IDEA CELLULAR Idea Cellular Limited has a share of 12% in the total GSM telecom market in India (as

onMar08). The Entire Telecom Industry is growing at a rate of 25% as compared to the base year 2006-07. This can be termed as a moderately growing Industry and it is expected to grow in the coming years. We are thus putting the middle line of the vertical axis in our BCG matrix as 15% as a division between low and high growth. The first BCG matrix will be plotted for Idea Cellular Limited, our chosen SBU, with respect to the market leader, Bharti Airtel. Taking the market share of Bharti as 1X, the relative market share of Idea comes as 0.39X. The BCG matrix thus, would look like as under.

VODAFONE

Vodafone has reported a 5.15% quarter on quarter increase in India Service revenues for the quarter ending June 30th 2011 (Q1-FY12), up from previous quarter (FY10). Revenue from voice services increased by 4.10% quarter on quarter. Though contribution to total revenues declined marginally to 78.25% of total. The contribution of data and messaging grew to a combined 12.61% of total revenue, up from 11.84% reported last quarter.

Once again, the decline in messaging revenues was surpassed by the growth in data services, and for the second quarter running, there was a decline in messaging revenue, at 44 million. The company has stated that it had 26 million data customers at the end of 30th June 2011, up 189% year on year. Last quarter, in response to a written query from MediaNama, Vodafone said that they had 19 million data users at the end of March 2011, of which 1.5 million were 3G subscribers. So the number of data subscribers has gone up by a 36.84% (7 million in total) quarter on quarter. The company says that The growth was driven by the increase in data enabled handsets and the continued impact of successful marketing campaigns run in conjunction with the sponsorship of key sporting events. Vodafone had launched 3G services in 147 towns and cities across 12 circles by end of June 2011. On the conference call (in progress now), the company said that the launch of the Vodafone Opera Mini browser has driven data growth, and it has 3.7 million Opera Mini users.

Operational Parameters

- ARPU: Vodafone Indias (blended) ARPU declined quarter on quarter Rs 169 from Rs 171 the previous quarter. ARPU has been sliding for many quarters. - PostPaid: Postpaid ARPU grew to Rs 749 quarter on quarter, from 171, reversing the trend of quarterly decline. However, prepaid ARPU continued to fall to Rs 141 from Rs 142. 95.4% of Vodafones subscriber base is pre-paid. BHARTI AIRTEL Bharti Airtel, the country's leading mobile phone operator, today announced bigger-thanexpected drop in profit for the March quarter, down 31.48%, mainly due to losses at its African operations. The company said consolidated net profit fell to Rs1,400.7 crore for the fourth quarter in 2010-11 from Rs2,044.4 crore in the previous corresponding period.

Total revenue, however, was up by 51.32% at Rs16,265.4 crore in the period under review, compared to Rs10,749 crore in the year-ago period, reports PTI. The Bharti Airtel shares recovered after falling by as much as 4.5% after the earnings announcement this morning. At 11 am, the stock was trading at Rs366, still about 1% down on the Bombay Stock Exchange, with the benchmark Sensex slightly higher. It is the fourth consecutive quarter of falling profits for Bharti, since it started reporting results based on international accounting standards. "Net income, at Rs6,047 crore, declined by 32.6% from Rs8,977 crore in the previous year due to increase in net interest outgo (Rs1,480 crore), forex re-statement losses (Rs683 crore), rebranding expenses (Rs340 crore) and increase in spectrum charges in India (Rs265 crore)," the company stated. For the full year 2010-11, Bharti Airtel's net profit was down 32.64% at Rs6,046.7 crore, compared to Rs8,976.8 crore in the previous year. Total revenue for the 2010-11 was at Rs59,467 crore, as against Rs41,847 crore in the previous fiscal year, up 42.1%. The company's prospects in India, the second-biggest and fastest-growing market in the world, improved during the year as call prices steadied after a price war that had led to sharp drops. Now, telecom companies, including Bharti Airtel, have begun rolling out third-generation (3G) networks hoping for a pickup in premium data services to boost revenues. Bharti accounts for a quarter of India's mobile market of more than 800 million customers. It operates second-generation (2G) mobile services in all 22 telecoms zones in the country and has rights to offer 3G services in 13 of them. However, Bharti said that average revenue per person (ARPU), a key gauge of profitability, dropped by 12% to Rs194 in the March quarter, compared to Rs198 in the December quarter. The board has recommended a dividend of one rupee per equity share of Rs5 each for the 201011 fiscal.