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Organization Study at Vodafone South Ltd, Bangalore

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Organisation study done by me at Vodafone South Limited Bangalore.

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Organization Study at Vodafone South Ltd, Bangalore

  1. 1. VODAFONE SOUTH LIMITED, BANGALORE A report on the organization study submitted in partial fulfillment of the requirements for the MBA (Full time) Degree of the Mahatma Gandhi University Submitted by, Jomy Mathew Reg No: 2014 -2016 Batch FISAT BUSINESS SCHOOL Hormis Nagar, Angamaly, Cochin –683 577 May 2015
  2. 2. ACKNOWLEDGEMENT First and foremost, I thank the lord almighty for his perpetual showers of blessing, which led to the successful completion of my project report. It gives me immense pleasure to present this report. I express my heartiest gratitude to Dr. P A Mathew, Dean and Director, FISAT Business School, Angamaly for permitting me to do this project at Vodafone South Limited, Bangalore. I express my sincere gratitude to Mr. Jose Varghese, Faculty of FISAT Business School for his valuable guidance for the successful completion of the study. I wish to express my heartfelt and sincere thanks to Mr. Mahesh S, Deputy Manager – Marketing Communications, Vodafone South Limited who gave me the opportunity to do the Organization Study under his guidance. I would like extend to my heartfelt gratitude to Mr.Jossy Joseph, Senior Executive – PD & Rewards, and all officials & employees of Vodafone South Ltd. for being very helpful and suggestive in giving the valuable information‘s, regarding their jobs and responsibilities in their respective concerns, for the successful completion of the study. I also thank my parents, friends and relatives for their help and encouragement. JOMY MATHEW
  3. 3. DECLARATION I, Jomy Mathew hereby declare that the Organization Study report entitled ―ORGANIZATION STUDY OF VODAFONE SOUTH LTD.” is a record of bona-fide work done by me at Vodafone South Limited, Bangalore during the month of April and May under the supervision of Mr.Mahesh S, Deputy Manager – Marketing Communications, Vodafone South Limited, Bangalore and Mr. Jose Varghese, Faculty guide, FISAT Business School, and that no part of this report has formed the basis for award of any degree, diploma, associate ship, fellowship or any other similar title or recognition in any other institution. Place : Mookkannoor Date : 29-05-2015 JOMY MATHEW
  4. 4. 29-05-2015 CERTIFICATE This is to certify that the Organization Study Report entitled “AN ORGANIZATION STUDY AT VODAFONE SOUTH LIMITED” Submitted to the M.G University in partial fulfillment of the requirements for the award of the MBA degree is a record of original work done by Mr. JOMY MATHEW during the year 2014 - 2015 under my supervision and guidance. Dr.P.A.Mathew Mr.Jose Varghese Dean & Director Faculty Guide
  5. 5. Organization Study at Vodafone South Limited, Bangalore 1 TABLE OF CONTENTS INTRODUCTION........................................................................................................................... 7 1.1 Introduction ............................................................................................................................7 1.2 Objectives................................................................................................................................7 1.3 Duration Of The Study.............................................................................................................8 1.4 Methodology...........................................................................................................................8 1.5 Scope Of The Study .................................................................................................................8 INDUSTRY PROFILE .................................................................................................................... 10 2.1 Telecommunication...............................................................................................................10 2.2 The history of telecommunications ......................................................................................10 2.3 An overview transition of Indian Telecom Industry..............................................................14 2.4 The Indian telecom sector.....................................................................................................14 2.5 Current Scenario....................................................................................................................15 2.6 Ministry of Communication ..................................................................................................20 2.6.1 Department of Telecommunications ................................................................................20 2.6.2 Telecom Regulatory Authority of India.............................................................................20 2.6.3 The telecom Commission..................................................................................................20 2.7 Objectives of the National Telecom Policy............................................................................21 2.8 Telecommunication Services.................................................................................................22 2.9 Major Players ........................................................................................................................23 COMPANY PROFILE.................................................................................................................... 27 3.1 Background............................................................................................................................27 3.2 History...................................................................................................................................27 3.3 Vodafone India......................................................................................................................28 3.4 Vodafone India: Awards & Achievements.............................................................................29 3.5 Vision & Mission of Vodafone...............................................................................................31 3.6 Provided Services ..................................................................................................................32 3.6.1 Voice..................................................................................................................................32 3.6.2 Messaging..........................................................................................................................32 3.6.3 Data ...................................................................................................................................32 3.6.4 Fixed broadband................................................................................................................32 3.6.5 Other services....................................................................................................................32
  6. 6. Organization Study at Vodafone South Limited, Bangalore 2 3.7 Local markets ........................................................................................................................32 3.8 Partner markets.....................................................................................................................32 3.9 Quality Policy.........................................................................................................................33 3.10 Key milestones in the development of Vodafone.................................................................34 ORGANIZATION STRUCTURE ...................................................................................................... 37 4.1 Structure of Vodafone India..................................................................................................37 4.2 Structure of Karnataka Circle ................................................................................................38 4.3 Zonal Structure of Karnataka ................................................................................................39 FUNCTIONAL DEPARTMENTS ..................................................................................................... 41 5.1 HR and Administration..........................................................................................................41 5.1.1 Administration...................................................................................................................42 5.1.2 Recruitment.......................................................................................................................43 5.1.3 Talent Management..........................................................................................................44 5.1.4 HR Department Structure .................................................................................................46 5.2 Technology Department .......................................................................................................47 5.2.1 Information Technology....................................................................................................47 5.2.2 Network Operations..........................................................................................................48 5.2.3 24 x 7 Handling Network failures......................................................................................48 5.2.4 Technology Department Structure ...................................................................................49 5.3 Sales And Marketing Department.........................................................................................50 5.3.1 Sales & Marketing Structure .............................................................................................51 5.4 Vodafone Business Services Department .............................................................................52 5.4.1 Vodafone Business Service Department Structure...........................................................53 5.5 Finance And Accounts Department ......................................................................................54 5.5.1 Credit & Collection ............................................................................................................54 5.5.2 Supply chain management................................................................................................56 5.5.3 Finance & Accounts Department Structure ......................................................................56 5.6 Customer Service Department..............................................................................................57 5.6.1 Customer Services Department Structure ........................................................................58 5.7 Legal Department..................................................................................................................59 5.7.1 Legal Department Structure..............................................................................................60
  7. 7. Organization Study at Vodafone South Limited, Bangalore 3 SWOT ANALYSIS ........................................................................................................................ 62 6.1 Strength.................................................................................................................................62 6.2 Weakness ..............................................................................................................................64 6.3 Opportunity...........................................................................................................................65 6.4 Threat....................................................................................................................................66 LIMITATIONS............................................................................................................................. 68 FINDINGS & SUGGESTIONS ........................................................................................................ 70 6.5 Findings .................................................................................................................................70 6.6 Suggestions............................................................................................................................70 CONCLUSION............................................................................................................................. 71 BIBLIOGRAPHY .......................................................................................................................... 72
  8. 8. Organization Study at Vodafone South Limited, Bangalore 4 LIST OF FIGURES Figure 1: Highlights of Telecom subscription data.................................................... 16 Figure 2: Total Telephone subscribers ..................................................................... 16 Figure 3: Overall Tele-density .................................................................................. 17 Figure 4: Overall Tele-density (Circle wise).............................................................. 17 Figure 5: Total wireless subscribers......................................................................... 18 Figure 6: Wireless Tele-density................................................................................ 18 Figure 7: Market share in wireless subscribers ........................................................ 19 Figure 8: Vodafone network summary...................................................................... 31 LIST OF GRAPHS/CHARTS 1. Structure of Vodafone India .......................................................................................... 37 2. Structure of Karnataka Circle......................................................................................... 38 3. Zonal Structure of Karnataka......................................................................................... 39 4. HR Department Structure.............................................................................................. 46 5. Technology Department Structure................................................................................49 6. Sales & Marketing Structure.......................................................................................... 51 7. Vodafone Business Service Department Structure ....................................................... 53 8. Finance & Accounts Department Structure...................................................................56 9. Customer Services Department Structure.....................................................................58 10. Legal Department Structure .......................................................................................... 60
  9. 9. Organization Study at Vodafone South Limited, Bangalore 5 LIST OF ABBREVIATIONS B.D.M : Business Development Manager C.C.O : Chief Commercial Officer C.E.O : Chief Executive Officer C.F.O : Chief Financial Officer C.O.O : Chief Operating Officer DoT : Department of Telecommunications F.A : Financial Analyst FP n A : Financial Planning and Analysis H.R : Human Resource H.R.B.C : Human Resource Business Consultant MoC : Ministry of Communications S.M.E : Small Medium Enterprise S.P.M : Service Partner Management V.B.S : Vodafone Business Services V.B.S C.S : Vodafone Business Services – Customer service V.G.E : Vodafone Global Enterprise V.M.S : Vodafone Mini Store
  10. 10. Organization Study at Vodafone South Limited, Bangalore 6 CHAPTER 1 INTRODUCTION
  11. 11. Organization Study at Vodafone South Limited, Bangalore 7 INTRODUCTION 1.1 Introduction The Indian telecommunication industry is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections. The Indian telecom industry is one of the fastest growing in the world and is projected that India will have 'billion plus' mobile users by 2017. Projection by several leading global consultancies is that India‘s telecom network will overtake China‘s in the next 10 years. India's mobile phone market is the fastest growing in the world, with companies adding some 19.1 million new customers added in December 2009. India has become one of the fastest growing mobile markets in the world. India ranks second in mobile phone usage to China, with 996.49 million users as of March 2015. Telecommunication is the lifeline of the rapidly growing Information Technology industry. The total subscriber base for internet users in India is 99.20 million as of March 2015. The number of broadband connections in India has seen a continuous growth since the beginning of 2006. Thriving telecommunication industry has opened up door for huge business opportunities by way of telecommunications global projects, international projects, International Bids, ICBs, public projects, online projects, government telecom projects and project news worldwide. 1.2 Objectives The present organization study was conducted in the Vodafone South Limited, Bangalore with the following objectives:- 1. To study the various functions executed by different divisions in the organization. 2. To understand the divisional structure of each department of the organization. 3. To study the relevance of each department operating in the organization and how it coordinates its activities with other departments. 4. To carryout SWOT analysis to understand the Strengths, Weakness, Opportunities and Threats of the organization.
  12. 12. Organization Study at Vodafone South Limited, Bangalore 8 1.3 Duration Of The Study The study was conducted for 45 days. 1.4 Methodology Both primary and secondary data were collected and the same were used for the completion of the organization study. Primary Data Primary data were collected through personal interview and observation. Personal interview were conducted with different department heads of Vodafone South Limited and the observation method was used to study production process. Secondary Data Secondary data were collected from journals, annual reports, quality manual, websites and existing records of the company. 1.5 Scope Of The Study From the Organization point of view, the organization study helps the organization to understand the efficiency of each department and the relevance of each department in attaining the overall purpose of the organization. It helps the organization to hold each department responsible for the activities entrusted on them. As a student, I was able to have a practical knowledge and understanding about the functioning of the organization. By conducting SWOT analysis, the company could understand its Strength, Weakness, Opportunities and Threats. By identifying a problem of a particular department it helps the organization to analyze and take corrective actions to solve that problem. Secondary DataPrimary Data Sources of Data
  13. 13. Organization Study at Vodafone South Limited, Bangalore 9 CHAPTER 2 INDUSTRY PROFILE
  14. 14. Organization Study at Vodafone South Limited, Bangalore 10 INDUSTRY PROFILE The industry selected for the study is telecommunication industry. 2.1 Telecommunication Telecommunications refers to long-distance Communication, which is derived from the Greek word ―Tele‖ means ―far off‖ at present such communication is carried out with the aid of electronic equipment such as the Radio, Telegraph, Telephone, and Television. In earlier times, however, smoke signals, drums, light beacons, and various forms of semaphore were used for the same purpose. The information that is transmitted can be in the form of voice, symbols, pictures or data, or a combination of these. The physical equipment for a telecommunications system includes a transmitter, one or more receivers, and a channel or means of communication such as the air, water, wire, cable, communication satellite, or some combination of these. Telecommunication is the transmission, emission or reception of signals, images, sounds or information over wire, radio, optical, microwave, or other electromagnetic system. 2.2 The history of telecommunications The word telegraphy comes from Greek ―Tele‖ means distant and ―graphic‖ to write. So the meaning is writing at a distance. It's a possibility to send news over a long distance. The inventor of the first electric telegraph was Samuel Finely Breese Morse a North inventor and painter. He had the idea for the concept when he returned to America from Italy on board the ―sully‖ . In his studio at New York University he needed about six years to finish this invention and received a patent for it in 1938. The first message from Washington to Baltimore The 24 of May in 1844 was a very important day in the history of the United States: the first telegraph line was opened twelve years after Samuel Morse got the idea on board the ―sully‖. The inventor of the telegraph himself sat in the High Court of justice in Washington and sent the first message out the Baltimore & Ohio railway station in Baltimore where many illustrious people were waiting. The content was a quotation of the bible and said: ―what hath God wrought‖. The message reached Alfred Lewis Vail, the collaborator of Samuel Morse, in Baltimore, who sent it back at once. Beginning this day preparations were to expand the lines to Philadelphia, New York, Boston and to other cities and areas.
  15. 15. Organization Study at Vodafone South Limited, Bangalore 11 Most people were enthusiastic about this invention but not everyone. Farmers destroyed lines in South Kentucky in 1849. They said that the wire would remove the electricity from the air so it would not rain and there would be only crop failures. Mr. Robinson, an American gentleman, brought the Morse Telegraph to Europe in 1847; England and France were not interested in it. In Germany, Morse found a fair customer. The "Hannoversche Staaatsbahn'Nvas the first in this country that used the Morse Telegraph. The next year, the telegraph line between Hamburg and Cuxhaven was opened. The first inspector was Friedrich Clemens Gerke who improved the Morse code. The American version still comprised signs with different length. Gerke cleared it up and fixed that three points result in one line. This alphabet is valid until today. Anyway he made rules for the distance between the signs and sign groups. He discovered a system that the most used letters got the shortest signs so that they could be transmitted very fast. Hiram Sibley's company: In 1851 Hiram Sibley founded a company with a group of businesspeople that built the telegraph line in the Midwest. The name was registered as Western union Telegraph & Co in 1856. The Pony Express While the lines were spreading slowly through the whole country the very spectacular express rider service came into existence in April 1860. The pony express was born. Six hundred broncos, especially chosen for fleetness, toughness and endurance were bought. On 3rd of April the first rider named Henry Wallace left St Joseph, Missouri and after 10 days 3210 kilometers the last rider reached Sacramento, California. For this job they needed brave young men, preferably orphans, because it was a dangerous, adventurous life. They had to shoot very well, be excellent riders and to nave no fear of Indian attacks. Every rider had to ride sixty miles at top speed. He had to do this distance in six hours with six different ponies. Each day except Sunday, a messenger left St.Joseph at noon. The one form Sacramento arrived at 8 o‘clock in the morning. The pony express existed only for one and a half year then it was dead. The reason was the completion of the transcontinental telegraph line between. Telecommunications is a fascinating, fast paced industry that influences every aspect of our daily life like normal voice phone calls, connectivity to the Internet, satellite communications, surfing the web, fax transmissions, video conferencing, high speed data communications, and cable TV. It started with first public demonstration of Morse's electric
  16. 16. Organization Study at Vodafone South Limited, Bangalore 12 telegraph, Baltimore to Washington in 1844. In 1876 - - Alexander Graham Bell files his patent application. First telephone patent (U.S. No. 174,465) allowed and issued to Bell on March 7th. - - March 10th, Bell speaks the first complete sentence transmitted by variable resistance transmitter ... ―Mr.Watson, come here. I want you!‖ The world's first two way long distance telephone conversation over an outdoor wire (borrowed telegraph line) takes place between Cambridge port and Boston, Massachusetts between Bell and Watson. The field of telecommunication is no doubt one of the most exciting occupational fields that modern society has to offer. New technology is constantly being developed and finds its applications in the technical systems that make up a telecommunications network. This creates opportunities for developing existing services further, and introducing completely new ones - for the benefit of customers and society as a whole. The telecommunication industry is often referred to as an "enabling industry". That is, it creates opportunities for societal development in the broadest sense. In the current day scenario, there is lot of Tele-communications technologies evolved and used by people all over the world. Wireless technologies are like GSM, CDMA, TDMA, UMTS, GPRS and latest technology 3G and 4G growing at a fast pace promising high speed data communications. The two-way communication The progress in Europe went on, too. While the Americans filled their country with lines, there were important inventions in Austria and Germany. Telegraphy became more and more popular form day to day. Sometimes there was no more possibility to install new lines. Anyway the rates for the lies were very high. It was necessary to use the lies better. Improvements were introduced. The first essential step however was the invention to use one line for different telegrams at the same time and to send signs in both directions (e.g. from Boston to New York and the other way around at the same time). The Austrian physicist Julius Wilhelm Gintl was the father of the two batteries. Gintl's method was called themethod of compensation. He got the golden Medal of Honor at the exhibition of industry of industry in Paris in 1855. The telecommunications industry is responsible for radio, television, voice communications, and broadband services. The growth and innovation of the telecom industry has enabled people to communicate across the globe and access endless amounts of information over the internet. Broadband services are becoming faster and easier to access
  17. 17. Organization Study at Vodafone South Limited, Bangalore 13 with fiber optic networks and wireless services like WiMax and CDMA. Many of the major telecom companies have merged over the last 10 years in order to offer massive product and service portfolios, as well as further capitalize on bundled media packages (‗triple play‘). These new technologies and growth through mergers are enabling these companies to find new revenue sources and growth opportunities in a mostly mature market. World‘s telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc. The telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet. The telecom industry has grown and evolved at an incredible pace for the last 20 years, dramatically changing the way people communicate and transforming everyday life along the way. Mobile broadband subscribership has topped 200 million worldwide. And the rollout of 3G networks in emerging markets means there is the potential for mobile broadband subscribers to outnumber wire line broadband subscribers within the next decade. This rapid growth has created a dynamic and competitive industry climate with continually evolving technology and staggering financial stakes. The shift of revenue from fixed to mobile and from voice to data is accelerating. Data and media are being untethered from specific devices or networks. Powerful new mobile devices deliver a combination of functions previously available only from multiple tools.
  18. 18. Organization Study at Vodafone South Limited, Bangalore 14 The telecommunications industry was comprised of a club of big national and regional operators. Over the past decade, the industry has been swept up in rapid deregulation and innovation. In many countries around the world, government monopolies are now privatised and they face a plethora of new competitors. 2.3 An overview transition of Indian Telecom Industry The history of the Indian Telecom sector goes way back to 1851, when the first operational landlines were laid by The British Government in Calcutta. With independence, all foreign telecommunication companies were nationalized to form Post, Telephone and Telegraph, a monopoly run by the Government of India. The Indian telecommunications industry is one of the fastest growing in the world. Government policies and regulatory framework implemented by Telecom Regulatory Authority of India (TRAI) have provided a conductive environment for service providers. This has made the sector more competitive, while enhancing the accessibility of telecommunication services at affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector and mobile telephony in particular has caught the imagination of India by revolutionizing the way we communicate, share information; and through its staggering growth helped millions stay connected. This growth, however, has and continues to be at the cost of the Climate, powered by an unsustainable and inefficient model of energy generation and usage. Simultaneously, this growth has also come at significant and growing loss to the state exchequer, raising fundamental questions on the future business and operation model of the Telecom sector. The Indian Telecom Sector, like most other infrastructure sectors is controlled by the state. The Department of Telecommunications (DoT), reporting to the Ministry of Communications (MoC) is the key body for policy issues and regulation, apart from being a basic service provider to rest of country. By an act of Parliament, the Telecom Regulatory Authority of India (TRAI) was formed to be the regulatory agency. 2.4 The Indian telecom sector India's telecommunication network is the third largest in the world on the basis of its customer base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market. Major sectors of the Indian telecommunication industry are telephony, internet and
  19. 19. Organization Study at Vodafone South Limited, Bangalore 15 broadcasting. The Telephonic network in the country, employs an extensive system of network elements such as digital telephone exchanges, mobile switching centres, media gateways and signalling gateways at the core, interconnected by a wide variety of transmission systems using media, such as optical fibre or Microwave radio relay. The Indian telecom industry underwent significant market liberalization in the 1990s, and it has now become one of the most competitive telecom markets in the world. India has the world's second-largest mobile phone user base with over 996.49 million users as of March 2015. 2.5 Current Scenario Telecommunication services are globally recognised as one of the driving forces for overall economic development in a nation. They are also one of the prime support services needed for rapid growth and modernisation of various sectors of the economy. The Government of India recognises this fact and hence, has taken several major initiatives to provide a business friendly environment for companies in this sector. Driven by 3G and 4G services, it is expected that there will be huge machine-to- machine (M2M) growth in India in 2016-17, according to UST Global. There is also a lot of scope for growth of M2M services in the government's ambitious US$ 1.1 billion Smart City program The rapid strides in the telecom sector have been facilitated by liberal policies of the Government of India that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services at affordable prices. According to a study by GSMA, it has been expected that smartphones will account for two out of every three mobile connections globally by 2020 and India is all set to become the fourth largest smartphone market. Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent. The telecom sector in India is undergoing a major change with regards to growth drivers. Revenue from voice is going to stabilize and with recent 20% hike in price by major telecom companies, the tariff war over call rates may be coming to an end. As the telecom industry is showing signs of slowing down in terms of subscriber growth, companies are looking at other revenue streams to supplement their core services. Telecom operators are focusing on innovative m-VAS services such as m-commerce, m-health, and m-education.
  20. 20. Organization Study at Vodafone South Limited, Bangalore 16 Figure 2: Highlights of Telecom subscription data The number of telephone subscribers in India increased from 987.30 million at the end of Feb-15 to 996.49 million at the end of Mar-15, thereby showing a monthly growth rate of 0.93%. The urban subscription declined from 578.75 million at the end of Feb-15 to 577.18 million at the end of Mar-15, whereas the rural subscription increased from 408.55 million to 419.31 million during the same period. The monthly growth rates of urban and rural subscription were -0.27% and 2.63% respectively. Figure 1: Total Telephone subscribers
  21. 21. Organization Study at Vodafone South Limited, Bangalore 17 The overall Tele-density in India increased from 78.73 at the end of Feb-15 to 79.38 at the end of Mar-15. The Urban Tele-density declined from 149.25 to 148.61, whereas Rural Tele-density increased from 47.16 to 48.37 in the month of Mar- 15. The shares of urban subscribers and rural subscribers at the end of Mar-15 were 57.92% and 42.08% respectively. Figure 3: Overall Tele-density Figure 4: Overall Tele-density (Circle wise)
  22. 22. Organization Study at Vodafone South Limited, Bangalore 18 Total wireless subscriber base increased from 960.58 million at the end of Feb-15 to 969.89 million at the end of Mar-15, thereby registering a monthly growth rate of 0.97%. The Wireless subscription in urban areas declined from 557.27 million at the end of Feb- 15 to 555.71 million at the end of Mar-15, whereas wireless subscription in rural areas increased from 403.31 million to 414.18 million during the same period. The monthly growth rates of urban and rural wireless subscription were -0.28% and 2.70% respectively. The Wireless Tele-density in India increased from 76.60 at the end of Feb-15 to 77.27 at the end of Mar- 15. The Urban Wireless Tele-density declined from 143.71 to 143.08, whereas Rural Wireless Tele- density increased from 46.56 to 47.78 in the month of Mar-15. The shares of urban and rural wireless subscribers were 57.30% and 42.70% respectively at the end of Mar-15. India saw the fastest growth in new mobile-phone connections with 18 million net additions in the first quarter of 2015, according to a report by Swedish mobile network equipment maker Ericsson. The number of smart phones, which account for just 37 per cent of all mobile-phone subscriptions, will reach 3,200 million by 2016, and growing at 15 per cent compounded annual growth rate, will cross 6,100 by 2020. The falling cost of handsets, coupled with improved usability and increasing network coverage, are factors that are making mobile technology a popular phenomenon in the country. The broadband services user-base in India Figure 5: Total wireless subscribers Figure 6: Wireless Tele-density
  23. 23. Organization Study at Vodafone South Limited, Bangalore 19 is expected to grow to 250 million connections by 2017, according to GSMA. It also expects to see increased mobile broadband penetration in India, with over 250 million on either 3G /4G by 2017. Composition of telephone subscribers in India -The wireless segment (96.9 per cent of total telephone subscriptions) dominates the market, while the wireline segment accounts for the rest.  In the month of March, 2015, 3.84 million subscribers submitted their requests for Mobile Number Portability (MNP). With this, the cumulative MNP requests increased from 150.01 million at the end of February, 2015 to 153.85 million at the end of March, 2015.  Number of active wireless subscribers on the date of peak Visitor Location Register in March, 2015 was 862.63 million (88.94% of the total wireless subscriber base). Figure 7: Market share in wireless subscribers
  24. 24. Organization Study at Vodafone South Limited, Bangalore 20 2.6 Ministry of Communication All the operations of this sector come under the control of MoC. It is responsible for all major policy changes, planning, supervision, spectrum control, etc. 2.6.1 Department of Telecommunications DoT was formed in 1985 when the Department of Posts and Telecommunications was separated into Department of Posts and Department of Telecommunications. Till 1986, it was the only telecom service provider in India. It played a role beyond service provider by acting as a policy maker, planner, developer as well as an implementing body. In spite of being profitable, non-corporate entity status ensured that it did not have to pay taxes. DoT depends on Government of India for its expansion plans and funding. Its pivotal role in the Indian telecom sector has got diluted after formation of TRAI- Telecom Regulatory Authority of India. 2.6.2 Telecom Regulatory Authority of India TRAI was founded to act as an independent regulatory body supervising telecom development in India. This became important, as DoT was a regulator and a player as well. Founded by an Act of Parliament, the main functions of the body was to finalize toll rates and settle disputes between players. An independent regulator is critical at the present situation as the sector witnesses‘ competition. The operations of this sector are determined as under the Indian Telegraph Act of 1885 – A document buried in the sands of time. The next major policy document, which was produced, was the National Telecom Policy of 1994, a consequence of the on-going process of liberalization. 2.6.3 The telecom Commission The Telecom Commission was set up by the government of India vide Notification dated April 11, 1989 with administrative and financial powers of the government of India to deal with various aspects of Telecommunications. The Telecom Commission and the DoT are responsible for policy formulation, licensing, wireless spectrum management, administrative monitoring of PSUs, research and development and standardization or validation of equipment, etc. The multi-pronged strategies followed by the Telecom Commission have not
  25. 25. Organization Study at Vodafone South Limited, Bangalore 21 only transformed the very structure of this sector, but also have motivated all the partners to contribute in accelerating the growth of the sector. The other entities in the sector under the control of MoC are the two public sector telecom equipment manufacturers, namely Indian Telephone Industries (ITI) and Hindustan Tele printers Ltd. (HTL). Both these companies are facing financial problems because of product obsolescence, poor management and over staffing. Telecommunications Consultants India Ltd. (TCIL), another PSU was founded in 1978 to undertake consultancy services in the field of telecom. (Source: www.dotindia.com.) 2.7 Objectives of the National Telecom Policy The objectives of the NTP 1999 are as under:  Access to telecommunications is of most importance for achievement of the country‘s social and economic goals. Availability of affordable and effective communication for the citizens is at the core of the vision and goal of the telecom policy.  Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country‘s economy.  Encourage development of telecommunications facilities in remote, hilly and tribal areas of the country.  Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, and telecom and consumer electronics and thereby propel India into coming an IT superpower.  Convert PCOs, wherever justified, into Public Tele information centres having multimedia capability like ISDN services, remote database access, government and community information systems, etc.  Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.  Strengthen research and development efforts in the country and provide an importance to build world-class manufacturing capabilities.  Achieve efficiency and transparency in spectrum management.  Protect defence and security interests of the country.
  26. 26. Organization Study at Vodafone South Limited, Bangalore 22  Enable Indian telecom companies to become truly global players. 2.8 Telecommunication Services Today tariff for telecommunication services in India is one of the lowest in the world. The Indian consumer has immensely benefited from such lower tariffs which has also been a major factor for explosive growth in the sector. Following is the list of services offered by both GSM and CDMA operators: Telephone services  NSD/ISD services  Computerized trunk services  Pay phones  National & international leased lines circuits  Telex  Telegraph services (manual & automatic)  X-25 based Packer Switched Data Network (NET)  Gateway Packet Switched Data Services (GPSS)  Gateway Electronic Data Interchange Service (GEDIS)  Gateway E-Mail and Store & Forward FAX Service (GEMS-400)  Concert Packet Service (CPS)  Satellite based remote area business message network  Electronic Mail  Voice  Audio-text  Radio paging  Cellular mobile telephone  Public mobile radio trunked service  Video-text  Video conferencing  Internet  ISDN  INMARSAT mobile service  INMARSAT data service
  27. 27. Organization Study at Vodafone South Limited, Bangalore 23  Home country direct service  Intelligent Network (IN) services 2.9 Major Players There are three types of players in telecom services:  State owned companies (BSNL and MTNL)  Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)  Foreign invested companies (Vodafone, Bharti Aitel, Idea Cellular, Communications)  BSNL On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now India‘s leading Telecommunications Company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.  Vodafone Vodafone, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone provides 2.75 G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 license areas. It is among the top three GSM mobile operators of India.
  28. 28. Organization Study at Vodafone South Limited, Bangalore 24  Bharti Airtel Established in 1985, Bharti has been a pioneering force in the telecom sector with many first sand innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti‘s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of total 23 circles across 19 the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200locations. The group has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile, Bharti‘s footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is ―to capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services‖.  MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India‘s key metros – Delhi, the political capital, and Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to emerge as India‘s leading and one of Asia‘s largest telecom operating companies. The company has also been in the forefront of 5 technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the company's focus would be not only consolidating the gains but also to focus on new areas of enterprise such as joint ventures for projects outside India, entering into national long distance operation, widening the cellular and CDMA-based WLL customer base, setting up internet and allied services on an all India basis. MTNL has over 5million subscribers and 329,374 mobile
  29. 29. Organization Study at Vodafone South Limited, Bangalore 25 subscribers. While the market for fixed wire line phones is stagnating, MTNL faces intense competition from the private players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—in mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previous year‘s annual turnover of Rs. 63.92 billion.  IDEA Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom ―circles,‖ or regions, in Western India, and has received additional GSM licenses to expand its network into three circles in Eastern India --the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .
  30. 30. Organization Study at Vodafone South Limited, Bangalore 26 CHAPTER 3 COMPANY PROFILE
  31. 31. Organization Study at Vodafone South Limited, Bangalore 27 COMPANY PROFILE Vodafone name being derived from the firm's goal of establishing a voice and data services over cellular telecommunication networks. Hence VO represented voice and DA symbolized data — yielding the name Vodafone. 3.1 Background Vodafone Group Is a British multinational telecommunications company headquartered in London and with its registered office in Newbury, Berkshire. It is the world's 2nd-largest mobile telecommunications company measured by both subscribers and revenues (in each case behind China Mobile), and had 434 million subscribers as of 31 March 2014. Vodafone owns and operates networks in 26 countries and has partner networks in over 50 additional countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Launch of Vodafone Essar, Vodafone is the world‘s leading international mobile communications company. Company provides a wide range of telecommunication services, including voice, messaging, data across mobile and fixed networks. Vodafone have more than 438 million mobile customers and 11 million fixed broadband customers. 3.2 History In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB £110 million. In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB£1.7 billion. On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for £30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose customers were
  32. 32. Organization Study at Vodafone South Limited, Bangalore 28 overwhelmingly using Vodafone's network. In a similar move the company acquired the 80% of Astec Communications that it did not own a service provider. In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle; the O's in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone airtouch plc. Trading of the new company commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilefunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network. On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on April 2004. In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone‘s interest in Mannesmann had been increased by the latter's purchase of Orange, the UK mobile operator. Chris Gent would later say Mannesmann's move into the UK broke a "gentleman's agreement" not to compete in each other's home territory. The hostile takeover provoked strong protest in Germany and a "titanic struggle" which saw Mannesmann resists Vodafone‘s efforts. However on 3 February 2000 the Mannesmann board agreed to an increased offer of £112bn, then the largest corporate merger ever. The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off. 3.3 Vodafone India Vodafone India is a 100% subsidiary of Vodafone Group. It commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Brand Vodafone was launched in India in September 2007, after Vodafone Plc. acquired a majority stake in Hutchinson Essar in May 2007. From a single operation base with 31 million customers, the company has expanded its operations across the country to cover all 23 telecom circles and service 180 million customers. Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc. to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately $11.1 billion. In 2014 ownership of Vodafone India and Italy increased to 100%.
  33. 33. Organization Study at Vodafone South Limited, Bangalore 29 Vodafone India is a member of the Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 180 million customers. Vodafone India has firmly established a strong position within the Vodafone Group too, making it the largest subscriber base globally. This journey is a strong testimony of Vodafone‘s success in a highly competitive and price sensitive market. Vodafone India has been awarded the Most Admired Telecom Operator and Best 3G Operator at the recent Telecom Operator Awards 2012. The company has also received the globally recognized prestigious ‗Product of the Year 2012‘ consumer award for Vodafone Apps Store in the Mobile Services Category. In another survey conducted by Nielsen, Vodafone India was the only telecom player in the Top 10 ‗Most Exciting Youth Brands‘ in India. Vodafone India also features in the Top 10 ‗Most Trusted Brands in India‘ for 2011, in a survey conducted by a leading financial daily. Serving the needs of an enterprise, Vodafone Business Solutions is a total communications offering that caters to all their voice and data, wireless and Fixed-line requirements. With the advantage of global expertise and experience and the knowledge of local markets, the business is run through the following verticals – Vodafone Global Enterprise, SME division, National corporate and key accounts. Since its inception, Vodafone Business Solutions has garnered over 3 million corporate customers in India and currently provides services to over 6000 Global and national accounts equipped with a robust and superior network infrastructure and a 24x7 NOC. Vodafone has been recently awarded the 'Enterprise Mobile Service Provider of the Year' at the 2012 Frost & Sullivan India ICT Awards. 3.4 Vodafone India: Awards & Achievements 2007  Acquires a 67% stake in Hutchison Essar for $11.1 billion with a subscriber base of 30 mn.  The company is renamed Vodafone Essar and ‗Hutch‘ is rebranded as ‗Vodafone‘.  Vodafone launches in India with massive multi-media campaign.
  34. 34. Organization Study at Vodafone South Limited, Bangalore 30 2008  Vodafone crosses 50mn subscribers.  Vodafone forays into enterprise and carrier business (Vodafone Business Services) in India.  Acquires the licences in remaining 7 circles – Orissa, Bihar, North East, Assam, J&K, HP, MP – becomes a pan India player. 2010  Vodafone crosses 100mn subscribers  Vodafone acquires spectrum for 9 circles in India in the auction for 3G spectrum  Soft launch of 3G in India 2011  Vodafone commences launch of 3G in India in phased manner  Vodafone India revenues stand at INR 27,000 ceores  Vodafone Group buys out its partner Essar from its Indian mobile phone business.  Vodafone Essar Limited becomes Vodafone India Limited. 2012  Vodafone India is INR 32,000 crores in revenues, crosses the 150mn subscriber mark.  Vodafone India recognized as the ‗Best marketing Company in India‘ by an Economic Times survey.  Vodafone India announces a strategic alliance with ICICI Bank to launch- mpesa- unique mobile money transfer and payment service- facilitate financial inclusion.  Vodafone India acquires additional spectrum in circles in the 2G auction. 2013  Vodafone receives FIPB clearance to increase stake to 100% in India unit  GSMA Innovation Fund Award for credibility in social innovation and impact  Ranked 2nd in ‗Best Company in Telecommunications Industry‘ –  Ranked 4th in ‗Best Company in Large Organisations‘ (more than 10,000 employees)  Ranked 24th ‗among the Top 100 Companies in India‘ 2014  Vodafone India is fully owned by Vodafone Group.
  35. 35. Organization Study at Vodafone South Limited, Bangalore 31  GSMA Global Mobile Award for Best Mobile Product, Initiative or Service in Emerging Markets to the RUDI Sandesha Vyavhar (RSV) project in association with the Self Employed Women‘s Association (SEWA) and the Cherie Blair Foundation for Women (CBFW)  Vodafone is ‗India‘s Most Admired Marketer‘ –recognised by Economic Times – Brand Equity Agency Reckoner Study 2014.  Vodafone India received Award for Excellence in Talent Management (exemplary work ethic & HR practices) at Economic Times HR Excellence Summit.  ‗Retailer of the Year‘ at the Asia Retail Congress 3.5 Vision & Mission of Vodafone Vision:  To lead the industry in responding to public concerns regarding mobile phones, masts and health by demonstrating leading edge practices and encouraging others to follow.  To enrich our customer's lives through the unique power of mobile communication Mission:  We will be the communications leader in an increasingly connected world Figure 8: Vodafone network summary
  36. 36. Organization Study at Vodafone South Limited, Bangalore 32 3.6 Provided Services 3.6.1 Voice Vodafone carried 1.2 trillion minutes of calls over our network last year – that‘s the equivalent of everyone around the world talking for two and a half hours. 3.6.2 Messaging Vodafone network carried 337 billion text, picture, music and video messages last year. 3.6.3 Data Over 544 petabytes of data were sent across our network last year – that‘s enough data for over 100 billion one minute video clips. 3.6.4 Fixed broadband Vodafone have 9.3 million fixed broadband customers, mainly in Germany, Spain and Italy. 3.6.5 Other services Includes revenue from mobile virtual network operators (‗MVNOs‘) using Vodafone network in their markets and from operators outside their footprint using their products and services as part of Vodafone partner market network that spans 48 countries. 3.7 Local markets Vodafone Group Plc is one of the world's leading telecommunications groups, with a significant presence in Europe, the Middle East, Africa and Asia Pacific through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. 3.8 Partner markets Vodafone Group has entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Market Agreements, Vodafone and its partner operators co-operate in the marketing of global products and services with varying levels of brand association.
  37. 37. Organization Study at Vodafone South Limited, Bangalore 33 This strategy enables Vodafone to implement services in new territories and to create additional value to their partners' customers and to Vodafone's travelling customers without the need for equity investment in these countries. Similar agreements also exist with a number of the Group‘s joint ventures, associated undertakings and investments. Highlights  Unified communications strategy: acquisition of Kabel Deutschland and proposed acquisition of Ono – two leading cable companies, ongoing fiber build in Spain and Portugal, with Italy to commence this year.  Project Spring underway, initially with increased network investment in India and Germany.  4.7 million 4G customers in 14 markets; early 4G data usage more than double that of 3G data usage.  European smartphone penetration 45%, up 7 percentage points year-on-year.  Vodafone Red now in 20 markets; 12 million customers as at 31 March 2014.  M-Pesa now in 10 markets, 17 million customers. 3.9 Quality Policy Vodafone has a reputation for integrity, built through their business principles which they apply in all of their business activities. Employing the business policies with every supplier they work which ensures their business principles are put into practice. International Standards  ISO 14001: Environmental management systems. Requirements with guidance for use  ISO 9001: Quality management systems  TL 9000: Requirements with Handbook and measurements handbook  ISO 27001: Specification for the management of information security
  38. 38. Organization Study at Vodafone South Limited, Bangalore 34  ISO 20000 IT Service Management Standard: Specification for service management/ IT service management standard: Code of practice for service management.  OHSAS 18001: Occupational health and safety management systems. Requirements  BS25999: Business continuity management. Code of practice/ Business continuity management. Specification  SA 8000: Social accountability  PCI DSS: Payment Card Industry Data Security Standard 3.10 Key milestones in the development of Vodafone  1982 As Racal Telecomm, awarded the first mobile license in the UK  1984 Incorporated as Racal Strategic Radio Limited  1985 First mobile analogue call in the UK  1987 Launched Vodapage, a paging network covering 80% of the country  1988 20% of the group floated on the London Stock Exchange as Racal Telecom Plc  1991 Separated from Racal Electronics and since then quoted as Vodafone  1993 Introduction of digital mobile services in the UK and first international partnership.  1999 Merged with Air Touch Communications, producing a new company, Vodafone Air touch plc  2000 Began operating as the Vodafone group Plc  2002 Introduced Vodafone Live!  2004 Commercially launched its 3G services in Europe  2005 Launched fixed mobile convergence product in Germany called Zuhause.  2006  Sold its Japanese unit to Softbank and Swedish unit to Telenor.  Acquisition of Telsim (Vodafone Turkey) for £2.6bn  2007  Entered the India mobile market and acquired a controlling stake in Hutchison Essar for £5.5bn  Acquired Tele2 fixed line operations in Italy and Spain.
  39. 39. Organization Study at Vodafone South Limited, Bangalore 35  2009  Vodacom Group became a subsidiary following the purchase of an additional 15.0% stake for £1.6bn.  Vodafone Australia merged with Hutchinson 3G Australia to form a 50:50 joint venture trading as Vodafone Hutchinson.  2010 Disposal of our 3.2% interest in China Mobile for £4.3bn  2011  Acquired a further 11.0% of Vodafone Essar for £3.1bn  Vodafone Group buys out its partner Essar from its Indian mobile phone business.  Vodafone commences launch of 3G in India in phased manner  Vodafone Essar Limited becomes Vodafone India Limited.  2012  Verizon Wireless pays $10bn dividend, £2.9bn received by Vodafone
  40. 40. Organization Study at Vodafone South Limited, Bangalore 36 CHAPTER 4 ORGANIZATION STRUCTURE
  41. 41. Organization Study at Vodafone South Limited, Bangalore 37 ORGANIZATION STRUCTURE Every company has its own organizational structure. Vodafone South Limited has a well- defined structure, with the following major departments namely HR, Technology, Sales & Marketing, VBS, Finance & Accounts, Customer Service & Legal. 4.1 Structure of Vodafone India Vodafone Global UK Vodafone India Directors Sunil Sood MD & CEO HR C.C.O C.O.O V.B.S Technology External Affairs & Regulatory General Councel mPesa O.D South O.D West O.D East O.D North Business Head B.D.M F.A 1. Karnataka 2. Andhra Pradesh 3. Kerala 4. Tamil Nadu C.F.O
  42. 42. Organization Study at Vodafone South Limited, Bangalore 38 4.2 Structure of Karnataka Circle Business Head HR Technology Sales & Marketing Vodafone Business Services Finance & Accounts Customer Service Learning & Development HR Operations (HR BC 1) Recruitment Performance Dialogue & Rewards Associate Management Properties & Facilities Management I.T Network Operations Zonal Heads Sales Head Marketing Head Retail Head mPesa Head National Corporate SME VGE VBS CS Government A/C Solutions Financial Accounting FPNA Credit & Collection Supply Chain Management Retention & Relation Customer Support Group Quality SPM Training Marketing
  43. 43. Organization Study at Vodafone South Limited, Bangalore 39 4.3 Zonal Structure of Karnataka Karnataka has 8 zones 1. Bangalore East 2. Bangalore West 3. Davangere 4. Tumkur 5. Gulbarga 6. Mysore 7. Mangalore 8. Hubli Zonal Manager Distribution Lead Zonal Marketing Executive Zonal Credit & Collection Zonal Retail Lead Zonal Customer Service Lead Distribution Area Manager Channel Manager Channel Manager Distribution Area Manager Distribution Area Manager Activation Officers Store In charges (SIC) VMS Leads mPesa BDM
  44. 44. Organization Study at Vodafone South Limited, Bangalore 40 CHAPTER 5 FUNCTIONAL DEPARTMENTS
  45. 45. Organization Study at Vodafone South Limited, Bangalore 41 FUNCTIONAL DEPARTMENTS 5.1 HR and Administration The importance of human resources within the organization is becoming increasingly understood in today‘s rapidly changing and uncertain business environment. In order to assist employees in helping an organization to reach its strategic business goals, effective human resource managers often gather job related information in a job analysis and job description, which is vital to creating or re-designing jobs which provide employees with a high level job satisfaction. While empowering the employees, they focus on optimizing the roles of their key touch point – the Human Resources function. Vodafone have implemented the HR Business Partner for each function at corporate, to focus on the business strategy and launch of the HR Shared Services for all employee queries and our Centre of Expertise (COEs) that brings in a specialist experience in the HR functional domain, in areas of Rewards, OE (organization effectiveness) and Talent. Vodafone have an employee portal –Ask HR as a one-stop-shop for all employee communication needs like HR Updates, Policies, Processes, Employee Self Service and Manager Self Service. On an average, they have 15,000 hits per month, thus bringing in complete transparency on all HR processes. Since the launch of the Ask HR portal in April 2011 till March 2012, company have recorded 157,724 hits on the website and registered 45,320 queries (calls and emails) to the service centre. Also their HR Systems enable employee self-service in travel, medical claims, performance dialogue, leaves etc. Their employee CSAT on HR services is at 85%+ on speed, quality and overall services, the team provides to all the stakeholders. The Human Resource Department is placed with the responsibility of ensuring that it plans adequately for all the organization‘s future engagements that will involve people. One important aspect of this is planning for employees in the organization. It is important that the organization ensures that all the employees under its wing are just enough to increase value to the organization.
  46. 46. Organization Study at Vodafone South Limited, Bangalore 42 The H.R department of Vodafone South Limited performs many important functions. The Major functions include:  Attract bright and relevant talent.  Develop continuously by providing opportunities.  Excite by creating a culture that is invigorating and creatively innovating.  Retain the best talent by creating an environment of trust and bonding.  Recruit right resources at the right cost and time.  Develop overall organization human resources capabilities through relevant interventions.  Facilitate HR and Administration process and systems so as to enhance staff retention.  Facilitate and sustain employee engagement through purposeful organization communication process. 5.1.1 Administration The major function of administration department is to maintain and to ensure a function of high standards that conforms to workplace Ergonomics by adhering to:  Cleanliness  Comfort  Aesthetics  Hygiene  Safety Their overall responsibility includes maintenance of:  Building / facilities  Housekeeping  Staff welfare  Travel / Transportation  Power / Infrastructure  Printing  Courier  Concierge  Hotel booking / conferences  Support / Maintenance
  47. 47. Organization Study at Vodafone South Limited, Bangalore 43 5.1.2 Recruitment This is one of the most fundamental roles of the HR department. This function ensures that the Company under consideration selects the most skillful and competent person from a sea of applicants at that time. This function involves evaluation of ability and competency of potential employees in relation to what the Company needs. This role falls under the Staffing role of management. If this function is performed well, then the organization will increase value consequently being on the right pathway to achieve its organizational and departmental goals and objectives.  Job sites  Consultants  Referrals  Campus recruitment Selection process  Sourcing CV  Shortlisting  Interview schedule  Interviews  Face to face interview  Video conferencing  Telephonic interview  Offer  Medical examination  Joining formalities  Appointment Performance Dialogue  Mid-year performance dialogue  Annual performance dialogue- its process  Goal setting  Goal approval  Self-assessment
  48. 48. Organization Study at Vodafone South Limited, Bangalore 44  Manager assessment  Communication of rating  Employee feedback  Survey 5.1.3 Talent Management Vodafone recognise that it is necessary to create a sustainable environment for their people so that they continue to be relevant to the business, as they grow. As a part of Vodafone talent management initiatives, they primarily work on building sustainable environment to manage succession plans for critical roles and groom the people for these roles. They provide customised training programmes and plan career paths for their employees, based on their potential, talent and performance. An employee with high potential is groomed via development journeys that enable them to fast-track his/her career within the function. Some of the flagship talent management programmes are:  Senior Leadership Acceleration Series  Building Leaders of Tomorrow  Young Leaders Program In acquiring, nurturing, integrating and retaining talent, Vodafone focus is not only around ‗what‘ of performance but also around ‗how‘ of performance, bringing a more mature performance management system with a visible linkage to the Vodafone Way of Speed, Simplicity and Trust. It is not just appraising their employees, but also about letting them set SMART goals, coaching them for superior performances and ensuring continuous development, through regular feedback and review – empowering them at every step. Towards a Safer work Place Safety of their employees is at the core for them. Vodafone believe that senior management commitment is essential to make their work environment injury free and safe for every individual associated with them. Senior Management Tours are conducted on a regular basis to encourage safe working conditions and practices. Moreover, they are in the process of establishing various standards and work practices for sustained safe working. Also Vodafone believe in an open culture in incident reporting across all levels.
  49. 49. Organization Study at Vodafone South Limited, Bangalore 45 Employee Recognition Vodafone value their employees and value their contributions. Vodafone workforce is their strength and they want their employees to feel valued and realise that their work does make a difference. At Vodafone, one of the best companies to work for in India as per a study by The Economic Times, they acknowledge the priceless contributions made by their employees under the following categories:  Target or performance driven recognition programme  Culture driven recognition programme Some of the culture driven recognition programmes are:  Vodafone Global Heroes The Vodafone Way is about a consistent way of working, with Speed, Simplicity and Trust. Vodafone Global Heroes is a quarterly initiative that identifies and recognises employees (in band G and below) who contribute to and embody ―The Vodafone Way‖.  Vodafone sSTars A sSTar is someone who operates with Speed, Simplicity and Trust. This programme recognises the employees‘ contribution at three different levels: Level 1: SSTars An on-going exercise, it celebrates the demonstration of Speed, Simplicity and Trust at work with a special SSTars e-card. Any employee can recognise a colleague or team member across functions and circles through an instant SSTars e-card, any number of times. Level 2: SuperSSTars A monthly exercise which celebrates the exemplary demonstration of Speed, Simplicity and Trust at work. The chosen employee is awarded points from the functional kitty that can be redeemed against gifts. Any functional or cross-functional
  50. 50. Organization Study at Vodafone South Limited, Bangalore 46 colleague or Line Manager across circles can nominate an employee with a proper justification, any number of times during the month. Level 3: MegaSSTars A quarterly exercise which celebrates the consistent and outstanding demonstration of Speed, Simplicity and Trust at work. The MegaSSTar finalist is shortlisted by the Recognition Board comprising Business Head, HR Head and Functional Heads, every quarter in every circle. The winner is awarded a lapel pin, a certificate and points that can be redeemed against a pre-decided gift voucher. 5.1.4 HR Department Structure HR Head HR Operations Associate Management Learning & Development Administration Recruitment Performance Dialogue & Rewards HSW & Security Facility Management
  51. 51. Organization Study at Vodafone South Limited, Bangalore 47 5.2 Technology Department 5.2.1 Information Technology The I.T department has been contracted to IBM. The main functions include:  Providing IT support to all departments in order to meet business requirement.  Understand business requirement, changing time to time, and provide automated solutions to meet and compete in the market.  Understand technology trends and apply to enhance efficiency and advantage to business.  Ensure I.T applications and systems availability and scalability to meet growth and industry/market challenges.  Participate in management to understand business goals and challenges and explore and deploy technology.  Define service levels (SLA) for centralized applications to meet business objectives, monitor, review and enhance time to time.  Define, monitor, review and enhance scope of work (SOW) SLA with service partners/providers.  Ensure alignment to national processes, with least compromise to circle business needs.  Participate in business projection process and prepare capacity planning, capex and opex requirement and architecture to I.T preparedness in time for growth.  Data security and IT process compliance to IT/Company policies and legal & regulatory requirement.  Understand end customer experience and influence central IT team to provide IT solutions to enhance end customer experience.  Prepare IT capacity, service and consumable plan for the year based on inputs from functional heads.  Influence service partner/ Central IT team verticals with circle business trends requirement to provide solutions.  Plan and deploy equipment capacities to meet requirement.  Review existing and new IT infrastructure needs with service partner and enhance systems availability and capacity.
  52. 52. Organization Study at Vodafone South Limited, Bangalore 48 5.2.2 Network Operations The network operation department performs the functions of designing and getting the IP MPLS network implemented as per the specifications provided by corporate. Their functions are:  Maintaining the MPLS network once it is commissioned for the carrying the circle enterprise business (data & voice) traffic  Timely site readiness, physical installation of PoP, acceptance test & commissioning of Vodafone MPLS/Voice network.  Perform the operation & maintenance of MPLS PoP.  Execution of work order for network & customer circuit provisioning in coordination with all stakeholders.  Performance, capacity & network change management of MPLS network  Maintenance of network & customer SLA as per the target  Prepare and organize the strategy for Zonal – O & M setup  Planning resources requirement for various sub functions like Manpower (employee + outsource staff), cell sites logistics/ spare materials, test equipment etc… 5.2.3 24 x 7 Handling Network failures To ensure fault free operation of network cell sites and network subsystem through preventive maintenance. Managing 24 x 7 zonal and centralized level maintenance shift operation for speedy network fault resolution. Their functions are:  To ensure high network reliability/availability.  Constant interactions with system vendors and sub-contractors for day to day operational issues.  Managing faulty spares repair and return process for various network sub systems through various vendors.  To handle and manage the catastrophic network failures due to various calamities condition.  To ensure fast recovery of network during unexpected/ uncertain scenario.  Optimum utilization/ mutilation of zonal O &M resources for efficiently handling the crisis.
  53. 53. Organization Study at Vodafone South Limited, Bangalore 49  Planning day to day O & M cost saving/ reducing technique.  Handling O&M related contractual/ outsourcing in lowest possible cost to produce productive results in terms of cost /time and quality.  Monitoring & tracking O&M process cost.  Optimal and efficient utilization of available centralized /zonal O&M staff/ contractual staff.  Cell sites logistic / Spares materials and test equipment‘s usages and control  To create better understanding and interpersonal relationship among the remotely located zonal team members and sub functional centralized team members by way of regular interaction / discussion with each individual team member.  To drive synergies among all O&M zonal subgroup and other department for smooth/ flaw less handling of network operational issues.  To provide technical direction to subordinate for fast network problem resolution and root cause problem analysis. 5.2.4 Technology Department Structure Technology Head IT Projects Switch Transmission Operations & Management (O&M) Career Business
  54. 54. Organization Study at Vodafone South Limited, Bangalore 50 5.3 Sales And Marketing Department Sales and marketing is one of the most important department at Vodafone south ltd. Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. They form the back bone of the entire organization. They are responsible for the function of carrying out the function of marketing activities all around Karnataka. They manage and monitor the entire sales force of VSL. The entire Karnataka state is divided into 8 zones. They are Bangalore East, Bangalore West, Mysore, Hubli, Gulbarga, Davangre, Tumkur, Mangalore. The main responsibilities of the marketing team are to:  To define and manage the customer needs and expectations  Deliver innovative products and services  To implement business models for new products and services including capex spend  To constantly design, deploy and manage campaigns for revenue management of both voice and data product and services  To develop strategic alliances in the circle to help SME business growth in the circle  To develop and implement the tariff plans  To identify the business solutions needs for SME in the circle and provide input for solutions development.  To support product penetration of accounts through targeted acquisitions.
  55. 55. Organization Study at Vodafone South Limited, Bangalore 51 5.3.1 Sales & Marketing Structure Sales & Marketing Head Marketing Retail Sales Zonal managers Value added services Roaming Campaign Management UNR Data Services Sales MIS Projects Sales Program Management MIS Modern Trade Distribution Direct Sales Marketing Communications
  56. 56. Organization Study at Vodafone South Limited, Bangalore 52 5.4 Vodafone Business Services Department The main function of Vodafone Business Services department is to manage and implement the service strategy among corporates and Vodafone global enterprises customers in Karnataka and attain high level of customer satisfaction through the cross functional teams, service managers & channel partners whilst complying with agreed budget, timescales and agreed policy guideline as also with all regulatory norms. Innovate and drive appropriate changes in service delivery depending on market realities and demands. They must also align with cross functional teams across circle and central. Back office matrix in terms of complaint management resolutions and achieve customer satisfaction. Manage complaints from customers within an agreed SLA. They are responsible for:  Service management in the accounts through team of service manager and channel partner for servicing.  Drive customer retention and comply to customers with customer credit policies.  Engage in formal service reviews with corporates and VGE accounts and customer forums.  Provides feedbacks on evolving service needs.  Set goals and targets for the service team in consultation with the head  Monitor the performance of the teams periodically.  Responsible for service communication for the corporates and VGE customers handled in the allocated territory.  Responsible for aligning and implementing norms and process laid.
  57. 57. Organization Study at Vodafone South Limited, Bangalore 53 5.4.1 Vodafone Business Service Department Structure VBS Head Customer Operations VBS Solutions VBS Marketing VGE Small & Medium Enterprises Government
  58. 58. Organization Study at Vodafone South Limited, Bangalore 54 5.5 Finance And Accounts Department The finance department forms the backbone of every organization. The finance department has a team of professionals which regularly review the company‘s practices and converts personal skills into efforts to continually improve the financial statements of the company. Through effective management practices and creative ideas, financial department team strives to build a working environment that enables to use financial resources and capabilities to serve customers better. The finance department staff shares the company‘s dedication to customer satisfaction. The major functions of the finance department include:  Finalization of accounts.  Cash flow (in flow) projections  Supervision of billing, collections, banking, statutory compliances  Periodical MIS  Budgeting  Returns filling  Correspondence to bankers on financing  Debt management  Agreements and dispute resolution  Supervision of costing  Supervision of individual and functional performance  Internal audit 5.5.1 Credit & Collection Objectives  Act as a catalyst for growth in revenue and subscriber base  Balance risk v/s revenue  Bring more customer focus and intelligence into the C & C processes  Strive to reduce bad debts  Equip credit and collections teams to be in line with business growth
  59. 59. Organization Study at Vodafone South Limited, Bangalore 55 1. Credit Team The respiratory system of the Vodafone body. They do this by:  Reviewing subscriber‘s credit worthiness before letting them into our system.  Monitoring subscriber‘s dues.  Retaining good subscribers and optimizing their usage. Process in Credit  Duplicate tracking  Fraud Control  Credit monitoring  Return bill management  Credit rating update 2. Collections Team The blood circulatory system of the Vodafone body. They do this by:  Ensuring customers, get their bills  Giving reminders and collecting payments.  Posting payments on time  Informing customers who have overdue payments  In field, understand subscriber issues, resolve issues Processes in Collection  Billing operations  Bill payment processing  Dunning  Tele-calling agency  Field collections
  60. 60. Organization Study at Vodafone South Limited, Bangalore 56 5.5.2 Supply chain management Vodafone India has always taken adequate measures to ensure that the supply chain is efficient, and has developed systems to optimize every step of the supply chain including procurement, inventory management and effective waste disposal. Moreover, they have also established processes that enable them to observe safety rules and conduct business responsibly. 5.5.3 Finance & Accounts Department Structure Finance & Accounts Head Finance Planning & Analysis Financial Accounting Credit & Collection Supply Chain Management Zonal Accounting Tax
  61. 61. Organization Study at Vodafone South Limited, Bangalore 57 5.6 Customer Service Department The Customer service department fulfills an important role for an organization. Customer service is often the main point of contact for a customer, so representatives can paint the company in a positive light by providing friendly and prompt service. In some cases, the customer service department can even generate additional sales for the company. Customer service requires a great deal of patience since customers may be rude or demanding at times. The main focus of a customer service department should be to attempt to satisfy the customer‘s needs. The customer service department also includes the department of Retention and Relation. They are responsible for:  Reducing voluntary subscriber churn.  To ensure recruitment, training, performance of all retention executives.  To ensure communication of empowerment and approval matrixes at all touch points for customer retention.  Process management of store retentions.  To increase first level retention at stores.  Ensuring all retention executives are trained.  To record all correct information and closure of retained/ not retained customers.  Ensuring all support from the stores team to the retention executives.  R & R are responsible for e-mail retention process – allocation, closure, performance, as per set targets.  Ensuring all cancellation requests are closed within the agreed SLA‘s by the retention agents.  Driving customers win back post cancellation through tele-calling and field and ensures the targets are met.  Driving the base management of the selected high ARPU base through the team of relationship managers and ensuring the targets on customer visits, retention, complaints, collection, churn etc are met.  Drive the team‘s performance in productivity, training retention skills, performance, quality, validation and settlement of invoice.
  62. 62. Organization Study at Vodafone South Limited, Bangalore 58 5.6.1 Customer Services Department Structure Customer Service Head Retention & Relation Quality Customer Support Group Service Partner Management Training
  63. 63. Organization Study at Vodafone South Limited, Bangalore 59 5.7 Legal Department The Legal department is responsible for maintaining and protecting the interest of the company to the fullest extent. Take disciplined actions & focus on business needs and requirements. They must adopt best practices and easy ways and means while resolving issues. They must access and manage all types of risks and handle crisis effectively and efficiently. The functions performed by the legal department are:  Provide high quality legal services.  To ensure situations are handled and controlled to meet end users requirements.  Monitoring and focusing on driving the process as to collection against defaulters of cheque bounces.  Handling uncertain, complex situations and speedily resolve the issues.  Defending the coercive actions taken by the government authorities for collecting revenue is set aside.  Defending the litigations filed against the company and ensuring the customer is not paid any compensation as claimed for.  Manage the risks and deliver results timely always, do not look for short term benefits but long term solutions always.  Manage to move with the entire industry always.  All end users requirements have to be met timely so that business remains un- hampered. Taking the right decisions at the right time is important and implementation of the same is also very critical aspect from business point of view in case of the legal department. Timely action has to be taken against defaulters of cheque bounces and ensure that revenue is enhanced for the company At Vodafone, they have several functions that are a part of the control environment including  Internal Audit  Revenue Assessment  Information Security
  64. 64. Organization Study at Vodafone South Limited, Bangalore 60  Privacy  Sarbanes- Oxley (SOX - also known as Corporate and Auditing Accountability and Responsibility Act)  Enterprise Risk Management (ERM)  Fraud Risk and Security (FRS) and Compliance However, recognizing the need for developing a simplified system for remaining compliant to the large number of laws and regulations affecting them, they are in the process of creating a framework encapsulating all the key laws and regulations that each circle is required to adhere to in all situations. 5.7.1 Legal Department Structure Legal Head Assistant Manager
  65. 65. Organization Study at Vodafone South Limited, Bangalore 61 CHAPTER 6 SWOT ANALYSIS
  66. 66. Organization Study at Vodafone South Limited, Bangalore 62 SWOT ANALYSIS 6.1 Strength 1. World’s second largest mobile telecommunications company measured by both subscribers and revenue. Vodafone is the world's second-largest mobile telecommunications company measured by both subscribers and revenues (in each case behind China Mobile). Vodafone is either the market leader or is among the top 3 service providers in every country. Such strong position often implies financial leverage, larger capacity to absorb risks and greater capability to steer the market direction. Vodafone had 434 million subscribers and revenue of £43.6bn as of 31 March 2014. 2. Geographically diversified business. It‘s easy to think of Vodafone as simply a European company, with its headquarters in the UK, but the reality is that one third of their revenue comes from countries outside Europe and most of this is in fast-growing emerging markets where data demand is taking off. The company owns and operates networks in 26 countries and has partner networks in over 50 additional countries. The Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone is the world‘s leading international mobile communications company. 3. Strong advertising and marketing strategy (Eg:Zoo Zoo concept). Innovation is always a part of advertisements and the advertising agencies reach out for new ways to capture the prospective consumer's heart. Vodafone capitalizes on the innovative ideas and always came with the new advertisements that took the brand on heights always. O&M (Ogilvy and Mather) the mastermind behind Vodafone advertisements and the main objective was to set the position of Vodafone as an innovative leader in the mobile services sector. The promotion strategy was to hit massive levels by maximizing the target audience.
  67. 67. Organization Study at Vodafone South Limited, Bangalore 63 Out of all the commercials launched by Vodafone, ZOOZOOZ are the best. IPL-2 was the best option for Vodafone to do go for. The advertising strategy behind it proved itself from the fact that the name Zoozooz got coupled with the brand Vodafone and gathered more publicity and reception than IPL. Repetition of the advertisements of Zoozooz may bore the viewers, so O&M came up with new Zoozooz Ad every day. Zoozooz were the new brand ambassador for Vodafone, has created a furore in the advertising industry. Zoozooz succeeded in giving the exact makeover Vodafone was looking for along with amazing brand presence. 4. Vodafone’s leadership position and Strong brand recognition Aggressive strategy, creative advertising, decent customer service and employee- friendly policies have helped Vodafone in cementing its place among the better brands of the world. This makes it easy for them to win new customers and retain the existing base. 5. Developed and advanced network. While not necessarily the trailblazer of LTE network launch in its areas of operation, Vodafone deployed LTE and high-speed wireless networks in most of its markets within a few years of spectrum allocation or ecosystem stabilization. In 2010, Vodafone had LTE running in Germany for the first time. Within the next 2 years, they followed it up by launching LTE in Portugal, Romania, Spain, UK, Australia, South Africa and many other nations. Networks in India, Egypt and Turkey are also in the process of upgradation. Similarly, in the first half of the last decade, the operator was aggressive in providing 3G services. The overall perception of Vodafone‘s wireless network is positive in most countries.
  68. 68. Organization Study at Vodafone South Limited, Bangalore 64 6.2 Weakness 1. High customer churn. Customer churn happens to be the most challenging issue for mobile industry irrespective of its rapid growth. India has more than 15 mobile operators in a highly competitive, predominantly pre-paid market. About 96% of all mobile subscribers are constantly transitioning between mobile service providers to realize incrementally lower prices. The monthly churn rate in India averages approximately 6%. Reasons for disloyalty vary for different operators as this market is highly competitive. Customer loyalty generally declines and willingness to churn increases as market is subjected to technological changes. Recent churners often switch because of promotional offers from competing providers. The churn is very high especially in the youth segment. Customer retention is a challenge as churn takes place in the short period of less than 24 months. Globally, India stands first in youth population. According to the recent telecom statistics of 2014 young adults tend to churn in a higher rate when compared with other age category. This is mainly due to their level of expectations and preferences are varying according to the mobile market trend. Hence it is very difficult even to Vodafone, a market giant to cut down churn. 2. 3G service is not available in all circles. Out of the 23 telecom circles in India, Vodafone has acquired 3G spectrum only for 9 circles. For example, in Karnataka 3G is provided through the Airtel network and in Kerala it is through Idea network. In order to resume offering 3G services in circles where they do not have spectrum, Vodafone, invests a huge amount of over INR 280 crores per annum for ramping up network and distribution by taking up circles for rent. 3. No proper network in rural areas. This is due simply to limitations of technology. Customers can be tens of miles apart in rural areas, making it difficult to propagate a signal to many homes around a base station. Though the customers in the rural areas is a potential market for Vodafone, the fact that homes are so sparse in rural areas also hinders from making the investments necessary to supply rural areas with quality mobile network.
  69. 69. Organization Study at Vodafone South Limited, Bangalore 65 6.3 Opportunity 1. Fast expanding cellular market / Strong demand from emerging markets The demand for mobile services continues to grow strongly. In the last three years the number of users increased by an average of 9% each year. In 2009 global mobile penetration was only 69%, and by 2013 it had risen to 98%. Emerging markets have the most potential for future mobile customer and revenue growth driven by rising populations, strong economic growth, lower mobile penetration and a lack of alternative fixed line infrastructure. According to industry analysts, by 2017 there will be 1.7 billion new mobile users across the globe, and most will be from emerging markets. As a result by 2017, 77% of the world‘s mobile users will be from these markets. 2. Good tariff packages. Mobile service providers have the power to fix/give offers to the customers. Vodafone‘s 3G data portfolio includes a variety of weekly packs, night packs and monthly packs with limited and unlimited 3G data benefits, ranging from Rs 27 to Rs 1499.They are able to give such a wide and attractive packages while adhering to the norms and rules of TRAI. 3. Growing importance of data and other new revenue areas Mobile voice and texts are the traditional revenue sources for all telecom companies. One of the major future growth opportunity revenue areas is data. It is estimated that between 2013 and 2017 data revenue for the telecommunications sector is set to grow by US$128 billion, compared to a US$38 billion decline in voice revenue over the same period. The demand for data will continue to be driven by rising smartphone and tablet penetration and usage, and improvements in mobile network capability. As the demand for data grows, mobile networks have to be reconfigured to data, while still meeting the need for traditional texts and calls. Already 91% of the world‘s total traffic on mobile networks is data. The data services most used are video streaming and internet browsing which require high speed networks. New applications for mobile services are the use of mobile beyond everyday communication and deliver new revenue streams, such as mobile payments via a

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