1.

INDUSTRY PROFILE
Telecommunication industry deals with the activities and services of electronic systems for transmitting messages through cables, telephone, radio or television. Two major factors responsible for the growth of telecommunication industry are use of modern technology and market completion. One of the products of modern technologies is optical fibers, which are being used as a medium of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Use of communication satellites makes this telecommunication industry a booming industry. The use of mobile network has a crucial role behind the growth of an improved telecommunication industry. Leading companies are showing their interest to invest in this telecommunication industry. Telecommunication industry in going to be digitized one. Use of ISDN (Inter services Digital Network) makes this telecommunication industry a total digitalized system and eventually enhances the speed and quality of digital communication. The introduction of these advanced technologies makes the telecommunication industry a competitive one, where a number of multinational companies have shown their interest to invest in this industry and consequently the prices are reduced, the quality is also improved. During the period of 1990, the telecommunication industry showed a speedy growth in terms of investment and eventually increased the competition. The competition between the companies led to the decline of revenues.

1.1 History of telecommunication

The kings used human messengers to communicate to their people in various states within their kingdom or to people in other kingdoms.

Julius caesar, the emperor of Rome, more than 2000 years ago, used pigeons to send messages back home from battle. Pigeons were enen used during the world war II as war message. The Dawk system was started in India in the year 1688, when the first office of the company post was established in Mumbai and Chennai In 1876 Alexander Gram Bell spoke the first word on the telephone Mr Watson come here, I want to see you In 1888-1902, the first patents for the telephone with a slot for coins were field. Mr Bell once again used the phrase Mr Watson come here, I want to see you When he was incited to the opening of the completed transcontinental telephone line connecting the west cost and the east cost. However, this time, Mr. Watson responded saying that it would take him a week to get there as he was in San Francisco. In 1915, the first wireless voice transmission between New York and Sans Francisco signaled the beginning of the convergence of the radio and telephone In the mid 1960s the original concept underlying the internet was developed. Wireless communication Pager Services Pager communication successful launched in India in the year 1995. Pagers were looked upon as devices that offered the much needed mobility in communication, especially for businesses. Motorola was a major player with nearly 80 per cent of the market share. The other companies included Mobilink, Pagelink, BPL, Usha Martin telecom and Easy call. Pagers were generally worn on the belt or carried in the pocket. The business peaked in 1998 with the subscriber base reaching nearly 2 million. However, the number dropped to less than 500,000 in 2002. The pager companies in India were soon struggling to maintain their business. While 2-way pagers could have buffered the fall, the pager
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companies were not in a position to upgrade their infrastructure to improve the ailing market. The Indian Paging Services Association was unable to support the industry. Pager companies in India also offered their services in regional languages also. However, the end had begun already. By 2002, Motorola stops making or servicing pagers. When mobile phones were commercially launched in India, the pager had many advantages to boast. Pagers were smaller, had a longer battery life and were considerably cheaper. However, the mobile phones got better with time and continuously upgraded themselves. Mobile Communication First mobile telephone service on non-commercial basis started in India on 48th Independence Day at countrys capital Delhi. The first cellular call was made in India on July 31st, 1995 over Modi Telstras MobileNet GSM network of Kolkata. Later mobile telephone services are divided into multiple zones known as circles. Competition has caused prices to drop and calls across India are one of the cheapest in the world. Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz band, they are first to introduce EVDO based high speed wireless data services via USB dongle. In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by India Govt. officials and financial troubles. In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government owned MTNL and BSNL. Later from November 2010 private operators started to launch their services. Broadband communication After US, Japan, India stands in third largest Internet users of which 40% of Internet used via mobile phones. India ranks one of the lowest provider of broadband speed as compared countries such as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed above 2Mbits is still in a nascent stage.

Year 2007 had been declared as Year of Broadband in India. Telcos based on ADSL/VDSL in India generally have speeds up to 24Mbit max while those based on newer Optical Fiber technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx). Broadband growth has been plagued by many problems. Complicated tariff structure, metered billing, High charges for right of way, Lack of domestic content, non implementation of Local-loop unbundling have all resulted in hindrance to the growth of broadband. Many experts think future of broadband is on the hands of wireless factor. BWA auction winners are expected to roll out LTE and WiMAX in India in 2012. Next Generation Network (NGN) Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fiber optics or coaxial cable networks connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks both fixed and mobile users will access services through a single core network. Cloud based data services are expected to come. Indian Satellites India has launched more than 50 satellites of various types, since its first attempt in 1975. The organization responsible for Indian satellites is the Indian Space Research Organization (ISRO). Most Satellites have been launched from various vehicles, including American, Russian, European satellite-launch rockets, and the U.S. Space Shuttle. First Indian satellite Aryabhata on 19th April 1975, later Bhaskara, Rohini, INSAT, Edusat, IRS, GSAT, Kalpana, Cartosat, IMS, Chandrayaan, ResourceSat, RiSat, AnuSat, etc. The Indian telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia. The Indian telecommunication sector has continued to
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record noteworthy success throughout the year and has emerged as one of the key sectors that have been accountable for resurgent growth of the Indian economy. The rapid growth of the sector has been coupled with proactive polices and decisions taken by the Indian Government and dynamic involvement of the private sector. The liberal policies in the telecommunication sector have facilitated easy access to telecom companies and a fair regulatory framework offers services to the Indian consumers at affordable prices. The wireless technologies currently in use in ' Indian Telecom Industry ' are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 11 GSM and 5 CDMA operators providing mobile services in 22 telecommunication circles, covering more than 2000 towns and cities across the country. The Indian telecom sector is largely dominated by private operators that control a share of 88.53%. Among the top players in the telecom sector, Bharti Airtel owns the largest share at 28.71%, followed by Reliance 14.96%,tata GSM+CDMA at 13.06%, Vodafone at 12.52%, state-owned BSNL at 11.47%, Idea at 9.65%, MTS at 3.69%, Aircel at 3.20%,Uninor at 2.69% (data as of Nov 2011) Over the last 5 years, nine out of every ten new telephone connections have been wireless. Consequently, wireless now accounts over 95% of the total telephone subscriber base, as compared to only 40% in 2003. And the numbers are still growing for ' Indian Telecom Industry. ' Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence. Three types of players exists in ' Telecom Industry in India ' community State owned companies like - BSNL and MTNL. Private Indian owned companies like - Reliance Infocomm and Tata Teleservices. Foreign invested companies like - vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea

Cellular, BPL Mobile, Spice Communications etc.

The Indian Telecom Industry services is not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc As per statistics, the total number of mobile phone base in the country will rise to 900 million by the end of 2012 and it is further expected that this figure will steadily rise to 1.25 billion by 2015. It has also been projected that the users for the broadband base are going to reach 100 million mark by 2014, particularly after the telecom companies roll out their 3G services as per the research study conducted by Crisil.

Telecommunication sector in india

Telecom sector contributes 1.5% to National GDP India added 113.26 million new customers in 2008, the largest globally. The countries cellular base witnessed close to 50% growth in 2008, with an average of 9.5 million customers added every month. At the quarter ending March 2009, India had a total subscriber base of 429.7 million subscribers. In this year India witnessed the a tremendous growth in the rural subscriber base, standing at 120.29 million subscribers In the month of May 2010 telephone subscribers reached 653.92 million, of which wireless subscribers were 617.53 million. There were 16.30 million new additions in wireless. The Broadband subscription was 9.24 million. As of October 2011 there were 914.59 million telephone subscribers, of with wireless were 881.40 million, monthly wireless additions were 7.79 million. India was stated as the worlds fourth largest internet user with over 121 million as on December 2011. India has come to be regarded as the world's most competitive and one of the fastest growing telecom markets. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$53.81 billion) for 2010-11 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$22.24 billion). The industry is expected to reach a size of 344,921 crore by the end of 2012 at a growth rate of over 26% and generating employment opportunity for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. The following table illustrates the gradual increase in monthly mobile subscriber additions(in millions) in India since January 2002 6

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 1.2growth of telecommunication industry

Annual Additions(in millions) 5.23 17.49 19.49 27.86 64.14 85.27 113.26 178.25 227.12

Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the telecom manufacturing segment in 1991 - when India embarked on economic liberalisation. FDI is defined as investment made by non-residents in the equity capital of a company. For the telecom sector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) etc. Present FDI Policy for the Telecom sector:

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

Added Services and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent (under automatic route) subject to grant of licence from the Department of Telecommunications and adherence by the companies (who are investing and the companies in which investment is being made) to the licence conditions for foreign equity cap and lock-in period for transfer and addition of equity and other license provisions. Foreign Direct Investment up to 74 per cent permitted, subject to licensing and security requirements for the following: - Internet Service (with gateways) - Infrastructure Providers - Radio Paging Service FDI up to 100 per cent permitted in respect to the following telecom services: - ISPs not providing gateways (Both for satellite and submarine cables) - Infrastructure Providers providing dark fibre (IP Category I) - Electronic Mail - Voice Mail The above is subject to the following conditions:

Foreign direct investment policies in india

- FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26 per cent of their equity in favour of Indian public

within 5 years, if these companies are listed in other parts of the worl - The above services would be subject to licensing and security requirements, wherever required. - Proposals for FDI beyond 49 per cent shall be considered by Foreign Investment Promotion Board (FIPB) on a case-to-case basis. In the manufacturing sector 100 per cent FDI is permitted under the automatic route. In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile Personal Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject to grant of license from Department of Telecommunications Foreign direct investment up to 74 per cent permitted, subject to licensing and security requirements for the Internet Service (with gateways), Infrastructure Providers, Radio Paging Service FDI up to 100 per cent permitted in respect of - ISPs not providing gateways (both for satellite and submarine cables), - Infrastructure Providers providing dark fibre (IP Category I); - Electronic Mail; and - Voice Mail FDI up to 49 per cent is also permitted in an investment company, set up for making investment in the telecom companies licensed to operate telecom

services. Investment by these investment companies in a telecom service company is treated as part of domestic equity and is not set of against the foreign equity cap. Manufacturing - 100 per cent FDI is permitted under automatic route. FDI is subject to the following conditions FDI up to 100 per cent is allowed subject to the conditions that such companies would divest 26 per cent of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. The above services would be subject to licensing and security requirements, Wherever required. Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case Basis

1.3 Following are the key players in india Bharat Sanchar Nigam Limited (BSNL) Mahanagar Telephone Nigam Limited (MTNL) Vodafone Airtel Idea Reliance Tata Aircel Uninor

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1.6 Regulatory Regime relating to the telecom industry In the year 1975 Department of Telecom (DoT) was responsible for telecom services in entire country after separation from Indian Post & Telecommunication. Decade later Mahanagar Telephone Nigam Limited (MTNL) was chipped out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment. In199 TRAI (Telecom Regulatory Authority of India) was setup. This reduced the interference of Government in deciding tariffs and policy making. The Government of India corporatized the operations wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar Nigam Limited (BSNL). Regulatory authority and Tribunal of telecom sector: A. The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a regulator for Telecom sector. The TRAIs functions are recommendatory, regulatory and tariff setting in telecom sector. B. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in May 2000. TDSAT has been empowered to adjudicate any dispute between a licensor and a licensee between two or more service providers between a service provider and a group of consumers hear and dispose of appeal against any direction, decision or order of TRAI

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Tariffs for telecommunication services have evolved from a regime where tariffs were determined by Telecom Regulatory Authority of India to a regime where tariffs are largely under forbearance. TRAI intervenes by regulating the tariffs for only those services, the markets of which are not competitive.

1.7 SWOT analysis for telecom sector

Strength

Huge customer potential High growth rate Allowing FDI ranging from 74% to 100% Liberalization efforts by the government Lower capital expenditure: The Indian telecom market is highly a density area, which means more population per tower

Weakness
Poor telecommunication infrastructure Late adopters of new technology Competitive market A market strongly regulated by the government. Difficult to enter because of requirement of huge financial resource.

Opportunities 4G services 12

More quality services VAS Boost to telecom manufacturing companies Telecom equipment export Horizontal integration

Threats Telecommunication policy Declining average revenue per user Reservation on the part of the government : allowing 3G services in the PSU before auctioning to private sector Content Piracy

2. COMPANY PROFILE

2.1 Background and Inception of the Company

The largest mobile telecommunications network in the world, Vodafone, was founded in 1984 as Racal Telecom Ltd, which was a subsidiary of Racal Electronics Plc. Racal was a British radar and electronics firm founded in 1950. It all started in 1982 when Racal Electronics Group, a subsidiary of Racal Strategic Ltd, won its bid for the private sector UK Cellular license. This enterprise, known as Racal Vodafone, was a joint venture between Racal, Millicom, and Hambros Technology Trust.
Racal Strategic Radio Ltd was later renamed as Racal Telecommunications Group Ltd in 1985. Vodafone made UKs first mobile call a few minutes past midnight on January 1, 1985 from St. Katherines Dock to Newbury. In 1987 Vodafone was recognized as the largest mobile network of the world, the very same year Vodata is created as the voice and data business to market Vodafones voice and mail service. In

October 1988, the then known as Racal Telecommunications Ltd, floated 20% of its share capital in the market. On 16 September 1991 Racal Telecom was demerged from Racal Electronics Plc,

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to become an independent company as Vodafone Group Plc. The name Vodafone originates from Voice Data Fone, which reflects provisions of voice and data over mobile phones. After Sir Gerald Whents retirement in January 1997, Sir Christopher Gent took over as the CEO. On 29th June 1999, after its merger with Air Touch Communications, Inc. the company changed its name to Vodafone Air touch, Plc but then again on 28 July 2000, reverted back to its original name after a joint approval by its share holders in its General meeting. The story about the worlds largest telecommunications giant has been nothing short of phenomenal, with head quarters in United Kingdom, and interests in Europe and United States of America Vodafone Group, and Asia has marked an astonishing achievement in the cellular business, with its major acquisition strategies and takeovers. The Groups subsidiaries operate under the brand name Vodafone. It became the biggest company on London Stock Exchange as on January 2000. In 2006 the number of its live customers using 3G reaches 10 million. Vodafone currently has operations in 25 countries and partnering networks in another 45 countries. Vodafones business unit is enabling the worlds leading multinational companies to develop and control their entire mobile communications networks. Vodafone Ltd. was clearly its flagship company, the Vodafone Group as a whole comprised several wholly owned subsidiaries that supported or complemented the activities of Vodafone Ltd. Vodafone Group International was a rapidly growing component of the group. Active in seeking opportunities and implementing projects abroad, Vodafone International looked likely to one day be as important to the group as Vodafone Ltd. itself. In 1993 the company was awarded a license in Australia to operate that country's third digital mobile telephone network. In the same year consortia of which Vodafone was a member received similar licenses to operate in Greece and Germany. Vodafone also had substantial interests in France, Scandinavia, Hong Kong, Fiji, Malta, and Mexico. Although start-up costs for foreign ventures were obviously high, the field was very lucrative, and Vodafone was continually on the lookout for new possibilities. Analysts predicted that Vodafone would increase its investments with the aim of acquiring more foreign associates and, eventually, subsidiaries. As of 1994, Vodafone operated one of the world's largest cellular networks, with over one million subscribers. This, combined with the
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company's increasingly high international profile, made it a safe bet that Vodafone would continue its prominent role in the expanding mobile telecommunications industry.

Vodafones entry into India Vodafone Essar in India is a Subsidiary of Vodafone Group Plc. Vodafone secured the operational control of Indias fourth largest mobile company, Hutchison Essar, clearing the way for the British firms expansion into the fast growing market. When Hutchison Whampoa Ltd(HWL), a Hong Kong based Telecommunication company declared its intention to sell its stake in Hutchison Essar, a leading telcom playes Vodafone had publically shown its interest in acquiring the stake. In February 2007, it acquired 67% stake buy paying 5.7bn to Hutchison Essar. Vodafone has invested a further 2bn in rolling out its network and building the operator into the country's second-biggest player. Vodafone Essar now has operations in 16 circles.odafones entry into India

2.2 Nature of business Carried: They have classified there segments as customers and Business Customers being the retail business and Business being the wholesale business

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2.3 Vision, Mission and Quality Policy

Vision Our Vision is to be the worlds mobile communication leader enriching customers lives, helping individuals, businesses and communities be more connected in a mobile world.

Mission Driving in a wireless world Vodafone is primarily a user of technology rather than a developer of it, and this fact is reflected in the emphasis of our work programme on enabling new applications of mobile communications, using new technology for new services, research for improving operational efficiency and quality of our networks, and providing technology vision and leadership that can contribute directly to business decisions. quality The Quality Assurance team consists of 7 auditors for call centre, 13 auditors for backend quality and 6 auditors for VTS & VS. In case of Call centre audit, each Auditor has to audit at least 6 audits per executive per month. The audit is done on parameters such as: Standardization Soft skills Query resolution CRM tagging Customer Orientation

There is a program called Quality Pays that runs every fortnight. In this case, an executives audit score defines his category in the Call centre i.e. Fresher, Amateur or Professional. There are certain benefits and privileges that a Professional gets to enjoy as compared to an amateur or a fresher. There are also separate parameters on which the KRAs of a call centre executive are audited by his team coach. These broadly include productivity, quality and knowledge. It is expected that the audit score given by the Team Coach and the Auditor should not differ too much. 2.4 Product / Service Profile Customer segment (retail)
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Connectivity Postpaid: use and pay Number portability Plans Offers Roaming Coverage Prepaid: pay and use Number portability Plans Topup Roaming Coverage Calling card

Value added services Entertainment Games, Downloads Mail & & Life style & Application Messaging Call Management Services Alerts, updates and others

Tones & tunes

Downloads:Themes , wallpapers and logos and pictures

MSN & Messaging

Call barring

News and finance

Music

Application: Opera Mini, Mshop, App Store, Vodafone TV, phone back up, chhota magazine

Yahoo messenger

Call conference

Devotional

Movie & TV

Rediff and Indiatimes

Call divert

Social Networking

Dating

SMS chat

Call waiting

Travel & Transportation

Humor

Vernacular SMS

Caller ID

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Competition

Group SMS

Busy Message Voicemail

Sports

Picture SMS MMS

Astrology

USB Stick : 3 GB USB stick Mobile connect EDGE data card 3G services

Video caf Video calling Vodafone TV HD gaming Faster downloads High speed internet Vodafone News wrap Phones

Vodafone smart Vodafone blue Business solutions

Mobile working: Vodafone's advanced Mobile Xchange email and messaging services enhance collaboration and keep the workforce in sync wherever they are. This includes BlackBerry solutions, Vodafone mobile Exchange, USB stick, Vodafone mobile connect.

Integrated wireline communication: With a robust national fibre network of more than86,000 km, 100 POPs, a state of the art Enterprise NOC and global connections, Vodafone brings effective, reliable communications to the business. This includes internal private lease circuits, internet leased lines, office wireline voice and toll free services.
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Voice and messaging: Vodafone's efficiency-boosting mail and messaging solutions help the company to streamline communications and keep staff connected 24/7.

They include bulk SMS, corporate callertunes, interactive SMS, missed call alerts. Vodafone brings together voice and data, wireless and wireline to help the business harness the power of total communications solutions. Vodafone helps every business become more efficient and productive. They focus on providing value through high-quality, innovative solutions, and let their customers do the talking.

Combining fixed line, mobile and data services to deliver a total communications package. Leveraging more than 85,000 km of state-of-the-art fibre optic network, 26,000 km of DWDM on ASON with 3-path protection, and over 400 Gbps backbone bandwidth to provide national connectivity.

Using the global expertise from operations in over 31 countries to help the business overcome challenges and save on your international roaming bills. Assigning a dedicated account manager to each Enterprise customer to act as a single point of contact for all the telecom needs and work to understand your business and recommend the solutions best suited to your needs.

Offering a unique Spend Tracker tool that allows you to pay bills, analyze trends and manage all the companys telecom connections from a single desk. Helping to find more efficient ways of doing business through connectivity, thereby enhancing productivity and generating value for every organization

2.5 Area of operation

Vodafone Group Plc is the worlds leading mobile telecommunication company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the companys subsidiary undertaking, joint ventures, associates undertakings and investment
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EUROPE Albania Czech Republic Germany Hungary Ireland Italy Malta Netherlands Portugal Romania Spain Turkey United Kingdom

AFRICA Egypt Ghana South Africa

ASIA Greece India

AUSTRALIA New Zealand

MIDDLE EAST Qatar

Partner Market Vodafone Group has entered into agreements with network operators in countries where the group does not hold an equity share. Under the terms of these Partner Agreements, Vodafone and its partner operators co-operate in the marketing of global products and services with varying levels of brand association. This strategy enables Vodafone to implement services in new territories. REGION Europe COUNTRY Austria Armenia Azerbaijan Belgium BRAND NAME A1 MTS Azerfon-Vodafone Proximus
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Bulgaria Channel Island Croatia Cyprus Denmark Estonia Faroe Islands Finland France Iceland Latvia Lithuania Luxembourg Macedonia/FYROM Norway Serbia Sweden Slovenia Switzerland Ukraine REGION Russia America COUNTRY Russia Caribbean Chile Honduras

Mobiltel Airtel-Vodafone VIPnet Cytamobile-Vodafone TDC Elisa Vodafone Faroe Island Elisa SFR Vodafone Iceland Bite Bite Tango VIP operator TDC VIP Mobile TDC sl.mobile Vodafone Swisscom MTS BRAND NAME MTS Caribbean Entel Digicel
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Panama Asia, Middle East And Africa Afghanistan Bahrain Fiji Hong Kong Japan Kenya Libya Malaysia Philippines Singapore Sri Lanka Taiwan Thailand Turkmenistan UAE Uzbekistan

Digicel Roshan Zain Vodafone Fiji Hutchison Telecom NTT DOCOMO Safaricom Almadar Celcom Smart StarHub Dialog Chunghwa Telecom dtac MTS du MTS

2.6 Ownership pattern of Vodafone Essar Vodafone Board Members:

1. Gerard Kleisterlee: Became the chairman of Vodafone on 26th July 2011 2. John Buchanan: Became the Deputy Chairman of Vodafone on July 2006
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And had the member of the board since April 2003 3.Vittotio Colao: Appointed as the Chief executive on 29th July 2009 4. Michel Combes: CEO of Europe Region with effect from 1st June 2009 5. Andy Halford: Chief financial officer for Northern Europe, Middle East and Africa 6. Renee James: Non-Executive director since January 2011 7. Alan Jebson: Non-Executive director since 1st December 2006 8. Samuel Jonah: Non-executive director since April 2009 9. Nick Land : Non-Executive director since December 2006 10. Anne Lauvergeon: Non-Executive director since November 2005 11. Stephen Pusey: Chief technology officer since June 2009 12. Luc Vandevelde: Non-Executive director since September 2003 13. Anthony Watson: Non-Executive director since May 2006 14. Philip Yea: Non-Executive director since September 2005

Geographical Shareholder as of 31st March 2011

Geographical Location UK North America Europe (excluding UK) Rest of the world % Holdings 46.9 30.2 14.4 8.5

Current stake status in Vodafone Essar

% of Stake Vodafone Essar 66 33

IPO proposal at Vodafone India Ltd

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% of Stake Vodafone Indian Sharehoders 74 26

2.7 Competitors of Vodafone South Ltd: Customer Base of the competitors

Operator Airtel Idea BSNL Reliance Tata Aircel MTS Uninor Customer Base (As of Nov 2011in 000) 15,211,683 5,112,442 6,075,878 7,922,886 6,920,462 1,695,442 1,953,127 1,427,365 (28.71%) (9.65%) (11.47%) (14.96%) (13.06%) (3.20%) (3.69%) (2.62%)

Vodafone: 6,632,135

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

Airtel 1,101.8
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Idea BSNL Reliance TATA Aircel MTS

200.4 358.9 182.7 33.2 33.2 53.4

Vodafone : 316.4

Market Share of the competitors as of 3rd quarter 2011 Operator

Airtel Idea BSNL Reliance TATA Aircel MTS 43 7.8 14 7.1 11.3 1.3 201

Market share %

Vodafone: 12.36%

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h. INFRASTRUCTURAL FACILITIES
Vodafone Essar South Ltd has three main offices in Bangalore which controls all the activities for Karnataka circle. The three offices are located at Maruthi Infotech center (MIC), Embassy Golf Links(EGL) and Prestige Blue chip (PBC). MIC covers 22,500 sq feet with 161 seating capacity, EGL covers 19,484 sq feet with a seating capacity of 201 and PBC covers 10,900 sq feet with a seating capacity of 122 employees. The work place of Vodafone Essar South Ltd is been certified by ISRS ( International safety rating system), hence we can say that its work environment is highly safe. The following are the infrastructure facilities available to its employees: Meeting rooms: there three meeting rooms available at MIC office with a seating capacity of 3-4. These rooms are usually used by the employees to have discussions. They have telephone lines in each of these rooms and a discussion boards and markers. Conference rooms: there are 2 conference rooms at MIS office, one with a capacity of 12 and the other with a capacity of 20. These rooms are equipped with video conference devices, LCD TVs, telephone lines, internet and discussion boards and markers. Workstations are well designed ergonomically Breakout area: This area within the work floor is used by the employees to relax and sip a cup of coffee or tea. This area consists of a coffee machine, neatly arranged coffee mugs, water to drink and comfortable chairs to relax on.

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Cafeteria: The cafeteria at MIC office covers 3500 sq feet, with neatly arranged chairs and tables for employees to dine. It also has recreation area with a table tennis and a mini library kept for the employees to reenergize.

There are about 2 fire exits with highlighting sign boards, the entire work floor is fitted with smoke detectors and fire alarms.

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

i. ACHIVEMENTS /AWARDS IF ANY SL No 1 2 Awards Best phone service provider 2011 Most trusted Brand in India for 2011 Aegis Graham Bell Award 2011 Survey conducted by Indias leading financial daily 3 Most respected company for 2010 Survey conducted by a leading business daily 4 Zoozoo campaign won three accolades two Gold and one Silver Asia Marketing Effectiveness (AME) awards ceremony

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held at Shanghai.

Work flow (end end model)

CUSTOMER GRIEVANCE MANAGEMENT

ways in which a Customer can complain to the company : E-mail Website custmorcare Front line resolution

.nodel/appelate

Customer segmentation

Customer service group

Parameters for subgroups Bronze Silver Platinum

Gold

Turn around time

Service request raised

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Allocation of subgroups

Analysis of nature of complaint

Follow up and closure Analysis of case /issues

Unknown cases Known cases

Call customer

Service request closed

NETWORK TEAM

MARKETING TEAM
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Quality parameters(audit team)

2.11 Future growth and prospects

FOCOUS ON DATA :- 3G recently from 4 months it is being launched into market Both prepaid and postpaid customers can avail the services 3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 (IMT2000) specifications by the International Telecommunication Union. Application services include wide-area wireless voice telephone, mobile Internet access, video calls and mobile TV, all in a mobile environment. To expand its market share ii the data segment.

Several telecommunications companies market wireless mobile Internet services as 3G, indicating that the advertised service is provided over a 3G wireless network. Services advertised as 3G are required to meet IMT-2000 technical standards, including standards for reliability
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and speed (data transfer rates). To meet the IMT-2000 standards, a system is required to provide peak data rates of at least 200 kbit/s (about 0.2 Mbit/s). However, many services advertised as 3G provide higher speed than the minimum technical requirements for a 3G service. Recent 3G releases, often denoted 3.5G and 3.75G, also provide mobile broadband access of several Mbit/s to smartphones and mobile modems in laptop computers.

Net cruise launched into market from 3 months and the plans are for both prepaid and postpaid as well TERM INALS:- The company plans to spend more than 250 crore in launching low price cell phones in India. The company's objective in doing this is to bring in millions of low price mobile handsets from around the world into the country and then sell them under the Vodafone brand name in order to maximize sales. It is expected that the company will price the handsets in the range of 666,999 and 888. In this way the company expects to attract new customers and thus expand its customer base. a) Samsung phones tie ups and developing future markets for phones and telecom sector as well. b) Blackberry tie ups and having different offers and plans for different hand sets and wide verity of phones. c) Basic Vodafone handsets with basic features at low price.

d) Vodafone blue (facebook phone) attracting college crowd and youngsters as facebook is the current leading social network .

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PROSPECTS:Vodafone is planning to roll out the first ever IPO in India in the near future. 1) Tax settlement :- 2500 crores is being paid by government of INDIA to Vodafone as a matter of wrong case filings against Vodafone by this the global outlook towards the company changes and the companies near future aim of getting into ipo in india also will be a great success. 2) Consolidation :- rules and regulations of government in india are becoming stringent and a very open news that in 2 years all the 13 small operators will be bought by big operators only 4 main operators will be operating in india so many small players are now concentrating on attracting more and more consumers and creating goodwill for the company as they also know that more the number of consumers they get and have under them the more amount of profit or income they get when these small operators get absorbed or consolidated so they are bleeding money and sustaining the losses and attracting more number of consumers by leaving offers and call rates at a very low price compared to others and acquiring subscriber base. Technological growth:1) NFC- Near field communication (NFC) is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity, usually no more than a few centimetres. Present and anticipated applications include contactless transactions, data exchange, and simplified setup of more complex communications such as Wi-Fi.
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Communication is also possible between an NFC device and an unpowered NFC chip, called a "tag". 2) 4G- It seems that 4th Generation communications in India will not be delayed and will be at a time with the global pace. Like other countries, Indian operators favor for LTE over WiMAX. LTE has backward compatibility and offers more economical data services. Indian Govt auctioned for BWA spectrum and license in 2010, in which Reliance Infotel came out as a pan India BWA winner, while second block of 2.3GHz band was divided into Aircel, Airtel, Tikona, Qualcomm and Augere

3)LTE- The LTE format was first proposed by NTT DoCoMo of Japan and has been adopted as the international standards. LTE standardization has come to a mature state by now where changes in the specification are limited to corrections and bug fixes. The first commercial services were launched in Sweden and Norway in December 2009 followed by the United States and Japan in 2010. More first release LTE networks were deployed globally during 2010 as a natural evolution of several 2G and 3G systems, including Global system for mobile communications (GSM) and Universal Mobile Telecommunications System (UMTS) (3GPP as well as 3GPP2).

Being described as a 3.9G (beyond 3G but pre-4G) technology the first release LTE does not meet the requirements for 4Galso called IMT Advanced as defined by the International Telecommunication Unionsuch as peak data rates up to 1 Gbit/s. The ITU has invited the submission of candidate Radio Interface Technologies (RITs) following
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their requirements as mentioned in a circular letter. The work by 3GPP to define a 4G candidate radio interface technology started in Release 9 with the study phase for LTE-Advanced. The requirements for LTEAdvanced are defined in 3GPP Technical Report (TR) 36.913, "Requirements for Further Advancements for E-UTRA (LTEAdvanced)."These requirements are based on the ITU requirements for 4G and on 3GPP operators own requirements for advancing LTE. Major technical considerations include the following:

* Continual improvement to the LTE radio technology and architecture * Scenarios and performance requirements for interworking with legacy radio access

* Backward compatibility of LTE-Advanced with LTE. An LTE terminal should be able to work in an LTE-Advanced network and vice versa. Any exceptions will be considered by 3GPP

3. Mckensys 7S Introduction:

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Waterman, Peters and Phillips (1980), working for the US management consultancy Mc Kinsey, developed this approach. They suggested that there were seven aspects of an organization that needed to harmonizes with each other, to point in the same direction like the needles of seven compasses. If each aspect supports the other aspects then the organization can be said to be organized. As each of these aspects can be titled with a word beginning with S, this list or web has become known as the 7 s model.

3.2.1 Performance Management System:

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This process covers all confirmed and regular Associates on the rolls of Vodafone Essar South Ltd as on such date defined by Corporate HR. Assessment Criteria The annual appraisal process at Vodafone Essar South Ltd Is based on the Balanced Score Card methodology. All Associates are assessed on five performance areas. Customer Orientation, Operational Excellence, Self Development. Financial Adherence and People Management. The assessment is done on a 5 point scale, which is known as SMART(S: STAR, M: MERITORIOUS, A: ACHEIVER, R: REASONABLE and T: TRAIL) Potential Skills for each scale: S: Outstanding 1. The associate displays the ability/ confidence to perform the task independently without taking help from superiors. 2. The associate display significant evidence of skills required to perform the job effectively and displays the ability to train/ coach others. M: Exceeds Expectations 1 The associate displays the ability/ confidence to perform the task efficiently with occasional guidance from superiors. 2 The associate consistently displays the skills required to perform the job effectively and delivers without any deviation/escalation.

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 A: Met Expectations

1. The associates displays the ability/ confidence to perform the task efficiently with minimum guidance 2 The associate displays the skills required to perform the job effectively but delivers inconsistently.

R: Below Expectations

1. The associate displays the ability/ confidence to perform the task only under constant supervision. 2 The associate displays the skills but not able to deliver/perform the job effectively

T: Significantly Below Expectations 1 The associate rarely/seldom displays the ability/confidence to perform the task 2 The associate doesnt display the skills required for performing the job

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Stages of Appraisal: 1 Assessment: This includes: (a) Self Assessment by the assessee and submitted to assessor. (b) Assessment by assessor: Any discussion regarding the assessment is done between the assessor & the assessee.
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Normalization: The final normalized ratings are updated in the normalization application by the respective Business HR Partners. They may even trigger a PIP(Performance Improvement Plan) or the development plan is developed.

3.2.2 Recruitment System: Different Steps involved in Recruitment Process are: Requirement Gathering: Information regarding the requirement is collected from the clients Requirement Study: Required skills and competency matching the job description is studied carefully. Sourcing: Sourcing the required candidates either through internal job postings, internal references, job portals or consultants HR Fitment: The candidates fitness for the organization and the job to be performed is tested On Boarding: Joining of the candidate is confirmed 3.3 Style: Vodafone Essar South Ltd has a participative organization style. Though the decision making is spread among the associates in the
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organization, there must be some consultation required from the higher authority for major issues. Hence Vodafone Essar South Ltd also exhibits an Autocratic style when in need. 3.4 Staff: Number of employees at Vodafone Essar South Ltd are 745, of which 480 are considered to be on role employees and the rest 265 are contract employees who are sourced from Addeco and Manpower. There are 12 departments in the company and each department has its own ratio of contract and on role employees. The male female ratio being 80:20, the main reason for the company to have lesser female employees is the nature of job that is carried out , mostly field work. The majority of the work force rages with the age range of 25 to 45. 3.5 Skills: Skills are required to perform a given task, activity, or role successfully. They support a specific and objective assessment of strengths and specify targeted areas for professional development. Leadership Skills: Band specific, are common across the organization or functions, Stakeholder Orientation, Holistic Thinking, Inclusive Growth, Leadership Capability
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Professional Skills: Role specific and helps to perform a function or role, Coding, Estimation, Forecasting, Budgeting Management Skills: To define objectives Coordinate research and development activities within group To Supervise the performance of associates To manage associates in an effective manner Product skills: It defined the product knowledge required. It also emphases on the knowledge of the competitor products that will facilitate being competitive in the market place. It specific to the following departments: Customer Service Marketing Sales Credit and collections Enterprise sales

3.6 Strategy:
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 Low cost strategy: Vodafone Essar South Ltd hirers more than half of its employees on a contract basis, this helps them to pay lesser benefits and compensation as compared to on roe employees. Data market penetration: currently the company is trying to capitalize on the data market, which has ample opportunities as it is a growing segment. They are creating awareness about its data products. They are giving away free trial data packs to the enterprise subscribers, which they feel will induce them to use them permanently. Plan differentials: They study every region that they want to reach out to. According to the need requirement they design the tariff plan that cater to different segments. They follow the differential strategy. 3.7 Shared values: Ethical Business: Vodafone expect their employees to uphold the high standards set out in their Code of Conduct and Business Principles. They are committed to respecting human rights and acting with integrity on issues such as tax. Valuing the work force: Vodafone believes that engaged and motivated employees drive their business success. Vodafone is committed to developing every employees talent, recognizing the value of their diverse experiences, and ensuring their wellbeing. Health and safety: The health and safety of the employees and contractors is a priority for Vodafone. Customers: Vodafones reputation depends on earning the trust of their customers by safeguarding privacy, promoting child safety

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online, offering accessible products and services and ensuring their mobile advertising is responsible. 4. SWOT analysis

Strengths: The brand name it has in the Indian market It has the 2nd highest market share in India It has a 2nd highest subscriber base India 1st being Airtel Its strong advertising startiges and impact on people

Weakness: Poor network coverage compared with Airtel which has the highest market share Weak in fixed network Rural India unable to relate to the brand

Opportunities: Products and service expansion : 4G services, and improving the quality of the services offered (ARPU) Growing data business & 3G Value added services to increase average revenue per user

Large capital can be raised by listing Vodafone Essar on Indian stock exchange
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Tower sharing business with Indus towers Growing Enterprise solution marker

Threats: Highly competitive market, where the competitors provide attractive tariffs that facilitate neck to neck competition. Number portability has facilitated the existing customers to change their connectivity providers without changing their numbers. Technology advancement Government interventions

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