campaign was created by Wieden + Kennedy, one of the world's leading creative advertising agencies. http://www.vodafone.com/start/media_relations/news/group_press _releases/2001/press_release30_08.html Vodafone launches its first global communications campaign at the beginning of August. The campaign features TV, cinema, print, online and outdoor media, each version asking the question, How are you?. Telecel Vodafone and Airtel Vodafone migrate to a single Vodafone brand. At the end of September, interim results show statutory turnover increasing by 27% to 8,906 million, statutory operating profit (before goodwill and amortisation) increasing by 40% to 3,392 million and the venture customer base increasing by 15% to 210.1 million proportionate registered customers (increases since 31 March 2001).

Vodafone SWOT Analysis

Beyond the challenges of rolling-out network across such a vast state the real difficulties would relate to distribution and service delivery. It is also understood that the consistency of brand and service experience beyond the fundamentals of network coverage and quality would be very important, but there are few examples of industries that had been able to truly drive wide reach while at the same time delivering brand consistency. reach of communication was a huge challenge, where you do not even have penetration of cable or satellite to educate consumers about your products and services. And of course, one cannot forget that many of the people living in the rural areas of the state have very low incomes making affordability a real issue. So in the face of these significant challenges, the key was to build a scalable approach at low-delivered cost. Which is derived through effective rural distribution that is based on exclusive distributors who manage a number of base station sites, Under the distributors are associate distributors who are also exclusive typically the "son of the soil" who is an established businessman with a good standing.

These distributors and ADs serve the retailers in their areas who are non exclusive multi-brand retailers or MBOs. Distributors and associate distributors are trained through a series of modules on commercial operations and brand standardization. This is a hub and spoke model that is immensely scalable. Intensive distribution of SIMs and paper recharge coupons is ensured for availability even at the farthest point primarily to ensure the customer, being a first time user, wants to physically purchase and use the service which the retailer is required to assist. Through the distribution model the company should be able to deliver products that are affordable and able to meet the small budgets of rural consumers. Vodafone calls its rural recharge products "small" or "chhota", and started with small denomination "chhota recharge" vouchers before scaling-up the uptake of electronic recharge. Rural consumers could not always access a retailer 24/7, so a recharge "credit" was introduced that enabled customers to SMS to a number to get an electronic credit of up to 11 rupees that they would pay upon next recharge. In partnership with the distributors and associate distributors Vodafone is also taking its vans into rural villages, and educating the rural consumer on how mobility can improve the economic way of life. Vodafone has created several generations of short audio-visual films, in which a villager becomes an entrepreneur within the village and has created a small company through his access to communication. These short films are shown at market days and other gatherings of local communities and have helped build a lot of awareness about the services and the benefits that they bring to local villagers. Delivering network coverage and quality has not become less of a priority and it still remains an important differentiator. But it has been recognized that coverage and quality mean very little if you cannot drive availability and awareness of your products and services.

But of course availability and awareness will also become increasingly common as other operators push into rural areas, so Vodafone has recognized the need to move to the next level.

Vodafone Marketing
Mobile your direct line to customers What makes the mobile phone such an exciting marketing tool? Quite simply, its because mobile is at the heart of peoples lives across the world. The number of mobile phone subscriptions around the world hit four billion at the end of 2008 that represents more than 60% of the worlds population. But the power of mobile as a marketing tool isnt just about the numbers it also derives from the central social role of mobile phones in our everyday lives. In an increasingly connected world, our mobiles keep us constantly in touch with everything thats important in our lives, including our friends and family, our businesses and our favourite social networking sites, wherever we are. We never leave home without our mobile phones. They are always with us and within easy reach 24 hours a day. Theyre important because theyre indispensable, but also because theyre ours. They contain our contacts, our messages, our ringtones, our music, our pictures they are, in fact, the only truly personalised mass media device. The predominance of mobile phones in modern life and our attachment to them creates huge opportunities for marketers

everywhere not just to advertise their brands, but also to interact with consumers in ways that theyve never been able to do before. The essential tool Research shows that the mobile phone has become the one personal item we most dread losing, even more than our wallets! Mobile marketing reach, engage, inspire Welcome to the world of mobile marketing the new, exciting and highly effective way to connect with your customers. This guide explains and illustrates the unique power of mobile to reach and engage with millions of consumers around the world. Vodafone can help you discover that power. We have extensive experience and expertise in mobile marketing solutions and can help you plan, create, deliver and measure successful campaigns. Throughout this guide there are many examples of how weve worked with leading global brands to deliver effective campaigns that raise consumer interaction to new levels and deliver a fabulous return on investment. We recommend that you also check out our website www.vodafone.com/marketingsolutions. It provides an overview of mobile marketing, case studies, useful tips for planning your campaigns and guides to the wide range of mobile marketing products we offer around the world. Of course, if youd prefer to talk to us then just pick up your mobile and give us a call. Right message, right audience, right now Mobile marketing is the seventh and newest mass media channel.* But it isnt attracting so many big brands around the world just because its innovative and exciting. There are lots of other great benefits that make it stand out from other marketing channels: Accessibility mobile has rapidly become the worlds most accessible media channel. Billions of mobile users worldwide keep their phones within reach and always on, 24 hours a day. Consumer interaction mobile is a highly interactive medium that gives you an opportunity to really engage with your customers.

Integration mobile is the glue that can bind together campaigns delivered across various channels, such as print, outdoor advertising, radio and TV. Through the use of response mechanisms such as shortcodes and 2D barcodes, you can properly measure and understand the effectiveness of your cross-media campaigns. Relevance no other medium offers the same level of personal contact, immediacy and customer profile detail as mobile. It gives you the power to target your chosen audience in a way you have never been able to before. Location advances in locationbased technology for mobile phones means that you can now target the marketing messages at consumers when theyre at or close to your point of purchase. Payment mobile is the only marketing channel that provides a built-in payment channel. *Tomi T Ahonen: Mobile as 7th of the Mass Media 2 3

Mobile marketing No other medium offers the same level of personal contact with customers as mobile A new channel with new opportunities As the leading global provider and evangelist of mobile marketing solutions, wed be delighted to advise you on the most effective ways of reaching your audience via their mobile phones. Using our knowledge and experience, we can advise you and your creative agencies on the best mobile marketing solutions for your campaigns. We can help you ensure that your campaign is tailored, relevant and meets your tactical or brand objectives. SMS competitions Vodafone, together with its agency partners, has developed and run a number of text-to-win competitions for major brands. Case studies Vodafone Turkey partnered with PepsiCo to run a text-to-win promotion encouraging customers to buy Pepsi during the evenings of the Ramadan festival. Participants simply bought a Pepsi drink, unscrewed the cap and texted in the unique code to receive free Vodafone credits. Around two million Vodafone customers 10% of the customer base took part in the promotion. Reach your customers, wherever they are Our markets On the next four pages are some examples of the types of mobile marketing products and services we offer, and how they have been used by major brands in successful campaigns around the world. Balance checks and top-up alerts Advertising is featured in service messages received by customers when they request to check or top up their balances. The ads usually contain a link to a microsite or another way of contacting the advertiser.

Over the past two years, weve worked hard to build reach for our clients by leveraging our global scale and launching mobile marketing across our markets. We are now fully operational in these 18 markets, with more to come: Germany, Italy, Ireland, UK, Spain, Portugal, Czech Republic, Australia, New Zealand, Greece, Malta, Hungary, the Netherlands, Romania, Turkey, India, South Africa and Egypt. As the leading global mobile operator and a pioneer in this new marketing space, Vodafone is ideally placed to deliver your complete mobile marketing solution. Using our experience in markets around the world, we can suggest the most relevant and highest-impact mobile marketing tools for your campaign. Then we can prove how effective your campaign has been by providing response rates, tailor-made research projects and a range of other success metrics. Because we are truly global, with operating companies all over the world, we are in the unique position to be able to offer vast scale and reach combined with local knowledge and understanding. We have also worked alongside our partners to help develop successful mobile marketing businesses in markets such as the USA (Verizon Wireless), France (SFR), Belgium (Proximus), Switzerland (Swisscom) and Austria (Mobilkom). In the past year we have run more than 2,000 successful campaigns some of them award-winning for an impressive roll call of top global brands, including Coca Cola, Mercedes, Unilever, Cadbury, McDonalds, BMW, Disney, Adidas, Citroen, Sky, Microsoft, Heineken, LOreal, Ford, Ikea and Sony. Our solutions work! Whether your campaign is large or small, local or international, we are here to help. Case study

Vodafone New Zealand ran a highly successful SMS campaign for New Zealands Electoral Enrolment Centre in the build-up to the countrys general elections in 2008. The campaign was designed to encourage voter enrolment among young adults and reinforced and complemented abovethe-line marketing. It used text ads featuring a shortcode inserted into top-up and balance alerts to drive up response among Vodafone New Zealands prepay customers. SMS shortcode responses increased twofold from the background level. 4 5

Mobile marketing Free SMS services Advertising appears in free messaging services offered to Vodafones customers in some markets. The service is funded through sponsorship, providing the sponsor with both reach and recognition for the value and convenience that the service brings to the customer. Case study Vodafone Italy has more than 1.5 million subscribers to its Freetime sponsored alerts service. Sky recently ran a promotion using Freetime, offering customers an exclusive opportunity to subscribe to its satellite services. Customers simply texted OK in response to alerts and were called back by Sky Customer Service. An impressive response rate of 0.96% was achieved, with a 7.5% new subscription rate. Ring Back/Ring-Up tones Customers can change the ringtone heard by callers to their number by replacing it with a choice of music or content provided by advertisers. Vodafone live! portal banners The most common and fastestgrowing mobile marketing option. Similar in concept to web banners, static or animated banners can be placed on the Vodafone live! mobile internet portal. We offer banners in all countries and we have delivered banner campaigns for a large number of leading brands. We also offer increasingly sophisticated targeting of banners. Demographic targeting can include a customers age, sex, location and the type of device they use to offer a more relevant advertising experience. You can also target banners based on editorial channel, time of the day and day of the week. If you dont have a mobile site, we can work with you to design, build and host a mobile microsite. Case studies

In December 2008, Vodafone Germany launched its first ringup tone campaign with Coca-Cola. Vodafone live! customers could download a Christmas song Coca-Cola used in a TV ad as a ringup tone for their mobile phone. More than 800,000 callers heard the song during the campaign. Vodafone India has conducted successful trials of an advertising service that lets customers choose from a selection of music to play to 80% of their callers. In exchange, an audio ad complete with response mechanism plays to the remaining 20%. Case studies Please Call Me (PCM) is a hugely popular service pioneered by Vodacom in South Africa. Prepay customers with low or no credit can send a free, ad-funded network message asking the recipient to call them back. In South Africa, around 20 million PCM messages are sent every day with a typical click-through rate of 2.5% on sponsors ads. This can equate to around 500,000 clicks in one day. As well as providing excellent reach, the PCM service offers brands a great way of boosting product awareness and sales. For example, a recent PCM campaign for a South African orange juice brand boosted sales by 564% during the campaign. Sales peaked at around 1,000% after the campaign ended as a result of people retaining, referring to and using messages held in their in and out boxes. PCM is now available in Spain, Turkey, Egypt and Czech Republic, and is rolling out to a number of other Vodafone markets in 2009. Branded content Our customers experience of the Vodafone live! portal is enhanced through the addition of channels and content provided by relevant brands. Examples from Vodafone UK include a Citron-sponsored motoring channel and an Intelsponsored technology channel. There are also opportunities to be exclusive sponsors of existing editorial sections on Vodafone live! Theres a huge range of sections to choose from.

Case study Cadbury Dairy Milk built on the huge worldwide popularity of its gorilla drummer advertising by extending it to the mobile to further increase consumer engagement with the campaign. Cadbury launched an interactive drumming game Be the Gorilla which could be downloaded to customers phones and shared with their friends. To reach the target audience, a banner was placed on the Vodafone live! homepage and entertainment sections. A simple click-through took customers to a Cadbury mobile site that offered the drumming game plus wallpaper as free downloads. Vodafonesponsored SMS messages were also featured in the campaign. Cadbury smashed its campaign target of 5,000 content downloads with an incredible 9,272 downloads. Its clickthrough rate of 3.1% was also above target. Online marketing Vodafones major online presence offers you another powerful way of reaching our customers. Our websites around the world attract large numbers of people who want to find out more about our products and services. Our website in South Africa Vodacom4me is one of the countrys top 10 mostvisited sites, while the SFR website in France attracts more than 2.5 million unique users every month. Our growing presence internationally in the fixed broadband market has also opened up new marketing opportunities on our busy broadband websites. In Germany, for example, the Arcor website clocks up more than 60 million visits per month, placing it among the countrys top 10 most popular sites. In addition, the gateways for our expanding online SMS services are a regular destination for many customers who enjoy the convenience of being able to send text messages to mobiles from their PCs. Advertising banners, in a range of sizes and formats, site or section sponsorship and promotions are offered across our online portfolio and are, of course, all effective ways of engaging visitors to our sites. Case study

Vodacom launched SoLikeLife a made-for-mobile soap opera for Vodafone live! customers. Nokia sponsored the production and promotion of the 40-episode programme. More than 1.7 million Vodafone live! users were able to download short, daily episodes of the mobi-soap over a twomonth period. It told the story of two young South Africans who met and fell in love within a virtual world played out on the users mobile. Nearly 98,000 customers clicked through from Vodafone live! to watch the programmes. Episodes and supporting advertisements were tracked to provide real-time reporting. Sponsored alerts Vodafone customers can subscribe to SMS or MMS alerts on favourite topics, such as fashion, celebrities, travel, sport, weather and horoscopes. The free alerts are sent out on a regular basis, funded by the sponsorship. Response rates of around 10% can be achieved for well-targeted campaigns. 6 7

Mobile marketing Push messaging Vodafones permission-based push messaging service gives marketers access to millions of customers. Our customers choose to join our databases in exchange for benefits such as discounts, handset upgrade points or special offers and promotions. When registering, they enter their age, sex, location and interests and these criteria are then used to ensure that they are sent relevant offers and targeted ads. Advertisers simply select the target audience they want to send their messages to. Messages can include a combination of an advertisement, product shots and videos and a call to action or coupon. Response rates are very high and click-through rates of more than 10% are often achieved. Cross-media advertising In many markets Vodafone now offers integrated, cross-media advertising opportunities, giving you access to a range of channels. They include online and mobile, as well as more traditional opportunities such as bill inserts, magazines and, through the huge number of Vodafone retail outlets, in-store and POS. Applications offer brands compelling new ways of reaching consumers www.vodafone.com/marketingsolutions Case study Beiersdorf used Vodafone Hungarys highly effective cross-media Mobile Discovery Programme to reach and engage its key target audience for Nivea for Men men aged 20-40. Mobile Discovery includes branded alert messages, mobile banners, branded games and advertising in Vodafones customer magazine. Links in the campaign materials encouraged consumers to go to a Nivea mobi site to find out more about Nivea Sport. A range of fun and engaging features were available on the site, including a free Nivea

football game and branded sports alert and content services. A massive 300,000 unique users were exposed to Niveas brand messages during the six-week campaign. Niveas football game was downloaded 3,000 times and there were 30,400 page views of the Nivea-branded sports content by 6,590 users. Click-though rates of 3.6% on mobile banners and 3,500 activations of message alerts completed a highly successful campaign. Case study Vodafones affiliate company in France SFR offers customers discounts and promotions from brands when they subscribe to the Promoslive push messaging service. The offers are specifically designed to match customers declared interests and offers are sent to subscribers by MMS or SMS. SFR has built an opt-in database of more than two million customers for the service and guarantees a response rate of 20%. Leading in mobile applications Even more mobile marketing opportunities will be created by Vodafones pioneering role in the development of a new generation of mobile internet applications. Sitting on the homescreen of an ever-increasing range of our handsets, our applications are mini pieces of software that give our customers easy and quick access to their choice of real-time, relevant information from the web, without the need to constantly connect via a browser. Their capability to be always on makes them the simplest, fastest and most effective way for consumers to interact with the internet on their mobile phones. We are stimulating the development of a huge range of mobile applications for our customers by providing brands and agencies with a single and simple web-based development code, which will allow you to quickly and cost-effectively build apps that can be used across our global customer base. We are further enhancing our apps offering through the creation of a set of network Application Programming Interfaces (APIs) that will enable

developers to build capabilities, including direct mobile billing and location awareness into their services. Applications also offer you compelling new ways of reaching customers via their mobiles. There are great opportunities to extend your mobile marketing campaigns by sponsoring, or advertising in, popular applications that provide information and services related to your products. Examples could include car hire campaigns on travel information applications or sportswear ads on fitness and health applications. You could alse develop your own mobile applications that can be branded and customised to offer a fun, functional and engaging way to market your products and services. New partnership extends our global reach Recently, Vodafone announced a Joint Innovation Lab partnership with Verizon Wireless, Softbank and China Mobile, which will allow brands access, through a common applications platform and developer framework, to around a billion customers globally. Games Gaming on mobile is very popular, particularly among younger people. Advertising opportunities with Vodafone include placing ads in games themselves, or showing ads at the beginning and end of games. You can also subsidise game download costs through sponsorship. Mobile search Enables Vodafone to quickly connect customers to relevant services in Vodafone live! and on the mobile internet. Brands buy relevant words or terms which will appear in the search results when a customer uses their mobile search engine. They pay on a cost-per-click basis when their ad is clicked upon. Our technology improves our customers browsing experience by converting websites found through mobile search into an improved format for mobile. Video Vodafone live! offers a wide range of video content for download and streaming. We can include advertising in videos, offering an extended audience for existing video or TV-based campaigns. In Australia, for example, we have created one of the

leading Mobile TV entertainment programmes in the country Street TV. This award-winning free show for Vodafone live! customers is recorded on the streets of Australian cities and offers a mix of interviews, reportage and music. The show regularly smashes the top three listings on Vodafone live! in Australia. It is viewed by over 70,000 subscribers per week and offers multiple sponsorship and advertising opportunities. 8 9

Mobile marketing www.vodafone.com/marketingsolutions Future solutions Winning with customers Carried out in the right way, mobile marketing is welcomed by consumers as another advantage of owning a mobile and indeed as a further reason to carry it with them at all times. In our experience, four elements will ensure that your mobile campaign hits the right note with your consumers. They are: Relevance by context, time, service and customer profile. Benefit or reward ensure your campaign delivers value to the individual. Engagement and interaction customers are happy to interact with a promotion if its interesting to them. Respecting customer privacy and avoiding intrusiveness. Our experience around the world has shown that if brands respect these basic rules, customer buy-in, interaction and acceptance are extremely high. In Australia, for example, 87% of surveyed customers said they were happy or didnt mind receiving relevant and targeted advertising on Vodafone live! Follow these guidelines and youll be on the right track to creating an effective and popular campaign among your target audience. We are delighted with the performance of our mobile marketing business and that more and more brands are moving spend to this innovative medium. New mobile marketing products and services will be launched over the coming months by our operating companies and we will continue to work alongside our partner operators in other countries to help them build successful businesses. Our goal remains to provide our customers around the world with relevant and engaging marketing experiences and to offer brands a wide range of effective and responsive mobile marketing tools.

Some of the exciting new services that we are trialling and developing are: Zonal marketing allows opted-in customers to receive promotional messages from brands relevant to their profile and their location. As they enter a pre-defined area they will receive an MMS or SMS message containing a promotion. Idle screen when the mobile phone isnt busy with incoming texts, outgoing calls or accessing the internet, the screen is a clear space. We plan to trial customer acceptance of, and interaction with, advertisements shown in this highly visible area. Location-based advertising trial customer acceptance of and engagement with branded Points of Interest (for example, locations of stores, restaurants and petrol stations) and branded location searches. Trial of an enhanced mobile internet browser to simplify and enhance the mobile internet browsing experience for opt-in customers and investigate opportunities for mobile publishers and advertisers. Vodafone myCampaign an online self-service platform for mobile advertisers. Currently launched in Germany and rolling out to the Czech Republic and a number of other markets, this tool will allow small businesses to set up and run cost-effective local mobile advertising campaigns. About Vodafone Vodafone is the worlds leading international mobile communications group with approximately 315 million proportionate customers, as at 30 June 2009. We currently have equity interests in 31 countries across five continents and around 40 partner networks worldwide. Our venture base of more than 770 million customers worldwide represents more than a fifth of the total global mobile users. Introducing Vodafone Marketing Solutions Mobile is a powerful and effective marketing tool offering a unique combination of huge reach, a very sophisticated level of targeting and the opportunity to get really close to customers. Our

experience, global footprint, extensive customer knowledge and insight and the major role that weve played in the development of the mobile marketing industry all make us the obvious and best choice for mobile marketing. To help marketers discover, understand and succeed with this exciting new channel, Vodafone has created Vodafone Marketing Solutions. To find your local Vodafone Marketing Solutions contact, just go to www.vodafone.com/ marketingsolutions/contacts

3G Evolution Technology
3G is the third generation of mobile phone standards and technology, superseding 2G, and preceding 4G. It is based on the International Telecommunication Union (ITU) family of standards under the International Mobile Telecommunications programme, IMT-2000. 3G technologies enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. Services include wide-area wireless voice telephony, video calls, and broadband wireless data, all in a mobile environment. Additional features also include HSPA data transmission capabilities able to deliver speeds up to 14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink. Unlike IEEE 802.11 (common names Wi-Fi or WLAN) networks, 3G networks are wide area cellular telephone networks which evolved to incorporate high-speed internet access and video telephony. IEEE 802.11 networks are short range, high-bandwidth networks primarily developed for data. Contents [hide] 1 Implementation and history 2 Phones and networks 2.1 UMTS terminals 2.2 Speed 2.3 Network standardization 2.3.1 IMT-2000 standards and radio interfaces 2.3.2 Advantages of a layered network architecture 2.4 3G evolution (pre-4G) 3 Evolution from 2G to 3G 3.1 From 2G to 2.5G (GPRS) 3.2 Migrating from GPRS to UMTS 3.3 Security 4 Issues

5 See also 6 Further reading 7 References [edit] Implementation and history The first pre-commercial 3G network was launched by NTT DoCoMo in Japan branded FOMA, in May 2001 on a pre-release of W-CDMA-GA3Y technology. The first commercial launch of 3G was also by NTT DoCoMo in Japan on October 1, 2001. The second network to go commercially live was by SK Telecom in South Korea on the CDMA2000 1xEV-DO technology in January 2002. By May 2002 the second South Korean 3G network was launched by KTF on EV-DO and thus the Koreans were the first to see competition among 3G operators. The first European pre-commercial network was at the Isle of Man by Manx Telecom, the operator owned by British Telecom, and the first commercial network in Europe was opened for business by Telenor in December 2001 with no commercial handsets and thus no paying customers. These were both on the W-CDMA technology. The first commercial United States 3G network was by Monet Mobile Networks, on CDMA2000 1x EV-DO technology, but this network provider later shut down operations. The second 3G network operator in the USA was Verizon in October 2003 also on CDMA2000 1x EV-DO, and this network has grown strongly since then. The first pre-commercial demonstration network in the southern hemisphere was built in Adelaide, South Australia by m.Net Corporation in February 2002 using UMTS on 2100 MHz. This was a demonstration network for the 2002 IT World Congress. The first commercial 3G network was launched by Hutchison Telecommunications branded as Three in April 2003. Australia's largest and fastest 3G UMTS/HSDPA network was launched by Telstra branded as "NextG(tm)" on the 850 MHz band in October 2006, intended as a replacement of their cdmaOne network Australia wide.

In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA networks were operating in 71 countries, according to the Global mobile Suppliers Association. In Asia, Europe, Canada and the USA, telecommunication companies use W-CDMA technology with the support of around 100 terminal designs to operate 3G mobile networks. In Europe, mass market commercial 3G services were introduced starting in March 2003 by 3 (Part of Hutchison Whampoa) in the UK and Italy. The European Union Council suggested that the 3G operators should cover 80% of the European national populations by the end of 2005. Roll-out of 3G networks was delayed in some countries by the enormous costs of additional spectrum licensing fees. (See Telecoms crash.) In many countries, 3G networks do not use the same radio frequencies as 2G, so mobile operators must build entirely new networks and license entirely new frequencies; an exception is the United States where carriers operate 3G service in the same frequencies as other services. The license fees in some European countries were particularly high, bolstered by government auctions of a limited number of licenses and sealed bid auctions, and initial excitement over 3G's potential. Other delays were due to the expenses of upgrading equipment for the new systems. By June 2007 the 200 millionth 3G subscriber had been connected. Out of 3 billion mobile phone subscriptions worldwide this is only 6.7%. In the countries where 3G was launched first - Japan and South Korea - over half of all subscribers use 3G. In Europe the leading country is Italy with a third of its subscribers migrated to 3G. Other leading countries by 3G migration include UK, Austria, Australia and Singapore at the 20% migration level. A confusing statistic is counting CDMA 2000 1x RTT customers as if they were 3G customers. If using this oft-disputed definition, then the total 3G subscriber base would be 475 million at June 2007 and 15.8% of all subscribers worldwide.

Still several major countries such as Turkey, China, Indonesia, etc have not awarded 3G licenses and customers await 3G services. China has been delaying its decisions on 3G for many years, partly hoping to have the Chinese 3G standard, TD-SCDMA, to mature for commercial production. China announced in May 2008, that the telecoms sector was reorganized and three 3G networks would be allocated so that the largest mobile operator, China Mobile, would retain its GSM customer base and launch 3G onto the Chinese standard, TDSCDMA. China Unicom would retain its GSM customer base but relinquish its CDMA2000 customer base, and launch 3G on the globally leading WCDMA (UMTS) standard. The CDMA2000 customers of China Unicom would go to China Telecom, which would then launch 3G on the CDMA 1x EV-DO standard. This means that China will have all three main cellular technology 3G standards in commercial use. The first African use of 3G technology was a 3G videocall made in Johannesburg on the Vodacom network in November 2004. The first commercial launch of 3G in Africa was by EMTEL in Mauritius on the W-CDMA standard. In north African Morocco in late March 2006, a 3G service was provided by the new company Wana. Rogers Wireless began implementing 3G HSDPA services in eastern Canada early 2007 in the form of Rogers Vision; expansion into western Canada is expected soon. [edit] Phones and networks 3G technologies enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. [edit] UMTS terminals The technical complexities of a 3G phone or handset depends on its need to roam onto legacy 2G networks. In the first countries, Japan and South Korea, there was no need to include roaming capabilities to older networks such as GSM, so 3G phones were small and lightweight. In Europe and America, the manufacturers

and network operators wanted multi-mode 3G phones which would operate on 3G and 2G networks (e.g., W-CDMA and GSM), which added to the complexity, size, weight, and cost of the handset. As a result, early European W-CDMA phones were significantly larger and heavier than comparable Japanese W-CDMA phones. Japan's Vodafone KK experienced a great deal of trouble with these differences when its UK-based parent, Vodafone, insisted the Japanese subsidiary use standard Vodafone handsets. Japanese customers who were accustomed to smaller handsets were suddenly required to switch to European handsets that were much bulkier and considered unfashionable by Japanese consumers. During this conversion, Vodafone KK lost 6 customers for every 4 that migrated to 3G. Soon thereafter, Vodafone sold the subsidiary (now known as SoftBank Mobile). The general trend to smaller and smaller phones seems to have paused, perhaps even turned, with the capability of large-screen phones to provide more video, gaming and internet use on the 3G networks.k [edit] Speed The ITU has not provided a clear definition of the speeds users can expect from 3G equipment or providers. Thus users sold 3G service may not be able to point to a standard and say that the speeds it specifies are not being met. While stating in commentary that "it is expected that IMT-2000 will provide higher transmission rates: a minimum speed of 2Mbit/s for stationary or walking users, and 348 [sic] kbit/s in a moving vehicle,"[1] the ITU does not actually clearly specify minimum or average speeds or what modes of the interfaces qualify as 3G, so various speeds are sold as 3G intended to meet customers expectations of broadband speed. It is often suggested by industry sources that 3G can be expected to provide 384 kbit/s at or below pedestrian speeds, but only 128 kbit/s in a moving car. While EDGE is part of the 3G standard, some phones report EDGE and 3G network availability as separate things, notably the iPhone. [edit] Network standardization

The International Telecommunication Union (ITU) defined the demands for 3G mobile networks with the IMT-2000 standard. An organization called 3rd Generation Partnership Project (3GPP) has continued that work by defining a mobile system that fulfills the IMT-2000 standard. This system is called Universal Mobile Telecommunications System (UMTS). [edit] IMT-2000 standards and radio interfaces Main article: IMT-2000 International Telecommunications Union (ITU): IMT-2000 consists of six radio interfaces W-CDMA also known as UMTS CDMA2000 TD-CDMA / TD-SCDMA UWC (often implemented with EDGE) DECT Mobile WiMAX[2] [edit] Advantages of a layered network architecture Unlike GSM, UMTS is based on layered services. At the top is the services layer, which provides fast deployment of services and centralized location. In the middle is the control layer, which helps upgrading procedures and allows the capacity of the network to be dynamically allocated. At the bottom is the connectivity layer where any transmission technology can be used and the voice traffic will transfer over ATM/AAL2 or IP/RTP. [edit] 3G evolution (pre-4G) See also section Pre-4G wireless standards of the 4G article. The standardization of 3G evolution is working in both 3GPP and 3GPP2. The corresponding specifications of 3GPP and 3GPP2 evolutions are named as LTE and UMB, respectively. 3G evolution uses partly beyond 3G technologies to enhance the performance and to make a smooth migration path. There are several different paths from 2G to 3G. In Europe the main path starts from GSM when GPRS is added to a system. From this point it is possible to go to the UMTS system. In North America the system evolution will start from Time division

multiple access (TDMA), change to Enhanced Data Rates for GSM Evolution (EDGE) and then to UMTS. In Japan, two 3G standards are used: W-CDMA used by NTT DoCoMo (FOMA, compatible with UMTS) and SoftBank Mobile (UMTS), and CDMA2000, used by KDDI. Transition to 3G was completed in Japan in 2006. [edit] Evolution from 2G to 3G 2G networks were built mainly for voice data and slow transmission. Due to rapid changes in user expectation, they do not meet today's wireless needs. Cellular mobile telecommunications networks are being upgraded to use 3G technologies from 1999 to 2010. Japan was the first country to introduce 3G nationally, and in Japan the transition to 3G was largely completed in 2006. Korea then adopted 3G Networks soon after and the transition was made as early as 2004. [edit] From 2G to 2.5G (GPRS) "2.5G" (and even 2.75G) are technologies such as i-mode data services, camera phones, high-speed circuit-switched data (HSCSD) and General packet radio service (GPRS) that provide some functionality domains like 3G networks, but without the full transition to 3G network. They were built to introduce the possibilities of wireless application technology to the end consumers, and so increase demand for 3G services. When converting a GSM network to a UMTS network, the first new technology is General Packet Radio Service (GPRS). It is the trigger to 3G services. The network connection is always on, so the subscriber is online all the time. From the operator's point of view, it is important that GPRS investments are re-used when going to UMTS. Also capitalizing on GPRS business experience is very important. From GPRS, operators could change the network directly to UMTS, or invest in an EDGE system. One advantage of EDGE over UMTS is that it requires no new licenses. The frequencies are also re-used and no new antennas are needed. [edit] Migrating from GPRS to UMTS

From GPRS network, the following network elements can be reused: Home location register (HLR) Visitor location register (VLR) Equipment identity register (EIR) Mobile switching centre (MSC) (vendor dependent) Authentication centre (AUC) Serving GPRS Support Node (SGSN) (vendor dependent) Gateway GPRS Support Node (GGSN) From Global Service for Mobile (GSM) communication radio network, the following elements cannot be reused Base station controller (BSC) Base transceiver station (BTS) They can remain in the network and be used in dual network operation where 2G and 3G networks co-exist while network migration and new 3G terminals become available for use in the network. The UMTS network introduces new network elements that function as specified by 3GPP: Node B (base station) Radio Network Controller (RNC) Media Gateway (MGW) The functionality of MSC and SGSN changes when going to UMTS. In a GSM system the MSC handles all the circuit switched operations like connecting A- and B-subscriber through the network. SGSN handles all the packet switched operations and transfers all the data in the network. In UMTS the Media gateway (MGW) take care of all data transfer in both circuit and packet switched networks. MSC and SGSN control MGW operations. The nodes are renamed to MSC-server and GSN-server. [edit] Security 3G networks offer a greater degree of security than 2G predecessors. By allowing the UE to authenticate the network it is attaching to, the user can be sure the network is the intended one and not an impersonator. 3G networks use the KASUMI block

crypto instead of the older A5/1 stream cipher. However, a number of serious weaknesses in the KASUMI cipher have been identified. In addition to the 3G network infrastructure security, end to end security is offered when application frameworks such as IMS are accessed, although this is not strictly a 3G property. The High Speed Cellular Age October 1, 2001 NTT DoCoMo launched the first commercial WCDMA 3G mobile network. November 1, 2001 Nokia and AT&T Wireless complete first live 3G EDGE call. December 1, 2001 Telenor launched in Norway the first commercial UMTS network. UMTS terminals were expected to be available 3Q 2002. December 19, 2001 Nortel Networks and Vodafone in Spain (formerly Airtel Movil) completed first live international UMTS 3GPP standard roaming calls between Madrid (Vodafone network) and Tokyo (J-Phone network). Calls were made with a QUALCOMM MSM5200 chipset-based handset and J-Phone SIM technology. January 28, 2002 SK Telecom in Korea launched the world's first commercial CDMA2000 1xEV-DO. February 8, 2002 Nokia claims to have made the first end-toend 3G WCDMA standard level 3GPP Release 99 June 2001 packet data calls between its commercial network infrastructure and terminals in its laboratories in Finland. The Nokia 3G WCDMA network and terminal used were based on the commercial version. February 18, 2002 Motorola unveils the companys first GSM/GPRS and 3G/UMTS product, the A820. Motorola is "one of the first vendors to introduce a dual-mode enabled UMTS mobile phone" February 20, 2002 Nokia and Omnitel Vodafone claims to have made the first rich call in an end-to-end All-IP mobile network at the 3GSM World Congress in Cannes, France.

 March 14, 2002 (Freeze date) UMTS Release 5 (the initial target date was December 2001) April 30, 2002 The figures released by the Ministry of Transportation & Communications (MOTC) show that the number of mobile phone users in Taiwan reached 22.6 million at the end of April 2002, representing 100.7 percent of the population in the Taiwan area, meaning that there is more than one phone for each person in Taiwan. September 24, 2002 Ericsson announces the first live, dual mode WCDMA/GSM calls with seamless handover between the two modes and high data rate in live networks September 25, 2002 Mobilkom Austria launches "Europe's First UMTS-Network" when Boris Nemsic CEO of Mobilkom "video-phoned" the Austrian politican Waltraud Klasnic. [see December 1, 2001 note above] September 26, 2002 Nokia introduces the "worlds first handset [6650] for WCDMA [UMTS] and GSM networks". October 1, 2002 Qualcomm announces world's first Bluetooth WCDMA (UMTS) and GSM Voice Calls. October 3, 2002 Nokia and Vodafone Omnitel claims to "have carried out the world's first VoIP call completed in a 3GPP release 4 compliant network that transports circuit-switched voice and data calls through an IP backbone". October 10, 2002 Nortel Networks and Qualcomm claim to "completed the industry's first UMTS voice and data calls demonstrating mobility across commercial cell sites using live 1900 MHz radio spectrum, Qualcomm chipsets in commercialform-factor handsets, and a live, end-to-end 3GPP UMTS network from Nortel Networks". October 17, 2002 Nortel Networks claim to have "demonstrated the worlds first UMTS calls using an IP-based UTRAN" using form factor handsets and an IP backbone based on Nortel Networks Optical Ethernet equipment. (Announced on October 22, 2002)

 October 31, 2002 Ericsson announced the milestone of 10 000 commercial UMTS/WCDMA macro base stations shipped. Nokia is assumed to have shipped about the same amount. November 18, 2002 Nokia introduces the worlds first GSM/EDGE 3G mobile phone; Nokia 6200. November 29, 2002 Nokia and Vodafone Omnitel carry out 3G WCDMA call handover to commercial GSM network January 31, 2003 Ericsson conducts the world's first IPv6 over 3G UMTS/WCDMA network demonstration February 10, 2003 LG introduced the world's first dual band, dual mode phone for both CDMA and WCDMA February 2003, Korean mobile operator KTF announced plans to begin transmitting TV pictures direct to 3G mobile phones via the CDMA2000 1xEV-DO system June 9, 2003, Samsung Electronics released mobile phone, SCH-X820, with colour TV function July 1, 2003, Cingular Wireless announced the world's first commercial deployment of wireless services using Enhanced Datarate for Global Evolution (EDGE) technology. August 27, 2003, Nokia announced that the world's first cdma2000 1xEV-DV high-speed packet data phone call, achieving a peak data rate of 3.09 Mbps, was completed in San Diego. March 1, 2004, Nortel Networks announced that it has completed the industrys first 3GPP-compliant UMTS Assisted Global Positioning System (A-GPS) calls at 2100 and 1900 Mhz using mobile equipment provided by Qualcomm and Motorola, and reference satellite data provided by Global Locate. October 13, 2004, Nokia and TeliaSonera Finland successfully conduct world's first EDGE-WCDMA 3G packet data handover in commercial network. December 16, 2004 (Freeze date) UMTS Release 6 (the initial target date was June 2003) February 14, 2005, Ericsson demonstrates 9 Mbps with WCDMA, HSDPA phase 2

 May 10, 2005, Ericsson and 3 Scandinavia demonstrates 1.5 Mbps enhanced uplink in live WCDMA system August 7, 2006, Ericsson is the first to complete WCDMA calls on all 3GPP-defined frequency bands What does the acronym UMTS stand for? Universal Mobile Telephone System. What is UMTS? UMTS is one of the Third Generation (3G) mobile systems being developed within the ITU's IMT-2000 framework. It is a realisation of a new generation of broadband multi-media mobile telecommunications technology. The coverage area of service provision is to be world wide in the form of FLMTS (Future Land Mobile Telecommunications Services and now called IMT2000). The coverage will be provided by a combination of cell sizes ranging from 'in building' Pico Cells to Global Cells provided by satellite, giving service to the remote regions of the world. The UMTS is not a replacement of 2nd generation technologies (e.g. GSM, DCS1800, CDMA, DECT etc.), which will continue to evolve to their full potential. What are the different types of 3G networks? ITU Recommendation ITU-R M.1457 specifies five types of 3G radio interfaces: IMT-2000 CDMA Direct Spread, also known as UTRA FDD including WCDMA in Japan, ARIB / DoCoMo recommendation. UMTS is developed by 3GPP.

 IMT-2000 CDMA Multi-carrier, also known as Cdma2000 (3X) developed by 3GPP2. IMT-2000 CDMA2000 includes 1X components, like cdma2000 1X EV-DO. IMT-2000 CDMA TDD, also known as UTRA TDD and TDSCDMA. TD-SCDMA is developed in China and supported by TD-SCDMA Forum IMT-2000 TDMA Single Carrier, also known as UWC-136 (Edge) supported by UWCC IMT-2000 DECT supported by DECT Forum. For more information about 3G air interfaces, download ITU "What is IMT-2000" presentation (2.5Mb!). Note that page 3 does not classify CDMA2000 1X as 3G, but page 6 does. Some 2.5G systems (GSM GPRS, IS- 95B and CDMA2000 1X (?)) will be able to deliver 3G services, so it will be difficult for users to see the difference. What are the different types of 3G core networks? The IMT-2000 family of 3G systems includes three types of Core Network technology: GSM based (using Mobile Application Part (MAP) protocols on top of SS7 protocols for signalling) ANSI-41 based (IS-634 protocols for signalling) Internet Protocol based (in future, to be specified) What is the difference between cdma2000 and UMTS? Cdma2000 and UMTS were developed separately and are 2 separate ITU approved 3G standards. Cdma2000 1xRTT, cdma2000 1xEV-DO (EVolution, Data Only) and future cdma2000 3x were developed to be backward compatible with cdmaOne. Both 1x types have the same bandwidth, chip rate and it can be used in any existing cdmaOne frequency band and network.

Backward compatibility was a requirement for successful deployment for USA market. It is easy to implement because operators do not need new frequencies. [more about cdma2000] UMTS was developed mainly for countries with GSM networks, because these countries have agreed to free new frequency ranges for UMTS networks. Because it is a new technology and in a new frequency band, whole new radio access network has to be build. The advantage is that new frequency range gives plenty of new capacity for operators. 3GPP is overseeing the standard development and has wisely kept the core network as close to GSM core network as possible. UMTS phones are not meant to be backward compatible with GSM systems. (but subscriptions (=SIM card) can be, and dual mode phone will solve the compatibility problems, hopefully). UMTS also has 2 flavors FDD (will be implemented first) and TDD. Some harmonisation has been done between systems (like chip rate and pilot issues) What are 1G, 2G, 2.5G, 3G and 4G? Technically generations are defined: 1G networks (NMT, C-Nets, AMPS, TACS) are considered to be the first analog cellular systems, which started early 1980s. There were radio telephone systems even before that. 2G networks (GSM, cdmaOne, DAMPS) are the first digital cellular systems launched early 1990s. 2.5G networks (GPRS, cdma2000 1x) are the enhanced versions of 2G networks with data rates up to about 144kbit/s. 3G networks (UMTS FDD and TDD, cdma2000 1x EVDO, cdma2000 3x, TD-SCDMA, Arib WCDMA, EDGE, IMT-2000 DECT) are the latest cellular networks that have data rates 384kbit/s and more.

 4G is mainly a marketing buzzword at the moment. Some basic 4G research is being done, but no frequencies have been allocated. The Forth Generation could be ready for implementation around 2012. What have been the major milestones in 3G development and specification? Here is a list of major 3G development milestones. What are all the different international organisations doing? European Telecommunications Standards Institute (ETSI) is working in Europe to develop technical standards for UMTS. 3rdGeneration Partnership Project (3GPP) is a co-operation between international standards bodies will make UMTS and third generation mobile telephony technical specifications. The founding members are: ARIB and TTC of Japan, ETSI of Europe, T1 (ANSI) of the U.S. and TTA of Korea. The work of these organisations will be announced globally by the International Telecommunication Union (ITU). ITU coordinate world-wide spectrum and IMT2000 standardisation, harmonises regional regulatory policies and is a foundation and framework for 3G convergence across regions and technologies. UMTS Forum represents the opinions and views of the telecommunication industry and operators and GSM Associates is a mobile operator organisation. European Radiocommunications Committee (ECR) in European Conference of Postal and Telecommunications Administration (CEPT) handles European radio frequency related issues. European Union (EU) harmonises its 15 members UMTS implementation. How is UMTS different from current second generation networks?

- Higher speech quality that current networks - Addition to speech traffic UMTS, together with advanced data and information services, will be a multimedia network. - UMTS is above 2G mobile systems for its potential to support 2Mbit/s data rates. - UMTS is a real global system, comprising both terrestrial and satellite components. - Consistent service environment even when roaming via "Virtual Home Environment" (VHE). A person roaming from his network to other UMTS operators, user will experience a consistent set of services thus "feeling" on his home network, independent of the location or access mode (satellite or terrestrial) Why is WCDMA called "Wideband"? 3G WCDMA systems have 5MHz bandwidth (one direction). 5MHz is neither wide nor narrow; it is just the bandwidth. New 3G WCDMA systems have wider bandwidth than existing 2G cdma systems (cdmaOne 1.25MHz), that's why the "Wide". There are commercial cdma systems with 20MHz bandwidth. Are GSM/GPRS networks compatible with UMTS networks? UMTS networks can be operated with GSM/GPRS networks. Systems use different frequency bands, so BTSs and mobiles will (should) not interfere with each other. Some vendors claim their core network (MSC/HLR/SGSN ect) and BSC/RNC are UMTS compatible, but most operators will prefer to build a totally separate/independent UMTS network. Some of the latest GSM BTSs can also have UMTS radio parts and share the same rack. UMTS specification is design so that there is maximum compatibility between GSM and UMTS systems. Late 2002 there will also be dual/multi band phones that can be used in GSM and

UMTS networks. Eventually phones will be able to do handovers between networks. Is there a transition period between UMTS and the present system? There will probably not be a "transition" period in that sense, because GSM systems will keep on operating at least next ten years. (some old 1G networks are still running round the world). Only limitations for operators are the GSM license terms and customer preferences. UMTS networks will just be added to mobile landscape. My GSM operator did not get a 3G license. What is going on? Several GSM operators (like in UK, Sweden, Denmark and France) failed / did not want / missed initially to get an UMTS license, but do not count them out yet. Existing operators have great assets like customer base, image, retail network, BTS site locations, transmission system etc., which help them to make deals with 3G license holders. Hutchison 3G in UK and Telia with Tele 2 in Sweden are good examples. What is the 3G status in the USA? Some operators have taken the path cdmaOne - cdma2000 1x cdma2000 1x EV-DO - cdma2000 3x some D-AMPD - EDGE and some have chosen a GSM1900 - EDGE ( - possible UMTS) route. New cellular frequencies allocations have been postponed, so operators will have to use their existing frequencies, which naturally limits the available capacity. Read more about the USA 3G situation. What is the 3G status in the China?

China has been testing the TD-SCDMA 3G system. License allocation and possible adaptation of other 3G technologies are still open. Read more about the China's 3G situation. What is the "Beauty Contest" when 3G licenses are issued? ... and Why? Beauty Contest means that the government asks all applicants to provide a plan how to build a network and manage their future 3G business. A plan typically includes things like: How many new jobs are created, what kind of services will be available and when, how much domestic products are used, how will less developed areas (rural areas) benefit from this, what kind of financial plan is in place to guarantee the success and avoid bankrupts etc. So government wants to decide what is best for the country, not who is willing to pay most. (In USA and Australia some highest bidding operators have gone bankrupt and government has to pay unemployment etc payments and it is also embarrassing for the government). By charging high license fee government imposes an indirect tax which mobile uses have to bear by paying more for making calls. By giving "free" licenses government can create a good environment for technology start up companies, because operator has more money to invest and less up-front fees. Which network vendors can build a turn key 3G network? No network vendor can supply all equipment and components to the full a 3G network, but quite a few can be a main contractor to build a turn-key 3G network. Normally network vendors can bring in partners like service and applications providers, hand set manufactures, civil work and acquisition companies etc. Current short list of main vendors for turn-key UMTS networks:

Alcatel Ericsson Lucent Motorola Nokia Nortel Siemens/NEC

Current short list of main vendors for turn-key cdma2000 networks: Ericsson LG Electronics Lucent Motorola Nortel Samsung Who much does 3G network cost to build? Good source of information is to contract announcements and annual reports. Those usually tell how much money an operator will spend on infrastructure. In every country each carrier has to spend around same amount of money to build a same size 3G network, so if you see one of the operator's spending figures, all other operators use similar sums of money per subscriber. Sometimes spending figures include services (planning, logistics, commissioning, integration, testing etc.), but almost never civil works on base station sites. Press reports claim that operators in Europe have spend around 650 euro per 3G subscriber for infrastructure + planning services + site civil works, this figure should drop to around 400 euros within couple of years.

Infrastructure cost are only small part of total network related cost and operators also have license fees, financing fees, cost of running the organisation, sales and marketing costs etc. [More] I am doing a 3G report about XXX, where can I get even more info? After you can have checked: UMTS World web site Where can I find additional reliable 3G information about ... ? answers 3GPP web site Search Engines You can try other information sources: 3G / GSM operators web sites, press releases, annual report (see how they spend their money), CEOs comments etc. National Office of Telecommunication (or other government organisation) information services (or web pages) Your company's offices round the world and especially competitive intelligent department Your university's library or their contacts or even local library Get books, seminar reports and visit other 3G related web sites IEEE has VTS, that might help you to find technical documents. Search UMTS Forum and ITU sites If you still did not find, email: info@umtsworld.com after reading the Contract us page. No guarantees, but we will try to help. Tell me about UMTS / 3G electromagnetic radiation safety. First thing is to get your hands on to the latest government EMR (electromagnetic radiation) standard. Check you government web site. [Links]

Your government pages should have more information and contact information where to order a booklet that gives guidelines at least of: What is the safety zone round the mobile and transmission antennas. How the combined radiation field values is calculated from different antennas on a same rooftop. Local guidelines how antenna should be placed. Power levels of indoor antennas. How all EMR calculations are done. Local city councils might also have their own additional guidelines, check those. Governments usually do not state exact values what is safe and what is not safe, for legal reasons. EU countries normally issue "guidelines" that are bit tougher than EU standards. In USA FDA has a clear statement: "Thus, the available science does not allow us to conclude that mobile phones are absolutely safe, or that they are unsafe. However, the available scientific evidence does not [emphasis FDA's] demonstrate any adverse health effects associated with the use of mobile phones." See: FDA Mobile Phones page In most countries operators are required by law to calculate these safety zones. Ask your mobile operator if they can provide safety calculations. According to recent news articles there have been over 700 studies related to EMR without a final conclusion, so don't hold your breath to get a final answer in a near future. People always forget that mobile antennas radiate about 40W power, but TV and radio towers use kilowatts of power and even a hair drier generates a nice EMR field from 1000W like a kitchen microwave oven.

WCDMA transmitter spread the 20-40W power over 5MHz, while GSM 40W transmitter uses 200kHz band, but GSM BTS need more radios to serve an area. Both systems use similar types of antennas, so EMR levels are similar. Both BTSs normally use power control to minimize the used power. EMR Resources: WHO WHO fact sheet EMR Network Report FDA Mobile Phones page FAQ Another FAQ FCC Guidelines ARRL resources CWTI resources Example download site from Australia Google Search I want to buy a 3G / UMTS book. Which one should I buy? See our book selection page. But before you buy, you should study a bit 3G / UMTS. Read our technology section. Then download 3GPP specifications content page and select the first specifications of each series like XX.001, XX.002 or XX.Y01, for example: 23.002 Network Architecture 25.401 UTRAN Overall Description 45.001 Physical Layer on the Radio Path (General Description) Once you know the basics well enough, you can buy the book that has the right technical level for you. You will also notice how some of the books have copied most of the content from the 3GPP specks. If you read a book from our list, please send us a 20-50 word opinion/description of it, and will add that to the books page.

If you find a 3G related book that is not on the list, email: info@umtsworld.com. Where can I find additional reliable 3G information about ... ? Best thing is to read the 3G specifications. It is actually easier to read than you might think. From 3GPP page http://www.3gpp.org/specs/titles-numbers.htm you can see specifications titles and versions. For example if you want to know about USIM, following titles can be seen: 21.111 USIM and IC card requirements 22.038 USIM/SIM Application Toolkit (USAT/SAT); Service description; Stage 1 22.112 USIM toolkit interpreter; Stage 1 31.102 Characteristics of the USIM Application 31.111 USIM Application Toolkit (USAT) 31.121 UICC-terminal interface; USIM application test specification 31.122 USIM conformance test specification 31.900 SIM/USIM internal and external interworking aspects You need to FTP them for example from ftp://ftp.3gpp.org/specs/latest/ . You can also type that to IE5.0 or later or use FTP program. If you use IE5.0 select File - Copy to Folder from the top menu to copy file so your computer. Follow the folders and then for example: ftp://ftp.3gpp.org/specs/latest/Rel-5/21_series/ has the latest 21.111 specifications. (Jun 2002) The Second best thing is to search Google, but then again the Internet is full of misinformation. Top of Form Search WWW Search UMTS World

Bottom of Form Where can I find details of UMTS call set up procedure? Download 3GPP specification: TS 25.331 Radio Resource Control (RRC) protocol specification TS 25.304 UE Procedures in Idle Mode and Procedures for Cell Reselection in Connected Mode Those documents have all the details. Click the thumbnail on the right for more detail Tell me about WLAN and 3G interoperability. Vendor as busy showing their WLAN-3G capabilities, roaming and network handovers are the hot topics. Lucent Technologies announced demonstration of 3G high-speed mobile data and voice capabilities, Nokia shows the WLAN implementation and British Telecom has announced the WLAN hot spot implementation. 3GPP specs show two related docs: 22.234 (reserved for future WLAN I/w stage 1), not available yet and 22.934 Feasibility study on 3GPP system to Wireless Local Area Network (WLAN) interworking You can download 22.934 from: ftp://ftp.3gpp.org/specs/Latestdrafts/ Earlier FAQ Answer gives you some help how to download those Other place to look technical data is IEEE 802.11 Group and search for "3G" etc. You can find documents like: http://grouper.ieee.org/groups/802/11/Minutes/Cons_Minutes_Mar -2002.pdf and search for 3G in that document and you see the current status.

WLAN Resources: 80211 Planet Will the future 3G handsets be compatible with 2G systems and PCs? Some of the 3G mobiles will be dualband UMTS/GSM handsets (available late 2002?) and will be able to perform UMTS-GSM handovers. Current GSM phones will not work in 3G networks. Several SIM card manufacturers now offer cards compatible with 2G and 3G systems. Cellular3G, for example, will offer PCMCIA W-CDMA 3G-modem cards for PCs. 3G cdma2000 phones will be backward compatible and will work in cdmaOne networks. Airprime, for example, offers CDMA2000 1xEV-DO PC cards for 3G networks. How many Base Stations are needed for an UMTS network? There are several factors: - Required coverage areas according to a license agreement (link budget will determine the cell spacing) - Required capacity according to license agreement and initial customer and operator demands. - Amount of frequencies carries have. (More frequencies, less interference, longer cell spacing) - Ability to get BTS site locations. (Normally co-location requirements with used 2G sites) - Financing available for network build. - Economical factor to build sites. - Design opinions and experience of companies and people bidding for the design job and eventually implementing the plan. - And probably in a long run the capacity, service, and coverage requirement from customers.

Rollout will be very similar to 2G network rollouts. First phase of rollouts in UK size market will probably be 1000 base station in urban areas. Within 5 year about site count will increase to 5000 sites and eventually up to 10000 sites depending how successful the business is. How to calculate a WCDMA link budget? To calculate it you need to know: - Type of service (data type and speed) - Type of environment (terrain, building penetration) - Behaviour and type of mobiles (speed, max power level) - System configuration (BTS antennas, BTS power, cable losses, handover gain) - Required coverage probability Please see an example on Link Budget page . What are the UMTS frequencies and channel spacing? 1900-1920 and 2010-2025 MHz Time Division Duplex (TDD, TD/CDMA) Unpaired, channel spacing is 5 MHz and raster is 200 kHz. Tx and Rx are not separated in frequency 1920-1980 and 2110-2170 MHz Frequency Division Duplex (FDD, W-CDMA) Paired uplink and downlink, channel spacing is 5 MHz and raster is 200 kHz. An Operator needs 3 - 4 channels (2x15 or 2x20 MHz) to be able to build a high-speed, highcapacity network. 1980-2010 and 2170-2200 MHz Satellite uplink and downlink What are the UMTS air interface logical channels? Broadcast Control Channel (BCCH) Paging Control Channel (PCCH)

Dedicated Control Channel (DCCH) Common Control Channel (CCCH) Dedicated Traffic Channel (DTCH) Common Traffic Channel (CTCH) For complete listing of logical, transport and physical channels including directions and mapping see UMTS Channels page What are the UMTS data rates of the services? 2.048Mb/s for pico-cell (and micro-cell) applications. 384kb/s for medium size cells. (micro and small macro cells) 144kb/s and 64kb/s for large cell applications. (Large macro cells) 14.4kb/s for continuous low speed data applications in very large cells. 12.2kb/s for speech (4.75kb/s - 12.2kb/s) 9.6kb/s globally (satellite) How does UMTS paging work? First, get the latest 3GPP specifications 25-211, 25-304 and 25-331 Note: PI = Paging Indicator (value calculated by higher layers) Pq = Paging Indicator (indicator set by physical layer) 25-304 Chapter 8 shows how Paging Occasion and PI is calculated: Paging Occasion = {(IMSI div K) mod (DRX cycle length div PBP)} * PBP + n * DRX cycle length + Frame Offset Where n = 0,1,2 as long as SFN is below its maximum value. PI = DRX Index mod Np Where DRX Index = IMSI div 8192

'In FDD mode, Np = (18,36,72,144) is the number of Page Indicators per frame, and is given in IE "Number of PI per frame", part of system information in FDD mode.'

25-211 (FDD) Chapter 5.3.3.10 shows how Pq is calculated for channel mapping, the structure of paging indicator channel and the mapping of paging indicators Pq to PICH bits. 25-331 is also worth reading. Which modulation scheme is being used in UMTS? UMTS WCDMA modulation is Quadrature Phase Shift Keying (QPSK) with Root-raised cosine pulse shaping filters (roll off = 0.22) Read more about UMTS technical details from our UMTS WCDMA page Where can I find information about MAC and RLC protocols? Download and read 3GPP documents about RLC/MAC, start with 25 series. Documents also show message mapping to channels: 25.321 Medium Access Control (MAC) protocol specification 25.322 Radio Link Control (RLC) protocol specification 44.060 General Packet Radio Service (GPRS); Mobile Station (MS) - Base Station System (BSS) interface; Radio Link Control/ Medium Access Control (RLC/MAC) protocol Earlier FAQ Answer gives you some help how to download those How is data compression done in UMTS? Video and music compression will be done in application level. 3G phone (and network application servers) will have programs (or you will be downloading them) that records and displays video or music. Those programs have build-in data compression features. Good examples are MP3 and other music programs. MP3 codec includes data compression and most current music player

understands it. For image and video there are several standards including JPEG, MPEG-4, H.263, Microsoft media player etc. available. From 3GPP 26.234 7.4 Video: ITU-T Recommendation H.263 [22] profile 0 level 10 shall be supported. This is the mandatory video decoder for the PSS. In addition, PSS should support: - H.263 [23] Profile 3 Level 10 decoder; - MPEG-4 Visual Simple Profile Level 0 decoder, [24] and [25]. These two video decoders are optional to implement. NOTE: ITU-T Recommendation H.263 [22] baseline has been mandated to ensure that video-enabled PSS support a minimum baseline video capability and interoperability can be guaranteed (an H.263 [22] baseline bit stream can be decoded by both H.263 [22] and MPEG-4 decoders). It also provides a simple upgrade path for mandating more advanced decoders in the future (from both the ITU-T and ISO MPEG). Read more about video coding: ftp://ftp.3gpp.org/specs/latest/Rel-4/26_series/26111-400.zip ftp://ftp.3gpp.org/specs/latest/Rel-4/26_series/26911-400.zip ftp://ftp.3gpp.org/specs/latest/Rel-4/26_series/26911-400.zip ftp://ftp.3gpp.org/specs/latest/Rel-4/26_series/26233-400.zip ftp://ftp.3gpp.org/specs/latest/Rel-4/26_series/26234-400.zip Consider downloading the latest releases 5 (March2002) or release 6 (not yet frozen) files. Is there any interface from UMTS core network to other mobile networks?

UMTS specifications do not have any special interface planned for other mobile networks, but all telephone networks can be connected to UMTS core network with standard S7 (or other) signalling system using E1s or T1s. Than enables voice calls to be made to all other telephone networks. If other networks support additional services like "call forwarding", "calling line identity", fax, slow-speed data ect, technically that is possible to implement this between networks. All telephone networks are designed to work with each other and UMTS networks will use standard interfaces towards all other networks. S7 and IP (internet protocol) will be the most commonly used interfaces standard, but all UMTS vendors can offer tens of different country-specific interface protocols if required. What will be a 3G Killer Application? Most people have their own view what the 3G Killer Application(s) will be. Some say that there will not be a single application, but a palette of services. Most likely there will not be only a single application that becomes very popular and at the same time makes a lot of money to the operator. Email, voice(!), messaging, music/video streaming are popular bets for money making applications. If you look any reports about 3G services, mcommerce and location based services are predicted to become very popular. Maybe the pricing will decide what will be a popular service. Old phrase is "The easiest way to predict the future is to invent it" will apply here. Operators and application providers have an opportunity to create their own killer applications. What are the UMTS Mobile Multimedia services?

UMTS Forum's Market Aspects Group has identified seven common lifestyle attributes for mobile multimedia applications. Here is a list of possible type of services that will be available in 3G networks: Fun: WWW, video, post card, snapshots, text, picture and multimedia messaging, datacast, personalisation applications (ring tone, screen saver, desk top), jukebox, virtual companion / pet ... Work: Rich call with image and data stream, IP telephony, B2B ordering and logistics, information exchange, personal information manager, dairy, scheduler, note pad, 2-way video conferencing, directory services, travel assistance, work group, telepresence, FTP, instant voicemail, colour fax ... Media: Push newspaper and magazines, advertising, classified ... Shopping: E-commerce, e-cash, e-wallet, credit card, telebanking, automatic transaction, auction, micro-billing shopping ... Entertainment: News, stock market, sports, games, lottery, gambling, music, video, concerts, adult content ... Education: Online libraries, search engines, remote attendance, field research ... Peace of Mind: Remote surveillance, location tracking, emergency use ... Health: Telemedicine, remote diagnose and heath monitoring ... Automation: Home automation, traffic telematics, machinemachine communication (telemetry) ... Travel: location sensitive information and guidance, e-tour, location awareness, time tables, e-ticketing ... Add-on: TV, radio, PC, access to remote computer, MP3 player, camera, video camera, watch, pager, GPS, remote control unit ... More about 3G applications Can UMTS mobile location be tracked?

The wideband nature of the UTRA/FDD facilitates the high resolution in position location. The duration of one chip (3.84Mcps) correspond to approximately 78 meters in propagation distance. If the delay estimation operates on the accuracy of samples/chip then the achievable maximum accuracy is approximately 20 meters. There are other inaccuracies that will cause degradation to the positioning but 20 meters can be considered as best possible positioning performance. UMTS specifies that it will provide location information for mobiles to an accuracy of 50m. With GPS assistance, maybe even 10 meter accuracy is possible. When are the UMTS networks in service? Japan and Korea has 3G services running and in December 2001 two UMTS networks have been launched, but UMTS mobiles will arrive 3Q/2002. Quite a few UMTS networks will be launched in early 2003 in Europe. See the list all live UMTS networks Will 2G / 2.5G phones be able to use all UMTS' applications? GSM (or other 2G) phones will not be able to use all features, because of data speed, build in memory and applications, display technology etc. Application providers and operators are very unlikely to try to implement complex feature to GSM, money is going to UMTS services. GPRS phone users will be able to use most of the UMTS services; probably only location based and very high rate data services cannot be implemented. But all this it depends on if operators want to implement those. All basic services like voice and messaging will flow between all systems. Which level of UMTS standard will the network be launched in 2002?

All vendors have different software schedules and development status is a big secret. Now it looks like top vendors will probably have 3GPP Release 4 (with July 2001 correction) level software by the late 2002 launch date. (Some vendors were considering launching with '99 release in 2002) Overview of The Universal Mobile Telecommunication System (DRAFT, July 2002) Table of Contents 1. 3G Systems 2. UMTS Services 3. UMTS Architecture 4. Core Network 5. Radio Access 6. User Equipment 1. 3G Systems 3G Systems are intended to provide a global mobility with wide range of services including telephony, paging, messaging, Internet and broadband data. International Telecommunication Union (ITU) started the process of defining the standard for third generation systems, referred to as International Mobile Telecommunications 2000 (IMT-2000). In Europe European Telecommunications Standards Institute (ETSI) was responsible of UMTS standardisation process. In 1998 Third Generation Partnership Project (3GPP) was formed to continue the technical specification work. 3GPP has five main UMTS standardisation areas: Radio Access Network, Core Network, Terminals, Services and System Aspects and GERAN. 3GPP Radio Access group is responsible of: Radio Layer 1, 2 and 3 RR specification Iub, Iur and Iu Interfaces

 UTRAN Operation and Maintenance requirements BTS radio performance specification Conformance test specification for testing of radio aspects of base stations Specifications for radio performance aspects from the system point of view 3GPP Core Network group is responsible of: Mobility management, call connection control signalling between the user equipment and the core network. Core network signalling between the core network nodes. Definition of interworking functions between the core network and external networks. Packet related issues. Core network aspects of the lu interface and Operation and Maintenance requirements 3GPP Terminal group is responsible of: Service capability protocols Messaging Services end-to-end interworking USIM to Mobile Terminal interface Model/framework for terminal interfaces and services (application) execution Conformance test specifications of terminals, including radio aspects 3GPP Services and System Aspects group is responsible of: Definition of services and feature requirements. Development of service capabilities and service architecture for cellular, fixed and cordless applications. Charging and Accounting Network Management and Security Aspects Definition, evolution, and maintenance of overall architecture.

Third Generation Partnership Project 2 (3GPP) was formed for technical development of cdma2000 technology which is a member of IMT-2000 family. In February 1992 World Radio Conference allocated frequencies for UMTS use. Frequencies 1885 - 2025 and 2110 - 2200 MHz were identified for IMT-2000 use. See the UMTS Frequency page for more details. All 3G standards are still under constant development. In 1999 ETSI Standardisation finished for UMTS Phase 1 (Release '99, version 3) and next release is due December 2001. UMTS History page has a list of all major 3G and UMTS milestones. Most of the European countries and some countries round the world have already issued UMTS licenses either by beauty contest or auctions. 2. UMTS Services UMTS offers teleservices (like speech or SMS) and bearer services, which provide the capability for information transfer between access points. It is possible to negotiate and renegotiate the characteristics of a bearer service at session or connection establishment and during ongoing session or connection. Both connection oriented and connectionless services are offered for Point-to-Point and Point-to-Multipoint communication. Bearer services have different QoS parameters for maximum transfer delay, delay variation and bit error rate. Offered data rate targets are: 144 kbits/s satellite and rural outdoor 384 kbits/s urban outdoor 2048 kbits/s indoor and low range outdoor UMTS network services have different QoS classes for four types of traffic: Conversational class (voice, video telephony, video gaming)

 Streaming class (multimedia, video on demand, webcast) Interactive class (web browsing, network gaming, database access) Background class (email, SMS, downloading) UMTS will also have a Virtual Home Environment (VHE). It is a concept for personal service environment portability across network boundaries and between terminals. Personal service environment means that users are consistently presented with the same personalised features, User Interface customisation and services in whatever network or terminal, wherever the user may be located. UMTS also has improved network security and location based services. 3. UMTS Architecture A UMTS network consist of three interacting domains; Core Network (CN), UMTS Terrestrial Radio Access Network (UTRAN) and User Equipment (UE). The main function of the core network is to provide switching, routing and transit for user traffic. Core network also contains the databases and network management functions. The basic Core Network architecture for UMTS is based on GSM network with GPRS. All equipment has to be modified for UMTS operation and services. The UTRAN provides the air interface access method for User Equipment. Base Station is referred as Node-B and control equipment for Node-B's is called Radio Network Controller (RNC). UMTS system page has an example, how UMTS network could be build. It is necessary for a network to know the approximate location in order to be able to page user equipment. Here is the list of system areas from largest to smallest. UMTS systems (including satellite)

Public Land Mobile Network (PLMN) MSC/VLR or SGSN Location Area Routing Area (PS domain) UTRAN Registration Area (PS domain) Cell Sub cell

4. Core Network The Core Network is divided in circuit switched and packet switched domains. Some of the circuit switched elements are Mobile services Switching Centre (MSC), Visitor location register (VLR) and Gateway MSC. Packet switched elements are Serving GPRS Support Node (SGSN) and Gateway GPRS Support Node (GGSN). Some network elements, like EIR, HLR, VLR and AUC are shared by both domains. The Asynchronous Transfer Mode (ATM) is defined for UMTS core transmission. ATM Adaptation Layer type 2 (AAL2) handles circuit switched connection and packet connection protocol AAL5 is designed for data delivery. The architecture of the Core Network may change when new services and features are introduced. Number Portability DataBase (NPDB) will be used to enable user to change the network while keeping their old phone number. Gateway Location Register (GLR) may be used to optimise the subscriber handling between network boundaries. MSC, VLR and SGSN can merge to become a UMTS MSC. 5. Radio Access Wide band CDMA technology was selected to for UTRAN air interface. UMTS WCDMA is a Direct Sequence CDMA system

where user data is multiplied with quasi-random bits derived from WCDMA Spreading codes. In UMTS, in addition to channelisation, Codes are used for synchronisation and scrambling. WCDMA has two basic modes of operation: Frequency Division Duplex (FDD) and Time Division Duplex (TDD). UTRAN interfaces are shown on UMTS Network page. The functions of Node-B are: Air interface Transmission / Reception Modulation / Demodulation CDMA Physical Channel coding Micro Diversity Error Handing Closed loop power control The functions of RNC are: Radio Resource Control Admission Control Channel Allocation Power Control Settings Handover Control Macro Diversity Ciphering Segmentation / Reassembly Broadcast Signalling Open Loop Power Control 6. User Equipment The UMTS standard does not restrict the functionality of the User Equipment in any way. Terminals work as an air interface counter part for Node-B and have many different types of identities. Most of these UMTS identity types are taken directly from GSM specifications. International Mobile Subscriber Identity (IMSI)

 Temporary Mobile Subscriber Identity (TMSI) Packet Temporary Mobile Subscriber Identity (P-TMSI) Temporary Logical Link Identity (TLLI) Mobile station ISDN (MSISDN) International Mobile Station Equipment Identity (IMEI) International Mobile Station Equipment Identity and Software Number (IMEISV) UMTS mobile station can operate in one of three modes of operation: PS/CS mode of operation: The MS is attached to both the PS domain and CS domain, and the MS is capable of simultaneously operating PS services and CS services. PS mode of operation: The MS is attached to the PS domain only and may only operate services of the PS domain. However, this does not prevent CS-like services to be offered over the PS domain (like VoIP). CS mode of operation: The MS is attached to the CS domain only and may only operate services of the CS domain. UMTS IC card has same physical characteristics as GSM SIM card. It has several functions: Support of one User Service Identity Module (USIM) application (optionally more that one) Support of one or more user profile on the USIM Update USIM specific information over the air Security functions User authentication Optional inclusion of payment methods Optional secure downloading of new applications

Nokia Knows How To Open Up For Social Media

Nokia Knows How To Open Up For Social Media A few weeks ago I was in Barcelona for Nokia World along with a group of other writers. Ive had some thoughts over the last week about how companies and organizations are treating independent journalists that Id like to summarize. To start off, lets state the obvious. Because independent journalists write mainly online (for me its here at (Techcraver and a few other online outlets) and not for the New York Times or Newsweek, companies dont traditionally grant us access product announcements, briefings with key executives and we have a harder time accessing review equipment for evaluation and exploration. I encounter this bias when working many with many different types of technology companies, with a few shining examples that are the opposite. One company that has embraced social media is Nokia and their practices and patterns should be emulated by any company or organization who is looking to engage social media for outreach purposes. What Does Nokia Do That Is So Great? There are a few efforts that Nokia employs to bring social media into the picture. These PR-type efforts include WOMWorld, a program which grants loan devices to bloggers and tracks the buzz in the blogosphere surrounding the current Nokia handset models. There is also the Nokia Blogger Relations program from that is now run by Nokias Social Media Team. These are active engagements whereby the large Finnish mobile phone company has reached out to social media to generate

attention with their products, gain feedback, and have a conversation surrounding their mobile handsets and services. At the Nokia World 2008 conference, Nokia representatives were available, including key product managers from inside the company (including numerous Senior VPs). I was able to meet with a variety of officials from throughout Nokia, including handsets, services, and even corporate sustainability. As a result, the Nokia Social Media team turned this huge monolithic company and organization into an open book for us to start conversations and adequately analyze the new offerings. They invited us to interview anyone from Nokia and went out of their way to arrange these meetings. Another key facet to Nokias Social Media Teams strategy: theyre engaging large, well known writers from popular blogs as well as well-known, up and coming writers.Rather than just engaging outfits such as Engadget, TechCrunch, and Gizmodo, , and others, Nokia invites me along with other smaller Nokia writers as well. Very smart! It is apparent to me that as a company, Nokias intent with engaging social media is to start conversations and appreciate feedback, both good and bad. The Nokia Social Media team takes negative feedback and routes it to the appropriate manager or team within the organization. So in summary, Nokia has embraced social media by bringing us to the table, giving us access to different aspects of the organization, and appreciatively listening to what we have to say. More companies and organizations should use this approach, as there are benefits for both parties when it is employed. What other organizations are doing a stellar job of interacting with and engaging social media? What approaches do they take that you feel should be repeated? I look forward to the comments! How Nokia Uses Social Media Posted on April 14, 2010 by Vanessa Meyer

This past weekend a few of us attended the CEMS Nordic Forum in Helsinki. Apart from being a great party and bonding experience, the forum also introduced us to a few new initiatives at Nokia. The speakers, @jussipekka and @mingk, introduced to us how Nokia uses social media technology to build bond fireconversations externally with their clients and partners, and internally as an enterprise collaboration tool. The first half of the presentation was about how Nokia uses SEM, SEO and SMO to engage their customers. With a strategic effort in social media optimization (SMO) they hope to build and strengthen the impact of earned media; ideally minimizing the need for bought media (SEM). They continued by explaining that their Social Media Framework consisted of the following elements: a strategy (vision, goal, roadmap); enabling technology (listening, engagement); organization and governance (design and controls); and metrics (KPIs), and that to keep their Social Media activities fresh they actively aggregated, published, integrated and filtered the content. The first half of the conference ended with an interesting presentation of a few case examples of how Nokia uses social media to engage their customers in the brand community and how their social media services help customers interact with each other in new ways: Nokia Discussion, Nokia Beta Labs, Nokia Messaging, Ovi Maps, Nokia Blog, 50 branded Nokia Twitter accounts, and Nokia conversations on You Tube. The second half of the conference was about how Nokia uses social media for internal communication and collaboration. With over 120 000 employees worldwide (includes Navteq & NSN), Nokia has recognized the power social media has to build cross border/cross functional relationships. Ultimately enabling greater collaboration, knowledge sharing and innovation. @Mingk made an enthusiastic presentation of how Nokias new internal social media tools (Wikis, blogs, twitter, video-hub, micromessaging, widgets etc.) act as a complement to traditional

collaboration methods. Essentially because the SM tools enhance the idea of the wisdom of crowds. Ming gave the example of how today at Nokia it is common for someone in Helsinki to blog or Tweet about an idea for a project on the internal Nokia blog/Twitter platform and be connected with interested employees in India or elsewhere who can help develop the project and bring it to fruition. The project or idea not only gains quick cross border/functional participation but also becomes visible for others to follow and give comments. Of course this could have happened if the employee in Helsinki had decided to send out a company wide email explaining the project idea, but this is unlikely to happen. Ming further stressed her point by referring to Granovetters idea of weak ties (weak ties enable reaching populations and audiences that are not accessible via strong ties and give you the network you need to find ideas. Weak ties being those in the firm who work across the globe or in a totally separate function, and strong ties being those who work in the same office or department) as well as the visibility and employee brand building advantages enterprise social media tools can give (basically a way to make your 20% idea brainstorming time more visible) The conference ended with a discussion about the critical mass needed to make enterprise social media platforms valuable. The idea of the 90-9-1 rule was explained. The 90% representing those who only act as the audience for published content. Basically those that listen and read what is out there and ideally gain insight and inspiration that they then share through traditional collaboration tools. The 9% represents the editors: those that comment, like, modify and re-tweet the published content. Finally the 1% represents those that create or influence content. These are the content creators who write the blogs, tweets and Wikis that the other 99% read and edit. So in Nokias case, the 1200 employees create enough content for the 10 800 to comment on and 108 000 to read.

The discussion then wrapped up with a simple step by step guide to engaging in social media. 1. Listen: read the blogs, subscribe to an RSS through Google Reader, set up a Twitter account, download Foursquare. 2. Filter: put your RSS feeds into folders, create columns in your TweetDeck, put followers or connections in limited view or in groups, and most importantly: delete content you never read. Keep it relevant! 3. Contribute: become an editor. Start commenting, re-tweeting, modifying, liking and sharing 4. Create: become an influencer. Write bogs, tweets, Wikis, etc. Even if only to help you crystallize your thoughts and ideas; only in this case you allow others to help you develop your thoughts and ideas. @mingks response to a comment about all these tools being just trends: surely some social media platforms are just trends and will loose out in the end, but the concept of interaction and collaboration is definitely NOT a trend. It was a very interesting conference and I decided to share my thoughts and learning with all of you. I guess that makes me an influencer Andy over at Smartblog recently discussed how Nokia uses social media as well. Check it out HERE The second blogwell presentation at Blogwell #3 which took place on April 29 in NYC, was that of Molly Schonthal from Nokia, who is in charge of social media for the Finnish cell phone manufacturer in the US, and also one of our representatives of the blog Council. Blogwell in NYC (photo by Yann Gourvennec) Mollys presentation was truly outstanding, there were so many questions and answers at the end of the presentation that Ive had a hard time trying to keep track of them all, but a good many of them will be transcribed in this post anyway.

The presentation was entitled from broadcast to social media. And it started with references to Tara Hunts latest book, the Whuffie factor, on which we have already had an opportunity to comment on this very blog (click here for an interview of Tara Hunt about her new book). Molly insisted on the fact that what is difficult for a big company is listening, participating openly and respectfully. It might in fact sound to be an obvious thing to do, but its not always for a large organisation, for it is so easy to be concentrated on ones internal organisational issues and forget about ones clients. So what are the changes as a big organisation is facing when trying to engage in different kinds of relationships with its customers and ecosystem? 1. One has to think, Molly says, not in terms of technological adoption, but of psychological adoption. Web 2.0, she says, is not difficult from a technical point of view, and it can be set up in a matter of seconds. But working with communities can take a lot longer than that. 2. Her second point is just about that, when she says that building networks take time. And, it does not follow the principles of normal press relations. She even coined the phrase social release which she opposed to press release. What it takes is actually creating messages that are relevant to influencers. And to stop and listen and engage. And she also insisted upon the fact that collaboration is about cross functional interactions which are at the heart of success. What Molly and Nokias teams have been able to achieve in the field of social media is just awesome. Here are just a few examples which I have been able to catch up on the catch on the fly: Nokia encouraged the widespread adoption of 2.0 tools internally, Nokia developed what they called an infopedia internally. This is some sort of Wikipedia, but it is internal. It was actually instrumental in getting Nokia employees to understand what a wiki is what a blog is etc.,

Nokia also created a blog hub: all internal blog content was focussed in one place that is to say that access is granted to what employees are talking about, sharing thoughts and ideas, An internal webTV was also created, which is some sort of youtube which enables employees to upload, invent and discuss, externally, blogs have also been rolled out, therefore enabling conversations about Nokia products. They also created a platform called blogbites, which enables them to generate three-minute podcasts from existing text. Engaging with influencers is also a very important item on the Nokia agenda, and they are engaging with them on events, such as SXSW09. Molly also insisted on what she called the blogger test centre tour which actually consisted in sending bloggers to two different countries. The stories were published in leading blogs such as Gizmodo, Techcrunch, the BBC etc. A 500,000 audience reach was achieved for that event in 2 geographical areas (the UK and Australia). As a conclusion Molly insisted upon the fact that one had to allow company culture to evolve, beyond PowerPoint slides with bullets in them. (Reminiscent of an article I published a long time ago with the help of Giancarlo, and which was entitled PowerPointitis) questions and answers 1. how are you selecting bloggers for your events? Few people can be admitted in the test centre. Loads of explanations about temperatures were given (Nokia phones had to resist all kinds of temperatures, perform the lowest to the highest). The Nokia lab folks were also very excited about the idea and about the ability to interact with real people. The way that Nokia organised this was very straightforward. All Nokia had to do was to invite them and be nice with them. 2. measurements? It is very hard to track results back to sales, Molly says. They do do some monitoring at Nokia, and then look at the number of

people and followers (Nokia has more than 500 followers on twitter). Another question was, how did you convince managers? Molly responded to that: our company understands the value of social media, which is great support what she and her teams are doing at Nokia across the world for social media. She also insisted that social media produces soft numbers, which do not have to be linked to sales automatically. 3. what is the hardest thing? The most difficult thing according to Molly Schonthal is to listen well all the time. It is hard to get an e-mail from a blogger/influencer, she says, because it always has to be taken as an emergency. One has to stop, she adds, its a personal challenge. Raising expectations is an issue (a phrase which I heard often times pronounced during this blogwell session). Planning is also a major issue: one has to avoid formatting she adds (mainly on twitter) 4. what are your worries about accountability? Molly says that Nokia never discloses private information, earnings, confidential information etc. But that in the long run, some of that could happen with maturity and that Nokias people and managers are not hindered by fear. (I take this opportunity to link back to the minutes of aprevious blogwell session in San Jose which was facilitated by Ken Kaplan from Intel about fear and social media) 5. how do you handle comments? You cannot say youre open and honest and stop people from saying things Molly rightfully points out. So, you will have to assume that some of the comments wont always be coming your way and youll have to take it like a man. 6. what is the difference between press and social media release? Molly says that social media release comes with some video plus a bunch of pictures and multimedia files to download and text which is more appropriate for blogs. It is true that more and more packages such as these are made available on the market by agencies on behalf of big businesses.

8. what about smaller bloggers? There is more than one approach, Molly says, and we hope to do it again with more folks. 9. responding to external comments? Molly says that you have to ask yourself two questions: one: do you have to respond to it? The answer may not always be yes two: disclosure: this is Molly from Nokia, and this is my personal opinion. Is the phrase which should be used (I would also recommend that you go back to and these recommendations on disclosure) About the company Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. SWOT Analysis of the Company: Nokia Strengths: Nokia has largest network of distribution and selling as compared to

other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other companys product. Weakness: Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Opportunity: Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing

power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Threats: Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer. 3G Mobile Telcoms Marketing Study, Industry Overview Uploaded by axelrose on Aug 6, 2005 | | | 3G Mobile Telecoms Marketing Study What is 3G? 3G - or 3rd generation - technology supports the broadband, packet-based transmission of text, multimedia data such as audio, video and digitized voice - at a high data rate. It will greatly enhance the next generation of mobile communication services, providing always-on connectivity to phones and other wireless communications, regardless of time and place. 3G has been endorsed by major standards bodies and manufacturers.

WCDMA is the leading 3G standard. It has been endorsed by all major OEMS and operators. What does 3G mean for developers? 3G is another network pipe, so in most cases developers do not need to explicitly program for it any more than they program for a GSM or GPRS network. However, the enhanced bandwidth and the always-on nature of 3G removes some practical limitations on the types of services that developers can deliver. What services will 3G enable? No single 3G application will dominate the market. High-speed content like video-on-demand, multimedia and always-on Internet access are just a few possibilities. Nokia believes Multimedia Messaging Service (MMS) will be one of the first successful services on the market. Is 3G too far out to make application development profitable? The 3G network roll-out is in process, but the applications that will work best over 3G already work on today's networks. MMS, OTA download of Java applications, and browsing applications are already in use today. As 3G bandwidth becomes more widely available, developers can enhance existing applications with richer graphics and other data-intensive services. When will WCDMA 3G networks be available? Nokia is already rolling out its 3G network solutions. The first Nokia WCDMA and EDGE networks will be launched commercially during the second half of 2002. Current Market Situation The current market share held by the 4 major producers of mobile communications in the 3rd quarter of 2002 was as follows: 1. Nokia V 35.9% 2. Motorola- 14.4% 3. Samsung- 10.6% 4. Sony-Ericsson- 4.8% For the past 3 years, the mobile communications industry has taken a significant downturn.

The value of the market has decreased in the region of billions of euro. The downturn of the industry can be attributed to three main causes: 1. Investors have somewhat lost confidence in the hi-tech industries and hence now the trailing mobile communications industry 2. Market Saturation experienced by the mobile industry 3. The product life cycle of the 2G mobile phone has progressed to the decline stage, resulting in a significant drop in sales Until recently there has not been any major technical advancement in the mobile phone over the last 3 years. Due to poor technical specifications and inflated expectations (due to the promotional strategies undertaken), WAP (Wireless Application Protocol) enabled handsets and other internet based communications devices were commercial failures which was reflected in the poor unit sales figures for the period. With the prospect of the 3rd generation of mobile phones coming onto the market between 2003 & 2006, the industry has started to become more lucrative. Worldwide mobile phone sales in the 3rd quarter of 2002 totalled 104.3 million units (a 7.8% increase from the same time 1 yr prior. Information source: Dataquest Inc) Nokia expects the market to grow to between 440 million- 460 million units in 2003 overall. However business analysts generally think to be around 435 million in the 2003 financial year. Nokia believe that Europe is the major market where consumers are looking to upgrade their handset in 2003. Mobile phone subscribers will be looking to replace their old phones with the new breed of mobiles available at the moment with digital camera/ colour screen capabilities. Confirmation of this trend in the industry is by the sheer volume of people signing up for the new MMS (Multimedia Messaging Services), 20,000 for T-Mobile in Germany alone, and 30,000 in the UK for Vodafone, all in a 6 month period. The popularity of the SMS (Short Message Service) has been the main contributor to this new breed of messaging. When 3G is introduced it will have all the capability that these new phones have and more. However, by the time 3G is

incorporated into the market place, MMS will be widely accepted and the cost of the service will have decreased. Producers of mobile communications such as Nokia & Sony Ericcson, along with the network providers T-Mobile, Orange, Vodafone & O2 are expecting that the introduction of the new MMS services will enable them to achieve the growth objectives & provide a new untapped resource of revenue from increased unit sales. Although this new MMS service will most definitely cause an upturn in a currently flagging market, it should not be relied on too heavily as a main source of revenue or selling point. Sending of MMS messages is still very expensive in comparison to SMS texting. Also, the handsets which have the capability to do so are still particularly expensive & may be out of reach (financially) to those who send most messages (88% of all messages are sent buy under 22 year olds and most of them in the teen market). The current market trend of SMS messaging should not be neglected as it currently accounts for 12% of the total revenue generated for network providers. PEST Analysis Political and Legal Factors Political factors have increased in toughness for mobile phone operators as phones become more advanced. In particular the way in which billing information is handled in the future will be affected by new antiterrorist legislation imposed by the government. The 3G mobile phones are expected to obtain data pinpointing the whereabouts of the mobile phone user to within a couple of meters. It is proposed this information is retained in the future for longer periods than mobile operators have done so in the past in order to attempt to locate criminal movement. The government have invested in independent research into health affects of mobile phones. The outcomes have been inconclusive, however scientists have stated the use of mobile phones does affect

brain activity. This is not proof of damage, however the government are keen to have an answer and this could affect the use of future mobile phones. The intervention of government noticing the escalating crimes focused on or around mobile phones has an impact on their development. The phones have to be less appealing to thieves by some form of internal security as phone thieves begin to target children equipped with a mobile phone by parents or guardians for safety reasons. Copyright and Patents of new developed technology has to be conformed by for ourselves and others. Economic Factors The current economy in the UK is very strong, boasting high employment and a high average age. In such situations the public have increased disposable income enabling a trend to spend money on luxury items. Should the economy begin to slow down and many of the population fearing recession, sales of 3G mobile phones would suffer. Businesses and individuals unsure of their financial standing would begin to spend less on items not deemed necesscary. The way of avoiding such dramatic affects of economic change is to perceive the goods as 'must have' products. Marketable to businesses as a return on investment due to increased efficiency could be argued. This is less likely to be adopted by individual users. Social Factors There is increasing concern with the number of masts being erected which form the networks supporting the mobile phones. As the number of mobile phone users increase, and we move into 3G technology where a higher number of masts are required to

support the technology; the public are becoming concerned of the impact masts are having upon their immediate environment. Although masts have reduced in height, this reduction has been accompanied with need for them to be closer to the user. It is necessary to be sympathetic to these concerns and where possible disguising the masts will show an increased attention to the public. Public users have a desire to request information and receive this immediately, this has become a priority in today's fast moving society. This means people have less patience to wait for the information desired and this is reflected in the culture of mobile phone use. 3G has the capability to transfer desired information that is up to date, directly to the handset being used Technological Factors The increasing capability of electronics in continually smaller packages enables additional technology to be included with limited affect on the size of the product. This has had a great impact on the capability of mobile phones. With ability to gain remote access to the internet it is possible to bring the internet information direct to a mobile phone user. Development of 3G technology is expensive and time consuming Threats and Opportunities THREATS: Market Saturation It is estimated 73% of adults own or use a mobile phone (oftel research), thus indicating the market is reaching saturation point with fewer new customers entering the market. Children with mobile phones do not have the justified spending on their phones to be considered the target audience. Also the purchase expense will have to be covered by a third party, generally the parents or guardians who can be reluctant to buy the latest models for children.

Competition from other mobile phone companies Nokia is a large company supplying mobile phones to a vast market. However they are not the only company supplying these products. Other companies with growing reputations are: "h Samsung "h Sony "h Motorola "h Sagem Of these companies Samsung are developing their own version of 3G mobile phone to be launched in the third quarter of 2003. Others have their own development plans providing improved 2G phones with additional features. Landline The majority of homes have traditional telephone lines installed. The use of landlines is cheaper and can come as a package for the home television and/or internet connection. Email Email communication has expanded over recent years and in some cases considered the optimum communication tool. This is especially true in professional working environments. Email addresses can be readily created and used, just requiring an internet access point. As well as having a connection on a home PC, access can be gained from schools, universities, libraries and many places of work. Reduced Disposable Income Currently the UK has low unemployment accompanied by a good average income. This results in a higher level of disposable income and therefore social spending. Should the strength of our economy reduce and with it employment levels, people will become more cautious about their spending habits. in cases where the mobile phone is a necessity this will not cause a problem, however where the mobile is deemed a luxury item, sales will could be affected. For example, not upgrading and sticking with an older model, reverting to other communication networks etc.

Health Concerns Radiation from handset use has been a concern in recent years. Continual research is being carried out in order to prove or disprove suggestions of mobile phones having potential to cause serious health problems to the user. This has not halted the increasing popularity of mobile phones, however research into this must be monitored. OPPORTUNITIES: Sales 3G technology will enable users to surf internet with TV-like multimedia phones, download music, images, full-motion video and see the people they are talking to. For this privilege consumers will purchase new handsets with the technology incorporated. Developing tariff relationships Placing more phones on contracts for tariff companies. Where customers will sign up for contracts and subject to conditions will get the phone at a reduced rate/free. Companies with 3G licences are: "h BT "h T-Mobile "h Orange "h TIW (Telesystem International Wireless) "h Vodafone Each of these companies will operate in the MHz range. The Nokia phones should be compatible to each of the specified ranges ensuring the product operation across all tariffs. Personal choice on tariff will affect sells, by maximising availability increase product potential. Reputation In current plans, Nokia will be the first company to release a 3G mobile phone. This therefore has the potential to promote Nokia as the leading authority in development of mobile technology. Providing further features will be appealing for multifunction Multifunction will enable users to disregard other products they may have purchased as well, such as a personal organiser.

SWOT Analysis STRENGTHS The Strengths of the business are: These strengths can be developed further by:Costs in developing these strengths ReputationKeeping profile high. Positive publicity. Good customer service and product support. Essentially high quality of productsInternal costs ensuring the quality of the product and service provided are of an extremely high standard Large coverage of the 2G marketAchieving high level of distribution in 3G market. Whilst still supporting the products for the 2G customer.Internal restructuring costs for specialist 3G departments High demand for mobile handsets.Increasing Nokia market share. Distributing to a wider audience Market research into desired areas and Promotion to those deemed potential successes Breadth of company knowledge and skillsGood quality working practices. Investment in key staff. All staff dealing with customers at all levels should have the relevant product knowledge.Internal quality processes costs. Staff training etc Quality of products and product performanceSupplying products offering increased usability, functions and reliabilityProduct development costs PatentsEnhance technological achievements, which in turn enhance the product produced by NokiaProduct development in 'confidential' conditions and applications to patent office. WEAKNESSES The Weaknesses of the business or are: These weaknesses can be corrected by:Costs of weakness correction: Many mobile phone users are influenced in choice of mobile phone by tariff operator they desire.Good relationships with as many of the big tariff operators as possible. Prove the Nokia 3G is a mobile handset that will be beneficial for them to support on their network.-Tariff operators have to be convinced the phone is going to be profitable. However with only five main operators expected for the 3G range a new product of this interest will not need a great expense of promoting World-wide distribution???Integrating distribution channels Operating subsidiaries in countries to be

targetedDistribution channels to be extended from 2G mobile phone distribution. Setting up new distribution channels will be costly. Paying royalties to incorporate with other goods will not benefit financially in the long term OPPORTUNITIES Opportunities that can be taken advantage of are:Effort required to benefit from the opportunities:Resources required to support effort TechnologyContinual research and development (R&D) into the use of new telecommunication technologies and the inclusion of existing technology to products provided by NokiaFinancial investment in R&D both the skills and the practices EconomyEconomic research. Points of good strong economy most likely to aid launching productResearch costs and estimate for the future state of economy local and abroad Relationships with tariff operatorsBuild strong bounds between the tariff operators and 3G suppliersEarly development with tariff operators to build confidence in product. InternetIntegrate systems and enable access to particular sites of interestInternet integration development THREATS Factors within the business or external environment that could threaten the successful implementation of this plan are:Steps that can be taken to minimise these threats:Cost considerations of taking these Steps: Competition from other mobile phone manufacturers.Begin Advertising the 3G phone before development is complete, publicising our future 3G product. Create public and businesses desire for the before it is available-Promotion will be expensive at outset. -will be costly in lost custom and company image if advertised deadlines are not met. - Continual use of landlines to homes and places of workBy providing additional features. Desire to have a mobile phone will reduce the threat of landline competition-Advertising -Promote benefits of mobile communications to businesses -Generate 'must

have accessory' feeling Email, with access to a mailing service this is efficient and in common usePromote mobile phone as the most efficient form of communication. No access to the internet or mailing services is required. Health ConcernsContinue/support research into alleged illnesses caused by continual use of mobile phones-Continual health research is costly -Should danger of handset use be detected, this will have to be publicised to the users. Having a damaging affect on the product and Nokia Market Saturation V Few new potential users left to enter the marketAim towards user groups in areas of the world. Today's 2G user is the futures 3G user. Nokia will drive the market to evolve with technology available-In targeting groups of users the product may become 'pigeon holed' to a specific type of user, limiting its appeal. -Reaching current mobile users and influencing to move for the new technology will be costly in time and finance. Legislation/regulationsEnsure legislation and regulation alterations are not a surprise to the company.Costs may be incurred to obtained legislation/regulations at change proposal stage EconomyShould the economy suffer the Nokia products will require promotion as a commodity to the target market. Should this have the image of an accessory problems would then be encounteredPromotion and advertising costs. Image creation will be costly to drive as a must have item InternetProvide more facilities in terms of communication. Being mobile is fundamental advantage and gaining access to the internet via mobile link will reduce this as a threat competitionProviding internet access and integration systems are costly in development.

Forces Driving Industry Competition POTENTIAL ENTRANTS Threat of new Entrants A new company beginning to supply third generation mobile phones would have serious market considerations. A high level of capital would be required for investment in the mobile phone product. The technology development would need to be supported as well as marketing expenditure to make consumers aware. A new entrant at this stage would be an extreme distance behind in development, and therefore product launch would be delayed. A new brand would not carry the same reputations and confidence other companies have established whilst developing products over the past 10 years. This is felt an important commodity in today's highly technical mobile communications market. SUPPLIERS Industry relies heavily on the development and performance of electronic components for a variety of technological products. Many manufacturers have the expertise and experience to produce the components for the mobile phones. The bargaining power of suppliers is not strong however it is common that the company will have preferred manufacturers through previous projects and reputation. The industry is an important and rewarding industry for the component manufacturers due to the popularity of the final product (mobile phones). As a large number of phones will be produced this enables high value contracts for the supply of reliable components. Further to component suppliers are the tariff operators the phone will eventually operate in conjunction with. At present there are five major tariff operators expected to support the 3G mobile phone. Although it is necessary to continue good relationships

these companies do not have strong bargaining power. Their future 3G business somewhat relies on supporting mobile phones the public desire, as Nokia 3G will be the first launched tariff operators are not expected to be in a strong bargaining position. SUBSTITUTES Landline The use of a landline is cheaper and in some cases clearer and BT have a begun to provide more public telephones specialising in cheap rate local calls to other landlines. Maybe a change in calling trends could be created however no additional threat to the trend of owning a mobile phone is expected from this development. Email With access to a mailing service Email is efficient and in common use. However this does not have the same convenience as a mobile phone. In addition the 3G mobile phone will enable mobile internet connection whereas an installed terminal has to be used at present Overall the trend for owning a mobile phone is not going to be affected by the outlined substitutes. It is possible the usage of these phones could be affected however this will not prevent purchases of the product. BUYERS The buyer population is strong and mobile phones are a desired commodity. As the attitude has moved towards owning mobile phones a high proportion of the UK population now own a mobile phone, it is understood 70% of adult population own or use a mobile phone. Therefore there are few new people to come into the market place. With these factors the buyers have a lot of choice when purchasing a mobile phone that most suits their needs and taste. Any new mobile phone has severe competition from the market place. INDUSTRY COMPETITORS Nokia's competitors are companies which are relatively equivalent in size, experience, financial backing and mostly with good reputations. These companies

siemens,KKKK. are also expected to be launching 3G mobile phones towards the end of 2003 and during 2004 creating intense rivalry in the market place. As the mobile phone market is close to reaching saturation point industry growth has slowed considerably. The 3G mobile phone is a specialist and top of the range device; however this is still an addition to the mobile phone market. All of these points build a strong rivalry within the market place. Objectives and Issues Nokia's business objective is to strengthen the position of leading systems and products provider. The strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Technological innovation allows people to access Internet applications, devices and services instantly, irrespective of time and place. Achieving interoperability of network environments, terminals and mobile services is a key part of Nokia's objective. Nokia must capitalize on the leadership role by continuing to target and enter segments of the communications market that will experience rapid growth or grow faster than the industry as a whole. By expanding into these segments during the initial stages of the development process, Nokia has been established as one of the world's leading players in wireless communications and significantly influenced the way in which voice and other services have been transferred to a wireless, mobile environment. As demand for wireless access to an increasing range of services accelerates, plans to lead the development and commercialisation

of the higher capacity networks and systems are required to make wireless content more accessible and rewarding to the end user. In the process, Nokia plan to offer their customers unprecedented choice, speed and value. Nokia has a history of contributing to the development of new technologies, products and systems for mobile communications. To achieve Nokia's business objective, strategy focuses on being the preferred provider of solutions for mobile communications; creating personalized communication technology; driving open mobile architecture enabling a non-fragmented global mobile services market; strengthening and leveraging Nokia, the trusted brand; and expanding the business and market position on a global basis. Nokia's aim is to gain the position of preferred provider of products and solutions for mobile communications by providing leading communications networks that enable end-to-end service delivery for both cellular and broadband networks. This includes the development of leading high-capacity cellular networks, platforms and user applications for the mobile Internet, end-to-end broadband access solutions and Professional Mobile Radio systems. Nokia must build on the core competencies in various key areas, including design and product innovations, brand development, and effective demand/supply network management, to bring new product concepts and associated services to market. And to strengthen the leadership position by using the understanding of user needs and the ability to meet and exceed user expectations to provide user-friendly, highly functional personalized products and solutions.

Nokia continue to employ open standards in technology in order to promote open competition and interoperability. The key commitment is to create a global and open mobile software and services market, and aim to do this by achieving strong partnering with customers, suppliers and industry participants, and solid focus on end-to-end solutions in all the development activities. By driving open mobile architecture, the aim is to ensure the introduction of new, interoperable mobile Internet access and visual content downloading services worldwide, utilizing the GSM/GPRS evolution and coming 3G mobile communications networks adopting WCDMA technology. This is expected to boost innovation from independent software producers as well as provide consumers with a wide and varied selection of competitive, yet interoperable products and services. Strengthening the Brand According to a variety of consumer surveys, the Nokia brand is associated with well-designed, high quality and technologically advanced products and customer services that are also user-friendly. Considerable investments in establishing the Nokia name as the leading brand in mobile communication intends to sustain and enhance the Nokia brand through aggressive advertising, sponsorship and other marketing activities in all of the principal markets. Nokia believe that the leading market position provides significant opportunities to better understand and respond to the usage patterns of end users, and thus enhance the Nokia brand. Expanding Our Business For more than a decade, Nokia have actively expanded the business globally, and as a result, the network systems, equipment and wireless terminals produced are sold throughout the world. Benefits from strong economies of scale throughout the organization are apparent. The Nokia strategy is to continue the focused pursuit of global business opportunities by cultivating a strong local presence in all

growing markets and pursuing partnering and acquisition opportunities in order to obtain complementary technologies and market positions. One of Nokia's top priorities is to continue to strengthen their leading market position in a profitable way, believing that further market share gains are key to expanding their customer base and growing their future business potential. The leading position also enhances the positive effects of economies of scale, which should strengthen the competitive position in the next generation of mobile communications. Marketing Strategy Introduction As the 3rd generation of mobile phones made by Nokia is relatively uncharted territory, the marketing strategies adopted by Nokia could "make" or "break" the product. It is essential that all areas of the marketing mix are researched and discussed thoroughly. Each element (Product, Place, Price & Promotion) shall be discussed separately & then brought together & implemented in the action programme section. Product The product in hand i.e. 3G Mobile phones are not as yet available for sale. Therefore, the most important factor at the concept/ R&D phase of the product's life cycle is to get the marketing research correct. It is essential that Nokia find out what is important to the customer s that will utilise this 3rd generation technology. Using questionnaires such as the one shown in the index will give Nokia a helpful insight into who is there target market. Nokia will be able to design in functions that will make the phones a good quality, marketable product that will be able to generate healthy revenues for Nokia. Nokia have the advantage of having a heavy brand name and proven track record which acts as a strong asset for them. Nokia phones are well known for there "easy to use" nature and customers will often return to Nokia products for this well known

convenience. Nokia have to be completely aware of the functions that technology will allow (i.e. Network service capability, wireless solutions) otherwise the functions built into these new products will be rendered useless and the consumer will deem them unfavourable gimmicks. 3G is basically going to be able to offer what most modern equipped computers can do. The major functions being high speed internet connection (i.e. 56k to 128k broadband) By offering customers new user friendly high speed multimedia services, Nokia can access new sources of revenue. Via there 2G/3G quad band (900/1800/1900/2200 MHz)/ dual mode multimedia, users will access three main families of application & services. Always on- for example, e-mail, personal organizer, traffic management, automation on Information- for example, web surfing, corporate intranet, net games, music, news, events & transportation services Purchasing- for example, on line shopping, banking, gambling, tickets It is estimated that by 2004 that 40% of e-commerce outside of North America will be done by a mobile device. Price Pricing is also a very important aspect for Nokia to address As technology grows into to the 3rd generation so does the competition. It is becoming ever cheaper for mobile phone manufacturers with the ability to now recycle older phone parts and now that mobile phones are being made on such a mammoth scale the economies of scale are impressive. Once again market research is a very important tool when looking at how to price a particular product (especially when the product has never been seen before). As the 3G products are not just mobile phones but rather small portable computers, there are over 50 producers of this type of 3G products. All of these products will be released around the same time period. Market research will give Nokia some idea of the price range that people are willing to pay and to whom they

are going to sell these products to throughout the products life cycle. These phones will generally, on launch, not be aimed at your occasional use type customer. The price and the rest of the marketing plan will be more aimed at the "prestige/business man" type consumer. Both of these consumer types, although not completely, will be particularly price insensitive. Therefore, at launch, a "prestige pricing" policy may be adopted. If Nokia are in a position when launching, that they are the first product on the market a "skimming" technique may be utilised i.e. setting the price as high as they like as people who want the phone first will pay high prices for it. A very detailed market analysis will have to be undertaken in order to set the prices competitively. As soon as Nokia release their product, at least another 10 mobile producers will release extremely similar products. Although Nokia do have the strong brand name asset behind them, they cannot rely on this too heavily. The pricing strategy adopted will evolve as the product life cycle does. As the market becomes saturated with similar products, the price will be driven down. However, Nokia have been notorious (i.e. 3210, 3310) particularly with the UK phone networks, for having their phones subsidised. Phones are often given away or sold very cheaply to the customer directly in return for a fixed 12 month contract. Therefore, Nokia have another avenue from which they can make substantial revenues by selling off large bulks of product to UK phone networks (Vodafone, O2, Orange, and Virgin) at a possibly reduced price. The whole product mix of Nokia has to be taken into consideration throughout all the products life-cycles. Place When looking at consumer end products like Nokia, there is generally 3 channels of distribution involved: Nokia is most likely to use the 1st and 3rd of these distribution chains.

When looking at which distribution method to undertake, it is important to look at the different objectives that each member of the distribution chain embodies. The consumer wants to get the best deal fore the price paid. The retailer (i.e. high street shops such as link, phones 4 U, car phone warehouse) are more interested in getting the contract rather than selling the phone. The wholesaler & producer (Nokia) have similar objectives in that they want to sell as many units as possible. Therefore, it would be beneficial for Nokia to utilise a "dual policy" when it comes to distribution policies. Nokia keep a limited number of products at Nokia, hence keeping warehouse costs low. Also, Nokia can keep all the replacement parts at Nokia & hence make a good profit margin on them. The rest of the products would be handed over to the wholesaler at a lower than retail price which are the sold on to retailers. Also in recent years, the internet has become very important in the sale of mobiles communications. Consumers tend to buy from the internet more and more as they often offer very competitive prices as they lack the overheads that the high street shops have to maintain. This means that Nokia must make their products available to the smaller internet based companies at competitive prices. Also the type of retailer that stocks this kind of product is widening. As the new 3G products are incorporating more computer like functionality, the scope for supplying to large retail stores such as PC World and Curries. This would make these products available to a much larger consumer range. Utilising these distribution methods will enable Nokia to maintain a flexible outlook with regards to distribution. Promotion The promotion mix elements are: This area of the marketing mix is the most dependent on an accurate vision of who the target market/markets are. An awful lot of Nokia's resources could be unduly wasted promoting to the wrong market. Also a good promotional mix required in order to meet Nokia's marketing objectives. These would be to inform & sell to as many people, the new range of phones by Nokia.

Advertising As the price of the product will initially be comparatively high, this has to be reflected in the advertising campaign. This firstly involves choosing the right media. e.g. Broadsheet newspapers, men's magazines (i.e. FHM, Loaded, Men's Health) television and billboard advertisements. These will be aimed at the high earning business person who will most probably use the product for work just as much as personal use. The fact that these phones claim to introduce quick, real time video conferencing is a selling point which must be stressed. The initial adverts will be far more informative than persuasive. The vast majority of people will not be aware of the capability of these new products. Once the informative period is over, the prices drop and the market becomes less narrow, the advertising shall be far more persuasive & aggressive. The advertising will change throughout the different periods of the product life cycle. Personal Selling The only form of personal selling that Nokia themselves will have to do is persuading the Wholesaler/Retailer to take on a large amount of there new products. However, Nokia are going to have to educate staff from the retail outlets on the features of these new products. These are the personnel who have most direct contact with the end user/ consumer. Ultimately, these are the people selling your product along with their own objectives. Offering special training schemes and fringe benefits to these personnel will be worth doing as these are the people that Nokia want on there side working as efficiently as possible. Direct Marketing Direct Marketing undertaken by Nokia at the beginning of the 3G products life cycle is not really appropriate for this kind of product. It would ultimately send out the wrong message to the consumer. However, when the market becomes saturated and market forces push the price of these products is pushed out of the prestige range and the product is possibly being given away with contracts, then direct marketing could be very

effective. Such techniques as direct mail, internet spam and cold calling may be appropriate. Sales Promotion There is room for good sales promotions with technologically advanced products of this ilk. It is likely with the introduction of Bluetooth technology (an up-and-coming communications standard for short-distance wireless connections. It replaces the many proprietary cables that connect one device to another with one universal short-range radio link), there will be plenty of "add on" accessories for these products to increase their functionality. These, like the product itself, when first launched are likely to be particularly expensive. A good sales promotion to sell more units would be to give these accessories away with the main product. Possible "cash back" and money off vouchers to be spent on Nokia products could also be utilised. These sale promotions, although promoted in the advertising of the product, should be aimed at the wholesaler/retailer as well as the end consumer. | | P.E.S.T: Political factors- Legal constraints (such as the G3 technology constraints that Nokia have to take into consideration) must be taken into account because many businesses aim to make a profit so they may be tempted to mislead their customers about prices, quality of products and the availability of their products. They may also try to cut expenditure by using lesser quality materials in their products (such as weaker materials for Nokia cases and batteries), also some companies may also dispose their waste in ways that damage the environment (pollution) and not ensuring high standards of hygiene and

safety in the workplace and outlet stores, all of these are illegal and can leave companies in big legal trouble. The governmental bodies in the U.K have introduced new laws into the business environment, which ensure that none of these procedures take place; if a company is to be successful they must follow all of these laws. Environmental social and ethical factors- some businesses view profits are more valuable then a strong ethical code and this can govern behaviour and business conduct. Some un-ethical practices are against the law and companies can not become involved in them (I have mentioned these above) but there are also some practices that aren't illegal by law but are considered highly un-ethical by the consuming public, companies who engage in these practice's can lose a lot of market share if they are found out. An example of this is cosmetic testing on animals, it is legal but some of the consuming public are not happy about it and boycott Certain products because of it, companies must be very careful about how they conduct themselves. Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones.

Technological- In the communications market technology is perhaps the most important factor that companies like Nokia have to take into consideration. They have to keep up to date with all the newest technological advances (like camera and motion capture phones) if they are going to capture the biggest market share and stay ahead of their competitors (Sony and Seimens).

Bharti Airtel Supply Chain Mgt.

Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The businesses of Bharti Airtel are structured into two main strategic groups -Mobility and Infotel. The Mobility business provides GSM mobile services in all 23 telecommunications circles in India, while the Infotel business group provides telephone services and Internet access over DSL in 15 circles. The company complements its mobile, broadband, and telephone services with national and international long-distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and enterprise services to corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. All of Bharti Tele-Ventures' services are provided under the Airtel brand. As of September 2005, Bharti Tele-Ventures was the only company to provide mobile services in all 23 telecom circles in India. By the end of October 2005, Bharti Tele-Ventures was serving more than 14.74 million GSM mobile subscribers and 1.10 million broadband and telephone (fixed line) customers. The equity shares of Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As of September 30, 2005, the main shareholders of Bharti Tele-Ventures were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom (15.69%), through its investment division Pastel Ltd; and, Warburg Pincus (5.65%), through its investment company Brentwood Investment Holdings Ltd). Other shareholders with more than a 1% stake were: Citi Group Global Markets Mauritius Pvt Ltd (2.99%); Euro pacific Growth Fund (2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%); Life Insurance Corporation of India (1.34%); and, The Growth Fund of America Inc (1.11%). Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the most celebrated face of the telecom sector in India. He symbolizes the adage that success comes to those who dream big and then work assiduously to deliver it. Sunil Bharti Mittal began his journey manufacturing spare parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom equipment. His true calling came in the mid 1990s when the government opened up the sector and allowed private players to provide telecom services. Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's largest telecommunications company and one of India's most respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolize the very essence of mobile services. * Product and Services Airtel provides a host of voice and data products and services, including high speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customized services are part of the unique package from Airtel. The

company's products reflect a desire to constantly innovate. Some of these are reflected in the fact that Airtel was the first to develop a 'single integrated billing system' Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a process of acquisitions and green field projects. With a presence in over 1,400 towns, Airtel today has the largest network capacity in the country. In the last nine years Airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations, it was the first to cross the one million and the five million customer marks. It was also the first to launch services overseas. There are other 'firsts' credited to Airtel - many of them in the area of innovative products and services. Today, Airtel innovates in almost everything that it presents to the market. An excellent example is Easy Charge - India's first paperless electronic recharging facility for prepaid customers. As evidence of its fine record, Airtel has also been conferred with numerous awards. It won the prestigious Techies Award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 - a record that is still unmatched. And in 2003, it received the Voice & Data Award for being 'India's largest cellular service provider', amongst others. Organization Structure Chapter-4 Operational Detail BUSINESS & MARKETING STRATEGIES * Some Marketing and Business Tools Adopted By AIRTEL As To Promote Its Activities: Seminars: seminars are conducted at different places by the expert time by time to make people aware. Publicity: publicity is done through various media. Stalls at famous places: they conduct their stall after a particular period of time on the famous and public place to attract them towards themselves.

* DSA (Direct Sales Agency) * Print media * Hoarding * Banners * Advertisement * Leaflets Follow ups By KNOP * Mobile Strategy Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins. Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new Circles. Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly. THREE TYPES OF SALES: 1. Primary Sales - Organization to Distribution of Prepaid, Postpaid Cards, Coupons, easy recharge etc. 2. Secondary Sales - Distributor to Retailers 3. Tertiary Sales - Retailer to Customer. PROCEDURE OF ACTIVATION OF PREPAID CONNECTION: Dealer: - (Confirms on 570) FOS: - (Saw that the form is completed and has Accessory papers Distributor: - (Activates the card) PROCEDURE OF ACTIVATION OF POSTPAID CONNECTION: Dealer (Collects of Cash and facilitates in Competition) FOS (Collects the Form) Distributor (Activates the card) Supply chain Differentiation for service VS Manufacturing Supply chain for Manufacturing Supply chain for service sector Differences * In service supply chain human labor forms a significant component.

* Not entirely possible to have standardized and centralized procedures and control in service SC as many of the decision is taken locally and the variation and uncertainties in output are higher because of the human involvement. * Focus of efficiencies in service supply chains is on management of capacity, flexibility of resources, information flows, services performance and cash flow management. Similarities * Demand management * Customer relationship management * Supplier relationship management INDIVIDUAL CUSTOMIZATION An important trend in our society is agility or mass individualization. Consumer behavior is much more volatile, much less predictable and increasingly concerned with instant gratification. The expectation is that in due course this trend towards individualization will become a more important factor in the emerging markets too, particularly in the urban areas. As well as setting quality standards for products, this attitude also demands delivery at the right time and in the right place. At any moment, wherever the consumer may be, it has to be possible to satisfy his or her requirements; it is a question of the consumer as a "moving target" and how we can increase our chances of "scoring a hit". In modern thinking about categories of consumers, every consumer has something of this instant consumer in his or her make-up, alongside other possible descriptions, such as "rational", "social" and "responsible". What's more, this can vary according to the product category. One moment, moreover, this instant consumer will be demanding products on the basis of flavor, convenience or cheapness, and in the next breath will be voicing concerns about the environment, animal welfare or his or her own health. The likelihood is that in the long term health, the environment and animal welfare will be significant factors in the concept of quality, as safety already is. Changes in consumption patterns are an important factor in this development. While the retail trade is evolving from supermarket to household service provider in response to mass individualization, consumers are increasingly also obtaining their food through other outlets: company canteens, take-away meals, snack bars, old people's homes etc. "Young couples" in Europe is rapidly moving towards the situation that already exists in the United States, where 50% of the food consumed is prepared outside the home. This places different demands on products in terms of keeping qualities (shelf life), convenience and presentation. Consumer-driven technology development These trends in the market and among consumers generate a demand for a more differentiated and more rapidly changing product range and also call for a different approach to technology development (dedicated production systems). In the future there will have to be product development that takes the dynamic of the market and the divergent wishes of the consumers as its starting point and uses the technologies of the

future: biotechnology, separations technology, sensor technology and modern information technology (IT). To achieve this, product development will have to be tackled in a more structured way, and knowledge deriving from different areas of research will have to be integrated more effectively. The development of sensor technology in the agro sector, for instance, requires the integration of materials technology, biotechnology and process technology. New scientific developments also provide interfaces through which the sector may respond to wishes relating to health: both the information about genetic aspects and the new insights into bioactive components - substances that, in low concentrations, affect human health - offer interesting prospects of made-to-measure food!In the future, "made-to-measure food" will also mean "food produced in a way that the public finds socially acceptable". Such aspects as the environment, animal welfare etc. will play a major role. This will have to be specifically taken into account in the development of technology. Supply chain Differentiation and telecom Complexity Differences * Both direct and indirect Buying as in Manufacturing * Value added services and content Buying concept works on the Right to Use . * Co creation and co ownership concepts * Focus on the value vs. cost * Customer experience is critical * Huge CAPEX costs * Asset Management becomes key portfolio Similarities: - Critical * Demand mangement * Customer relationship management * Supplier relationship management Chapter-5 Distribution System A proper distribution system is very important for every company because now days the customer wants full service without any pain. Airtel has a deep penetration in the market of prepaid cards, coupons, easy recharge and postpaid cards. I also saw in the market the happy faces of customers and retailers of Airtel because of the easy availability of Airtel cards and coupons. BENEFITS OF GOOD DISTRIBUTION SYSTEM 1. Easy availability 2. Satisfied customers 3. Competitive advantage 4. Better market reputation 5. Saves time DISTRIBUTION SYSTEM FLOW OF AIRTEL 1. Organization (C&FA's) 2. Distributor

3. Retailer 4. Customer Airtel Supply chain Innovation CELLULAR MOBILE PRICING STRUCTURE AND TRENDS For Successful growth and diffusion of mobile communication services, Airtel is focusing greater attention on how mobile relates to fixed networks. Testing the demand for new pricing structures can be left to the market. Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile communication relates to the Internet and electronic commerce. This report reviews and benchmarks the pricing of emerging services such as short message services. These services are the harbingers of Third generation Information services over mobile networks and policy makers need to review current regulatory frameworks to enhance pricing innovation and competition in the provision of these services. From chains to flexible networks As well as imposing requirements in terms of technology development, trends such as mass individualization call for a responsive answer to a sharply fluctuating market demand. This places considerable demands on the organization of agricultural production chains. The full vertical integration of links in a chain can mean a loss of flexibility. It would appear to be more efficient to opt for a continuation of the development of the chain concept; leading to responsive networks that combine the advantage of coordination with the flexibility of more loosely linked organizations. These independent organizations work closely together in the flow of goods along the chain in order to achieve the desired "customer value" at the lowest possible cost. * People * Process * Productivity * PEOPLE * Brand Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven to seize the day with an ambition to become the most globally admired telecom service. Airtel, after just ten years, has risen to the pinnacle of achievement. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms, contributing to its economic resurgence. Today they are connected to peoples lives with our Mobile services, Telemedia services, to connecting India's leading 1000+ corporates. We also connect Indians living in USA with our callhome service. * Corporate Responsibility at Bharti Airtel

At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. It is an integral part of the way Bharti conducts its business. The essence of Bhartis commitment to Corporate Social Responsibility is embedded in the Corporate Values, which stem from its deepest held beliefs. These Values are: To be responsive to the needs of our customers To trust and respect our employees To continuously improve our services innovatively and expeditiously To be transparent and sensitive in our dealings with all stakeholders * They encourage our employees to take decisions and design business processes, keeping in mind the following: * Ethics, fairness and being correct Meeting and going beyond compliances and legal requirements Showing respect and sensitivity towards stakeholders and communities, and Nurturing the environment They practice our CSR beliefs and commitments through a three-pronged approach: Engaging with stakeholders Ensuring stakeholder sensitive policies and practices Undertaking programs for our employees, community and environment Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it is important that each employee should understand the importance of environmental, social and economical aspects while taking business decisions. At Bharti, each employee is sensitized towards CSR issues and thus operations at the ground level are influenced. Such sensitization exercises have resulted in many socially and environmentally sensitive decisions on the ground. For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above. * People They have developed the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. It's amazing, for them, their ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job they need to have done, is more important than everything else put together. Many of the best business plans ever developed sit on shelves today because the [people who created them] could not find the key people who could execute those Plans. So, employees play an important role in company performance. * Employees

They believe that one of the most important drivers of growth and success for any organization is its people. At Bharti Airtel, our Mantra for employee delight focuses on 5 Ps People, Pride, Passion, Processes and Performance. Bharti Airtel has been recognized among the Best Employers in the Country for two successive years being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration & acknowledgement of the robust, progressive, people as well as business aligned Human Resource practices, which the organization has developed and implemented remarkably in a very short span of time. Bharti Airtel follows an open door policy to approach the management, which helps resolve issues with mutual agreements. We encourage people to stand up against any unfair treatment for which we have the Office of the Ombudsman, where employees can raise any issues regarding business and workplace conduct. Bharti ensures transparency through the various communication policies, strategies and plans. . Regular Employee Communication Forums provides a platform for the employees to raise issues that require resolution. Their leaders strongly believe in facilitating and initiating activities that help employees manage their health and well-being. Our focus always remains to redefine leadership; we develop leaders who enable performance and inspire their people to unleash their potential. Their people orientation reflects in their vision of being targeted by top talent, and a key aspect of our business focus building a best-inclass leadership team that nurtures talent at every level. Employee friendly HR policies have been put in place, which amply reflect the organizations concern for its people. Some typical examples of these policies and practices include a family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off, festival celebration with family, no official meetings on weekends, five day weeks, concierge services, call center engagement programs etc. These care policies and practices are applied across the organizational levels without any discrimination. From self-management workshops to aerobics sessions, yoga classes to provision of relaxation/meditation rooms, we ensure that every employee keeps a check on his/her fitness. Tie-ups with leading health service organizations enable our employees to undertake periodical health check-ups depending upon their age. This facility is also extended to employee family members at discounted rates. The company provides Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart from these specific engagements, we regularly organize health check up camps, eye check-up camps and stress management sessions. Some of their offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time constraints to remain fit. At many of their locations, they have hired psychologists who undertake personal counseling sessions for employees. Bharti Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation.

Even a sweeper in the corporate office must understand that, if he does not keep the office clean, the visiting shareholders could question the companys ability to manage a business if they cannot manage their premises well * Target customers Naturally, the target customer was clearly defined: elite, upmarket professionals and entrepreneurs. "We positioned Airtel as an aspirational and lifestyle brand, in a way that trivialised the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value * PROCESS Customer defined business process, Airtel Marketing Strategy Process innovations and continuous improvement through people involvement Problem investigation by Fact based Root Cause Analysis * Based on customer specifications, Airtel have webbed many business processes on the following concepts: Delivery time Turn around time Lead time Time to market Other performance indicators * Result Oriented Approach: Each process has been designed by first planning the desired result. The targeted results are then arrived at through identification of the following: The next-customer and end-customer expectations Quantifiable purpose of the process and key result areas Past experience of what went wrong and can go wrong SupportSoft, Inc., a provider of software and services that make technology work, announced that Bharti Airtel Limited, a leading telecommunications provider in India, has successfully rolled out three new services to its Airtel broadband customers using SupportSoft software. Bharti launched these services under the "NetXpert" brand, offering India's first ever automated broadband self-care technology including automated installation and enhanced customer care to its approximately two million broadband subscribers across India. Bharti is using SupportSoft SubscriberAgent software to provide Airtel customers with the "Airtel NetXpert Agent." Installed on each customer's personal computer with their permission, SubscriberAgent's built-in software intelligence can help diagnose problems and provide automated resolutions to top issues that the subscriber may experience, including possible connectivity, browser and e-mail related problems. Extending on solution, Bharti Airtel will also use the NetXpert Agent as a marketing and revenue generating tool by providing links to Bharti's Value Added Services (VAS) as theyll as sending out scheduled alerts on topics ranging from new plans to billing reminders to their subscriber base. Bharti has also rolled out the "Airtel NetXpert DTL" using SupportSoft Intelligent Assistance software, which provides a set of remote diagnostics tools to Call Center

executives. This allows analysts the ability to diagnose technology problems quickly and easily by reducing both the time consuming and manual steps involved in solving problems, leading to increased first call resolution, decreased call handling times, and decreased field visits. Lastly, Bharti Airtel is leveraging SupportSoft's LiveAssist software to support its "Airtel NetXpert Chat" service, whereby Airtel customers can have an online "conversation" with a Bharti customer service representative to respond to questions or issues in real time. Customers simply click on the "Chat with an Xpert" icon on the Bharti Airtel Theyb site to quickly get connected to an agent, and they can save a transcript of the chat for future reference. LiveAssist can enable a customer service representative to chat online with up to four customers at one time, helping reduce customer wait time and speed anstheyrs to subscriber questions. "As industry leaders, they at Airtel are constantly taking initiatives to offer the best in class services that seek to enhance customer experience. With the introduction of the upgraded NetXpert platform, our customers will now not only be able to troubleshoot connectivity related issues themselves but also avail updated billing information, thereby taking customer convenience to new levels," said Srinivas Rao, Chief Marketing Officer, Airtel Telemedia Services. "They are extremely happy to be partnering with SupportSoft in this endeavour that will set new standards of service care delivery, helping further the uptake of broadband services in the country." "Forward-thinking service providers like Bharti understand that superior customer care from the start can lead to more loyal customers and increased adoption of new and additional services," said Josh Pickus, president and CEO of SupportSoft. "They are proud to be the driving force behind Bharti's innovative line of services to provide its customers with convenience and peace of mind, while providing Bharti with measurable benefits to the bottom line." Chapter-7 Airtel supply chain model Airtel Supply Chain Innovation in productivity Airtel Supply Chain Innovation in productivity includes mainly three approaches * Phased approach to ramp-up Phase 1 includes managed services, network electronics, switching equipments, SIM card, Cables & Ducts, communication peripheral equipments such as modem and telephone instrument. Phase 2 (shared services center) includes bandwidth management, management of infrastructure equipment, networking equipment such as routers servers with the help of national services contract, managing marketing items. * National rate contracted items/partner * Selection at sub-family level Continues improvement to cover more volume and value one the basis of review, analyze, improve

INDIVIDUAL CUSTOMIZATION An important trend in our society is agility or mass individualization. Consumer behavior is much more volatile, much less predictable and increasingly concerned with instant gratification. The expectation is that in due course this trend towards individualization will become a more important factor in the emerging markets too, particularly in the urban areas. As well as setting quality standards for products, this attitude also demands delivery at the right time and in the right place. At any moment, wherever the consumer may be, it has to be possible to satisfy his or her requirements; it is a question of the consumer as a "moving target" and how we can increase our chances of "scoring a hit". In modern thinking about categories of consumers, every consumer has something of this instant consumer in his or her make-up, alongside other possible descriptions, such as "rational", "social" and "responsible". What's more, this can vary according to the product category. One moment, moreover, this instant consumer will be demanding products on the basis of flavor, convenience or cheapness, and in the next breath will be voicing concerns about the environment, animal welfare or his or her own health. The likelihood is that in the long term health, the environment and animal welfare will be significant factors in the concept of quality, as safety already is. Changes in consumption patterns are an important factor in this development. While the retail trade is evolving from supermarket to household service provider in response to mass individualization, consumers are increasingly also obtaining their food through other outlets: company canteens, take-away meals, snack bars, old people's homes etc. "Young couples" in Europe are rapidly moving towards the situation that already exists in the United States, where 50% of the food consumed is prepared outside the home. This places different demands on products in terms of keeping qualities (shelf life), convenience and presentation. Consumer-driven technology development These trends in the market and among consumers generate a demand for a more differentiated and more rapidly changing product range and also call for a different approach to technology development (dedicated production systems). In the future there will have to be product development that takes the dynamic of the market and the divergent wishes of the consumers as its starting point and uses the technologies of the future: biotechnology, separations technology, sensor technology and modern information technology (IT). To achieve this, product development will have to be tackled in a more structured way, and knowledge deriving from different areas of research will have to be integrated more effectively. The development of sensor technology in the agro sector, for instance, requires the integration of materials technology, biotechnology and process technology. New scientific developments also provide interfaces through which the sector may respond to wishes relating to health: both the information about genetic aspects and the new insights into bioactive components - substances that, in low concentrations, affect human health - offer interesting prospects of made-to-measure food! In the future, "made-to-measure food" will also mean "food produced in a way that the public finds socially acceptable". Such aspects as the environment, animal welfare etc.

will play a major role. This will have to be specifically taken into account in the development of technology. From chains to flexible networks As well as imposing requirements in terms of technology development, trends such as mass individualization call for a responsive answer to a sharply fluctuating market demand. This places considerable demands on the organization of agricultural production chains. The full vertical integration of links in a chain can mean a loss of flexibility. It would appear to be more efficient to opt for a continuation of the development of the chain concept; leading to responsive networks that combine the advantage of coordination with the flexibility of more loosely linked organizations. These independent organizations work closely together in the flow of goods along the chain in order to achieve the desired "customer value" at the lowest possible cost.

The Company Air Tel Is At The Growth Stage

The company Air Tel is at the growth stage.this can be said because it has been established firmly in 6 cities and it still has a long way to go. PROMOTIONAL TECHNIQUES Today Airtel covers the entire Delhi city plus some of its satellite towns such as Faridabad , Gurgaon , Noida , and Ghaziabad .At this stage promoting the brand mainly in metros is not a feasible plan. Air Tel should rather concentrate on introducing the brand in other satellite towns of Delhi such as Kota Agra etc.the advantages would be that when a cellular phone service provider enters a metro 10 points are added. This only shows that there is so much competition in metros and thus it will be too much of a risk. Also that if it us not able to withstand competion in metros it will have the rural market to fall back upon. To break existing users is more difficult than to access new users . FOR PROMOTION IN RURAL AREAS Street plays or tamashas can be organized. Market surveys have a track record that visual display is better than audio advt specially in rural areas. What can be done also taking into confidence the sarpanch. By doing this it becomes easier too gain the trust of the people. After doing this ie, giving the people an idea about the various schemes and gaining their trust one to one marketing should be taken up. Sales man who are well worsed with the language of that area preferably should be sent door to door to give more information to the people on a one on basis.Extra care must be taken into seeing that these salesmen are humble in their behavior SCHEME: Dooriyan mitao scheme Call anyone anywhere(local) at 60.p airtel to airtlel calling at 30.p lifetime validity at Rs.99. this scheme would be extremely catching for people in rural areas CALL UR BANIYA:Through this scheme the baniya is agiven an airtel number.this has many benefits. Which are; Baniya like the sarpanch can be used to influence the buying of consumers majorly. He can promote the brand in a way that no

one can. His verdict would hav a larger impact than any advertisement. This can be done by giving him commission and by providing him with a free connection. Also like in cities how we call for items from the stores for the goods the homes in these villages can order home delivery.This gives a 2 way benefit. Promotion of the brand can also be done by providing free air tel board that are having good backlit display at the baniyas shop. This enhances the look of the shop too Dostanaa plan :this scheme will allow 2 friends who subscribe to Air tel to avail of benfits such as free calling etc. PROMOTIN IN URBAN AREAS Video conferencing at very cheap rates should be introduced in urban areas. This would majorly help in getting customers because no other service providers hav introduced this as yet. This would be the next craze. Scheme: Pay Rs. 350 and get 100 std msgs free!! Recharge with RS. 1000 and get full talk time no extra deductions VALUE ADDED SERVICES Book movie tickets . Booking of railway tickets. Platinum Cards this special card will be issued for customer loyalty. Those customers using Air Tel since long time , or exceeding usage beyond a certain limit will be able make calls at fairly low and almost negligible rates . This sort of a card is extremely suitable for businessmen and women in metropolitan cities. Toll free providing Toll free customer care services. For rural areas customer care services to be provide in regional languages. Ccricket updates. Ring tones: Latest ring tones and ringtoines in regional languages. special Ringtones during festivals. Stock market updates- this will be useful for clients investing in stocks but who do not have the time to log on to tv or net . updates on stocks and indexes will keep these customers informed.Also stock specific updates can be provided by linking airtel to routers. Chhota recharge are specially good for smaller towns. Festival related wallpapers and sms are popular in small towns as well as metros.

Airtel Report
A On Customer ACQUISITION & RETENTION of airtel customer in Delhi Submitted in partial fulfillment of the requirement of the Degree of MASTER OF BUSINESS ADMINISTRATION |Submitted To: | |Dr. S.S.Paul | |Director(MBA) | |IIMT ENG. COLLEGE. | |Submitted By: |Ritesh Yadav |MBA(3rd Sem) |Roll No.

[pic] (Approved by AICTE, Affiliated to UTTAR PRADESH TECHNICAL UNIVERSITY LUCKNOW) COMPANY CERTIFICATE COLLEGE CERTIFICATE DECLARATION I RITESH KUMAR YADAV hereby declare that the project entitled Customer Acquisition & retention of airtel customer in Delhi is my original work, done by me. Now it is an asset of IIMT ENGINEERING COLLEGE, Meerut All the rights for using this project report lie with the institute. Unauthorized copying, hiring, broadcasting, or rental of this project without permission from the institute will be considered illegal. DATE: PLACE: RITESH KUMAR YADAV

ACKNOWLEDGEMENT Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavor. I will remember all of them with gratitude. My sincere thanks towards Mr. ANAND PRIYA DE ASM -Airtel, DELHI), for giving me a chance to take this project and for her valuable guidance, which helped me on all those points, which I needed to include in, with full intensity , for his significant support extended for the successful completion of the project I am extremely gratified to Mr. RAHUL SINGH (T.L., Airtel), who was extremely helpful in offering his professional expertise and bestowing me practical knowledge in all spheres related to the whole organization working. I am very grateful to our Director Dr. S.S.Paul; H.O.D Mr. Sandeep Kumar, and all faculty members for their excellent guidance in the completion of my project work I am always beholden to my God, for always being with me and showing me the right ways, my family members, for always doing favors to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and potential, specially my brother, as I did not always welcome her exhortation, try again; you can do better. But this project owes a great deal to it and so do I. RITESH KUMAR YADAV PREFACE Its a thing of massive gratification for me to present this Summer Training Project Report on the topic Customer Acquisition & retention of airtel customer in Delhi completed in an unrivaled organisation AIRTEL, at DELHI'. Mobile telephony adoption is on the rise and recent technological innovations have dramatically enhanced the capabilities of the wireless telephone. Leveraging the power of these new capabilities, various business sectors are working together to offer a wide array of services. Each sector is

looking for the next "killer application," yet we are still learning about people's information and communication needs while "on the go." The goal of this two-months training is to bring together an international group of 5-8 practitioners and researchers from various sectors of the mobile communications industry. We will discuss the following topic areas and, prior to the workshop; invite participants to identify specific issues that they feel are particularly relevant and timely. I myself have for a long time deeply interested in studying consumer trends & behavior towards mobile industry. I know that even in the areas in which I have a little knowledge, I do not know enough. There are new tasks in these areas for which I am not yet equipped with tested, proven approaches and tools. New areas of challenge and new technology problems has arisen, where I have done 7 little work so far and where I have so far only ignorance rather than even a modicum of knowledge. This project attempts to identify and define areas related to consumer behavior regarding new connection services. It also attempts to develop at least first approach to these areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the customer needs. By this practical training I am able to equip the manager with the understanding, the thinking, the knowledge, and the skills for todays and also for tomorrows market exigency. Initially I was just having the bookish knowledge about all Marketing policies, practices and functions, but after joining this organization, I got most of the practical knowledge. I have come to know, what actually happens in the organizations. Though it is not possible to have the information of all the spheres in market, in such a very short period, but I tried to get more and more about all functions and practices applied in practical working, I have particularly stresses on. This is the boom time for mobile industry. Youths are having keen flair for mobile communication. Now the mobile communications are the fastest growing industry. We can reach to anyone, anywhere across world through mobile connectivity. Just look in the areas theyre in; health, education, banking, insurance, travel, couriers, manufacturing, entertainment, government, computer helpdesks- the list goes on market is going on global, & so the need of communication is emerging day by day I saw that though the times are hard but if same thing innovative is done, people will get more craze for that.

We are fast becoming a part of a new era of management. No longer does a manager sit in an ivory tower and issue directives from a distance. This study, complex as it is, has acquired new dimensions with the dynamic social and technological changes of the past two decades. Changing technologies, cultural diversity, more educated work force and awareness of rights and privileges have prompted a new look at the entire organizational structures and systems. This project report has been painstakingly and thoroughly prepared to cover extensively various facets both micro as well as macro of the field of telecommunication marketing. Its coverage is broad and up to date and it is balanced in terms of concept and application. Since customers are the most important asset of any organization, there is increased emphasis on the need for understanding people in a manner to satisfy them through quality of services. The language of the presentation is highly communicative so that it becomes interesting and comprehensible. This project is intended for a wide audience. It will be useful to not only the students of management, marketing management and consumer behavior, but also to the people in any other field and management practitioners who want to understand and enrich their understanding of consumer trends & effectively manage their sales. RITESH KUMAR YADAV EXECUTIVE SUMMARY Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time; Growth in pre-paid customer category;

 Greater economic growth and continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services The project is based on the study of consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The study was conducted in Delhi with sample size of 50 and sample units were suppliers and Consumer of mobile connection TABLE OF CONTENTS CHAPTER I INTRODUCTION COMPANY PROFILE ORGANIZATIONAL STRUCTURE CHAPTER II BUSINESS & MARKETING STRATEGIES COMPANY PLANS. CHAPTER III RESEARCH METHODOLOGY (OBJECTIVES OF THE STUDY (RESEARCH DESIGN (COLLECTION OF DATA PRIMARY DATA SECONDARY DATA CHAPTER IV DATA ANALYSIS AND INTERPRETATION SWOT ANALYSIS FINDINGS SUGGESTIONS & RECOMMENDATIONS CONCLUSION CHAPTER V APPENDIX BIBLIOGRAPHY &QUESTIONNAIRE CHAPTER 1 INTRODUCTION

TELECOM HISTORY SINCE 1842 TILL NOW With the dramatic changes in interpersonal communication over the past decade, Internet messaging has emerged as the primary medium for transferring information quickly, inexpensively, and reliably. However, the growing popularity of wireless telephones has added another dimension to the communications equationmobility. As more Indians rely on cellular communication, this market is expected to see explosive growth over the forecast period. Lets have a review of telecommunication History:TELECOM HISTORY 1842: Wireless by conduction 1843: Early electromagnetic research, wireless by induction 1865: Induction and Dr. Loomis Early radio discoveries 1879: D.E. Hughes and the first radio-telephone reception 1880: The photo phone and the first voice radio-telephone call 1880 to 1900: Radio development begins in earnest 1910: The first car-telephone 1924: The first car-mounted radio-telephone 1937: Early conventional radio-telephone development The modern era begins 1946: The first commercial American radio-telephone service 1947: Cellular systems first discussed 1948: The first automatic radio telephone service 1969: The first cellular radio system 1973: The Father of the cell phone 1978: First generation analog cellular systems begin 1980: Growth of Japanese cellular development 1981: NMT -- the first multinational cellular system 1982: The rise of GSM 1990: North America goes digital: IS-54 Prehistory (Birth to Bell Labs, 1924) While puzzling over the mysteries of radio, many inventors worked concurrently on power generation, telegraphs, lighting, and later, telephone. The thorough understanding of electricity required to produce a reliable, practical radio system took a long time and happened in different phases.

In 1820, Danish physicist Christian Ousted discovered electromagnetism, the science that could help generate electrical power and, if fully understood and applied, usher in the era of telecommunication. Michael Faraday - 1791 to 1867 In 1821 Michael Faraday reversed Oberstars experiment and in so doing discovered induction. This helped him build the world's first electricity generator. He worked on different electrical problems in the next ten years, eventually publishing his results on induction in 1831. Joseph Henry - 1797 to 1878 In 1830 the great American scientist Professor Joseph Henry transmitted the first practical electrical signal; showing that electromagnetism could do more than just create current or pick up heavy weights -- it could communicate. In a stunning demonstration in his Albany Academy classroom, Henry created the forerunner of the telegraph. While Henry did not pursue electrical signaling, he did help someone who did. And that man was Samuel Finley Breese Morse. Samuel Morse - 1791 to 1872 In 1837 Samuel Morse invented the first practical telegraph, applied for its patent in 1838 and was finally granted it in 1848. Joseph Henry helped Morse build a telegraph relay or repeater that allowed long distance operation. The telegraph brought the country closer and eventually the world. Morse also experimented with wireless, not by passing signals though the atmosphere but through the earth and water. Without a cable. Wireless by conduction On October 18, 1842, Morse laid wires between Governor's Island and Castle Garden, New York, a distance of about a mile. Part of that circuit was under water. But before he could complete this demonstration a passing ship pulled up his cable, ending it seemed, his experiment. Undaunted, Morse proceeded without the cable, passing his telegraph signals through the water itself. This is wireless by conduction. Over the next thirty years most inventors and developers concentrated on wire line telegraphy, that is, conventional telegraphy carried over wires

suspended on poles. Few tinkered exclusively with wireless since a basic radio theory had not yet been worked out. Telegraphy, however, did produce a good understanding of wireless by induction since wires ran parallel to each other and often induced rogue currents into other lines. Early electromagnetic research In 1843 Faraday began intensive research into whether space could conduct electricity. In 1864 Maxwell released his paper "Dynamical Theory of the Electromagnetic Field" which concluded that light, electricity and magnetism were all related and that all electromagnetic phenomena travelled in waves. Induction and Dr. Loomis In 1865, a dentist Dr. Mahlon Loomis of Virginia may have been the first person to communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted telegraphic messages at a distance of 18 miles. At one location he even flew a metal-framed kite on a metal wire, perhaps taking inspiration from Benjamin Franklin. At another location a similar kite picked up these signals and noted them with a galvanometer. Early radio discoveries Maxwell's 1864 conclusions were distributed around the world and created a sensation. But it was not until 1888 that Professor Heinrich Hertz of Bonn, Germany, could produce and detect radio waves consistently and reliably. On November 22, 1875, while working on acoustical telegraphy, a science close to telephony, Thomas Alva Edison noticed unusual looking electro-magnetic sparks. D.E. Hughes and the first radio-telephone reception From 1879 to 1886, London-born David Hughes discovered radio waves but was told incorrectly that he had discovered no such thing. Discouraged, he pursued radio no further. Hughes noticed a clicking noise in his home built telephone each time he worked using his induction balance, a device now often used as a metal detector. He transmitted signals from one room to another in his house in London. But since the greatest range there was about 60 feet, Hughes took to the streets with his telephone, intently listening for the clicking produced by

his clockwork transmitter, gradually diminishing until it no longer could be heard. Alexander Graham Bell was the man who invented the telephone and made the first call on a wired telephone to Thomas Watson. Bell was also first with radio. 1888 onwards: Radio development begins in earnest In 1888 the German, Heinrich Hertz, conclusively proved Maxwell's prediction that electricity could travel in waves through the atmosphere. Unlike Hughes, the extensive and systematic experiments into radio waves that Hertz conducted were recognised and validated by inventors around the world. Jagadish Chandra Bose demonstrated electromagnetic waves in 1895 "by using them to ring a bell remotely and to explode some gunpowder". Marconi established the first successful radio system. In 1901, his radio-telegraph system sent signals across the Atlantic Ocean. Ships were the first wireless mobile platforms. In 1901 Marconi placed a radio aboard a Thorny croft steam-powered truck, thus producing the first land-based wireless mobile transmitting data, not voice. In December 24, 1906, Reginald Fessenden accomplished the first radio bandwave communication of human speech over a distance of 11 miles, from Brant Rock, Massachusetts, to ships in the Atlantic Ocean. Radio was no longer limited to telegraph codes, no longer just a wireless telegraph, but a means of verbal communication. The first car-telephone From 1910 onwards, Lars Magnus Ericsson, the man who founded Ericsson in 1876, and his wife Hilda, regularly worked the first car telephone. Access was not by radio, instead there were two long sticks, like fishing rods, handled by Hilda. She would hook them over a pair of telephone wires, seeking a pair that was free. When they were found, Lars Magnus would crank the dynamo handle of the telephone, which produced a signal to an operator in the nearest exchange. Around the same time, the triode tube was developed, allowing far greater signal strength to be developed both for wireline and wireless telephony. No longer passive like a crystal set, a triode was powered by an external source, which provided much better reception and volume.

Later, with Armstrong's regenerative circuit, tubes were developed that could either transmit or receive signals, were stable and powerful enough to carry the human voice and sensitive enough to detect those signals in the radio spectrum. In 1919, three firms came together to develop a wireless company that one day would have a reach across the globe. Heavy equipment maker ASEA, boiler and gas equipment maker AGA and telephone manufacturer LM Ericsson, formed SRA Radio, the forerunner of Ericsson's radio division. The first car-mounted radio-telephone Bell Laboratories claims to have invented the first version of a mobile in 1924. It was a two-way, voice-based radio-telephone and the adjoining photograph from their site certainly seems to confirm it. History of cellular mobile telephony: 1982 to 2001 1980 - First cellular phones began to appear 1982 - Nordic Mobile Telephony (NMT) standard 1983 - American Mobile Phone System (AMPS) standard 1986 - Nordic Mobile Telephony (NMT) 900 MHz 1991 - Commercial launch of the GSM service 1993 - Coverage of main roads GSM services start outside Europe 1994 - Japanese Digital Cellular (JDC) 1996 - USA Personal Communications Systems (PCS) 1982 - The beginning During the early 1980s, analog cellular telephone systems experienced rapid growth in Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany. Each country developed its own system, which was incompatible with those of others, in equipment and operation. This was an undesirable situation, because not only was the mobile equipment limited to operation within national boundaries, but also limited to the market for each type of equipment. This scenario in a unified Europe was undesirable. The Europeans realized this early on, and in 1982, the Conference of European Posts and Telegraphs (CEPT) form a study group called the Group Special Mobile (GSM) to study and develop a pan-European public land

mobile system. The proposed system had to meet certain criteria, which included: 1. Good subjective speech quality. 2. Low terminal and service cost. 3. Support for international roaming. 4. Ability to support handheld terminals. 5. Support for a range of new services and facilities. 6. Spectral efficiency 7. ISDN compatibility. Nordic Telecom and Netherlands PTT proposed to the CEPT the development of a new digital cellular standard that would cope with the ever-burgeoning demands on European mobile networks. The European Commission (EC) issued a directive which required member states to reserve frequencies in the 900 MHz band for GSM to allow for roaming. 1986 Main GSM radio transmission techniques were chosen. 1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory group signed the charter GSM (Groupe Spciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains. GSM SPECIFICATIONS WERE DRAFTED. 1989 1998 In 1989, GSM responsibility was transferred to the European Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide. The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost.

The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard. 1990 Phase 1 GSM 900 specifications were frozen DCS adaptation started. Validation systems implemented. First GSM World congress at Rome had 650 participants. 1991 First GSM specification was demonstrated. DCS specifications were frozen. GSM World Congress at Nice had 690 participants. 1992 January - The first GSM network operator was Oy Radiolinja Ab in Finland. December 1992 - 13 networks were on air in 7 areas. GSM World Congress at Berlin had 630 participants. 1993 GSM was demonstrated for the first time in Africa at Telkom '93 in Cape Town. Roaming agreements between several operators were established. By December 1993, 32 networks were on air in 18 areas. GSM World Congress at Lisbon progressed with 760 participants. Telkom '93 was held in Cape Town. First GSM systems were shown. 1994 First GSM networks in Africa were launched in South Africa. Phase 2 data /fax bearer services were launched. Vodacom became the first GSM network in the world to implement data/fax. GSM World Congress at Athens drew 780 participants. December 1994 -- 69 networks were on air in 43 areas. 1995 GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas. GSM World Congress at Madrid attracted 1400 participants. December 1995 - 117 networks were on air in 69 areas. Fax, Data and SMS roaming started. GSM phase 2 standardisation was completed, including adaptation for PCS 1900. First PCS 1900 network was shown live 'on air' in the USA.

Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data via GSM. Namibia goes on-line. Ericsson 337 wins GSM phone of the year. US FCC auctioned off PCS licenses. 1996 December 1996 - 120 networks were on air in 84 areas. GSM World Congress was held in Cannes. GSM MOU Plenary was held in Atlanta GA, USA. 8K SIM was launched. Pre-paid GSM SIM cards were launched. Bundled billing was introduced in South Africa. Libya goes on-line. Option International launches the world's first GSM/Fixed-line modem. 2001 Feb -- GSM Conference held in Cannes. By May 2001 there were 500m GSM 900/1800/1900 users worldwide. 16 billion SMS messages were sent in April 2001. By April, 500 million people are GSM users. COMPANY PROFILE Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers. VISION: To make mobile communications a way of life and be the customers' first choice. MISSION: We will meet the mobile communication needs of our customers through: Error-free service delivery Innovative products and services Cost efficiency Unified Messaging Solutions CORE VALUE: We will delight our customer with our simplicity, speed & innovation.

We will honours our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace. AIRTEL MOBILE COMMUNICATIONS LIMITED Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004. Bharti Tele-Ventures vision for its mobile business is To make mobile communications a way of life and be the customers first choice. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Companys strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time; Growth in pre-paid customer category; Greater economic growth and continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services. Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to

consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited. As of June 30, 2004, approximately 92% of India's total mobile subscriber market resided in the Company's sixteen mobile circles, which collectively covered only 56% of India's land mass. AIRTEL DISTRIBUTION SYSTEM DISTRIBUTION SYSTEM A proper distribution system is very important for every company because now a days the customer wants full service without any pain. Airtel has a deep penetration in the market of prepaid cards, coupons, easy recharge and postpaid cards. I also seen in the market the happy faces of customers and retailers of Airtel because of the easy availability of Airtel cards and coupons. BENEFITS OF GOOD DISTRIBUTION SYSTEM 1. Easy availability 2. Satisfied customers 3. Competitive advantage 4. Better market reputation 5. Saves time DISTRIBUTION SYSTEM OF AIRTEL 1. Organisation (C&FA's) 2. Distributor 3. Retailer 4. Customer [pic] ORGANIZATION STRUCTURE Organisation of AIRTEL provides services through FSO (Full Service Outlets) and DSA (Direct Sales Agent) MANAGEMENT HIERARCHY AT AIRTEL [pic] THREE TYPES OF SALES: 1. Primary Sales - Organisation to Distribution of Prepaid, Postpaid Cards, Coupons, easy recharge etc.

2. Secondary Sales - Distributor to Retailers 3. Tertiary Sales - Retailer to Customer. PROCEDURE OF ACTIVATION OF PREPAID CONNECTION: Dealer (Confirms on 570) FOS (Saw that the form is completed and has Accessory papers Distributor (Activates the card) PROCEDURE OF ACTIVATION OF POSTPAID CONNECTION: Dealer (Collects of Cash and facilitates in Competition) FOS (Collects the Form) Distributor (Activates the card) MOBILE FOOTPRINT The map below depicts the location of, and provides certain information for, Bharti Tele-Ventures' existing mobile circles in India: [pic] SOURCE: (1) Population estimates are as per National Census, 2001 and are as of March 1, 2001. The population for Uttar Pradesh (West) circle is approximately 37% of the total population for the state of Uttar Pradesh. (2) Mobile subscriber statistics are as of June 30, 2004 and are based on data released by COAI. Mobile market size comprises the total number of mobile subscribers of all the service providers in a circle. (3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals (metros) Mumbai and Chennai respectively. (4) Demographics of Haryana does not include Faridabad & Gurgaon as they are included in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) & Uttaranchal does not include Noida & Delhi as they are included in Delhi NCR. The significant growth in the Company's mobile business has been through a combination of organic growth and acquisitions of additional licenses and has been summarized below. The information given below is for the total market and is not representative of our market share or network coverage.

1) Comprises the circles of Maharashtra and Goa. 2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh. 3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and Chennai. 4) Comprises the sixteen operational circles of Bharti Tele-Ventures. 5) Based on data released by the COAI on the total number of persons subscribing to mobile services in our licensed areas. CHAPTER 2 BUSINESS & MARKETING STRATEGIES Some Marketing And Business Tools Adopted By AIRTEL As To Promote Its Activities: [pic] Seminars: seminars are conducted at different places by the expert time by time to make people aware. [pic] Publicity: publicity is done through various media. [pic] Stalls at famous places: they conduct their stall after a particular period of time on the famous and public place to attract them towards themselves. [pic] DSA (Direct Sales Agency) [pic] Print media [pic] Hoarding [pic] Banners [pic] Advertisement [pic] Leaflets Follow ups By KNOP Mobile Strategy Capture maximum telecommunications revenue potential with minimum geographicalcoverage to maximise its revenues and margins.Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new Circles.

Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly. Key highlights of Jan-04 are as follows: Industry additions were up from the last month's 12.71 Lacks to 13.69 Lacs this month. In percentage terms, this translates to a increase of 8 % in net adds over last month. The number of subscribers moved up from 21.99 Mn at the end of Dec-03 to 23.36 Mn at the end of Jan-04, a growth of 6.22 %. All India monthly growth in subscriber numbers was 6.13 %. The growth elsewhere was : Metros 5.28 % A circles 6.22 % B circles 7.75 % C circles 3.43 % All Circles Total 6.67 % Airtel 6.39 % B Circle category has shown the highest growth in subscriber base on an individual basis this month. At Airtel, we have always sought to enhance value for you as a customer by providing you the most relevant and easy to use services through innovation and by harnessing the latest developments in technology. In line with this strategy, we have constantly introduced innovative products and services to suit your unique needs and wants. Our services range from CLI to Music Messaging to Lost Call Alerts all to serve you better. Move your mouse over any service from the following menu to get a brief description on what it is all about. SMS ASTROLOGY RINGTONES VOICE-MAIL DAIL-A-RINGTONE LOGOS

CALLER TUNES MUSIC MESSAGING FLASH MESSAGES BLINKING MESSAGES JOKES LOVE JOKES YAHOO! MESSAGING YAHOO! MAIL NEWS UPDATES SPORTS CALLER IDENTIFICATION TRENDS IN MOBILE COMMUNICATIONS The growth and penetration of sophisticated digital communication systems, infrastructures, and services, has been increasing constantly over the last decade. Examples of these services are the Internet, electronic mail, multimedia, pagers, PDA's, and mobile telephony. From marginal penetration 15 years ago, these systems and services are becoming a commodity in both professional and consumer markets worldwide. The developments in these fields are still going strong. In particular, rapid advances - both in technology and services - can currently be observed in wireless and mobile systems that support the communication of different media, such as data, speech, audio, video and control. Current wireless network and mobile phone services roll-out is centered around four available technologies, namely WAP, UMTS, Bluetooth, and mobile positioning systems. The wireless application protocol (WAP), initially carried by second generation GSM and in the future by third generation UMTS wireless networks, will turn the mobile phone into a networked smart-phone capable of low to medium data rate Internet functionalities. Bluetooth will allow for short-range data communication between consumer appliances in a domestic environment. Positioning systems will become integral part of mobile phones such that services can be made dependent on the location of the user in the network. When projecting the progress in mobile networks and services into the future, three developments are of importance. In the first place, we can observe that more and more mobile phone-like devices start to include accessories such as a small keyboard, a display, and a speech interface. Such communication and information-oriented systems are emerging as hybrids between the mobile phone and the wireless laptop personal computer. With higher bit rates supporting more advanced services, the integration of the

personal computer and personal communication devices will be pushed even further. In the second place, we observe that computing resources are becoming ubiquitously - that is everywhere and at all time - available. We will soon live in an environment that supports us by providing ubiquitous Computing for a wide variety of tasks and services. Daily life consumables, durable products and services already contain an ever-increasing number of sensors, actuators, processing units, and (embedded) software. The personal computer has entered daily life as a necessary commodity, and the development of sophisticated communication systems in today's society relies heavily on the availability of computation resources. Finally, we observe that communication and computing is becoming increasingly personal. The device (and therefore the user) is always on-line, the user is identifiable, the device can be personalized, and the system knows about the users position. |[| |p| |i| |c| |]| CELLULAR MOBILE PRICING STRUCTURE AND TRENDS Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile relates to fixed networks. Accordingly, it is necessary for regulatory authorities to review current frameworks in those instances where regulation might impede the offering of certain pricing structures, such as calling party pays. This issue is critical in putting fixed and mobile networks on an equal footing, so the potential for competition between networks can be exploited. Testing the demand for new pricing structures can be left to the market. Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile communication relates to the Internet and electronic commerce. This report reviews and benchmarks the pricing of emerging services such as short message services. These services are the harbingers of ? Third generation ? Information services over mobile networks, and policy makers need to review current regulatory frameworks to enhance pricing innovation and competition in the provision of these services. INDIVIDUAL CUSTOMIZATION

An important trend in our society is agility or mass individualization. Consumer behavior is much more volatile, much less predictable and increasingly concerned with instant gratification. The expectation is that in due course this trend towards individualization will become a more important factor in the emerging markets too, particularly in the urban areas. As well as setting quality standards for products, this attitude also demands delivery at the right time and in the right place. At any moment, wherever the consumer may be, it has to be possible to satisfy his or her requirements; it is a question of the consumer as a "moving target" and how we can increase our chances of "scoring a hit". In modern thinking about categories of consumers, every consumer has something of this instant consumer in his or her make-up, alongside other possible descriptions, such as "rational", "social" and "responsible". What's more, this can vary according to the product category. One moment, moreover, this instant consumer will be demanding products on the basis of flavor, convenience or cheapness, and in the next breath will be voicing concerns about the environment, animal welfare or his or her own health. The likelihood is that in the long term health, the environment and animal welfare will be significant factors in the concept of quality, as safety already is. Changes in consumption patterns are an important factor in this development. While the retail trade is evolving from supermarket to household service provider in response to mass individualization, consumers are increasingly also obtaining their food through other outlets: company canteens, take-away meals, snack bars, old people's homes etc. "Young couples" in Europe are rapidly moving towards the situation that already exists in the United States, where 50% of the food consumed is prepared outside the home. This places different demands on products in terms of keeping qualities (shelf life), convenience and presentation. Consumer-driven technology development These trends in the market and among consumers generate a demand for a more differentiated and more rapidly changing product range and also call for a different approach to technology development (dedicated production systems). In the future there will have to be product development that takes the dynamic of the market and the divergent wishes of the consumers as its starting point and uses the technologies of the future: biotechnology, separations technology, sensor technology and modern information technology (IT). To achieve this, product development will have to be tackled in a more structured way, and knowledge deriving from different areas of research will have to be integrated more effectively. The

development of sensor technology in the agro sector, for instance, requires the integration of materials technology, biotechnology and process technology. New scientific developments also provide interfaces through which the sector may respond to wishes relating to health: both the information about genetic aspects and the new insights into bioactive components - substances that, in low concentrations, affect human health offer interesting prospects of made-to-measure food! In the future, "made-to-measure food" will also mean "food produced in a way that the public finds socially acceptable". Such aspects as the environment, animal welfare etc. will play a major role. This will have to be specifically taken into account in the development of technology. From chains to flexible networks As well as imposing requirements in terms of technology development, trends such as mass individualization call for a responsive answer to a sharply fluctuating market demand. This places considerable demands on the organization of agricultural production chains. The full vertical integration of links in a chain can mean a loss of flexibility. It would appear to be more efficient to opt for a continuation of the development of the chain concept; leading to responsive networks that combine the advantage of co-ordination with the flexibility of more loosely linked organizations. These independent organizations work closely together in the flow of goods along the chain in order to achieve the desired "customer value" at the lowest possible cost. COMPANYS PLANS PREPAID PLANS Are you wary of committing yourself to a date for making your bill payments? Is it too much of a bother for you to remember dates for bill payments? Do you often end up paying late fees against your monthly utility services bills? Do you end up spending too much if you have the option to pay the bill later? Think over for if one of these represents you, we have a solution for you. Start thinking prepaid is our advise! So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance. For e.g. if you feel that you need Rs. 300 worth of talktime for a month, you can buy a recharge coupon which gives you that much talktime on your cellphone. Once that money gets exhausted you can buy another recharge coupon for the same or different denomination depending on your future need.

Prepaid allows you to be in control of your cellular expenses even while you are spending. You will be surprised that today In India, Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony. Thats because almost every one of us wants to be in control of our cellular expense. Advantages of prepaid: Some of the many advantages that you enjoy with Airtel Pre-Paid... Total Cost Control Enjoy the liberty of total cost control with your Airtel Pre-paid! Recharge as much as you feel the need to! Now that's what we call complete freedom! [pic]No Rentals Buy an Airtel prepaid card without having to pay any rentals! [pic]No deposits Your Airtel prepaid card comes without you having to pay heafty deposits! [pic]STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! Our STD/ISD facility allows you to make long distance calls in India and Overseas from your cellular phone! [pic]Instant Balance Inquiry Check your talk-time instantly by calling our toll-free number! [pic]60 second pulse Airtel provides you with a 60-second pulse rate! Freedom for you to experience like never before! [pic]Instant Recharge Avail of instant recharge on your Airtel prepaid card with just a few simple steps! [pic]24-hour recharge facility With our round-the-clock recharge facility, recharge you Airtel prepaid card anytime, anywhere! [pic]Caller Line Identification Call Line Identification gives you the power to know the phone number of the calling party even before you answer the call, thus giving you the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book. So that the next time you want to call the same person, you don't need to retype his number, simply use your phone book. [pic]Call Divert, Call Hold and Call Wait

Avail of special services like call waiting, call hold and call divert all with your Airtel prepaid card! [pic]Short Messaging Service (SMS) With Airtels Short Messaging Service (SMS), send messages and jokes to your friends and colleagues, anytime anywhere! [pic]SMS based Information Services With Airtel's SMS based information services; you can get up to-theminute cricket scores, order flowers as well as send couriers or check your daily horoscope! [pic]Voice Mail service Voice Mail lets you receive messages even when your handset is switched off or when you are outside the coverage area. You can listen to your messages whenever you feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration. POST-PAID PLAN Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way. Post paid Plan: New Airtel 150 |ONE TIME CHARGES (Rs.) | |Activation Charges |250 | |Membership Fee |250 (converts into security after 24 months) | |Security Deposit |NA | |MONTHLY CHARGES (FIXED) (Rs.) | |Bill Plan Charge |150 | |MONTHLY CHARGES (OPTIONAL) (Rs.) |

|CLIP |50 | | | |Airtel |Other GSM / CDMA (10 | Landline / WLL | | | | |Digit) | | | |LOCAL RATES (Rs. / Min) |1 |1 |1 | | |STD RATES (Rs. / Min) |1.5 |1.5 |1.5 | | |ISD (Rs. / Min) | | |USA, Canada, Europe (Fixed Line), Australia, |6.4 | | |Singapore, Hong Kong, Thailand, Malaysia, | | | |Indonesia, New Zealand. | | | |Gulf, Europe (Mobile), SAARC countries, Africa|9.2 | | |& Rest of the world | | | |Cuba, Sao Tome & Principe, Guinea Bissau, |40 | | |Diego Garcia, Nauru, Solomon Islands, Vanuatu,| | | |Cook Islands, Tuvalu, Tokelau, Norfolk Island,| | | |Sakhalin | | | |SMS (Rs.) | | |Local |1 | | |CDMA |1 | | |National |1.5 | | |International |5 | |

|VAS |

|3.00

New India Home 299 |ONE TIME CHARGES (Rs.) | |Activation Charges |250 | |Membership Fee |250 ,converts into security deposit after 24 mnths | |Security Deposit |0 | |MONTHLY CHARGES (FIXED) (Rs.) | |Bill Plan Charge |Rs.299 | |MONTHLY CHARGES (OPTIONAL) (Rs.) | |CLIP |0 | | | |Airtel |Other GSM / CDMA (10 | Landline / WLL | | | | |Digit) | | | |LOCAL RATES (Rs. / Min) |1Per 2 Minute |1 |1 | | |STD RATES (Rs. / Min) |1Per 1 Minute |1Per 1 Minute |1Per 1 Minute | | |ISD (Rs. / Min) | | |USA, Canada, Europe (Fixed Line), Australia, |6.4 | | |Singapore, Hong Kong, Thailand, Malaysia, | | | |Indonesia, New Zealand. | | | |Gulf, Europe (Mobile), SAARC countries, Africa|9.2 | | |& Rest of the world | | |

|Cuba, Sao Tome & Principe, Guinea Bissau, |40Rs | | |Diego Garcia, Nauru, Solomon Islands, Vanuatu,| | | |Cook Islands, Tuvalu, Tokelau, Norfolk Island,| | | |Sakhalin | | |SMS (Rs.) | | |Local |1 | |CDMA |1 | | |National |1 | |International |5 | | |VAS |3 |

Airtel 175 Plan |ONE TIME CHARGES (Rs.) | |Activation Charges |Rs.250 | |Membership Fee |Rs.250(converts to security deposit post 24 mnths) | |Security Deposit |NA | |MONTHLY CHARGES (FIXED) (Rs.) | |Bill Plan Charge |175 | |MONTHLY CHARGES (OPTIONAL) (Rs.) | |CLIP |0 | | | |Airtel |Other GSM / CDMA (10 | Landline / WLL | |

| | |Digit) | | |LOCAL RATES (Rs. / Min) |0.75 |0.75 0.75 | | |STD RATES (Rs. / Min) |1.5 |1.5 | | |ISD (Rs. / Min) | | |USA, Canada, Europe (Fixed Line), Australia, |6.4 | | |Singapore, Hong Kong, Thailand, Malaysia, | | | |Indonesia, New Zealand. | | | |Gulf, Europe (Mobile), SAARC countries, Africa|9.2 | | |& Rest of the world | | | |Cuba, Sao Tome & Principe, Guinea Bissau, |40 | | |Diego Garcia, Nauru, Solomon Islands, Vanuatu,| | | |Cook Islands, Tuvalu, Tokelau, Norfolk Island,| | | |Sakhalin | | |SMS (Rs.) | | |Local |1 | |CDMA |1 | | |National |1.5 | | |International |5 | | |VAS |3 | Airtel Out of Home Circle

| | |1.5

We have established one of the most extensive roaming tie-ups - both national and international- with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. We currently provide roaming coverage in more than 1000 cities and major highways across India. We also provide international roaming in 56 countries across 101 networks. To get more information on our roaming coverage, click on the respective links: National Roaming Our national roaming coverage currently spans across more than a 1000 cities across India. To subscribe to National Roaming, you have to pay the following: Security Deposit- Rs 1500 Monthly Rental- Rs 49 National Roaming Tariffs: | |Location |Distance(Km) |Charges(Rs.) | |Service category | | | | |Outgoing | | |Within the roamed Circle | | | | |M 2 M / PSTN / WLL |Any |1.99 | | | | | | | |Outside the roamed Circle (STD) | | | | |M2M |0 - 200 |1.99 | | | |> 200 |2.99 | | |M 2 PSTN/WLL |0 - 200 |2.99 | | | |200 - 500 |3.99 | | | |> 500 |4.99 | |ISD |Gulf | |15.99 | | |Rest of the World | |15.99 | |Incoming | | |Any source |Any distance |1.99 | |SMS |

| | Customer Care

|Mobile Originated |Mobile Terminated

| |

|3 |0

| |

Do you need any clarifications on your bills? Do you have any feedback or query on our Products & services? You can call us, send us an E-mail or meet us in person. We shall be glad to help you out in every possible way. Contact us by phone If you are on Airtel, just call us on 121 your Airtel Prepaid phone. If you are on Airtel postpaid, just call us on 121 from your Airtel Postpaid phone These toll free numbers however, cannot be dialed when you are roaming. Airtel launches Music Messaging service Customers can dedicate songs along with their voice messages; Airtel, one of the leading cellular operators in Maharashtra, Goa, and Daman & Due and today announced the launch of a new innovative service called Music Messaging. The service will allow music lovers to listen to the various songs and then dedicate the same to any other Airtel mobile subscriber along with a personalized voice message. For using the service, the customer simply needs to dial 646 from his mobile and follow the voice prompts. This will lead him to the options Hindi and English songs. There are 10 songs under each option and the customer can either go on to listen to the song clippings of 90 seconds each or move on to the next or previous song. While listening to the song, the subscriber may choose to dedicate the song to some other Airtel Subscriber after recording a 10 second long personalized voice message. The music message will then be received by the person to whom it has been dedicated as a Voice Message with the CLI of the sender. Once delivered, the message begins with the senders voice message followed by a 30 second clip of the song that has been dedicated. The charge for the service is just Rs 7/minute for a 60 second pulse. Announcing the launch of the service, Mr. N.F.Aibara, COO, AirtelMaharashtra said The mobile phone today is no longer just a communication device. Rather it is a driver of self-identity and creative pursuits especially for the youth segment which constitutes about 70 % of the new customers that we enrol every month. We have always sought to

provide our customers with new and exciting services that have been made possible through innovation and use of latest technology. The launch of this new service is another step in the same direction as it enables customers to add a musical edge to their messages-nothing can be more powerful than a message in ones own voice along with a song to suit the situation. I am sure this service will be liked by all our customers and more specially the youth BHARTI CELLULAR FOOTPRINT Bharti is to first achieve critical mass, then drill deep instead of spreading thin. Thereafter, it is ready for controlled expansion. In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of India's most attractive and contiguous telecom geographies, including the states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and Delhi (inclusive of NCR). With a footprint dominating the map of India, Airtel Cellular accesses over 45% of India's total telephony potential. With the objective of critical mass achieved, Airtel Cellular turned to drilling deep. CHAPTER 3 OBJECTIVE OF THE STYDY o To study the consumer trends in telecommunication sector. o To study consumer decision-making & preferences. o To study marketing strategies adopted by Airtel. o To study the level of customer satisfaction in Airtel. o To study the market potential. o To study customer purchase decision behaviour. o To understand the needs of different consumer segments. o Comparative study of different mobile companies.

o To know why some retailers dont sell new connections of Airtel. RESEARCH METHODOLOGY: Research problem: To study consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The study was conducted in Delhi with sample size of 50 and sample units were suppliers and Consumer of mobile connection Research Objectives: o To study the consumer trends in telecommunication sector. o To study consumer decision-making & preferences. o To study marketing strategies adopted by Airtel. o To study the level of customer satisfaction in Airtel. o To study the market potential. o To study customer purchase decision behaviour. o To understand the needs of different consumer segments. o Comparative study of different mobile companies. Research Design The following methodology was adopted for the study purpose: Type of research: Descriptive and qualitative research design were used while conducting the project. Sampling Design was taken by the researcher as the Research design. The major purpose of the study is to describe the state of affairs as it exists at present. The study was based on the facts or information already available, & analysis of this available information make a critical evaluation of the material. Research Method/Technique: In the project report the researcher used following techniques while conducting his study: Analysis of documents Survey Method: A market survey was done on life insurance companies. Interview (Personal): Both open and closed ended (unstructured) questions were asked while taking some information from the users of the cellular at DELHI. Questionnaire (Structured): A structured designed comprehensive questionnaire was framed and pretested for data collection from the customer of mobile

Research Data Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data can be obtained from two important sources, namely: 1. Primary Data 2. Secondary Data Primary Data: Primary data are gathered for the specific purpose or for a specific research project, consist of original information for the fulfilment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data. Primary data can be collected in four ways:1. Observation 2. Survey Secondary Data: Secondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types: 1. Internal data 2. External data When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc. Internal data are reports and memos generated within an organisation to facilitate its operations and annual report. External data are those specially produce for outside consumption. Sources from which the researcher has taken the secondary data are as under: 1. Direct observation 2. Airtel website 3. Books for marketing management 4. Surveys and customer data & report

5. Airtels customers care office 6. Airtels Brouchers SAMPLE DESIGN Area of Sample: The areas covered up in this survey was DELHI Selection of units under study Sampling Units from DELHI were suppliers and Consumer of mobile connection Source list (Sampling Frame) SUPPLIERS: 10 CUSTOMERS: 40 Sample size: 50 Sampling Procedure: Probability Sampling (Simple Random Sampling) LIMITATIONS OF THE STUDY While working on this project I have to face some difficulties while conducting the survey. People were not interested in giving there actual information about their family income and airtime, as they were extremely scared about the income tax some people have difficult to take them in confidence so that they can give correct information. Some of the limitations are: Not at home Refusal to co-operate Respondent bias CHAPTER 4 DATA ANALYSIS AND INTERPRATION 1) Do you have own mobile connection? A. Yes B. No. [pic] The data shows that the total sample size of 50 people taken for research out of which 86% of persons keep mobile with them. Sample size - 50

|Having mobile |Respondent | |Yes |43 | |No |7 | 2) Which kind of phone you would like use? [pic] The data shows that the total sample size of 50 people taken for research out of which 50% of persons like to use land line phone and 30% person like to use mobile and rest 20% person like to use WLL. Sample size - 50 |CONNECTION |Respondent | |LANDLINE |25 | |MOBILE |15 | |WLL |10 | (3) Which age group you belong to? a) 15-20 b) 20-25 c) 25-35 d) 35- above [pic] The analysis shows that 14% people from 15- 20 age group, 8% persons from 20-25 age group, 36% persons from 25-35 age group, and 42% of people from 35-above age group keep mobile with them. Sample size - 50 |Age | |15-20 | |20-25 | |Respondent |7 |4

|25-35 | |35-above | (4) What occupation do you have? a) Business b) Professional c) Government Employee d) Student

|18 |21

[pic] The data shows that 50 persons are from, 23 persons are professionals, 16 persons are Private and 5 persons are found retirement 6 person are government employee to consume mobiles. Sample size - 50 |Occupation |Respondent | |Professional |23 | |Private |16 | |Retirement |5 | |Government |6 | (5) Which connection would you prefer? a) MTNL b) Airtel c) Orange/ Hutch d) BPL e) Reliance [pic] When the preferences for mobile phone connections were asked, results drawn that 40% of persons prefer to take BSNL because they believe in BSNLs better coverage & cheaper rates after BSNL, 20% of people opt Reliance services because of its cheaper rate and flexible schemes, then Airtel is only 25% but there is very high recommendation for its better

connectivity. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world. Sample size: 50 |Phone Connections |Respondent | |Airtel |20 | |BPL |8 | |MTNL |12 | |OTHERS |10 | (6) You would like to take prepaid connection or Post paid connection? a. Prepaid b. Post paid [pic] The research study shows that almost people from the selected segment give priority to Post Paid connection, because of the flexibility and attractive plans for this market segment. Sample size: 50 |Connection | |Pre paid | |Post paid | |Respondent |40 |10

| |Airtel market %|Competitor's |Airtel market% | Competitor's |Airtel Lapu % |Competitor's Lapu % | | | |market% | |Market% | | | |Careters meeting Pt. |40% |60% |45% |55% |41% |59% | |Final Touch |67% |33% |45% |55% 45% |55% |

|Naaz photo comm. |36% |43% |57% | |Tone & melodies |45% |40% |60% | |Milan comm. |38% |38% |63% | |Aalamcomm. |45% |29% |71% | |Vijay electronics |38% 38% |62% | |Aman comm. |42% |38% |62% | |Rose comm. |43% 29% |71% | | | | | |TOTAL |45% 37% |63% | [pic]

|64% |55% |63% |55% |62% |58% |57% | |55% |

|42% |43% |43% |57% |38% |40% |29% | |43%

|58% |57% |57% |43% |63% |60% |71% | |57% | | |

|Outlet name |Airtel market % |Competitor's market%|Airtel market %|Competitor's market%|Airtel Lapu % |Competitor's Lapu| | | | | | | |% | |A 2 Z communication |43% |57% |40% |60% |33% |67% | |B.K.Marketing |64% |36% |50% |50% |40% |60% | |Santacruz mart |61% |39% |9% |91% |41% |59% | |Mobile villa |68% |32% |27% |73% |44% |56% | |Vakola Mall |80% |20% |40% |60% |44% |56% | |Matrix telecom |37% |63% |50% |50% |30% |70% | |Gupta Telecom |58% |42% |38% |62% |45% |55% |

|Moon contacts |74% |53% |47% | |Mobile city |44% |45% |55% | |Konkan electronics |58% |43% |57% | |TOTAL |61% |43% |57% | [pic]

|26% |56% |42% |39%

|42% |33% |38% |24%

|58% |67% |62% |76%

| |Airtel market %|Competitor's |Airtel market% | Competitor's market% |Airtel Lapu |Competitor's Lapu | | | |market% | | |% |% | |Gala & sons |75.00% |25% |53% |47% |60% |40% | |Bharat telecom |75.00% |25% |45% |55% |45% |55% | |Praveen & sons |70.97% |29% |56% |44% |56% |44% | |Zarina general store |64.52% |35% |57% |43% |48% |52% | |Ravi communication |72.73% |27% |55% |45% |48% |52% | |Sai communication |75.00% |25% |45% |55% |44% |56% | |Quality inn |62.50% |38% |52% |48% |56% |44% | |Nirmals shop |76.47% |24% |48% |52% |60% |40% | |Andheri Shop |66.67% |33% |50% |50% |43% |57% | |Total |72.27% |28% |49% |51% |54% |46% | [pic] | |Airtel market % |Competitor's market% |Airtel market% | Competitor's market%|Airtel Lapu %|Competitor's Lapu |

| | | | |Nair Gallery |55% |33% |67% | |Poonam Art Gallery |50% |43% |57% | |Aman comm. |63% |42% |58% | |Khar Internationals |44% |31% |69% | |Saif business |26% |40% |60% | |Unique telecomm. |43% |67% |33% | |Antique Communications |54% |43% |57% | |Harmain Entp.. |56% |43% |57% | |Orpat watches |56% |29% |71% | |Sindhi Mobiles |45% |38% |62% | |TOTAL |50% |40% |60% | [pic]

| |45% |50% |38% |56% |74% |57% |46% |44% |44% |55% |50%

| |45% |44% |42% |33% |47% |36% |54% |42% |56% |40% |43%

| |55%

|%

|56% |58% |67% |53% |64% |46% |58% |44% |60% |57%

| |Airtel market |competitor's market% |Airtel | competitor's market% |Airtel Lapu %|competitor's Lapu | | |% | |market% | | |% | |Magic gallery |46% |54% |40% |60% |31% |69% | |Photo world |40% |60% |40% |60% |35% |65% | |Baba Telecom |42% |58% |63% |37% |36% |64% | |Gift Point |48% |52% |5% |95% |37% |63% |

|Gift 4 U |36% |64% |29% |71% | |Arco electronics |43% |57% |36% |64% | |Marlboro telecom |38% |63% |36% |64% | |Star comm. |43% |57% |36% |64% | |Malik comm. |43% |57% |39% |61% | |Highway international |44% |56% |38% |62% | | | | | | |TOTAL |43% |57% |35% |65% | [pic] | |Amar enterprises Bharat stores | | |Ginny Telecom / a month | | |Sodhi Selection a month | | |Krishna Enterprises 2 / a day | | |Balajee Medical Store Don't Sell Sim | | |Pastry Palace Sell Sim | | |Sutech Photostat Don't Sell Sim | | |Mobile Gallery 12 / a month | | |E-Zone month | | |Vikas Teleco month |

|45% |35% |38% |30% |37% |29% | |38%

|55% |65% |62% |70% |63% |71% | |62% |

|Golden tel. |3000/a day |3000/a day |3000/a day |1000/a day |500/a day |1000/a day |2000/a day |4000/a day |1000/a day

| |10 |7 / | | |Don't | | |10 / a |5 / a

| |Skyline Communication |5/ a month | | |Kohli Associates 12 / a month | | |Amit Cellnet Don't Sell Sim | | |Sunrise Communication |Don't Sell Sim | | |Gurunanak Telecom 15 / a month | | |Lambawatch Service 4 / a day | | |Shri Balajee Communication |15 / a month | | |Bharija Telecom a month | | |Chabra Sons a month | | |Gupta Telecom 3/a day | | |Goodluck Telecom 5/a day | | |Arora Telecom day | | |Baboo Music House 1/a day | | |Rincle Electronics day | | |Honest Telecom 1/a day | | |Prince Communication |2/a day | | |Jyoti Telecom day | | |Hari Telecom day | | |Bansal Communication |2/a day | | |Verma Communication |1/a day |

|1000/a day |5000/a day |Don't Sell Lapu |Don't Sell Lapu |3000/a day |5000/a day |500 / a day |1000/a day |1500 / a day |3000/a day |3000/a day |5000/a day |4000/a day |5000/a day |3000/a day |2000/a week |5000/a week |3000/a day |3000/a day |5000/a week |2/a |1/a |4/ |10 / | | |2/a | |2/a | | | | |

| |Sunny Sound day | | |Diksha Network Don't Sell Sim | | |Gogia Telecom 3/a month | | |Urvashi day | | |Sharma Telecom 1/a day |

|2000/a day |Don't Sell Lapu |7000/a month |3000/a day |5000/a day

|1/a | | |2 /a |

SOME OF THE OUTLETS THAT I HAVE COVERED |S.No. | Doing (New Sim) | | | | | |Your's Shop a week | | |Gaba Communication |1 / a week | | |Gosain Electronics 4 / a week | | |Sant Bakers a week | | |Unique Communication |1 / a week | | |Sukh Communication |1 / a week | | |Arora Communication |2 / a week | | |Balajee Communication |10 / a week | | |Dase Enterprises 3 / a week | | |Gift Corner a week | | |Deepak Communication |Don't Sell Sim | |Transforming Value | |8000 / a week |6000 / a week |20,000 / a week |10,000 / a week |3000 / a week |3000 / a week |3000 / a day |15000 / a week |7000 / a week |20000 / a week |2000 / a week | |5 / | |2 / |571 |2 / |

| |Kalptaru Communication |4 / a week | | |JMD Communication |3 / a week | | |Hello Point week | | |Grover Communication |1 / a week | | |Electronics Ways 15 / a week | | |Com-Com 7 / a week | | |Melhotra Telecom 7 / a week | | |Grover Car Don't Sell Sim | | |Puneet Communication |Don't Sell Sim | | |Digital Age week | | |Bhawna Communication |1 / a week | | |Anand Communication |1 / a week | | |Vicky Communication |1 / a week | | |B.S. Telecom a week | | |Raju Telecom a week | | |Noble Communication |6 / a week | | |Sun Communication |1 / a week | | |Tele Voice week | | |Asian Electronics 4 / a week | | |Fine Computers 1 / a week |

|3000 / a week |3000 / a day |5000 / a week |5000 / a week |20,000 / a week |15,000 / a week |35,000 / a week |Don't Sell Lapu |4000 / a week |3000 / a day |3000 / a week |3000 / a week |2000 / a day |3000 / a day |6000 / a week |9000 / a week |5000 / a week |3000 / a week |5000 / a week |5000 / a week |2 / a | | |2 / |3 / |2 / a | | | | |2 / a

| |Kundan Property Don't Sell Sim | | |Air Communication |2 / a week | | |Melody week | | |Style Communication |2 / a month | | |Apna Store Don't Sell Sim | | |Jaishree harmilap 2 / a month | | |Monu Studio a week | | |Crazy Communication |2 / a day | | |Chawla Telecom 1 / a month | | |Bhola Telecom Don't Sell Sim | | |Broadway Music 1 / a month | | |Cellular Hut a month | | |Feeling Gift Point Don't Sell Sim | | |Jai Ambe Fancy Store |Don't Sell Sim | | |Kiran STD Don't Sell Sim | | |Kundan Properties Don't Sell Sim | | |Ambika Telecom 1 / Month | | |Manpreet Communication |Don't Sell Sim | | |Naveen Corner Don't Sell Sim | | |Neha Enterprises 1 / a month |

|Don't Sell Lapu |5000 / a week |7000 / a week |5000 / a week |Don't Sell Lapu |2000 / a week |5000 / a week |2000 / a week |3000 / a week |Don't Sell Lapu |5000 / a month |Don't Sell Lapu |Don't Sell Lapu |Don't Sell Lapu |Don't Sell Lapu |Don't Sell Lapu |2000 / a week |Don't Sell Lapu |Don't Sell Lapu |2000 / a week | | | | | |

|2 / a

|1 /

| |4 / |

| |

| |Royal Amar Watch |1 / a month |

|2000 / a week

SWOT Analysis Of Airtel

Strengths INVESTORs FAITH: Investors faith in Airtel that causes huge monetary support. STRONG ADMINISTRATION: Under the leadership of Bharti Cellular Ltd Airtel proved themselves as an well-organized & administrative company. BRAND NAME: Airtel as a brand is the synonym of success. It is the largest private limited organization of India. Weakness Lack Of Co-Ordination Between Deptt. Lack of Choice of Good Pre-paid numbers like XXYY numbers like others providing. Opportunity

favourable TARRIFS: Newly issued tariffs are suitable for Airtel so they can easily modify their tariff plans according to it and gain customer attraction. Threats tough COMPETITION: Airtel has to face a tough competition with existing market leaders like Reliance (Reliance is providing Free Outgoing also) Hutch, Idea, Dolphin and Trump. FINDINGS Airtel FSO FSO - Full Service Outlet Basically for providing customer services in terms of their queries to build good relation with customers to reach a point of customer satisfaction. Building good customer relation does not only help in expanding sales but also helps in knowing the customer better and knowing the customer further leads to acknowledgement of tastes & preferences of the customer. One of the various ways to reach the customer is through franchisee. It helps the customer to be in touch with a particular business. The franchisee should be at many places to build a strong relation with all segments of customer. It must also have many customer executives so that there are enough people to attend all customers and time can be saved. It leads to instant help to the consumer to be happy and satisfied and the sole purpose of marketing "Customer Satisfaction is achieved. OUTLOOK OF THE FRANCHISEE: The franchisee was having transparent glasses outside so that anybody can look in that its open from outside from inside the franchisee was beautifully furnished with furniture. Most of the things there was of Red, black and white colour which are colours of Airtel. The franchisee was centrally air-conditioned and have all the necessary things which customer needs like sufficient number of seats, drinking water etc.

INTERACTING WITH THE CUSTOMER'S All the customer's were treated well, when they enters the franchisee the executives greets them. All the executives there listens the customer query very patiently and try there level best to solve it they send the customer to the floor manager. For eg.: For the new connection - The executives first listening to the customer patiently (his needs and preferences) than tell them postpaid and prepaid connection plans which most suited to the customer and helps them to choose the best for them, on the basis of their budget, for what purpose they are buying, how often he will use it etc. SERVICES PROVIDED BY Franchisee: New Postpaid and prepaid connection New SIM issue Duplicate SIM issue. Coupons and Easy recharge (Value) Bill deposit (In cash and cheque) Solving Customer queries Migration of prepaid connection to postpaid connection and vice versa Name and Address change of postpaid connection Activation of Roaming and STD Bill details Changing of plans Disconnection of plan Mobile problems Queries regarding broadband, GPRS Queries regarding Land line phone OBSERVATION: The executives there were not fully aware of all plans. For eg. the executives was not aware that Rs. 2,000 prepaid Connection in which the customer's get two years incoming validity was still

going on, he come to know about it when the customer said that he got a message from Airtel today about this plan. Customer's of new connection were very unhappy that there connection will be activated after a weak. Customer's were not satisfied with the Airtel services. Customer care number doesn't connects easily, it takes a lot of time to connect some-times a day to speak with executive. Many fraud cases were coming. Most of the people are opting for postpaid connection instead of prepaid connection postpaid and prepaid connection plans which most suited to the customer and helps them to choose the best for them, on the basis of their budget, for what purpose they are buying, how often he will use it etc. Most of the people were opting for Rs. 1399 advance rental plan of 2 years. Many customers were demanding for corporate connection but the executives said that individual connection of corporate is not possible; they should be atleast five connections. People were very happy with add-on scheme of postpaid and also opting for it. The franchisee sells 7 to 9 postpaid and 3 to 5 prepaid connection daily. Many customer's were coming for making adjustment in their bill plan or amount. Many customer's were coming with the problem that the plan they are assigned was not opted by them. Radio-connectivity of their system was getting very slow again and again by which the customer's were getting irritated. The customer's who need prepaid connection were getting less preference in comparison to the customer's who need postpaid connection. The customers were very happy with Airtel scheme in which the customer can make the payment through bank automatically every month by filling ECR form.

SUGGESTIONS: There should be more customer care numbers and executives so that the problems of the customers can be solved quickly. They should have more space for payment. The executives there should be given training time to time about new schemes and plans. No phone calls should be attended while entertaining the customer. Every executives should know his responsibility and work. RECOMMENDATION The company should go ahead with aggressive marketing. They should light competition on 1. Awareness level. 2. Pricing strategy. Thus, the recommendations fir these are as follows: 1. AWARENESS (a) The company should sponsor local programs. (b) The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc. (c) The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly. (d) The company should distribute, l eaflets of AIRTEL Cellular in posh colonies of DELHI. 2. PRICING STRATEGY (a) The company should look the strategies of the competitive companies. (b) The company should try its level best to keep the price low as compare to competitors. (c) The schemes should be updated as per the needs and occasions