A

REPORT

ON

TATA TELESERVICES LTD.

NEW DELHI INSTITUTE OF MANAGEMENT

SUBMITTED TO:
SUBMITTED BY:

Prof.
DEEPAK KUMAR

DHEERAJ KUMAR SINGH

 TATA TELESERVICES LTD.

Tata Teleservices Limited (TTSL) spearheads the Tata Group’s presence in

the telecom sector. The Tata Group had revenues of around USD 70.8 billion
in Financial Year 2008-09, and includes over 90 companies, over 363,039
employees worldwide and more than 3.5 million shareholders.

Incorporated in 1996, Tata Teleservices is India’s 4th largest telecom service

provider and is the pioneer of the CDMA 1x technology platform in India. It
has embarked on a growth path since the acquisition of Hughes Tele.com
(India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata
Group in 2002. It launched mobile operations in January 2005 under the
brand name Tata Indicom and today enjoys a pan-India presence through
existing operations in all of India’s 22 telecom Circles. The company is also
the market leader in the fixed wireless telephony market. The company’s
network has been rated as the ‘Least Congested’ in India for five consecutive
quarters by the Telecom Regulatory Authority of India through independent
surveys.

Tata Teleservices Limited now also has a presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers
differentiated products and services under the TATA DOCOMO brand name.
TATA DOCOMO arises out of the Tata Group’s strategic alliance with
Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO
has received a pan-India license to operate GSM telecom services—and has
also been allotted spectrum in 18 telecom Circles. The company has rolled
out GSM services in 17 of India’s 22 telecom Circles in the quick span of less
than a year. The company plans to launch pan-India operations by the end of
FY 2010-11.

TATA DOCOMO marks a significant milestone in the Indian telecom

landscape, and has already redefined the very face of telecom in India, being
the first to pioneer the per-second tariff option—part of its ‘Pay for What You
Use’ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world’s
leading mobile operators—in the Japanese market, the company is the clear
market leader, used by over 50 per cent of the country’s mobile phone
users.

Tata Teleservices operates under five different brands:

 Tata Indicom (CDMA services)

 Tata DOCOMO (GSM services)
 Virgin Mobile (Youth oriented GSM services)
 Tata Walky (fixed wireless phones)
 Tata Photon (wireless mobile broadband access)
 T24

TTSL recently entered into a strategic partnership agreement with Indian

retail giant Future Group to offer mobile telephony services under a new
brand name—T24—on the GSM platform. The exciting new brand was
unveiled in February and it has commenced the GSM operations under the
brand name T24 in Andhra Pradesh and will roll out services in other circles
shortly.

Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra)

Ltd, serves nearly 70 million customers in more than 450,000 towns and
villages across the country, with a bouquet of telephony services
encompassing Mobile Services, Wireless Desktop Phones, Public Booth
Telephony and Wireline Services.
In December 2008, Tata Teleservices announced a unique reverse equity
swap strategic agreement between its telecom tower subsidiary, Wireless TT
Info-Services Limited, and Quippo Telecom Infrastructure Limited—with the
combined entity kicking off operations with 18,000 towers, thereby
becoming the largest independent entity in this space—and with the highest
tenancy ratios in the industry. Today, the combined entity has a portfolio of
nearly 35,000 towers.

TTSL’s bouquet of telephony services includes mobile services, wireless

desktop phones, public booth telephony, wireline services and enterprise
solutions.

Over the last few months, Tata Teleservices’ industry-best and innovative
offerings have gained industry-wide recognition and the Year 2010 saw TTSL
add many notable accolades to its name.

TTSL was named The Best Emerging Markets Carrier by Telecom Asia, and
received 8 awards at the World HRD Conference, including 5th Best
Employer in India. The company also received 3 awards at the Telecom
Operator Awards 2010 from Tele.net; Best Company, CEO of the Year and
Best Quality of Service, and Business Standard award for ‘Most Innovative
Brand of the Year.

Tata Teleservices (Maharashtra) Limited

Tata Teleservices Maharashtra Limited (TTML) spearheads the Tata group's

presence in the telephony sector in the telecom circles of Maharashtra and
Goa including Mumbai.

TTML commenced landline operations in 1998 and today has the largest
wireline base in Mumbai and Maharashtra amongst all private operators,
with over 600,000 subscribers, and with over 50% market share. It
commenced full mobility wireless services on the CDMA-1X platform in 2004-
5, and has over 11 million wireless subscribers today, with over 16.9%
market share. It is also a market leader in wireless data cards, with its
pioneering Plug 2 Surf 1-X data cards and its recent launch of mobile
broadband services with Photon+.

TTML’s network has been rated as the only congestion-free network across
Maharashtra and Mumbai in 5 consecutive reports issued by the Telecom
Regulatory Authority of India (TRAI). TTML has also recently been rated the
No.1 wireless telecom service provider in terms of overall customer
satisfaction across Mumbai and Maharashtra in independent studies
commissioned by the Telecom Regulatory Authority of India.

The Company has been responsible for a number of innovations over the
years, including its market introductions last year of 1 GB memory USB
wireless modems, the world’s first CDMA AM/FM Radio Phone, the Ganesha-
motif Sumukha phone, the launch of the Novatium sub-$100 PC in Mumbai,
and, for the first time, a 100 Mbps to the home ethernet-based broadband
service called Power Launcher.

Leveraging its high quality buried fibre Next Generation Network extending
over 1600 kms in Mumbai, TTML recently announced its vision for Digital
Mumbai – broadband anytime, anywhere, in Mumbai city.

The Company has recently rolled out its GSM services under the brand name
TATA DOCOMO in Mumbai, Maharashtra and Goa.

With a full portfolio of products and services for different categories of retail
and enterprise consumers, and an excellent network backed by good
customer care, TTML is well positioned to lead the market in the years
ahead. The Company is listed on the BSE and the NSE, and has over 500,000
shareholders. Its revenue for the fiscal 2008-9 was in excess of Rs. 2000
crores with an EBIDTA of around 29%.
TATA DOCOMO

Tata DOCOMO is Tata Teleservices Limited’s telecom service on the GSM

platform-arising out of the Tata Group’s strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has
received a license to operate GSM telecom services in 19 of India’s 22
telecom Circles-and has also been allotted spectrum in 18 telecom Circles.
Of these, it has already rolled out services in 17 Circles-Tamil Nadu, Kerala,
Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai, Madhya Pradesh-
Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand,
Bihar, UP (East), UP (West), Gujarat and Himachal Pradesh.

Tata DOCOMO marks a significant milestone in the Indian telecom

landscape, as it stands to redefine the very face of telecoms in India. Tokyo-
based NTT DOCOMO is one of the world’s leading mobile operators-in the
Japanese market, the company is the clear market leader, used by over 50
per cent of the country’s mobile phone users.

NTT DOCOMO has played a major role in the evolution of mobile

telecommunications through its development of cutting-edge technologies
and services. Over the years, technologists at DOCOMO have defined
industry benchmarks like 3G technology, as also products and services like
the i-Mode, e-wallet and a plethora of lifestyle-enhancing applications.
Today, while most of the rest of the industry is only beginning to talk of 4G
technology and its possible applications, DOCOMO has already started
conducting 4G trials in physical geographies, not just inside laboratories!

DOCOMO is a global leader in the VAS space, both in terms of services and
handset designs, particularly integrating services at the platform stage. The
Tata Group-NTT DOCOMO partnership will see offerings such as these being
introduced in the Indian market through the Tata DOCOMO brand.
Tata DOCOMO has also set up a ‘Business and Technology Coordination
Council’, comprising of senior personnel from both companies. The council is
responsible for the identification of key areas where the two companies will
work together. DOCOMO, the world’s leading mobile operator, will work
closely with the Tata Teleservices Limited management and provide know-
how to help the company develop its GSM business.

On the CDMA platform, despite being a late entrant, Tata Indicom has
already established its presence and is the fastest-growing pan-India
operator. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA
1x technology platform in India. Today, Tata Teleservices Ltd, along with
Tata Teleservices (Maharashtra) Ltd, serves nearly 70 million customers in
more than 450,000 towns and villages across the country, with a bouquet of
telephony services encompassing Mobile Services, Wireless Desktop Phones,
Public Booth Telephony and Wireline Services.

VIRGIN MOBILE (India)

“Virgin Mobile” brand is India’s ‘first’ national youth-focused mobile service.

“Virgin Mobile” branded services are being offered to the Indian consumers
by Tata Teleservices through a brand franchise with Virgin Mobile, one of the
world's most recognized and respected brands conceived in 1970 by Sir
Richard Branson. Virgin Mobile India will provide Tata Teleservices with
experience and expertise in designing, marketing and servicing of “Virgin
Mobile” branded products for the youth segment.