Synopsis

of

INDUSTY INTERNSHIP REPORT

COMPARATIVE STUDY OF MAJOR TELECOM PROVIDERS IN INDIA

(A Industry Internship Project report submitted in partial fulfillment of the requirement of

Post-Graduation Diploma in Management)

Title Of On Job Training (OJT)

SCHEDULING OF COSTS
TATA TELESERVICES LIMITED

Rakesh Kumar Choudhury

BIFAAS 15D26

Dr. M R Senapathy

Krishna Merthipati

Associate Professor

Manager Budgeting & Control

Signature of Faculty Guide

Siva Sivani Institute of Management

Kompally, Secunderabad-500014

ON JOB TRAINING
My (OJT) is to schedule different costs of the company from December 2015 to
May 2016. My corporate guide had provided me a general ledger dump which
includes - Direct costs, Direct costs (revenue related), Strategic business unit costs,
Network costs and Establishment cost. My work is to identifying different items
under different costs. And I need to schedule the all the costs i.e. the provisional
expenses of the particular month need to tally with the actual expenses. If there is
any difference in the amount of actuals and provisions need to be adjusted by
reversing the entries and need to provide reasons (comments) on excel sheet.

INTRODUCTION
The era of telecommunication in India started from the year of 1851 with the initiative from
govt. of India near the city of Calcutta now known as Kolkata. However the rapid growth in
telecom industry came into picture after the year of 2002-03 onwards as the more number of
service providers came into existence. Since 2002-03 there is rapid change in the technology and
increase in numbers of subscribers in the Indian telecom industry till now. The following are the
milestones in the Indian telecom industry.
1851 First operational land lines were laid by the government near Calcutta.
1881 Telephone services introduced in India.
1883 Merger with postal system.
1923 Formation of Indian radio Telegraph Company.
1932 Merger of ETC and IRT into Indian Radio and Cable Communication Company.
1947 Nationalization of all foreign telecommunication companies to form the posts, telephone
and telegraph, a monopoly run by the governments ministry of communications.
1985 Department of telecommunication established an exclusive provider of domestic and
long-distance services that would be its own regulator.
1986 Conversion of dot into two wholly government owned companies the VSNL for
international telecommunication and MTNL for services in metropolitan areas.
1997 Telecom regulatory authority created.
Today the Indian telecommunications network with over 375 Million subscribers is second
largest network in the world after China. India is also the fastest growing telecom market in the
world with an addition of 9- 10 million monthly subscribers. The tele density of the Country has
increased from 18% in 2006 to 33% in December 2008, showing a stupendous annual growth of
about 50%, one of the highest in any sector of the Indian Economy.
The Department of Telecommunications has been able to provide state of the art world-class
infrastructure at globally competitive tariffs and reduce the digital divide by extending
connectivity to the unconnected areas. India has emerged as a major base for the telecom
industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of
providing affordable and effective communication facilities to Indian citizens. As a result
common man today has access to this most needed facility. The reform measures coupled with
the proactive policies of the Department of Telecommunications have resulted in an
unprecedented growth of the telecom sector.

REVIEW OF LITERATURE
Telecommunication is important not only because of its role in bringing the benefits of
communication to every corner of India but also in serving the new policy objectives of
improving the global competitiveness of the Indian economy and stimulating and attracting
foreign direct investment. Indian Telecom industry is one of the fastest growing telecom markets
in the world.
Today the industry offers services such as fixed landlines, GSM mobiles, 3G and 4G services to
customers. Increasing competition among players allowed the prices drastically down by making
the mobile facility accessible to the urban middle class population, and to a great extends in the
rural areas. Day by day, both the Public Players and the Private Players are putting in their
resources and efforts to improve the telecommunication technology so as to give the maximum
to their customers.
The analysts report published by Ernst and Young in collaboration with FICCI titled,
Enabling the next wave of telecom growth in India Industry inputs for National Telecom
Policy 2011 is a comprehensive report about the evolution of the telecom sector in India
over the past decade. This report tracks the changes in terms of technological
advancements, business dynamics and socioeconomic environment over the years. The
research program studies in detail all the key segments of the telecom landscape wireless,
wire line, broadband, infrastructure, value-added services (VAS), equipment
manufacturing, infrastructure and convergence. Moreover, it also identifies and evaluates
the critical success factors that are applicable across all telecom segments such as spectrum,
licensing framework, FDI, security, consumer affordability and the role of the
regulator (Ernst and Young, FICCI, 2011). Though the state owned telecom company Bharat
Sanchar Nigam Limited (BSNL) remains as the pioneer in the telecom market of India, private
operators obtained a high market share(Arun, 2011), among which Private operators obtained a
high market share(Arun, 2011), among which, India's largest mobile operator Bharti leads the
pack with over one fifth of the telecom market, followed by 16.71% from reliance who is the
third largest mobile operator, 16.52% from Vodafone as the fourth largest and 11.16% from the
fifth largest mobile transport TATA Group business.
Date - 18 /09/2010
Source CNBC
Survey Method Interview
Sample - Mr. Sanjay Kapoor, CEO of Bharti Airtel CNBC interviewed Mr. Sanjay Kapoor, the
CEO of Bharti Airtel on the topic Dialing Growth. In that interview Mr. Kapoor told that
subscriber growth is not only a parameter, but the revenue from the activities is an important
parameter for Bharti. He not agrees with actual growth shown in numbers as per him actual
growth is half of provided numbers. http://www.youtube.com/watch?v=WRvcjfoiM7g

RESEARCH METHODOLOGY

In this paper, a study to compare the major telecom service providers in India is presented.
Telecom Service Providers such as Bharti Airtel, Idea Cellular, Reliance Communications, Tata
Communications and BSNL are compared. For this purpose secondary data was collected
pertaining to last five year values of three important business matrices which are Market
Capitalization, Net Sales and Profit after Tax deduction and Expenditures. This data was
collected from internet source. After collection of secondary data, graphs were plotted for each
of the business matrices which present the comparison of the performance of the telecom service
providers for the last five years for that particular business matrix.
Comparison on the basis of Secondary Data: Business Matrices
After a meticulous collection of secondary data of the telecom service providers such as Bharti
Airtel, Idea Cellular, Reliance Communications, Tata Docomo and BSNL for the three important
business matrices which are Net Sales, Profit after Tax Reduction, Total Income, Total
Expenditure and individual graphs for each business matrix were plotted for the values of last
five years so as to compare the performance of the telecom service providers in India.

DATA ANALYSIS
Total Expenditure and individual graphs for each business matrix were plotted for the values of
last five years so as to compare the performance of the telecom service providers in India.

Mar-11
Mar-15

Mar-12

Mar-13

Mar-14

It shows the graph between Net Sales (in crore rupees) of the various telecom service providers
for the past four years. It can be clearly seen that the net sales of Airtel for the years March 2011
to 2015 are Rs. 367181 crores, Rs. 384795 crores, Rs. 422278 crores, Rs. 468310 crores and Rs.
509055crores respectively. No other telecom service provider has ever managed to surpass
Airtels sales. Hence Airtel leads in terms of Net Sales.

MAR-11
MAR-12
MAR-15 MA1111113456FH1115

MAR-13

MAR-14

Figure 2 The graph between profits after tax reduction (in crore rupees) of the various telecom
service providers for the past five years. From Figure 2 it can be undoubtedly said that the profits
after tax reduction of Airtel from the year 2011 to 2015 have increased tremendously. The values
of profits after tax reduction are Rs. 94267 crores, Rs. 77169 crores, Rs. 57300 crores, Rs. 50970
crores and Rs. 66002 crores from the period of March 2011 to 2015. Here also, no other telecom
service provider has ever managed to surpass Airtels profits. Hence Airtel leads in terms of
profits after tax reduction too.

2011
2014

2012
2015

2013

It can be clearly seen from the graph that no other telecom service provider has been able to give
even a slight completion to that of Airtel as their Market Capitalization values are very low as
compared to Airtel. For example, the telecom service provider with second highest total income
is Idea with a value of Rs.247268.5 crores which is only 48.56% that of Airtel. Hence Airtel
leads in terms of total income too.

2011
2015

2012

2013

2014

Taking all the four graphs shown above into account, it is very distinguishably visible that Airtel
is the overall leader in every sense. Hence all the other service providers face a tough
competition with Airtel and will have to work very hard to surpass it.

Year

2015

2014

2013

2012

2011

TATA
IDEA
RELIANCE
AIRTEL

0.19
0.33
0.80
0.65

0.39
1.48
0.73

0.42
0.72
0.93

0.52
0.69
0.65

0.53
0.77
1.02

Current Ratio

Debt Equity Year

Ratio
TATA
IDEA
RELIANC
E
AIRTEL
Operating
Year
Profit
Margin
TATA
IDEA
RELIANCE
AIRTEL
Return on
Year
capital
employed
TATA
IDEA
RELIANCE
AIRTEL

2015

2014

2013

2012

2011

1.56
0.87

0.74
0.76

1.14
0.96

0.80
0.92

0.79
0.62

0.50

0.26

0.13

0.24

0.29

2011

2012

2013

2014

2015

20.71
25.20
21.67
32.79
2011

17.06
23.19
24.21
29.70
2012

19.28
27.78
16.25
32.65
2013

20.74
30.92
15.33
35.01
2014

26.58
33.01
21.12
37.04
2015

0.08
10.02
1.95
13.14

-2.26
8.30
4.09
12.07

0.13
9.68
1.68
13.18

0.93
13.85
0.08
17.32

4.80
9.35
0.67
11.25

FINDINGS AND RECOMMENDATIONS

After a detailed comparison of the telecom service provider companies in India, it was found out
that Airtel outdoes its rest of the competitors in the case of all the three business matrices used
which are Net Sales, Profit after Tax Reduction and Market capitalization. Also the level of
satisfaction of the customers of Airtel is higher than that of other customers. As the analysis done
in this paper is totally based on the data collected from the online survey, therefore the data
collection could be biased as mostly young people in the age group of 15 to 35 years use the
internet.

REFERENCES

[1].http://en.wikipedia.org/wiki/TATA_Teleservices
[2]. Gartner 2006, http://www.gartner.com/DisplayDocument?doc_cd=138416.
[3]. Annual Reports
[4]. http://en.wikipedia.org/wiki/BSNL
[5]. http://en.wikipedia.org/wiki/Bharti_Airtel
[6]. http://en.wikipedia.org/wiki/Vodafone
[7]. http://en.wikipedia.org/wiki/Idea_cellular
[8]. http://en.wikipedia.org/wiki/Reliance_communications