TATA INTERNSHIP PROJECT

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About IISWBM To give a new dimension to its sixty years celebration in 2013, the IISWBM, the premier management educational institute in eastern India and India’s first B-school has introduced a unique and futuristic educational PG Diploma program in Telecom Management in collaboration with BSNL to bridge the gap between the existing talent and highly skilled personnel to augment the telecom sector. It is an interdisciplinary course which has been designed to develop future telecom managers who comprehend telecom operations from management, legal, regulatory and finance perspectives. IISWBM takes the pride of offering various management courses for different sunrise sectors besides MBA to cater to the needs and demands of modern business world. However, the traditional legacy and values, which IISWBM has imbibed from the day of its inception, still remains with this institute. So this institute has taken up this decorous initiative to nurture and develop competent telecom managers with cross functional skills for leadership roles by learning the latest telecom technologies who can understand telecom operations from all perspectives, whether it is management or technical. IISWBM, Internship Project 2013-14 1

Transcript of TATA INTERNSHIP PROJECT

Page 1: TATA INTERNSHIP PROJECT

About IISWBMTo give a new dimension to its sixty years celebration in 2013, the IISWBM, the premier

management educational institute in eastern India and India’s first B-school has introduced a unique and futuristic educational PG Diploma program in Telecom Management in collaboration with BSNL to bridge the gap between the existing talent and highly skilled personnel to augment the telecom sector. It is an interdisciplinary course which has been designed to develop future telecom managers who comprehend telecom operations from management, legal, regulatory and finance perspectives.

IISWBM takes the pride of offering various management courses for different sunrise sectors besides MBA to cater to the needs and demands of modern business world. However, the traditional legacy and values, which IISWBM has imbibed from the day of its inception, still remains with this institute. So this institute has taken up this decorous initiative to nurture and develop competent telecom managers with cross functional skills for leadership roles by learning the latest telecom technologies who can understand telecom operations from all perspectives, whether it is management or technical.

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About TATA TELESERVICES LIMITEDTata Group in Communication Industry

Communication is among the Tata Group's larger investments, with over $7.5 billion already committed. The Group's objective is to provide end-to-end telecommunications solutions for business and residential customers across the nation and internationally. The Group's communications activities are currently spread primarily over four companies:

Tata Teleservices LimitedTata Teleservices (Maharashtra) LimitedTata Communications (erstwhile VSNL)Tata Sky

Together, these companies cover the full range of communication services, including:

Telephony Services: Fixed and Mobile

Media & Entertainment Services: Satellite TV

Data Services: Leased Lines, Managed Data Networks, IP/MPLS VPN, Dial-up Internet, Wi-Fi and Broadband

Value-added Services: Mobile and Broadband Content/Applications, Calling Cards, Net Telephony and Managed Services

Infrastructure Services: Submarine Cable Bandwidth, Terrestrial Fiber Network and Satellite Earth Stations and VSAT Connectivity

Tata Communications

Among these four companies, Tata Communications is the oldest one connecting 99.75% of the world’s GDP. Tata Communications is a USD $3.2 billion (FY'13) global communications and enterprise IT service provider that owns and operates the world’s most advanced subsea optic fibre cable network, delivering first-class infrastructure, enterprise solutions and partnerships to carriers and businesses worldwide. Its network is truly global, extending from developed markets to the world’s fastest growing emerging economies.

Tata Teleservices Limited

Tata Teleservices Limited (TTSL) spearheads the Tata Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices Limited was the pioneer of the CDMA 1x technology platform in India, embarking on a growth path after the acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. In 2005, TTSL launched CDMA wireless services under the brand, Indicom.

TTSL also has a significant presence in the 2G GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services. Tata DOCOMO was born after Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO in November 2008 when the latter got 26 per cent stake of TTSL. It was also the first private operator to launch 3G services in India. It received a pan-India license to operate GSM telecom services and rolled out GSM services in all the 18 telecom circles that it received spectrum in from the Government of India—Tamil Nadu, Kerala, Orissa,

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Karnataka, Andhra Pradesh, Maharashtra, Mumbai, Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand, Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.

Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per-second tariff option part of its ‘Pay for What You Use’ pricing paradigm. In a short time, the company’s market share shot up from 9.39 per cent in end-September 2009 to 11.50 per cent in end-September 2010.

Operational Analysis

TTSL downslide has been almost as rapid as its rise had been. The ambition that the company had displayed in 2009-10, when it launched GSM services, is missing today. This was the same company that had introduced the game-changing Pay for What You Use strategy that went on to influence industry dynamics and led to the company adding over 4 million subscribers each month.

Today, however, the company is in a tough spot owing to continuing losses, low subscriber growth and mounting debt. Intense competition in the voice segment has led to low margins and declining subscriber market share, while revenues from data services have been unable to fully offset the shortfall from voice services. As of June 2013, TTSL’s subscriber market share stood at 7.40 per cent, according to the Telecom Regulatory Authority of India (TRAI), against 10.68 per cent as of end-June 2011. Company officials point out that TTSL was a late entrant into the GSM segment and launched these services only four years ago as compared to the incumbents, which have been operating in this space for 17 years. This, perhaps, accounts for its low subscriber market share.

On the positive side, company officials claim that TTSL has the fourth highest revenue market share. In fact, they claim that the company has higher quarter-on-quarter revenue growth than most of its competitors in the GSM segment. In addition, the visitor location registry (VLR), which provides information on the active number of subscribers, improved from 48.02 per cent in June 2011 to 59.24 per cent in June 2012 and further to 67.96 per cent in June 2013. The improvement in the VLR was on account of the disconnection of several inactive subscribers as part of a cost management exercise.

To improve profitability, TTSL has been optimizing its operations. The company has shut down CDMA mobile operations in the Jammu & Kashmir, Northeast and Assam circles as it was not viable for it to continue operating in these circles after acquiring 2G spectrum at a high reserve price. It has also discontinued postpaid services in the West Bengal and Bihar circles, while increasing tariffs for prepaid services in these circles and redeployed its infrastructure assets in other circles.

In eastern zone also, statistics shows that the voice is lagging far behind than non-voice segment, especially data services and the losses incurred due to the lag in voice market is far away from getting compensated by the profits earned from non-voice. Most importantly, it is mentioned that wireline voice also needs special attention along with wireless voice to achieve the desired profitability. However, the data sector is the strongest area for the company.

SME Segment

The small and medium enterprise (SME) segment is another focus area for TTSL. The SME market is valued at Rs 105 billion and is expected to increase to Rs 168 billion by 2018, opening up a plethora of opportunities for the company. TTSL can gain from its extensive network coverage and large number of channel partners across the country.

At present, the company offers telecom services (fixed line, wireless, broadband, VoIP) and managed services to the SME segment. In 2012-13, its SME business contributed about 11 per cent to the overall revenues and registered 20 per cent year-on-year growth. For 2013-14, the company is IISWBM, Internship Project 2013-14

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targeting a year-on-year revenue growth of 20 per cent and a market share of over 10 per cent. In this regard, it is planning to invest 40 per cent of its total CAPEX in expanding its SME business.

Although TTSL is targeting SME business, it has contended that retaining small enterprise customers for a long period is becoming difficult. The company is of the view that several of these customers operate for a short period and then wind up their business. Retaining high-ARPU subscribers will be crucial for TTSL as these customers are the early adopters of data services and help in increasing overall revenue realizations. However, it may become difficult for TTSL to attract customers solely for data services. Moreover, it is facing competition from the incumbents Bharti Airtel and Vodafone India, which have also increased their focus on the enterprise segment. Moreover, the late entrants in data sector, Bharti Airtel and Vodafone India are doing aggressive pricing in data business to easily churn TTSL’s existing SME customer base.

Financial Analysis

TTSL’s losses widened from Rs 13.34 billion for the year ended March 2010 to Rs 33.89 billion for the year ended March 2011 and to Rs 42.28 billion for 2011-12. This was despite an increase in revenues from Rs 63.97 billion for the year ended March 2010 to Rs 100.02 billion for the year ended March 2012. For the period April-September 2012, the company’s net losses stood at Rs 26.27 billion as against a loss of Rs 24.51 billion during the same period in 2011.

According to TRAI, TTSL’s revenues fell from Rs 25.69 billion for the quarter ended March 2012 to Rs 24.15 billion for the corresponding quarter in 2013. Declining revenues coupled with high interest expenses had a major impact on the company’s profit margins.

TTSL, a joint venture of Tata Sons and NTT DoCoMo, has posted its highest loss of Rs 6,166 crores on revenue of Rs 10,452 crores for 2013-14. TTSL had reported a loss of Rs 4,858 crores in 2012-13 on revenue of Rs 10,770 crores.

Deteriorating financial health over the years led to Rs 2,480-crore fund infusion by promoter Tata Sons in January, used to repay loans. The Tatas will have to invest Rs 2,000 crores in the company in two years. TTSL pre-paid Rs 1,000-crore loan to the LICI on May 19, 2014 to reduce its finance costs. The loan was paid with a prepayment penalty and an additional interest of 2% a year for not maintaining the fixed asset coverage ratio from January 2013 to May 2014. Its net worth eroded by Rs 1800 crores.

A sum of Rs 312 crores was paid by the company to LICI to achieve a yield-to-maturity return of 12.1 per cent on the non convertible debentures issues. The massive loss is one of main reasons NTT DoCoMo has exercised its option to sell its 26.5% stake back to the Tatas at Rs 7,200 crores, 50% per cent less than what the Japanese company had paid in 2009.

The only good news for TTSL is its telecom tower company Viom Networks has turned the corner and made a profit of Rs 120 crores in 2013-14, up from Rs 80 crore a year ago. Viom is valued at $4 billion (Rs 24,000 crores) and with its 50% stake in the company; TTSL is sitting on a good investment.

Considering the balance sheet of three consecutive financial years, 2011-12, 2012-13 and 2013-14, it becomes quite easy to interpret the financial health of the organization.

With the help of ratio analysis it is observed that:

Gross Profit Percentage In the last fiscal year, 2013-14, TTSL experienced a gross profit of Rs. 187.69 crores while in the previous year, 2012-13, TTSL incurred a loss of Rs. 487.17 crores which is much higher than its previous year, 2011-12, when the loss was Rs. 90.81 crores. So the Gross Profit Percentage which is calculated as (187.69/10352.77) * 100 = 1.81% in 2013-14 is very low as per the industry but in

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company’s perspective, this shows a positive sign compared to its last two financial years when the company suffered huge losses.

Net Profit Percentage Besides gross profit, net profit is also very important to focus on. Net profit after interest, tax, depreciation, amortization, foreign exchange and exceptional items appears to be negative even in FY 2013-14 when the organization experiences a 1.81% gross profit. Unquestionably, the previous two consecutive years also suffered losses but the loss amount kept on increasing year after year from Rs. 4228.28 crores in 2011-12 to Rs. 4858.41 crores in 2012-13 and Rs. 6166.49 crores in 2013-14.

Current Ratio Current Ratio = (2997.42/10331.74) = 0.29 in FY 2013-14. It helps in measuring the solvency of TTSL by comparing its current assets with its current liabilities. Though the company is solvent but its condition is not very good and might have to struggle a lot to repay its current liabilities. The rate of solvency of TTSL follows a very low wave pattern over the years as the rate increased to 0.38 in 2012-13 from 0.33 in 2011-12 but in 2013-14, it dipped down again.

Liquidity Ratio Liquidity Ratio = (2746.34/10331.74) = 0.26 in FY 2013-14. As this ratio is less than 1, the company is not liquid enough and might have to struggle a lot to repay its debts. Compared to the liquidity ratio of FY 2013-14, 2012-13 experienced 0.27 and 2011-12 had 0.28 which were slightly higher than the last year’s but are negligibly less to compare.

Debt Ratio Debt Ratio = 1.24 for the FY 2013-14 which implies that the company is suffering from huge debt and the situation has gone worse as compared to FY 2012-13 when the debt ratio was 1.07. However, compared to these two fiscal years, FY 2011-12 was at a much better position as the debt ratio was less than 1 and it was 0.89.

From these above five observations, it can be inferred that the financial health of TTSL is not very good, even it might be tough to state it as a going concern as the current ratio is much below a positive figure. The organization needs to focus on different areas of concern where the organization is lagging to compensate its losses and look forward towards profitability by developing various strategies.

Scope of Summer Internship ProgramIISWBM, Internship Project 2013-14

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The summer internship program at Tata Teleservices Limited has provided the Post Graduate Diploma in Telecom Management students of IISWBM, a wide scope to explore the present day’s highly competitive telecom industry. TTSL opened its extensive periphery for the interns to explore and understand its various wings so that the management students can understand how a telecom operator operates in a telecom market while considering the sales, marketing, finance and business development other than its core competencies in backend network and technical specifications.

Moreover a significant advantage of this internship program was working with an organization which is a group company under one brand. TTSL is actually a sister concern of TCL and both the organizations under same group, Tata Sons, are competitors to each other as they are operating in the same industry. This is where a budding manager gets to understand various business strategies and policies to run a business successfully while identifying the core competencies of every organization even when its biggest competitor is its own subsidiary organization.

Being a budding manager, a management trainee needs to improve one’s decision making and analytical capability along with developing one’s own personality and communication skills. This summer internship program has enriched the interns with all these attributes to make them ready for the future telecom market.

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PROJECTSPROJECT A: TCL to TTSL Broadband Migration

PROJECT B: TCL to TTSL ILL Migration

PROJECT C: Wallet Share of TTSL

PROJECT D: Product Analysis

TCL to TTSL Migration

Going forward in the communication industry, Tata Group will be making all its future investments for SME segment under Tata Teleservices Limited. So, all the accounts for SME segments under Tata Communications Limited are in the process of migration to Tata Teleservices Limited. Company is looking forward for 100 % Revenue conversion to TTSL from TCL. This migration from TCL to TTSL is done to provide more customized and customer centric service to its SME customers.

While carrying out this process, the company has faced several challenges owing to its unique and diverse customer base to do overall migration activity. On the other side, this migration project has also provided a huge opportunity for the company to bridge the gap between the organization and its customers while enhancing the interaction with the customers and the company-customer relationship.

PROJECT A

Broadband Migration

The broadband migration project included the following steps:

Getting in touch with the customers from the existing database and making them understand the need and the course of action of the migration process as the migration process would have never been successful without their co-operation.

The customers had been prior intimated by email regarding the change in organizational body of their broadband accounts so that they get the primary information regarding the migration process and to minimize the inconvenience during the meeting between the customers and company representatives.

The subscribers were of both types: individual and commercial and hence the KYC documents to support their accounts as per TRAI regulations were slightly different and that required special attention while collecting the documents from the customers.

Even if there was any discrepancy with the documents submitted earlier, service or complaint, those issues were also considered and resolved as much as possible following the company rules and regulations.

At a glance the broadband migration project appears to be quite simple but through this project, the company got to hear the voice of their valuable customers which called for special managerial attention and analysis for developing the company’s business strategy while upgrading their very own services. The voice of the customers is very valuable for every organization as it smoothens the way to success. This project also helped to upgrade the existing customer database of this organization.

There are some important observations that have been collected while executing this project and have been stacked down below.

Observations

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During the interaction session with customers, a lot of customer questions were faced and while solving those queries and convincing them regarding various issues, it becomes quite easy to comprehend customer behavior. The most common queries are penned down below:

What is the need for migration from one company to another when both are under same group and in same industry?

Moreover when the migration decision is on company’s end and an internal procedure, why TTSL needs to collect fresh KYC documents from the customers rather than collecting the same from TCL which the customers have already provided to them.

The customers are quite worried about the service and package they are enjoying under TCL as they doubt that those might get changed after getting migrated under TTSL. Moreover, the advance payment made to TCL is also a great matter of concern for them.

Few customers were very much reluctant to get migrated to TTSL from TCL and though some were convinced, others churned out.

There are some customers who refused to cooperate and decided to switch over to other brands by losing faith on TATA's brand value raising the point that unlike TCL, at this initial stage of migration process, TTSL turned out to be incapable as their representatives have repeatedly failed to keep their words after promising the customers to meet them to collect the KYC documents.

While working with this project, the company has also been able to amend their existing database as it has been found that a number of prepaid customers are either in dormant stage or have already churned out days or years back, which is not in company’s record. So this modified database has facilitated the company to understand their existing market share on this product (broadband) which ultimately lightens the path to plan its future approach.

On a special note, the following is the broadband customer database that has been attended by me (Reeha Paul) from the actual database containing 680 customer information provided by TTSL to execute this migration project by all the interns.

DATASHEET

SL. NO. NAME ADDRESS

REMARKS

1APS CONSULTANCY SERVICES 18/3, DOVER LANE, FLAT-3A KOLKATA-29

COLLECTED

2FAST CAPITAL MARKETS LTD 4 BISHOP LEFROY RD, FLAT-10 700020.

COLLECTED

3 ANIL BHARGAVA 222 ,AJC BOSE ROAD, BECK BAGAN 700017COLLECTED

4 M G ENTERPRISE 1/1B HAZRA ROAD 1ST FLOOR. KOL-26COLLECTED

5 MAQSUD SIDDIQUI 28/1A GARIAHAT RD(S), KOL-19COLLECTED

6SYNERGY INDUSTRIAL SERVICE PVT LTD 30/1 BALLYGAUNGE PLACE KOLKATA-19

COLLECTED

7ASHOK RAMCHANDRA DESAI

6 SARAT BOSE ROAD, ROOM NO 4A ,SARAT BOSE RD KOL-700020

COLLECTED

8 UDAY BHANU BANERJEE 29/7 ,BALLYGAUNGE PARK, SOUTH CALCUTTA ,700019

COLLECTED

9 VRINDA HARALALKA 118/B ,ATM ROAD BHOWANIPORE 700025COLLECTED

10 MUKESH PANSARI32 EZRA STREET,6TH FLOOR, DALHOUSIE 700001

COLLECTED

11 INDRANIL KAR47/1H, BADRIDAS TEMPLE STREET ,PARESH NATH TEMPLE KOL-,700004

COLLECTED

12 CONSULTANTS ENGINEERS 2/1C SEVAK BAIDYA STREET KOLKATA 700026COLLECTED

13 CHOKSI IMAGINE LTD 186 SARAT ,BOSE ROAD OPP MARKOPOLO COLLEC

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RESTURANT ,KOL- 700026 TED

14 PARAMITA SARKAR,45A, RASHBEHARI AVENUE, 1ST FLOOR ,SBI ,KOL- 700026

COLLECTED

15PRESSCO ADVERTISING PVT LTD. 101 B RASH BEHARI AVENUE KOLKATA 700026

COLLECTED

16 SUDEEPTO SEN204 DR S P MUKHERJEE ROAD ,DESHAPRIYA PARK ,700026

COLLECTED

17 SUNANDA DE36/2A ,JATIN DAS RD,FLAT NO-1B, 1ST FLR KALIGHAT 700026

COLLECTED

18 GAUR BISWAS36A, SELIMPUR LANE, FLAT 18, ASIM MEMORIAL PLAY GRND KOL-31

COLLECTED

19UNICRAFT MACHINERY TROLLEY P LTD

P-45 KASBA INDUSTRIAL ESTATE PHASE-II,, KOL-107

COLLECTED

After the completion of this entire project by all the interns in two weeks attending total of 111 customers successfully and the rest remained unsuccessful due to various reasons or untouched, analytical reports were generated based on the entire consolidated database of 680 customers that helped in SWOT identification in broadband services at SME section of TTSL.

The database has been segmented for analysis based on:

Customer feedback Geographical area Account type (Prepaid/Postpaid) Account status (Active/Inactive)

The entire geographical area within Kolkata Telecom Circle has been broadly classified in to six zones for the convenience in understanding the analytical report. The zones are:

1) Park Circus-Gariahat-Jadavpur (SOUTH KOLKATA 1)2) Alipur-Behala (SOUTH KOLKATA 2)3) Dalhousie-Exide (CENTRAL KOLKATA)4) Shyambazar-Dunlop (NORTH KOLKATA)5) Saltlake-Ultadanga-VIP6) Outside Kolkata

This is done to identify and understand the following in different zones:

- customer status - potential areas- areas that need special attention- areas having high churn rate- areas where migration project has yet not been carried out either by the third party

agencies or by the interns- areas where maximum number of deceitful information regarding the customers lie.

The analytical reports generated by applying SPSS are presented by the following pictorial representations:

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The histogram shows that:

Database appears to be dubious in the some zones and hence special attention is required during customer acquisition in those zones.

Churn rate is highest in Zone: South Kolkata 1 which is almost to touch 60% and it might be an aftermath of the above reason.

From the above point, it may be concluded that either the customers are not satisfied with the service provided in this zone or the customers are of variety seeking nature according to Henry Assael Model.

- If service is the issue then TTSL needs to give special attention as dissatisfaction with broadband service originates mainly due to two reasons: downtime and price. For downtime, the network division needs to take special care but if price is the issue then there is hardly anything that a telecom company can do for a particular urban zone.

- For variety seeking customers, stickiness is very hard to achieve for a company no matter how improved and better service it provides.

Prepaid customers are more prone to get churned out while customer stickiness is more observed in postpaid connection.

The above histogram is now combined and analyzed with respect to account type and status which has been represented below:

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This histogram clearly represents the status of prepaid and postpaid customers along with active and inactive accounts zone wise. This pictorial representation provides a great scope to understand a number of attributes about the status of broadband database of TTSL at a glance and enables to interpret it quite easily.

However to understand the total number of prepaid and postpaid customers in every zone, a simple bar graph is sometimes more easy to comprehend rather than a histogram representing a number of attributes like the one above. Hence the following bar graph is generated to understand only the account types in various zones.

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From this above bar graph, it is clearly understood that the inference drawn from the above two graphs are complying with the reality. The observations from this bar graph are:

The zones with maximum prepaid customers are more prone to churn rate or the accounts are in dormant stage.

There are a lot of customers whose account types are also not known and hence TTSL needs to identify the account type and status of such customers to upgrade its database.

PROJECT B

ILL Migration

The Internet Leased Line (ILL) migration project included the following steps:

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Similar to broadband migration project, ILL migration project also includes similar procedure like getting in touch with the customers from the existing database and making them understand the need and the course of action of the migration process as the migration process would have never been successful without their co-operation.

Prior intimation had also been done to the ILL customers via email regarding this migration project.

All the ILL customers are commercial subscribers and hence the KYC documents along with the Service Level Agreement (SLA) to support their accounts as per TRAI regulations require special care and attention.

ILL customers are considered as premium customers in a telecom company and hence TTSL also provides special attention and additional interest towards the welfare of these customers. For both the SME and corporate houses, high performance, dedicated and 24-hour a day access Internet Leased Line connection is highly beneficial as business relationships can be easily jeopardized because of the inability to communicate effectively and securely and hence ILL are preferred over broadband connections.

The following is the ILL customer database that has been provided by TTSL to execute this migration project.

DATASHEET

SL. NO. COMPANY

BANDWIDT

HIP

ADDRESS

1 OUTSOURCEBIZ INDIA PVT. LTD. 204861.16.242.108

2 BALJIT SECURITIES PVT LTD 204861.16.242.240

3 SANKALP COMMODITY BROKERS PVT LTD 204861.16.243.80

4 MALLCOM INDIA LTD 204861.16.242.16

5 TRADE CITY SECURITIES PVT LTD. 1024203.196.159.144

6 AKB POWER CONSULTANTS PVT LTD 102461.16.240.244

7 AMRIT EXPORTS PVT LTD 153661.16.243.224

8 IDEAL STOCK BROKING PVT LTD 102461.16.145.64

9 BANKA BULLIONS PVT LTD 102461.16.145.144

10 RAWMET COMMODITIES PVT LTD 204861.16.146.96

11 YASH WEBTECH INDIA PRIVATE LIMITED 102461.16.144.48

12 KOVAIR SOFTWARE PVT LTD. 614461.16.147.48

13 MSR IT SOLUTION PVT. LTD. 3072  

14BENGAL UNITECH UNIVERSAL INFRASTRUCTURE PVT. LTD 1024

61.16.147.24

15 H S B INTERNATIONAL (INDIA) PVT. LTD 102461.16.147.128

16 HARI MACHINES LTD 204861.16.147.20

17 MICROSEC CAPITAL LTD 4096 61.16.147.

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2818 SIEMENS INFORMATION SYSTEMS LTD 4096  19 IIHM 2048  

20 CDE ASIA LTD 204861.16.242.224

21 TAJ BENGAL UNIT OF INDIAN HOTEL 204861.16.144.112

22 ASCOT DIGITAL PVT LTD 204861.16.144.96

23 BALJIT SECURITIES PVT LTD 102461.16.241.204

24GLOBAL SYSTEM TECHNOLOGIES INDIA PVT. LTD 4096

61.16.240.232

25 GREEN TOUCH PROJECTS LTD 204861.16.240.248

26 EMBEE SOFTWARE PVT LTD 204861.16.241.216

27TECHNOPRO SOLLUTIONS PRIVATE LIMITED 4096  

28 ESOLZ TECHNOLOGIES PVT LTD 10240203.196.159.32

29 NEXVAL INFOTECH PVT LTD 2048061.16.243.28

30 INFODRIVE INDIA 204861.16.242.64

31 SOFFRONT SOFTWARE PVT.LTD. 307261.16.147.248

32 DREAM FEATHERS TECHNOLOGY PVT LTD 307261.16.242.140

33KEROSS RESEARCH AND DEVELOPMENT CENTRE PVT LTD 5120

61.16.146.208

34 PROCENTRIS (INDIA) LTD 1024203.196.159.140

35 NETWOVEN INDIA PVT LTD 614461.16.144.52

36 MINDTECK INDIA LIMITED 2048203.196.159.52

37 STRYKER INDIA PVT. LTD 2048203.196.159.224

38CIRRUS MEDIA RESEARCH PVT. LTD.(MUDRA COMMINICATION) 2048

61.16.240.236

39 ITC INFOTECH INDIA LTD 102461.16.243.192

40 CD EQUISEARCH PVT. LTD. 409661.16.146.0

41INFRASTRUCTURE PROFESSIONALS ENTERPRISE PVT. LTD. 1024

61.16.144.128

42 INFOSOFT GLOBAL PVT LTD 409661.16.243.12

43 PAREKH INTEGRATED SERVICES PVT. LTD. 102461.16.146.32

44LEARNINGMATE SOLUTIONS PRIVATE LIMITED 10240

61.16.241.76

45 SUPREME INFRASTRUCTURE INDIA LTD. 2048203.196.159.16

46 DENTSPLY INDIA PVT LTD 307261.16.144.92

47 AECOM INDIA PVT LTD 204861.16.146.212

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48 STEWARTS & LLOYDS OF INDIA LTD 2048  

49 MATRIX MEDIA SOLUTIONS PVT LTD 204861.16.241.192

50 OPAQUE SOLUTIONS PVT LTD 2048203.196.159.64

51 KREDENT BROKERAGE SERVICES LTD 204861.16.145.96

52 BRAND VALUE COMMUNICATIONS LTD 819261.16.146.64

53 BRAND VALUE COMMUNICATIONS LTD-2 204861.16.147.224

54 ARJUN INFOSERV & E-SERVICES (P) LTD 512061.16.148.64

55 KREDENT BROKERAGE SERVICES LTD 409661.16.148.96

56 MSR IT SOLUTION PVT. LTD 819261.16.145.48

57 LINCOLN INSTITUTE OF TECHNOLOGY 204861.16.241.168

58FINANCIAL INCLUSION NETWOK & OPERATIONS LTD 1024

61.16.242.56

59 EAGA ENERGY INDIA (P) LTD 1024061.16.240.228

60 WEBSPIDERS INDIA PVT LIMITED 1024061.16.243.184

61 MINICRAFT ENTERPRISE PVT.LTD. 204861.16.243.188

62 DESCON LIMITED 307261.16.242.156

63AVANT GARDE WEALTH MANAGEMENT PVT.LTD. 2048

61.16.243.100

64PRATIGYA HOUSING FINANCE & CONSTRUCTION COMPANY LTD 3072

61.16.147.192

65 RESPONZE TECHNOLOGIES P. LTD. 819261.16.241.64

66KREDENT BROKERAGE SERVICES PVT. LTD. 4096

61.16.241.144

67 SARA COMMOTRADE PRIVATE LIMITED 409661.16.147.196

68ATLAS HEALTHCARE SOFTWARE INDIA PVT. LTD. 12288

61.16.148.120

69 LEARNING SPIRAL PVT. LTD. 409661.16.242.44

70 SAROJ SUNRISE PVT LIMITED 204861.16.243.156

71RAVI KIRAN OUTSOURCING & TECHNOLOGIES PVT LTD 4096

61.16.144.28

72 MAVEN INFOTECH PVT LTD 2048061.16.146.120

73 CIRCAR CONSULTING SERVICES PVT LTD 102461.16.144.232

74 PARK INDICOM PVT. LTD. 1024061.16.148.128

75 SKY B BANGLA PVT LTD 102461.16.147.252

76 DOT COM E SERVICES 204861.16.148.168

77CHEMGEN PHARMA INTERNATIONAL PVT LTD. 2048

61.16.242.176

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78SIMOCO TELECOMMUNICATIONS (SOUTH ASIA) LTD 2048

61.16.147.176

79HYTONE MANAGEMENT SERVICES PVT LTD 2048

61.16.148.144

While executing the migration process, a survey was simultaneously carried out with the help of a questionnaire on a sample of 15 customers from this population of 79 ILL customers to understand the customer feedback more notably. The highlighted ones are covered by me (Reeha Paul) which is considered as the sample here for this survey.

The survey questions are the following which are rated on a Likert Scale from 1 to 5 according to customer feedback.

1 = very poor2 = poor3 = average4 = good5 = very good0 = not applicable

Survey Questions

How would you rate the ILL service you are enjoying from TTSL? How much successful is TTSL in meeting the SLA regarding downtime? How much active is the TTSL support team when a complaint is lodged or resolving any

other issues? How will you complement the billing system of TTSL? How would you rate the overall service provided by TTSL? If you are using other TTSL products, how would you rate their services? Compared to other ILL providers, how would you rate TTSL? Comparing with the present market, how would rate the price as per plan of TTSL? How would you rate the brand TATA?

Applying SPSS on the customer feedback, the following has been observed:

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Nine components/variables have been measured based on the nine survey questions which are abbreviated to be used for analysis using SPSS. Applying Factor Analysis, it is observed that nearly 77.569% of all the components are explained by two factor components among which one has a share of almost 66.216%.

The two factor components derived from Principal Component Analysis are termed as:a) FAC1_1: service renamed as FAC1_1service b) FAC2_1: brand value renamed as FAC2_1brand value

This graph represents the relation between each of the nine components with respect to the two factor components, renamed as service and brand value. The relations are explained below:

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a) ILL service, downtime, overall service, active support and billing platform, all these five components depend closely on both service related factor as well as brand value.

b) Other components like price as per plans, TATA as a brand and comparison with competitors are closely related to service related factor.

c) Only one component, services of other TTSL product is closely related to brand value.

The two factor components, renamed as service and brand value are used to plot the above graph where REGR factor score 1 and REGR factor score 2 represents service and brand value respectively. This graph helps in cluster analysis which clearly represents that there are three distinct groups in the customer database and this cluster analysis helps in providing a lot of information about the customers.

Observations

With the help of cluster analysis, three distinct clusters have been identified which are the following:

TYPE A: High Service and High Brand ValueThere is a group of customers for whom both high service and high brand value matter to get hold of a service and establish a relationship with a company and hence they deal with TTSL as they enjoy the quality service provided by TTSL and have enough faith on the brand TATA. For a company, this cluster is very favorable as customer stickiness is more observed in this type of customers.

TYPE B: High Service There is a cluster of customers for whom high service is the only criteria to procure a service and start a relationship with an organization and so as TTSL provides quality service, this set of customers rely on TTSL. Brand value is just a mere factor for them when compared to service.

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TYPE C: Variety Seeking TypeThere is a set of customers for whom neither high service nor high brand value matters to procure a service and establish a relationship with a company. These customers are generally of variety seeking type and prefer to experience different plans and services from different brands. Sometimes this variety seeking nature sustains due to price factor. Such customers generally switch from one brand to another to enjoy the lowest price plans, no matter how the service is or which brand are they adopting.

PROJECT C

Wallet Share of TTSL

For every premium account of TTSL, mainly in SME segment, a customer account manager is assigned who takes care of all the service, technical and billing related issues of that particular account. That particular account solely belongs to that account manager and he is responsible for that account. Moreover the customer account managers keep on generating business by farming on the existing customer base.

In this wallet share project, the following steps were included:

Customer base with all the accounts handled by Mr. Sunil Saha, Customer Account Manager, SME Segment has been provided by TTSL.

With prior appointment for meeting, the customers are attended to understand their telecom expenditure (total as well as break ups), suggest them better and cost effective plans or services while generating leads for up-selling and cross-selling and to know their grievances or any other service related issues regarding any product or service.

This meeting with every customer has helped to reinforce the foundation of customer-company relationship.

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While dealing with these accounts, a business strategy has been developed by analyzing the wallet share of those accounts. This wallet share analysis also enables to identify the:(i) high potential-high involvement customers(ii) high potential-low involvement customers(iii) low potential-high involvement customers(iv) low potential-low involvement customers

Moreover, this analysis also identifies the product-wise market share and allows understanding the position of TTSL on today’s date as compared to other service providers. Before going into the details of the analytical report, an overview of the product portfolio is highly essential.

DATASHEETSL. NO. CUSTOMER NAME PRODUCT PORTFOLIO

1 LONGIA MOTORSCENTREX, LANDPHONE, DATA CARD, COCP MOBILE, ILL, SERVER

2 BALARAMPUR CHINI MILLS LTD.PRI, LANDPHONE, MPLS, ILL, VIDEO CONFERENCING, DATA CARD, SERVER

3 CORDLIFE SCIENCES INDIA PVT. LTD. LANDPHONE, DATA CARD, COCP MOBILE, SERVER4 PRB SECURITIES PVT. LTD. LAND PHONE, SERVER, P2P, ILL5 TELE TRADE SHOPPING SKY SHOP LAND PHONE, ILL, DATA CARD, SERVER, COCP MOBILE6 ICRA ONLINE LTD LAND PHONE, DATA CARD, ILL

7 ROYAL INFRACONSTRU LTD.LAND PHONE, MPLS, ILL, DATA CARD, COCP MOBILE, SERVER

8 MICROSEC HEALTH BUDDY LIMITED LAND PHONE, P2P, ILL, COLO9 LEXUS MOTORS LAND PHONE, ILL, DATA CARD, MPLS, COCP MOBILE10 AVJ INFOTECH PVT LTD LANDPHONE

11 ANUDIP FOUNDATION FOR SOCIAL WELFARELAND PHONE, DATA CARD, ILL, MPLS, COCP MOBILE, AUDIO & VIDEO CONFER

12 AMENITY APPLIANCES PRIVATE LIMITED LAND PHONE, DATA CARD13 FUTURE PLUS ENTERPRISE LAND PHONE, ILL, DATA CARD, COCP MOBILE14 ARC INFOTECH PVT LTD LAND PHONE, COCP MOBILE, DATA CARD15 NEW KENILWORTH HOTEL PVT LTD PRI, ILL, DATA CARD, COCP MOBILE16 DIAMOND HERITAGE ENTERPRISES PRI, LANDPHONE, ILL, DATA CARD, COCP MOBILE17 DAFFODIL DIAGNOSTIC PRIVATE LIMITED PRI, ILL18 THE STRATEGY ACADEMY LAND PHONE, ILL, DATA CARD, COCP MOBILE19 SECURITIES PERFORMANCE ALGORITHMS ILL20 ACTION CONSTRUCTION EQUIPMENT LTD LAND PHONE, ILL, COCP MOBILE, DATA CARD

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21 RUCHI REALTY HOLDINGS LTD LAND PHONE, ILL, COCP MOBILE, DATA CARD, MPLS22 UNIQUE INTERNATIONAL PRIVATE LIMITED PRI, COCP MOBILE, ILL, VOIP23 INDIA GREEN REALITY PRIVATE LIMITED PRI, LAND PHONE, COCP MOBILE, P2P, ILL,DATA CARD24 APHRODITE 4WHEELS PVT LTD WALKY, P2P, ILL, COCP MOBILE, LAND PHONE25 ASL MOTORS PVT LTD PRI, LAND PHONE, COCP MOBILE, ILL

26BEBBCO COMMERCIAL VEHICLES PRIVATE LIMITED LAND PHONE, COCP MOBILE, ILL

27 DYNASTY AUTO PRIVATE LIMITED LAND PHONE, DATA CARD, COCP MOBILE28 GANGA REGENCY PRI, ILL, COCP MOBILE29 HI TECH CHEMICALS PRIVATE LIMITED LAND PHONE, COCP MOBILE, DATA CARD30 HIGHCO ENGINEERS PRIVATE LIMITED PRI, LAND PHONE, DATA CARD, COCP MOBILE31 J M T AUTO LTD CENTREX, COCP MOBILE, DATA CARD, ILL

32KYOCERA CTC PRECISION TOOLS PRIVATE LIMITED LAND PHONE, ILL, DATA CARD, COCP MOBILE

33 METALSA INDIA PVT LTD LAND PHONE, PRI, ILL, COCP MOBILE34 R K CONSTRUCTION LAND PHONE, COCP MOBILE35 SD SINGH CONSTRUCTION COMPANY PVT LTD LAND PHONE, ILL, COCP MOBILE36 SPARX TECHNOLOGIES PVT LTD CENTREX, LAND PHONE, ILL, COCP MOBILE37 TML DRIVELINES LIMITED DATA CARD, ILL, P2P38 WINGS INSTITUTE OF BUSINESS MANAGEMENT LAND PHONE, COCP MOBILE39 BASUDEB AUTO LIMITED LAND PHONE, COCP MOBILE, DATA CARD40 JAGMOHAN LAL GUPTA ESTATES PRIVATE LTD PRI, COCP MOBILE, DATA CARD, ILL41 KASHISH DEVELOPERS LIMITED PRI, DATA CARD, ILL, LAND PHONE42 KAVERI DIVYA HOTELS PRIVATE LIMITED PRI, LAND PHONE, DATA CARD, ILL, COCP MOBILE43 TENUGHAT THERMAL POWER STATION LAND PHONE, ILL, COCP MOBILE44 SHIVAM STOCK BROKING COMPANY PRI, ILL, COCP MOBILE

45 HIMADRI CHEMICALS AND INDUSTRIES LTD PRI,DATA CARD,MPLS/VPN,ILL,AUDIO & VIDEO CONFER, COCP MOBILE,MAIL SERVICE

46 SHRIRAM EPC LTDPRI, DATA CARD ,ILL,VIDEO CONFERENCING,COCP MOBILE

47 PREMIER CARWORLD PRIVATE LIMITED PRI,MOBILE DATA,ILL,COCP

48 OUTOTEC INDIA PRIVATE LIMITEDPRI,MOBILE DATA,MPLS/VPN,ILL,AUDIO & VIDEO CONFERENCING,COCP MOBILE

49 JIA AUTO SALES PVT.LTD PRI,ILL,MOBILE DATA,COCP MOBILE50 MSR IT SOLUTION PRI,ILL,COCP MOBILE51 A P FASHIONS PVT LTD PRI/LANDLINE

52ADVENT COMMODITIES PVT LTD & ADVENT STOCK BROKING PVT LTD PRI,COCP MOBILE,P2P,ILL

53 TODI SECURITIES PVT LTD PRI,P2P54 LGW LIMITED PRI, COCP MOBILE, ILL, DATA CARD55 INFOSOFT DIGITAL SERVICES PVT LTD VOIP,LANDLINE,ILL,ERP,56 GLOBAL SYSTEM TECHNOLOGIES INDIA PVT LTD PRI,ILL,ERP,MAIL SERVICE57 GAMA HOSPITALITY PRIVATE LIMITED PRI, COCP MOBILE, DATA CARD58 PRITY TUBES PVT LTD PRI, COCP MOBILE, ILL

59KARAM CHAND THAPAR & BROS COAL SALES LTD PRI, ILL, DATA CARD, MPLS/VPN

60 GURMAN AUTOMOBILES PRIVATE LIMITED WALKY, ILL, DATA CARD,COCP MOBILE61 R R CONSUMER TRADELINKS PRIVATE LIMITED LANDLINE, P2P62 AB FINANCIAL SERVICES LANDLINE,ILL63 POPULAR RUBBER WORKS PVT LTD PRI/LANDLINE, DATA CARD64 ULTIMATE GLOBAL SOLUTION PRIVATE LIMITED ILL65 MAA SARADA EDUCATION TRUST WALKY, DATA CARD, COCP MOBILE

After collecting data from these accounts on account mapping forms provided by TTSL like the sample given below, the data has been consolidated and necessary calculation has been done on a given format in spreadsheet.

The information of the highlighted company in the above datasheet is provided in the sample given below:

ACCOUNT MAPPING FORMA c c o u n t D e t a i l s

CSM/ PAM Name SUNIL SAHA Date : (dd-mm-yy) 05-08-2014 Time (HH:MM)BP Name (if reqd) AM Name Interviewer’s no.Name of Organization TELE TRADE SHOPPING SKY SHOPAddress 12/5 MOMINPUR ROAD, GR FLOOR, KOLKATA-700023

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Website

Telephone Fax

Locations Name of Parent Company

B u s i n e s s I n f o r m a ti o n

Nature of Business (Tick or write in Others)

IT / ITES KPO/ BPO/Call Centre (if Others - Specify)

ONLINE TRADEBFSI Education

Manufacturing Others

Turn-Over for last financial year (in Crores) Rs. Head Office (City) KOLKATA

No. of Offices (PAN India ) 6 Total number of employees (all branches)

Average annual IT Expense (HW+SW+AMC) < Rs 15 Lakhs Rs 16 to 30

LacsRs.31 to 50 Lacs

Rs 51 to 100 Lacs

>= Rs 101 Lacs

Average annual Telecom Expense (Data+Voice+MS) < Rs 15 Lakhs Rs 16 to 30

LacsRs.31 to 50 Lacs

Rs 51 to 100 Lacs

>= Rs 101 Lacs

O r g a n i z a ti o n H i e r a r c h y Designation Name Direct Number Email

MD/ CEO

CFO/ Finance Head

IT Head / CTO VIKAS GOEL 9038080600

IT/ EDP/ MIS

O p e r a ti n g E x p e n s e s o n I T & C o m m u n i c a ti o n s f o r t h e C o m p a n y ( p . a )Product / Service Vendor No Rs. (Lacs) Product / Service Vendor No Rs. (Lacs)Make & nos. PCs (AMC – Annual) – Type 1

ASSEMBLED Make & nos. Servers (AMC – Annual) – Type 1

INHOUSE

Make & nos. PCs 2 (AMC – Annual) – Type 2

Make & nos. Servers 2 (AMC – Annual) – Type 2

ERP (SAP, My SQL, etc.) INHOUSE Mail Service (Mail Box) (Annual Charges)

PRI/ Land Line Phone TTSL, BSNL, AIRTEL 247 45.6 lacs pa COCP Mobiles phones TTSL 30 3.12 lacs pa

Company paid Mobile data card (Photon etc)

RELIANCE 1 0.09 lacs pa IOCR Mobile phones

P2P / NLD Services Office Wi-Fi (Access points Maintenance Charges)

MPLS VPN (no. of locations & Monthly Charges for all) Broadband Services TTSL, BSNL 2 0.36 lacs pa

Internet Leased Line TTSL, AIRTEL 2 7.68 lacs pa Asset Tracking Service

Anti-Virus (Annual charges ) QUICKHEAL Firewall/ UTM (AMC – Annual Charges)

IDC Co-location (space : Us) Managed Hosting Service

Cloud Server VOIP Services

Audio-conferencing Services

Video Conferencing Services

V e n d o r D e t a i l sProduct / Services Vendor Name Product / Services Vendor Name

PC / Laptop ASSEMBLED Server Software / customized S/w Mailing/ Branded SoftwareFirewall/ UTM / Anti-virus QUICKHEAL UPS / Power SolutionCCTV AMC Vendor:

T A T A E x i s ti n g S e r v i c e s D e t a i l s

Product & Services Quantity B/w, etc. Using since Monthly ChargesMobile Communications 30 Rs. 26000/-

Mobile Data Services

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Internet Leased Line 1 3 Mbps Rs. 54000/-

Land Line / PRI Services 212 Rs. 320000/-

P2P/ NLD Services

Data Center – Hosting / Colocation

Managed Security

International Voice (VOiP etc.)

MPLS VPN

Mailing Services

Cloud Server (InstaCompute)

CDN

Broadband Services 1 Rs. 1500/-

Others

Toll-free 1 Rs. 20000/-

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PLANNING FOR1. VIDEO CONFERENCING

C o m m e n t s

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The consolidated data (based on revenue in lacs) has been used as a sample and finally been analyzed in the following ways:

(i) Overall Market Share

SL. NO. SERVICE PROVIDER WIRELINE VOICE COCP MOBILE WIRELESS LANDLINE ILL MPLS DATA CARD1 TTSL 90.442 16.524 3.254 118.74 8.48 48.97322 AIRTEL 23.7 52.932 0.1 10.64 14.86 8.8533 VODAFONE 0 53.674 0 8.25 8.5 1.2754 RELIANCE 1.2 4.5 0.69 4 0 7.4325 BSNL 9.318 0 0 0 0 06 MTS 0 0 0 0 0 18.8047 TCL 0 0 0 2.5 15 08 SIFY 0 0 0 3 1.16 09 AIRCEL 0 0 0 1 0 0

10 IDEA 0 26.4 0 0 0 0

Overall Market Share

This graph clearly represents the distribution of revenue earned from different product segments of TTSL as used by this customer base. Moreover, this pictorial representation also shows the position of its competitors with respect to different product segments which provides a clear picture about the company's strengths and threats.

(ii) Share of revenue generated by TTSL from wireless and wireline products

SL NO. PRODUCTS TTSL 1 WIRELINE VOICE 92.8422 WIRELESS VOICE 19.7783 WIRELINE DATA 145.524 WIRELESS DATA 48.9732

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Revenue generated from wireless and wireline products

This pie chart clearly represents the revenue generated from four major segments of TTSL products and it shows that while wireline data is the strength of the company, wireless voice is its major weakness. Though this analysis is done on a given customer database, this database acts as a sample for the entire population of TTSL customers. So wireless voice is a major area subjected to a lot of improvement to increase its market share.

(iii) Wireline Voice Market Share

SL. NO. SERVICE PROVIDER WIRELINE VOICE1 TTSL 90.4422 AIRTEL 23.73 RELIANCE 1.24 BSNL 9.318

Wireline Voice Market Share

In wireline voice which includes both PRI and landline, Airtel is the biggest competitor for TTSL as from the given customer base, Airtel earns 19% of its revenue while TTSL earns 73% of its revenue.

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(iv) COCP Mobile Market Share

COCP Mobile Market Share

As stated earlier also, in wireless voice, especially in COCP Mobile, TTSL is facing a huge challenge as it earns only 11% of its revenue from this existing customer base whereas Vodafone and Airtel, its biggest challengers earns 35% and 34% of their revenue respectively from the same customer base. Even Idea is in a leading position with respect to TTSL.

(v) Wireless Landline Market Share

SL. NO. SERVICE PROVIDER WIRELESS LANDLINE1 TTSL 3.2542 AIRTEL 0.13 RELIANCE 0.69

Wireless Landline Market Share

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SL. NO. SERVICE PROVIDER COCP MOBILE1 TTSL 16.5242 AIRTEL 52.9323 VODAFONE 53.6744 RELIANCE 4.55 IDEA 26.4

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In wireless landline (eg. Walky), TTSL earns 80% of its revenue from this customer base while Reliance is the major competitor in this product category though it is much behind in the competition.

(vi) ILL Market Share

SL. NO. SERVICE PROVIDER ILL1 TTSL 118.742 AIRTEL 10.643 VODAFONE 8.254 RELIANCE 45 OTHERS (TCL, SIFY, AIRCEL) 6.5

ILL Market Share

Wireline data, especially ILL is biggest strength of TTSL and this has been proved again in this analysis as it shows that the company is generating 80% of its revenue from this customer base through ILL and its competitors are far behind in this race. Any threat to this sector will probably bring a huge impact on the overall performance and sustainability of TTSL.

(vii) MPLS Market Share

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SL. NO. SERVICE PROVIDER MPLS1 TTSL 8.482 AIRTEL 14.863 VODAFONE 8.54 TCL 155 SIFY 1.16

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MPLS Market Share

MPLS is a major part of wireline data and in this product TTSL is far behind compared to its group competitor TCL and Airtel as both earn 31% of their revenue from this customer base while the former earns only 18%.

(viii) Data Card Market Share

SL. NO. SERVICE PROVIDER DATA CARD1 TTSL 48.97322 AIRTEL 8.8533 VODAFONE 1.2754 RELIANCE 7.4325 MTS 18.804

Data Card Market Share

In wireless data (eg. Data card- Photon), MTS offers a major threat to TTSL as MTS generates 22% of its revenue from this customer base while TTSL is little ahead with respect to MTS with 57% of revenue generation in this product category.

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PROJECT D

Product Analysis

Product: Primary Rate Interface (PRI)

A PRI (Primary Rate Interface) line is an end to end digital circuit which is a form of ISDN (Integrated Services Digital Network) line which is a telecommunication standard that enables traditional phone lines to carry voice, data and video traffic, among others. PRI is a local exchange access service that creates a direct digital connection of 30 channels of 64 kbps each, (2Mbps for a PRI/E1 link) from the operator’s switch to provide voice, data, image and video services on a single line. There is only one line physically terminating on the customer EPABX but still a PRI line can receive/send 30 calls simultaneously. A PRI line can connect to both Analog/Mixed EPABX systems and also the newer IP EPABX systems. A PRI Card / Interface might be required to terminate the PRI circuit on the EPABX.

Features of PRI

Direct Inward Dialing (DID): For each PRI line, the service provider would provide more around 100-500 numbers which can be used by outsiders to call the extension directly, instead of having to go through the PBX Auto-attendant.the vice versa happens for Direct Outward Dialing (DOD).

Since all the extensions have their own number, this unique number will be displayed in the phones that they are calling to. Some call centre applications are based on the unique caller ID number for differentiation of services.

It is possible to offer both voice and data in the PRI line. Some service providers have dynamic offerings where data is transmitted in all the channels that are free (not occupied by voice) at that given point of time.

Call hunting is possible by default with a PRI connection, but for the analog trunks this facility needs to be extended by the service provider and enabled on the PBX, involving additional cost at times. (Call hunting is where the call lands in any channel that is free, instead of the called number specifically – For example, if there is one board number but a number of people are

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calling in at the same time and still then a channel is allocated to them .With analog lines, if one number is busy, they need to call in another number manually.)

PRI lines can be used for voice connectivity, data connectivity, video conferencing, faxing and all the above can be done simultaneously too on different channels.

Extension Wise Billing on PRI provides the user with the capability to track usage on each PBX extension & control the cost.

Since they are digital lines, PRI lines provides better clarity and are more reliable and trouble shooting is also easier with them. They are mostly on a fiber core ring and hence there is some redundancy.

Disadvantages of PRI lines

A PRI line is economical only if the minimum rental charged by the service provider for a PRI line is more than the average value of calls with analog trunk lines every month in an organization. Otherwise, the usage may not even cross the free call value provided by the service provider for a PRI line.

A PRI line is not so economical for long distance/ international calling. Inter branch communication between the branches is not free of cost with PRI lines (Some PRI

service providers provide this facility, but all your branches may need to have PRI lines from the same service provider and there also might be a minimum revenue commitment for the same).

The cost of a single PRI card to connect to your EPABX/ IP PBX is still very high. Most of these cards are proprietary, meaning you can buy them only from your EPABX vendor.

Competitors of PRI

SIP TRUNK

Unlike in traditional telephony, where bundles of physical wires are delivered from the service provider to a business, a SIP (Session Initiated Protocol) trunk allows a company to replace these traditional fixed PSTN lines (PRI/BRI) with a SIP trunk over an IP based transport network. SIP Trunking helps connect a private business-class phone system with an IP based PSTN. Scalability on a single link varies from 20 simultaneous calls to 1500 simultaneous calls.

SIP is the technology of the future. But traditional PRI service is still heavily relied upon by business large and small.

Advantages of SIP Trunks versus PRI

Cost - Inexpensive. An ITSP or SIP trunk service provider who takes the calls over the internet might charge much lesser for international long distance calls.

Easy and quick to scale if you have bandwidth Great for disaster recovery if using SIP over internet Very cheap to get "local" numbers from all around the world. With VOIP systems, inter-branch

communication can be done over internet/ leased lines hence reducing the cost drastically.

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Architecture difference with Traditional Solution

CENTREX

Centrex is a fully managed, hosted service that offers the functionality of PBX system. The solution offers to connect all your offices within the city limits as well as all across India. Centrex is a virtual EPABX hosted at operator’s 24X7 network operating center with built in 'Intercom' facilities. Since there is no EPABX at subscriber’s premises there are no AMCs, electric power bills and battery expenses payable. The operator maintains the Centrex solution at its premises. It is easy to add lines and/or features and when you add more employees or offices for increasing the extensions.

Advantages of Centrex versus PRI

DID number for each extension Short Digit Dialing between offices spread across nation Call Forward – (no reply /on busy / immediate) Multi party conference Call pickup (Direct and Group) Dynamic Locking and user level restriction Authentication code : make calls using roaming password

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Conclusion & SuggestionsThe findings from the research carried out through the various projects give us a complete

picture of the functioning of Tata Teleservices Limited as a telecom operator. The recent years of operation has been through troubled times, where it has been learnt from the financials how the Tata Sons have come in to rescue the degrading health of the company. The feedbacks received from the customers have been on the negative side than a positive impression that it had created while entering the market.

Being a late entrant in the market it had a huge road block as the incumbent operators already held major share in the market. The promising fortune that it showed as an entrant with some out of the box and pioneer plans changing the market dynamics were soon copied and with years it seems to have run out of options. The wireline data segment has been a constant source of revenue generation and is the sector contributing major part of its revenue collection. The wireless voice with poor service in its network availability has made customers to churn out. The number of additions per month has been compensated and at times taken over by the churn out numbers. This has been a major factor in revenue generation.

Thus the recent activity of focusing towards retaining and addressing the existing customer base will provide some hope and needs to be cautiously monitored. Since the wireless voice has already been on the decline for the company it needs to shift its attention towards the wireline and wireless data and wireline voice that have been its strength. It has an unparallel product portfolio which has not been pitched to the customers as per the facilities the company has provided. The marketing and sales team needs more active participation in making its customers aware of the variety of services and products that it offers. Niche and untapped markets need to be recognized and seized before the incumbents reach out.

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