THE INDIAN TELECOM INDUSTRY

The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to Indias GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and presents unique opportunities for several business giants in the stagnant global scenario. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY 2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless

now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technology penetrate Indias socio-culturally diverse society, and to transform it into a nation of technology aware people.

HISTORY
Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw

telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph.

INTRODUCTION OF THE TELEPHONE

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. By 1881, the Government changed its earlier decision and a license was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai (Madras) and Ahmadabad. January 28, 1882, is a Red Letter Day in the history of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchange in Kolkata, Chennai and Mumbai. The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7, Council House Street. The Central Telephone Exchange had 93 numbers of subscribers. Bombay also witnessed the opening of Telephone Exchange in 1882.

FURTHER DEVELOPMENTS:
1902 - First wireless telegraph station established between Saugor Islands and Sand heads. 1907 - First Central Battery of telephones introduced in Kanpur. 1913-1914 - First Automatic Exchange installed in Shimla.

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July 23, 1927 - Radio-telegraph system between the UK and India, with beam stations at Khadki and Dond, inaugurated by Lord Irwin by exchanging greetings with the King of England. 1933 - Radiotelephone system inaugurated between the UK and India. 1953 - 12 channel carrier system introduced. 1960 - First subscriber trunk dialing route commissioned between Kanpur and Lucknow. 1975 - First PCM system commissioned between Mumbai City and Andheri telephone exchanges. 1976 - First digital microwave junction introduced. 1979 - First optical fiber system for local junction commissioned at Pune. 1980 - First satellite earth station for domestic communications established at Secunderabad, A.P.. 1983 - First analog [[Stored Program Control exchange for trunk lines commissioned at Mumbai. 1984 - C-DOT established for indigenous development and production of digital exchanges. 1985 - First mobile telephone service started on non-commercial basis in Delhi. While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948 was only around 80,000. Even after independence, growth was extremely slow. The telephone was a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country.
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While certain innovative steps were taken from time to time, as for example introduction of the telex service in Mumbai in 1953 and commissioning of the first [subscriber trunk dialing] route between Delhi and Kanpur in 1960, the first waves of change were set going by Sam Pitroda in the eighties. He brought in a whiff of fresh air. The real transformation in scenario came with the announcement of the National Telecom Policy in 1994.

MODERN GROWTH
Large population, low telephony penetration levels, and rise in consumer income and spend owing to strong economic growth have contributed to making India the fastest-growing telecom market in the world. The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in world in terms of number of subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policy was revised to allow private operators, companies such as Reliance, Bharti Telecom, Tata Indicom, Vodafone, MTNL, and BPL have entered the space. major operators in India. However, rural India still lacks strong infrastructure. The total number of telephones in the country crossed the 281.62 million mark at the end of January 2008. The overall tele-density has increased to 24.63% in January 2008. In the wireless segment, 8.77 million subscribers have been added in January 2008 while 8.11 million subscribers were added in December 2007. The total wireless subscribers (GSM, CDMA & WLL (F)) base is 242.4 million now. The wire line segment subscriber base stood at 39.22 million with a decline of 0.03 million in January 2008.

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INDIA, EMERGING AS A MAJOR PLAYER

In 1975, the Department of Telecom (DoT) was separated from P&T. DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalisation-Privatization-Globalization policy. Therefore, it became

necessary to separate the Government's policy wing from its operations wing. The Government of India corporatised the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance India Mobile, Tata Telecom, Vodafone, BPL, Bharti, Idea etc., successfully entered the high potential Indian telecom market.

GROWTH OF MOBILE TECHNOLOGY

India has become one of the fastest-growing mobile markets in the world. The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05.Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of handsets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more mobile phones than India with 246 million mobile phones is China 408 million. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in
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the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$5 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. India is set to surpass US to become the second largest wireless network in the world with a subscriber base of over 300 million by April, according to the the Telecom Regulatory Authority of India (Trai). The month of April 2008 will see India wireless subscriber base that currently stands at 250.93 million surpassing that of the US to become the second wireless network in the world. The year 2007 saw India achieving significant distinctions: having the world's lowest call rates (2-3 US cents), the fastest growth in the number of subscribers (15.31 million in 4 months), the fastest sale of million mobile phones (in a week), the world's cheapest mobile handset (US$ 17.2) and the world's most affordable colour phone (US$ 27.42) and largest sale of mobile handsets (in the third quarter. Wireless segment has emerged as the preferred mode of telephone service by the consumers, reflected in the rising share of mobile phone connections to total connections. The share of mobile phones has increased from 71.69 per cent at the end of March 2006 to 87.68 per cent at the end of May 2008. While total mobile subscriber base was 277.92 million, wire line subscriber base was 39.05 million. Consequently, overall tele-density has increased to 27.59 per cent at the end of May 2008. India is likely to be second largest mobile market in the BRIC nations, with 560 million mobile users representing the next great growth

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curve for both mobile and interactive marketing industries, according to a report by eMarketers. Also, private sector has become the dominant player in the industry. While public sector companies added 53.6 million subscribers during 1998-2007, private companies have added a whopping 133.58 million subscribers during the same period. The dominance has been much more pronounced in the mobile market, where private operators have added 124.68 million subscribers, while public sector operators added only 31.79 million subscribers

INVESTMENT
The booming domestic telecom market has been attracting accelerating amount of investment. During April 2000 to March 2008, cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 3.84 billion, accounting for 6.81 per cent of the total FDI inflows into the country. In fact, the surge in mobile services market is likely to see investment worth about US$ 24 billion by 2010, going by industry estimates. This is understandable, when seen that the number of mobile subscribers is estimated to increase to 600 million by 2012, according to Standard Chartered Bank, implying a mobile in the hands of every second person in the country. Buoyed by the rapid surge in the subscriber base, huge investments are being made into this industry. Maxis Communications-owned mobile service provider Aircel is planning to invest close to US$ 5 billion over the next four years in India for network enhancement and expansion. Srei Group's Quippo Telecom Infrastructure Ltd (QTIL) plans to invest US$ 3 billion in 2008-09 to ramp up its telecom infrastructure business to grow both organically and inorganically The Central public sector enterprises (CPSEs) have lined up investments of US$ 35.09 billion in infrastructure sectors like telecom energy and power for 2008-09.

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Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.

VALUE ADDED SERVICES MARKET

India's runaway success in mobile telephony has also given a boost to the mobile value added services (MVAS)market. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 926.3 million in 2007 and is likely to grow at a CAGR of 44 per cent to US$ 2.74 billion by 2010. Echoing similar sentiments, research firm Gartner estimates data services to account for 22 per cent of the total revenues by 2010 from 12 per cent in 2007. Significantly, India's share in Asia-Pacific (excluding Japan) data revenue is estimated to almost double from about 6 per cent in 2007 to 11.5 percent by 2011.

MAJOR PLAYERS OF THE INDUSTRY:

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 Tele-Ventures, Escorted, Idea Cellular, BPL Mobile, Spice 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).

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BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and 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.

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 Indias key metros Delhi and Mumbai.

RELIANCE INFOCOMM
Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India.

VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services.

VODAFONE
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Hutchs presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995.later it has been overtaken by Vodafone.

IDEA
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 11 telecom circles, or regions, in Western India, and has received additional GSM licenses to expand its network into three circles in other part of India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .

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COMPANY PROFILE
INTRODUCTION OF TATA GROUP
Tata group believes in Leadership with Trust. Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in India and have significant international operations. The total revenue of Tata companies, taken together, was $70.8 billion (around Rs325,334 crore) in 2008-09, with 64.7 per cent of this coming from business outside India, and they employ around 357,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 28 publicly listed Tata enterprises and they have a combined market capitalization of some $60 billion, and a shareholder base of 3.5 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centers in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash and Tata Communications is one of the worlds largest wholesale voice carriers. Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit of nationalism. Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have created national
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institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to nongovernment organizations working in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the trusts and the companies amounts to around 4 per cent of the net profits of all the Tata companies taken together.

LEADERSHIP WITH TRUST

the tata group comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. The total revenue of tata companies, taken together, was $83.3 billion (around rs3, 796.75 billion) in 2010-11, with 58 per cent of this coming from business outside india. Tata companies employ over 425,000 people worldwide. The tata name has been respected in india for more than 140 years for its adherence to strong values and business ethics. Every tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. there are 31 publicly listed tata enterprises and they have a combined market capitalisation of about $87.40 billion (as on april 19, 2012), and a shareholder base of 3.6 million. the major tata companies are tata steel, tata motors, tata consultancy services (tcs), tata power, tata chemicals, tata global beverages, tata teleservices, titan, tata communications and indian hotels. Tata steel is among the top ten steelmakers, and tata motors is among the top five commercial vehicle manufacturers, in the world. tcs is a leading global software company, with delivery centres in the us, uk, hungary, brazil, uruguay and china, besides india. tata global beverages is the secondlargest player in tea in the world. tata chemicals is the worlds second-largest
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manufacturer of soda ash and tata communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of tata companies, the tata brand is also gaining international recognition. brand finance, a uk-based consultancy firm, valued the tata brand at $15.75 billion in 2011 and ranked it 41st among the world's 100 most valuable brands. businessweekmagazine ranked tata 17th among the '50 most innovative companies' list and the reputation institute, usa, in 2009 rated it 11th on its list of the world's most reputable companies. Founded by Jamsedji Tata in 1868, tatas early years were inspired by the spirit of nationalism. it pioneered several industries of national importance in india: steel, power, hospitality and airlines. in more recent times, its pioneering spirit has been showcased by companies such as tcs, indias first software company, and tata motors, which made indias first indigenously developed car, the indica, in 1998 and recently unveiled the worlds lowest-cost car, the tata nano. Tata companies have always believed in returning wealth to the society they serve. two-thirds of the equity of tata sons, the tata promoter holding company, is held by philanthropic trusts that have created national institutions for science and technology, medical research, social studies and the performing arts. the trusts also provide aid and assistance to non-government organisations working in the areas of education, healthcare and livelihoods. tata companies also extend social welfare activities to communities around their industrial units. the combined development-related expenditure of the trusts and the companies amounts to around 3 per cent of the group's net profits in 2011. Going forward, tata is focusing on new technologies and innovation to drive its business in india and internationally. the nano car is one example, as is the eka supercomputer (developed by another tata company), which in 2008 was ranked the worlds fourth fastest. anchored in india and wedded to traditional values and strong ethics, tata companies are building multinational

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Introduction of Chairman - Ratan Tata

Ratan N Tata has been the Chairman of Tata Sons, the promoter company of the Tata group, since 1991. He is also the Chairman of the major Tata companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. During his tenure, the groups revenues have grown nearly 13-fold. Mr. Tata also serves on the board of directors of Fiat SpA and Alcoa. He is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase and Rolls Royce. Mr. Tata is associated with various organizations in India and overseas. He is the Chairman of two of the largest private-sector-promoted philanthropic trusts in India. He is a member of the Prime Ministers Council on Trade and Industry, the National Hydrogen Energy Board, and the National

Manufacturing Competitiveness Council. He is the president of the Court of the Indian Institute of Science and Chairman of the Council of management of the Tata Institute of Fundamental Research. He also serves on the UK Prime Ministers Business Council for Britain and the International Advisory Council of Singapores Economic Development Board. He is also a member of the Global Business Council on HIV / Aids and the Programme Board of the Bill and Melinda Gates Foundations India Aids initiative. Mr. Tata joined the Tata group in 1962. After serving in various companies, he was appointed director-in-charge of The National Radio and Electronics Company in 1971. In 1981 he was named Chairman of Tata Industries; the groups other promoter company. Mr. Tata received a BS degree in architecture from Cornell in 1962. He worked briefly with Jones and Emmons in Los Angeles before returning to India in late 1962. He completed the Advanced Management Program at Harvard Business School in 1975.

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The Government of India honoured Mr Tata with its second-highest civilian award, the Padma Vibhushan, in 2008. He has also received honorary doctorates from Ohio State University, the Asian Institute of Technology, the University of Warwick and the Indian Institutes of Technology of Kharagpur and Madras, and an honorary fellowship from the London School of Economics.

BUSINESS EXCELLENCE
Business excellence has been embedded in Tata through processes and methodologies that enable Tata companies to continually improve operations and achieve the world-class marquee. A key vector that has helped Tata companies grow and establish themselves on the global stage as business leaders in their respective fields is the strong business excellence movement in the group. One of the initiatives in the business excellence movement is a framework known as the Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm Baldrige archetype. The essence of this framework is a proactive attitude rather than a reactive one. It is about changing the business and running it effectively and efficiently. The TBEM assessment covers seven core aspects of business operations: leadership; strategic planning; customer focus; measurement, analysis and knowledge management; workforce focus; process management and outcomes of financial and non-financial parameters; and business results. The model works under the aegis of Tata Quality Management Services (TQMS), an in-house organisation mandated to help different Tata companies achieve their business excellence and improvement goals. In recent years, the TBEM framework has been adapted to include new business and societal initiatives such as governance, safety, climate change and innovation. The other core elements of the Tata business excellence movement are the Tata Code of Conduct (TCoC), a mandatory pan-Tata policy that defines how
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Tata employees can conduct themselves, and the Management of Business Ethics, a programme that helps Tata companies drive ethics and values in the organization. As a result, the business excellence processes have come to characterize the Tata way of enhancing and conducting its business endeavours, and to a great extent, have helped define the Tata brand. The TBEM movement in Tata has a built-in reward and recognition mechanism wherein companies that have achieved a score of 600 on the TBEM framework are felicitated with the JRD QV Award.

TQMS
Tata Quality Management Services (TQMS), a division of Tata Sons (the principal promoter holding company of the Tata group of companies), is entrusted with the mandate of setting standards of excellence and partnering closely with Tata companies to achieve their business excellence and improvement goals. TQMS is the custodian of the TBEM assessment process and the Tata Code of Conduct training and interventions. TQMS aims to offer value to group companies in enhancing their performance and global competitiveness. It collaborates with Tata companies, through long- and short-term initiatives, on the following key areas: TBEM assessment, innovation, TBEM corporate training, improvement and services, safety climate and change, education

governance

ethics,

excellence. Through TBEM, TQMS helps Tata companies gain insights on their strengths and their opportunities for improvement. This is managed through an annual process of 'applications and assessments'. Each company writes an application wherein it describes, in the context of the TBEM matrix, what it does and how it does it. This submission is then gauged by trained assessors, who study the application, visit the company and interact with its people. The assessors map out the strengths and improvement opportunities existing in the company before providing their feedback to its leadership team. Implicit in the TQMS approach is the belief that its wide-ranging methodology

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will enable Tata companies to become exemplars on business as well as ethical parameters in their respective spheres.

TBEM
The TBEM methodology has been moulded to deliver strategic direction and drive business improvements. It contains elements that enable companies following its directives to capture the best of global business processes and practices. The model has retained its relevance thanks to the dynamism built into its core. This translates into an ability to evolve and stay in step with everchanging business performance parameters. The TBEM matrix is used for the organizational self-assessment of Tata companies, recognition and awards, and for providing feedback to applicants. In addition, TBEM plays three important supportive roles in strengthening the competitiveness of Tata companies: 1. It helps improve business excellence practices, capabilities and results 2. It facilitates communication with a common language of excellence across all Tata companies and the sharing of best practices among them 3. It serves as a working tool for understanding and managing performance, for providing planning guidance, and for identifying learning opportunities The TBEM methodology comprises a set of questions that applicant Tata companies have to answer. Its main objectives are to enhance value for all stakeholders and contribute to marketplace success; maximise enterprisewide effectiveness and capabilities; and deliver organisational and personal learning. The core values and concepts of TBEM are embodied in seven categories: leadership; strategic planning; customer focus; measurement, analysis and knowledge management; workforce focus; process management and outcomes of financial and non-financial parameters; and business results. The TBEM system focuses on certain key areas of business performance: customer-focused results; product and service results; financial and market
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results; human resource results; organizational effectiveness results; governance and social responsibility results.

JRD QV AWARD
While quality has always been one of the cornerstones of the Tata way of business, the need to introduce a formal system that calibrated how different group companies were faring on this scale began to be felt in the early 1990s. That led to the institution, in 1995, of the JRD Quality Value Awards, the forerunner to TBEM. Named after JRD Tata, the late chairman of the group and a crusader for the cause of business excellence in Tata companies, the awards have now been incorporated in TBEM. Jehangir Ratanji Dadabhoy Tata, or JRD, as he was popularly known in business circles, guided the destiny of Indias largest business house for well over half a century. Over the years that he was at the helm of affairs of the group, JRD Tata helped establish many new enterprises. He was always conscious about the importance of quality, and ensured that this quality consciousness prevailed in all the organisations that belonged to the Tata group. He was proud that the companies within the group were known, domestically and internationally, for the quality of their products and services. As a tribute to his quest for perfection in every sphere of activity, the JRD Tata Quality Value Award was instituted in his memory. The JRD QV Award is modeled on the lines of the Malcolm Baldrige National Quality Award, integrating beneficial attributes from other national quality awards. The award recognizes a company within the Tata group, which excels in quality management and has achieved the highest levels of quality. This is an annual award presented to the winning company on July 29 each year, the birth anniversary of JRD Tata.

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The objectives of the award are: To create awareness on the importance of the value of quality and the need for total customer satisfaction in all areas of operations within the Tata group To achieve and sustain continuous excellence and consequently leadership in the marketplace

EVALUATION PROCESS
Tata companies participate in an annual process of assessment. The idea is to subject them to an assessment based on the excellence parameters embedded in the Tata Business Excellence Model (TBEM). Each company writes an application in which it describes what job it does and how it does the job in the context of the criteria set by TBEM. This application is then evaluated and studied by trained TBEM assessors who analyse the processes and systems prevalent in the company being assessed. The assessors visit the company and interact with its office bearers across all levels and departments. They draw out the strengths and improvement opportunities, and then provide feedback to the leadership team. An in-built scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. Criteria for recognition: JRD QV Award: 600+ for the first time Leadership in Excellence: 700+ for the first time Sustained Excellence: 3 successive improvements beyond 600 Active Promotion: 500 to 600 for the first time Serious Adoption: 450 to 500 for the first time High Delta: High improvement in one year min 75 for 500High Delta 500+: High improvement in one year min 50 High Delta 600+: High improvement in one year min 25

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INNOVATION
Innovation in thoughts, processes, approaches and strategies has become a critical factor for tata companies as they chart course for a future in a business world without boundaries. the objective is to consistently deliver breakthrough products and services and tata sees innovation as the means to achieve this-

TATA GROUP INNOVATION FORUM

The objective of the Tata group innovation forum is to help create a culture that fosters innovation in Tata companies. Managed by Tata Quality Management Services (TQMS), the Tata Group Innovation Forum (TGIF) is a vibrant network connecting Tata companies all over the world, stimulating innovative thinking and fostering collaboration and research. The forum organises a number of events and workshops and facilitates interaction between Tata managers, innovation experts and academicians. The TGIF team is headed by R Gopalakrishnan, Tata Sons, as its chairman, and the following senior Tata executives as its members: Bhaskar Bhat, Titan Industries R Ramanan, CMC Rashmi Barbhaiya, Advinus Therapeutics R Mukundan, Tata Chemicals Satish Pradhan, Group HR Murali Sastry, Tata Chemicals Bharat Wakhlu, Tata Services Avinash Patkar, Tata Power Bimlendra Jha, Tata Steel Sunil Sinha, Tata Quality Management Services Tim Leverton, Tata Motors Ravi Arora, Tata Quality Management Services Ananth Krishnan, TCS

INNOVATION WORKSHOPS
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TGIF regularly invites academics and other experts in the field to conduct workshops and seminars which introduce new innovation concepts and tools and stimulate innovative thinking among Tata managers.

THOUGHT LEADERSHIP
In order to capture and disseminate the learning from various initiatives, the Tata Management Training Centre in Pune and the Group Publications unit at Tata Sons have been bringing out publications that feature innovation case studies from across the world, while also covering the Tata Innovation Missions to the US, Japan, and Israel.

INNOVATION AWARDS
To celebrate innovation and recognize innovators in the Tata group, TGIF organizes an annual awards function called Tata Innovista. TECHNOLOGY AND RESEARCH CLUSTERS Bringing together technologists and researchers from different Tata companies, TGIF undertook a technology mapping exercise, so that companies could gain by sharing their research and technology roadmaps, infrastructure, skills and competencies. Key innovation projects were identified where many companies could contribute. Subsequently, clusters have been formed, which are successfully working on several collaborative projects.

INNOVATION FACILITIES
Tata invests in building world-class facilities for innovation and research. Some of these centers and the endeavors they are involved in: Advinus Drug Discovery Centre The extensive facility in Pune, India, where Advinus Therapeutics, the pharmaceutical company that is part of the Tata group, conducts research.

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Tata Steel Europe The Research, Development and Technology business of Tata Steel Europe combines top class innovation with cutting edge technology to deliver metals solutions. Tata Chemicals Innovation Centre The Pune-based research and development facility of Tata Chemicals Tata Motors European Technical Centre Based in the University of Warwick, Coventry, UK, this is Tata Motors premier automotive engineering and product development centre. TCS Innovation Labs The various innovation centers of Tata Consultancy Services, the flagship information technology enterprise of the Tata group.

TATA SONS
Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66 per cent of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest of these trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, which were created by the families of the sons of Jamsedji Tata.

AREAS OF BUSINESS
Tata Sons is the owner of the Tata name and the Tata trademark, which are registered in India and several other countries. These are used by various Tata companies in relation to their products and services. The terms of use of the group mark and logo by Tata companies are governed by the Brand
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Equity and Business Promotion Agreement, which is signed by Tata Sons and individual group companies. Apart from this, the company's activities are: To maintain shareholding in main operating companies To invest in operating companies to facilitate growth To promote the group's entry into new businesses

Tata Sons has two divisions: Tata Quality Management Services: Helps Tata companies achieve business excellence through the Tata Business Excellence Model Tata Financial Services: In-house financial consultancy which carries out long- and short-term financial planning for Tata companies

GSM MARKET IN INDIA

With a population of around 1.1 billion growing at roughly 1.7 percent a year, India is potentially one of the most exciting GSM markets in the world. After two rather difficult years, the past 12months have seen the region's promise beginning to come to fruition. Much of this success can be attributed to the stabilisation of the licensing and regulatory environment. India's

telecommunications have undergone a steady liberalisation since 1994 when the Indian government first sought private investment in the sector. More significant liberalisation followed in 1996 with the licensing of new local fixed line and mobile service providers. However, it has been the government's New Telecom Policy (1999) that has had the most radical impact on the development of GSM services. 'The policy's mission statement is 'affordable communications for all', There is a genuine commitment to creating a modern and efficient communications infrastructure that takes account of the convergence of telecom, IT and media. In addition, the policy places significant emphasis on greater competition for both fixed and mobile services.' Competition in the mobile sector has already had a visible impact on prices with calls currently costing less than 9 cents per minute. This means
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that service costs have fallen by 60 per cent since the first GSM networks became live in 1995. It also helps explain why a recent Telecom Asia survey revealed that more than 70 per cent of Indian mobile subscribers felt that prices were now at a reasonable level. One of the challenges facing GSM operators in India is the diversity of the coverage regions -from remote rural regions to some of the most densely populated metropolitan areas in the world. India has more than 40 networks, which cover the seven largest cities, over 7000 towns and several Lacs villages. Such depth of coverage has required enormous investment from India's operators. It is estimated that more than Rs200 billion had been invested in India's GSM industry by mid2000, a figure that is set to be supplemented by a further Rs. 300 billion over the next five years. The good news is that subscriber growth is beginning to look healthy. With India's low PC penetration and high average Internet usage -at 14-20 hours a month per user it is comparable to the US -the market for mobile data and mcommerce looks extremely promising. WAP services have already been launched in the subcontinent and the first GPRS networks are in the process of being rolled out. In the year ahead, GSM India will work with its members to realise the potential of early packet services in anticipation of the award of 3GSM licences.

INDIA FASTEST GROWING GSM MART

India is expected to have 145 million GSM (global system for mobile communications) customers by 2007-08 compared to 26 million subscribers as on March 2005, according to the Global Mobile Suppliers Association. "For GSM, India is a success story. It is one of the fastest growing markets with its subscriber base doubling in 2005. At this pace, the target of 150 million subscribers by 2007-2008 is definitely achievable," Alan Hadden, president of GSA, said at a news conference in New Delhi. Globally, the GSM market reached 1 billion users in February 2005, he said, adding GSM accounted for 80 per cent of the new subscriber growth in 2005."Almost every Latin American operator has chosen GSM. In North
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America GSM growth is bigger than CDMA (code division multiple access)," he said. Commenting on the raging debate over GSM versus CDMA in mobile services arena, Hadden said: "GSM is the world's most successful mobile standard with over 1 billion users, and is an open mobile standard. It also supports automatic international roaming, which is a major contributor to business plans." INDIAS GSM MOBILE FIRMS REVENUE UP 30 PCT Indias private telecoms firms offering GSM-based mobile services reported a 24 percent rise in revenue in the year to March 2007 but said future growth rates could slow because of heavy taxes on the nascent industry. Although Indias mobile sector is the worlds fastest growing major wireless market, it is amongst the highest taxed industries in the country. Mobile carriers pay as much as 25 percent of their revenue as licence fee, spectrum charges and other taxes. The Cellular Operators Association of India (COAI) said revenue for fiscal 2003/04 stood at 83.08 billion rupees ($1.86 billion) compared with 64 billion rupees a year earlier. According to T.V. Ramachandran, director general at COAI, These revenue growth rates cannot be maintained unless there is a concerted effort by the government to cut excessive levies and allow sharing of infrastructure But the potential to do much better exists as there is still huge demand in the sector. Ramachandran said the sector was still losing money but declined to elaborate. Sales jumped because of a doubling of the GSM (Global System of Mobile Communications) user base as more people entered the flourishing market thanks to one of the lowest call rates in the world. But the monthly average revenue per user, a key measure of profitability, declined 17.4 percent to 432 rupees in the fourth quarter compared with 523 rupees in the first quarter due to a cut in tariffs and excessive competition among companies. Growth slowing, demand untapped: The association has not included the financial performance and the GSM-user base of state-run firms Bharat Sanchar Nigam Ltd, the second-ranked player, and Mahanagar Telephone Nigam Ltd, Ramachandran said. There are 150 million GSM customers and more than 96 million users of the rival CDMA-based mobile services in the
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country. The pace of growth in monthly additions is slowing after just 1.25 million users took up the service in April compared with 1.9 million in the previous month and 1.63 million in February. Ramachandran blamed the slowdown on a majority of small GSM operators being unable to expand networks into rural swathes where demand remained largely untapped. Our surpluses are not enough to cover costs of network expansion and financing charges on loans. We are making money only to cover operating expenses, he said. Carriers are now subsidising handset costs to woo users into the underpenetrated industry forecast to have more than 250 million customers by 2007. Roughly three percent of Indians own a mobile phone compared with about 20 percent in China. About a dozen firms such as Bharti Airtel Ltd, 28 percent owned by Singapore

Telecommunications, Reliance Infocomm Ltd and the Indian GSM-unit of Vodafone group battle in the hotly competitive sector

TATA TELESERVICES LTD

Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The Tata Group had revenues of around US $75 billion in financial year 2008-09, and includes over 90 companies, over 350,000 employees worldwide and more than 3.5 million shareholders. Incorporated in 1996, Tata Teleservices Limited 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 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 with its brand Walky. The company has recently introduced the brand Photon to provide a variety of options for wireless mobile broadband access.
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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 14 of India's 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10. Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited, serves over 58 million customers in more than 410,000 towns and villages across the country, with a bouquet of telephony services encompassing mobile services, wireless desktop phones, public booth telephony, wire line services and enterprise solutions. In December 2008, Tata Teleservices Limited announced a unique reverse equity swap strategic agreement between its telecom tower subsidiary, Wireless TT InfoServices Limited, and Quippo Telecom Infrastructure Limited-with the combined entity kicking off operations in early 2009 with 18,000 towers, thereby becoming the largest independent entity in this space-and with the highest tenancy ratios in the industry. The WTTIL-Quippo combine is targeting over 50,000 towers by the end of FY 2010-11.

TATA DOCOMO
TATA DOCOMO is Tata Teleservices Limited's (TTSL) 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 pan-India license to operate GSM telecom services, under the brand TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles.

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The launch of the TATA DOCOMO brand 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 clearly the preferred mobile phone service provider in Japan with a 50 per cent market share. 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 imodeTM, mobile payment and a plethora of lifestyle-enhancing applications. Today, while most of the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started conducting LTE trials in physical geographies, not just inside laboratories. DOCOMO is also a global leader in the VAS (Value-Added Services) 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 under the TATA DOCOMO brand. TATA DOCOMO has also set up a 'Business and Technology Cooperation Committee, comprising of senior personnel from both companies. The committee 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 on helping the company develop its GSM business. Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns and villages across the country offering a wide range of telephony services including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire-line Services.
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NETWORK COVERAGE
Tata Docomo mobile service is available in the following circles:

Madhya Pradesh (3G) Maharashtra & Goa (3G) Mumbai Andhra Pradesh (3G) Bihar & Jharkhand Gujarat (3G) Haryana (3G) Himachal Pradesh Karnataka (3G) Kerala (3G) Kolkata (3G) Orissa Punjab (3G) Rajasthan (3G) Tamil Nadu Uttar Pradesh (East) Uttar Pradesh (West) (3G) West Bengal

Tata Docomo does not offer services in Assam, Delhi and the North-Eastern states.

3G
On 19 May 2010, the 3G spectrum auction in India ended. Tata Docomo paid 5864.29 crores for spectrum in 10 circles. The circles it will provide 3G in are Madhya Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra & Goa, Punjab, Rajasthan and Uttar Pradesh (West). On 5 November 2010, Tata DOCOMO became the first private sector telecom company (third overall) to launch 3G services in India, with a 20 city launch.
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The company will be investing USD 500 million in network roll out nationally. Tata Docomo's HSPA+ 3G network, set up with the assistance of NTT Docomo, supports high-speed internet access with speeds of up to 21.1 Mbps. The network also supports high definition voice for superior quality voice calls. On July 19, 2011, Docomo and Aircel entered into a roaming agreement for 3G services to jointly roll out 3G networks in the circles where they both have spectrum. In the spectrum auction held last year, Aircel won 3G spectrum in 13 of India's 22 circles (service areas), while Tata was awarded 3G licenses in nine circles. This deal would give both companies 3G coverage in 19 telecom circles of India. They will not have coverage on 3 circles - Delhi, Himachal Pradesh and Mumbai. The companies have three circles in common Karnataka, Kerala and Punjab. On December 14, 2011, Docomo ended its agreement with Aircel. Both operators ended the deal after the Department of Telecom said that such 3G arrangements were illegal, as the pacts violate licence terms and conditions. Docomo had about 1.5 million 3G subscribers as of May 2011.

RECENT CAMPAIGNS
Keep it Simple, Silly Tata Docomo refreshed its campaign starting April 8, 2011.The Keep It Simple, Silly ad features their new brand ambassador and bollywood star Ranbir Kapoor. The new ad campaign is claimed to be exciting and innovative and is being featured during the IPL 4 Season. It features Ranbir performing stand-up-comedy as a series of several 30 second episodes.Following its "Do the New" slogan Tata Docomo became the first to introduce Roam Free Packs to Postpaid customers offering free incoming roming service while in TATA Network.

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PURPOSE OF THE BUSINESS

At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

CORE VALUES
Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships cooperation. based on tolerance, understanding and mutual

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

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MARKETING MIX
PRODUCT
TATA DOCOMO having good range of services: TATA DOCOMO provides both postpaid and prepaid services. TATA DOCOMO Quality network: TATA DOCOMO intends to have good quality network which provides clarity in voice. POST PAID PLAN FEATURE :

Plan

My Family Plan ( 999)

My Family Plan ( 1999)

My Family Plan (2 999)

Activatio n charges Minimum no. of Connecti on Maximu m no. of Connecti on CUG 1p/6sec 1p/sec for Day Calling* & Local 1p/2sec Night Calling* Local call 1p/sec for OnSTD Net & Off-Net STD calls 1p/6sec 1p/sec for Day Calling* & 1p/2sec Night Calling* Local call 1p/sec for OnNet & Off-Net STD calls 1p/6sec 1p/sec for Day Calling* & 1p/2sec Night Calling* Local call 1p/sec for On-Net & Off-Net STD calls 3 5 5 2 2 2 300 300 300

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Local SMS @ 50p/sms

Local SMS @ 50p/sms

Local SMS @ 50p/sms National SMS @ Rs.1/sms

National SMS @ Rs.1/sms

SMS

National SMS @ Rs.1/sms

ISD SMS @ Rs.5/sms

ISD SMS @ Rs.5/sms

ISD SMS @ Rs.5/sms

50 hrs Voice (Local + STD)

100 hrs Voice (Local + STD)

167 hrs Voice (Local + STD)

Available Benefits for Family

17 hrs Voice (CUG)

25 hrs Voice (CUG)

33 hrs Voice (CUG)

1 GB Data (2G/3G)

2 GB Data (2G/3G)

500 MB Data (2G/3G)

1000 SMS (Local + National)

1500 SMS (Local + National)

500 SMS (Local + National)

ROAMING PLAN

Plan

Roam Free ( 299) Roam Free ( 299)

Roam Free ( 299)

Activation charges Monthly Rental Local

300

300

300

299 1p/sec for On-Net & Off-Net local

499 1p/2sec for OnNet calls &

799 1p/2sec for OnNet & Off-Net local

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calls

2p/2sec for OffNet local calls

calls

1p/sec for On-Net STD

1p/sec for On-Net & Off-Net STD calls

1p/sec for On-Net & Off-Net STD calls

& Off-Net STD calls Local SMS @ 60p/sms

Local SMS @ 60p/sms

Local SMS @ 60p/sms

National SMS @ Rs.1.20/sms

National SMS @ Rs.1.20/sms

SMS

National SMS @ Rs.1.20/sms

ISD SMS @ Rs.5/sms

ISD SMS @ Rs.5/sms

ISD SMS @ Rs.5/sms

Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges**

Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges** apply when on any other networks Roaming.

Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges** apply when on any other networks Roaming.

Roaming

apply when on any other networks Roaming.

Outgoing Charges : Standard charges** apply.

Outgoing Charges : Standard charges** apply.

Outgoing Charges : Standard charges** apply.

FAT (Free Airtime)

Any 4 toppings

FAT (Free Airtime)

Any 7 toppings

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200 mins (Local)

200 mins (Local)

Available Topping Combinatio n

150 mins (STD)

Available Topping Combination

150 mins (STD)

500 SMS (Local)

500 SMS (Local)

100 MB (2G Data)

100 MB (2G Data)

Prepaid Plan Features

1p/ second - Anywhere In India Savings Alert After every Outgoing call ISD calls on 1 second charging Best SMS rates from TATA DOCOMO Pre activated STD, ISD and National Roaming without rental Anywhere in India Recharge with TATA DOCOMO Total Information control

Recharge Coupon
Recharge Coupon Vouchers are divided into two Categories: 1. Lower End Recharge Coupon Voucher: 5 Rs to 50 Rs 2. Upper End Recharge Coupon Voucher: Above 50 Rs Lower End Recharge Coupon Voucher: 1. Talk Time Coupon Voucher:

MRP (Rs.) 10 20 30 50

Talk Value(Rs.) 6.07 15.13 24.20 41.33

Additional Benefit (Seconds *) 300 300 300 600

Seconds Validity (Days) 3 3 3 7

Processing Fee (Rs.) 3 3 3 4

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2. GPRS Pack: Offer Validity (Days) 21 3 2 Till midnight on day of recharge Post Free GPRS Usage Charges 10p/10KB 10p/10KB 10p/10KB 10p/10KB

MRP(Rs.) 48 15 11 5

Free Usage Details 1 GB 500 MB 150MB with Rs.500 free content 50 MB

3. SMS Pack: MRP(Rs) 9 19 SMS Benefit 100 Local/National SMS 250 Local/National SMS Daily 500 Local/National SMS Free & then chargeable as per base tariff Offer Validity (Days) 30 30 Processing Fee (Rs.) 8.16 17.23

49

30

44.42

For the rural population, voice alone cannot be incentive enough to subscribe for a telephone connection even with the availability of low cost handsets and all the recent tariff initiatives. The mobile handset has to become a multipurpose instrument providing entertainment, news, education, connectivity as well as a means to promote the financial and business interests. Value added services viz. education, entertainment, tele-medicine, banking, IPTV etc. Some of these services can be provided through text messaging. However, in order to make up for the slow pace of development in the past and offer range of usage/ application, it is necessary that both voice and broadband go and in hand as far as strategy for rural India are concerned.

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 locally relevant applications in local languages

Alerts to farmers on Mandi prices Vital, real-time information is available to fishing communities (e.g. sea wave heights, satellite scan data about fish shoals) which is processed to make it usable to non-technical users. Integrated package consisting of text-messaging services, voice services and an Internet portal for rural areas. Farmers and fishermen can access the service to get weather forecasts, price information, and employment opportunities outside the agricultural industry. Temperature, humidity, wind speed & direction and rainfall information Tie up with initiatives like ITC e-choupal to provide real timeinformation via mobiles

Mobile Banking for Rural India Paying insurance premium and utility bills Sending and receive money (through agents/post offices etc)

Applications for the health and education areas Provide standard classroom content as part of broadband package Provide specialized e-classroom trainings Provide trainings for agriculture and livestock related areas pay per use Provide technical (non agricultural sector) related trainings and certifications for increasing employment opportunities pay per use Applications for Department of Posts Applications to send the letters, greetings, messages etc

electronically, only generating hard copies at point of destination for distribution. This will save a lot on logistics costs for department of posts. At the same time they can retain revenues. Applications for sending money orders through e-Money
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Place
It having good range of channels of distribution: As TATA already exist in this field of telecommunications as TATA Indicom. It has wide range of channels of distribution to sell TATA DOCOMO services Use TATAs existing electronic retail chains like Croma for sales, distribution, returns and customer service in urban areas. Tie-up with Department of Post

The Postal department has the required infrastructure and reach and also the expertise to handle monetary transactions along with postal deliveries (money orders, stamps, savings schemes, other miscellaneous services) The Dept of Posts has a presence in every corner of the country. The Postman is a known and recognized entity in even the smallest villages. He knows the people well in every village and is well respected. He is also seen as a reliable and responsible Person since he works with the government. He can also influence the decisions of the village folks due to his unique position elaborated above. Postman can be used for credit verification, address verification, training and support and can be given incentives for the same by the telecom companies. TATA with its well respected brand and political clout can form this alliance. Use Local Schools/Colleges etc for training in rural areas The local schools will offer the presence of literate teachers who can be leveraged for training the rural people in the use of mobile services and handsets. The teachers can also serve as the voice through which the benefits can be communicated to the villagers. Dive-in stores in small cities.

PROMOTION
Advertising: TATA DOCOMO following different style of advertising pattern in TVs and newspapers. Sales promotion: due to unique feature of TATA DOCOMO it helps the sales people to decrease burden.
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Run promotions for mobile services and products during harvest season and festivals due to the presence of higher disposable income during that period.

Run promotions through the local post office, gram panchayats, banks and schools, buses. Allow one month free service for the value added services as trial offers. Can introduce night free offer depending on customer reactions. Dive-in Stores Innovative and cost effective billing plans Give away/ freebies wrt milestone billing Social networking websites Cross selling and promotions with TATAs other outlets like CROMA, Tanishq, TITAN

PRICE
Background:
TATA DOCOMO is entering a market where: o Product demand is highly price elastic. o Substantial economies of scale are available. o The product is suitable for a mass market (i.e. enough demand). o The product will face stiff competition soon after introduction o Because of the cut throat competition, price skimming will not work.

PRICING:
The pricing objective is market penetration and to reach as many consumers as possible, setting a low initial entry price, lower than the eventual market price, to attract new customers. We expect that customers will switch to the new brand because of the lower price. This will help in fast diffusion and adoption. This will take the competition by surprise, not giving them time to react. This will also create goodwill among the early adopters segment. This can create more sales through word of mouth.
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COMPETITORS

Telecom Industry in India is dominated by major players like Bharti Airtel , BSNL, Reliance, Vodafone, and IDEA with share market strength as per Exhibit 3, 4 and 5 given below. Competition is very intense due to low points of differentiation.

EXHIBIT 1: COMPETITION PORTFOLIO

EXHIBIT 2: WIRELESS SUBSCRIBER INDIAN MARKET SHARE

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India Wireless Connections (September 2009) Sep-09 Bharti Airtel RCOM Vodafone BSVL Idea Cellular TATA Teleservices Aircel MTNL Loop Telecom Sistema Shyam HFCL All Operators 46796033 25728633 4680141 2495087 1960532 379654 471726205 42789210 24415514 4662833 2417446 1732125 380288 456743916 4006823 1313119 17308 77641 228407 -634 14982289 9.92% 5.45% 0.99% 0.53% 0.42% 0.08% 100.00% 110511416 86117663 82846046 58756598 51454402 Aug-09 107996533 84112632 80874460 57304404 50058471 Additions 2514883 2005031 1971586 1452194 1395931 Market Share 23.43% 18.26% 17.56% 12.46% 10.91%

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ORGANIZATIONAL CHART OF TATA DOCOMO

HIERARCHY PYRAMID OF TATA DOCOMO

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BOARD OF DIRECTORS
MR. RATAN N. TATA Designation: Chairman Company: Tata Teleservices Ltd.

MR. K. A. CHAUKAR Designation: Managing Director Company: Tata Industries Ltd

MR. ANIL KUMAR SARDANA Designation : Managing Director Company : Tata Teleservices Limited

MR. I. HUSSAIN Designation: Director Company: Tata Sons Ltd.

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MR. N. S. RAMACHANDRAN Designation: Director, Company : Tata Teleservices Ltd

MR. N. SRINATH Designation: CEO & MD Company: Tata Communications Ltd

DR. MUKUND GOVIND RAJAN DESIGNATION: MD COMPANY: TATA TELESERVICES MAHARASHTRA LTD.

MR KIYOSHI TOKUHIRO DESIGNATION: SENIOR VICE PRESIDENT MANAGING DIRECTOR OF NETWORK DEPARTMENT COMPANY: NTT DOCOMO, INC

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RECRUITMENT & SELECTION THEORY

RECRUITMENT
Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. A formal definition states, It is the process of finding and attracting capable applicants for the employment. The process begins when new recruits are sought and ends when their applicants are submitted. The result is a pool of applicants from which new employees are selected. In this, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection. In recruitment, information is collected from interested candidates. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc. are used. In the recruitment, a pool of eligible and interested candidates is created for selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees.

Definition:
According to EDWIN FLIPPO, Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.

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Purpose and importance of Recruitment:

1. Determine the present and future requirements of the organization on conjunction with its personnel-planning and job analysis activities. 2. Increase the pool of job candidates at minimum cost. 3. Help increase the success rate of the selection process by reducing the number of visibly under qualified or overqualified job applicants. 4. Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time 5. Meet the organizations legal and social obligations regarding the composition of its work force. 6. Begin identifying and preparing potential job applicants who will be appropriate candidates 7. Increase organizational and individual effectiveness in the short term and long term. 8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. Recruitment is a positive function in which publicity is given to the jobs available in the organization and interested candidates are encouraged to submit applications for the purpose of selection. Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decided whether they wish to work for it. A wellplanned and well-managed recruiting effort will result in high quality applicants, whereas, a haphazard and piecemeal efforts will result in mediocre ones.

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RECRUITMENT PROCESS
Manpower planning:
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: Analyzing the current manpower inventory Making future manpower forecasts Developing employment programs Design training programs

Analyzing the current manpower inventory:

Before a manager makes forecast of future manpower, the current manpower status has to be analyzed. For this the following things have to be noted1. Type of organization 2. Number of departments 3. Number and quantity of such departments 4. Employees in these work units Once these factors are registered by a manager, he goes for the future forecasting.

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Making future manpower forecasts:

Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the

organizations are as follows:

I. Expert Forecasts: This includes informal decisions, formal expert

surveys and Delphi technique.

ii. Trend Analysis: Manpower needs can be projected through

extrapolation (Projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).

iii. Work Load Analysis: It is dependent upon the nature of work load in
a department, in a branch or in a division.

iv. Work Force Analysis: Whenever production and time period has to
be analyzed, due allowances have to be made for getting net manpower requirements.

v. Other methods: Several Mathematical models, with the aid of

computers are used to forecast manpower needs, like budget and planning analysis, regression, and new venture analysis.

Developing employment programs- Once the current inventory is

compared with future forecasts, the employment programs can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.

Design training programs- These will be based upon extent of

diversification, expansion plans, development programs, etc. Training

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programs depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

SOURCES OF MANPOWER SUPPLY

An organization can fill up its vacancies either through promotion of people available in the organization or through the selection of people from outside. Thus, there can be two sources of manpower external and internal. For all recruitment, a preliminary question of policy considers the extent to which it will emphasize external and internal sources. Vacancies through internal sources can be filled up either through promotion or transfer; recruiters tend to focus their attention on outside sources. Therefore, the first problem is to identify outside sources. Normally, following outside sources are utilized for different positions.

1). Advertisement -: Advertisement is the most effective means to search

potential employees from outside the organization. Employment advertisement in journals, newspaper, bulletins, etc, is quite common in our country. An advertisement contains brief statement of the nature of jobs, the type of people required, and procedure for applying for these jobs.

2).Employment Agencies -: Many organizations get the information

about the prospective candidates through employment agencies. In our country, two types of agencies are operating: public employment agencies and private employment agencies.

Public

Employment

Agencies:

There

are

employment

exchanges run by the government almost in all districts. The employment seekers get themselves registered with these agencies. Normally, such exchanges provide candidates for

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lower position like semi-skilled and skilled workers, and lowerlevel operations like clerks, junior supervisors, etc.
Private Employment Agencies : There are many consultancy and employment agencies like ABC consultants, Personnel and productivity services, etc., which provide employment services particularly for selecting higher level and middle level executives. These agencies also undertake total functions personnel on behalf of various organizations. They charge fees for this purpose.

3). on campus Recruitment -: Many organizations conduct preliminary

search of prospective employees by conducting interviews at the campuses of various institutes, universities and colleges. This source is quite useful for selecting people to the posts of management trainees, technical supervisor, scientist, and technicians. The organizations hold preliminary interviews on the campus on the predetermined date and candidates found suitable are called for further interviews at specified.

4). Employee recommendations -: Employee recommendation can be

considered to the lower levels. The idea behind employee recommendations as a source of potential applicants is that the present employees may have specific knowledge of the individuals who may be their friends, relatives, or acquaintances. If the present employees are reasonably satisfied with their jobs, they communicate these feelings to many persons in their communities.

5).

E Hiring -: Many organizations conduct preliminary search of

prospective employees through the internet service. There are many job portals available on internet like Naukri.com, Monster.com etc. Candidates register their cvs on the different job portals which are searched by the recruiters who are looking for the candidates. The candidates whose profiles match with the recruiters requirement are contacted through email or by telephone for further interview process.

6). Gate Hiring -: The concept of gate hiring is to select people who
approach on their own for employment in the organization. Gate hiring is quite
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useful and convenient method at the initial stage of the organization when large number of such people may be required by the organization. It can be made effective by prompt disposal of applications, by providing information about the organizations policy and procedures regarding such hiring and providing facilities to +such gate callers. It is not necessary that a particular organization will utilize all sources to employ people of all types. Some of the sources are more useful for a particular category of employees.

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SELECTION
Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job.

The difference between recruitment and selection:

Recruitment is identifying n encouraging prospective employees to apply for a job. And Selection is selecting the right candidate from the pool of applicants.

GOALS OF SELECTION
To systematically collect information about to meet the requirements of the advertised position. To select a candidate that willbe successful in performing the tasks and meeting the responsibilities of the position. To engage in hiring activities that will result in eliminating the under utilization of women and minorities in particular departments. To emphasize active recruitment of traditionally underrepresented groups, i.e. individuals with disabilities, minority group members, women, and veterans.

SELECTION PROCESS
A selection process involves a number of steps. The basic idea is to solicit maximum possible information about the candidates to ascertain their suitability for employment. Since the type of information required for various positions may vary, it is possible that selection process may have different steps for various positions. For example, more information is required for the selection of managerial personnel as compared to workers. A standard selection process has the following steps:
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1).Screening of Applications -: Prospective employees have to fill up

some sort of application forms. These forms have variety of information about the applicants like their personal bio-data, achievements, experience, etc. Such information is used to screen the applicants who are found to be qualified for the consideration of employment. Based on the screening of applications, only those candidates are called for further process of selection that is found to be meeting the job standards of the organization.

2). Selection Tests -: Many organizations hold different kinds of selection

tests to know more about the candidates or to reject the candidates who cannot be called for interview, etc. Selection tests normally supplement the information provided in the application forms. Such forms may contain factual information about candidates. Selection tests may give information about their aptitude, interest, personality, etc., which cannot be known by application forms. Types of selection tests are as follows: Achievement test, Intelligence test, Personality test, Aptitude test, Interest test.

3). Interview -: Selection tests are normally followed by personnel interview

of the candidates. The basic idea here is to find out overall suitability of candidates for the jobs. It also provides opportunity to give relevant information about the organization to the candidates. In many cases, interview of preliminary nature can be conducted before the selection the selection tests. For example, in the case of campus selection, preliminary interview is held for short listing the candidates process of selection.

4). Checking of References -: Many organizations ask the candidate to

provide the names from whom more information about the candidates can be solicited. Such information may be related to character, working, etc. The usual referees may be previous employers, persons associated with the educational institutions from where the candidates have received education, or other persons of prominence who may be aware of the candidates behavior and ability.

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5). Physical Examination -: Physical examination is carried out to

ascertain the physical standards and fitness of prospective employees. The practice of physical examination varies a great deal both in terms of coverage and timings. Some organizations only have general check up of applicants to find out the major physical problems which may come in the way of effective discharge of duties. In the context of timings also, some organizations locate the physical examination near the end of the selection process, others place it relatively early in the process. This latter course is generally followed when there is high demand for physical fitness.

6). Approval by appropriate Authority -: On the basis of the above

steps, suitable candidates are recommended for selection by the selection committee or personnel department. Organizations may designate the various authorities for approval of final selection of candidates for different categories of candidates, Thus, for top level managers, Board of directors may be approving authority; for lower levels, even functional heads concerned may be approving authority. When the approval is received, the candidates are informed about their selection and asked to report for duty to specified persons.

7). Placement -: After all the formalities are completed, the candidates are
placed on their jobs initially on probation period may range from three months to two years. During this period, they are observed keenly, and when they complete this period successfully, they become the permanent employees of the organization.

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INDUCTION
Introducing the new employee who is designated in a job, job location, surrounding, organization, organizational surrounding, introducing him to his relevant group is the final process in recruitment. Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and stars work.

The significances of Induction are as follows: To give new comer necessary information such as location of a caf, rest period etc. To build new employee confidence in the organization. It helps in reducing labor turnover and absenteeism. It reduces confusion and develops healthy relations in the organization. To develop among the new comer a sense of belonging and loyalty to the organization.

A formal induction programmed should provide following information:

Brief history and operations of the company. The companys organization structure. Policies and procedure of the company. Products and services of the company. Location of department and employee facilities. Safety measures. Grievances procedures. Benefits and services of employee. Standing orders and disciplinary procedures. Opportunities for training, promotions transfer etc.
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Merits of Induction: Exposes new managers to all kinds of businesses Prevents inductees from being over-specialized Makes a recruit productive to the company quickly Familiarizes new entrants with corporate culture Imparts training on the job rather than theoretically

Demerits of Induction: Throws trainees into the thick of action too soon Mistakes made by raw recruits can damage company Allows no time to gauge individual strength and weaknesses Daunts people who prefer structured work environment Small periods spent in each job can create wrong perceptions

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RECRUITMENT & SELECTION PROCESS AT TATA TELESERVICES (TATA DOCOMO)

RECRUITMENT POLICY
To actualize the organizational vision of providing Trusted services to 100 million happy customers by 2011. Acquiring and retaining high quality talent is the key to an organizations success. The recruitment strategy of Tata Teleservices limited (TTSL) adopted for the same will mirror our corporate image and enhance its brand value. The recruitment process is the most visible and dynamic way of projecting an organizations objectives & image outside.

OBJECTIVE
Systematically hire competent human resource in line with HR Strategies derived from business goals, future growth plans & evolving roles and responsibilities of employees to keep pace with the changing dynamics of the organization. Hire Human resource with values similar to those advocated by the organization to ensure the right culture fit. Adopt a continuous and conscious practice of exploring newer channels for sourcing the best talent in a cost effective manner. Provide opportunities to employees to apply for vacant positions in the company through internal job-postings, with a view to enable career growth for them. Implement merit based hiring practices that provides equal opportunity to all. Hire CRISP talent with requisite competence, skill set, knowledge and attitude to deliver business results today and tomorrow.

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RECRUITMENT STRATEGY
While hiring a TTSLite, they look for the following attributes:C R I S P Customer Focus Result Orientation Initiative and Speed Self Confidence Passion for achievement

Sourcing Strategy
The following sources will be used for identifying the potential Human Resources for TTSL: Recruitment consultants, Employee Referrals, Job portals, Internal Resume Database, Direct Recruitment-Walk Ins, News Paper Ads, Campus

Recruitment, Data bank, Voluntary application, Referral from Tata ecosystem, Voluntary referrals from professional Agencies, NGOs facilitation, etc .

INITIATION OF RECRUITMENT
Manpower Budget
The organizations business plans for the fiscal year originates from the long term business objectives of TTSL. Each function defines its manpower requirements based on the strategic objectives set down for achieving the annual business objectives for the function. The finance function analyses the cost incurred in the hiring of manpower. Corporate HR with circle HR discusses the manpower requirement with the heads of each function to rationalize the manpower to control additions and cost.

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Hiring Plan
Following this, the hiring plan for entire year is charted out. This plan lays down the Number of employees to be hired on a monthly basis at each level, location and function. The manpower budget is reviewed if any revision in business plan takes palace. There is no carry forward of budgeted manpower from one year to another year. Thus, there may be a change in the manpower needs projected initially, and the same gets changed on changes in business plans during the course of the year.

Drivers of Recruitment
In addition to the budgeted requirement for manpower, there may be some other drivers of recruitment i.e. Reorganization/Restructuring which arises from merger, acquisition or expansion can stimulate a need for recruitment

Job Descriptions
A key input for recruitment is an inventory of all skill sets and competency levels for existing positions in all functions. These prerequisites for a position are translated into job descriptions (for format see annexure 1). Job Descriptions (JDs) describe the work performed, responsibilities involved, experience profile, skill. JDs give an understanding of the tasks performed and the type of qualification required to perform them.

RECRUITMENT SOURCES
Once the requirement for hiring is justified and manpower requisition is approved, applications for specific positions are generated through various sources. Following sources are used for recruitment:

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INTERNAL SOURCES Internal Job Postings/External Job Postings (TATA WORLD)

This method is used for identifying qualified internal candidates. It has the advantage of redeploying people already acquainted with the companys business processes and culture and hence, job training can be reduced. It provides opportunity for promotion and employee development. This procedure applies to all budgeted vacancies as well as vacancies created due to replacement requirements in levels M4 to M8. Input SLA Approved manpower requisition/job description(JD) Post the vacancy on the Intranet, within 1 day of receiving a requisition. Receive CVs from internal candidates within 7 days of job posting. Activities The manpower requisition should be signed & forwarded by the function head and mailed to the GM HR corporate. Check JDs for level & location and post it to the intranet Collect the applications received from the hiring manager on the 7th day of job posting. Applicants have been in the current assignment for a min. of 6 months period & are confirmed employees. If candidate selected make offer. If offer is accepted update personal file, Update SAP, inform Finance, inform reporting manager about candidates date of joining.

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Approved manpower requisition/Job description If candidate is not selected; o File CV and Interview Assessment sheet in rejected candidates folder o Begin sourcing Activity

CV databank
The internal databank of CVs is an important source of profiles, specifically with regard to local candidates. After the applications are received, they are screened and short-listed for further processing. Inputs SLA Activities CVs received from various sources Ongoing activity Segregate CVs received through email, post, walk-in candidates,

employee referrals Classify CVs as per function and date of receipt File CVs in a function wise manner

Employee Referral Scheme Bring buddy

Employee referral is an efficient and cost effective way of

attracting qualified candidates. Employees not only get the referral fee but also they play a role in shaping the companys future.Any employee who wants to refer an individual can forward to the HR function either through email or by submitting a hard copy.

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inputs SLA Activities

CVs from employees Ongoing activity All CVs received are to be placed in the databank Maintain record of the name of the employee and date of receipt of CV If the CV is short-listed, organize interview/if rejected tell referee Informed the employee about the outcome if refer candidate attends intervie

Off- roll employees

Hiring an outsourced employee simplifies the induction process as the employee is acquainted with the job complexities and the organization culture. The term off role employees refers to the employees working on the rolls of an agency providing results and services to TTSL. These employees are on the payroll of an external agency.

Appointment on TTSL rolls

It is based purely on the availability of a vacancy and suitability of the outsourced employee as an applicant.

Criteria

The applications are for entry level positions only (M8 M7) The applicant has served for a minimum period of 12 months continuously with an agency providing services to TTSL.

The application is screened by dept. head

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EXTERNAL SOURCES Recruitment through Consultants

Recruitment consultants are used to assist in the hiring of qualified candidates. They help in identifying job seekers and are a good and efficient source for obtaining pre screened candidates. TTSL employs Recruitment Consultants on a contingency basis implying that they are paid a fee only when a position is closed through them.

Selection of RCs
The list of consultants along with the applicable terms and conditions is finalized by Corporate HR at the beginning of each year. Each RC is required to sign a contract with Corporate HR before commencing work with TTSL.

Evaluation of RCs
The list of consultants is revised only at the beginning of each financial year, on the basis of relative performance of the consultants. Input Timeline Activities Recruitment MIS & CV databank In the beginning of financial year Quantitative & qualitative assessment undertaken Evaluation done by recruitment dept. in each circle Prepare list of consultants to be

retained for the year and those that nee to be terminated Head HR approve the above list

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Advertisements
Placing advertisements in the newspaper is a method of recruiting external applicants, to be used in specific cases such as walk ins, special positions etc. Since potential candidates are first introduced to the company through advertisements, this helps in building a positive image. Either TTSL or the vendor can release an advertisement for vacancies.

When TTSL releases the advertisement

This source is used for hiring for M5 & above levels. For this an advertisement copy should be prepared jointly and been approved by both the hiring function and HR. All advertisements to be approved and ratified by Corporate HR & Corporate MARCOM prior to release. The advertisement should: a. Meet the criteria set by the company for release in the print media. b. Be brief, precise and consistent with job specifications and the selection criteria. It must specify the e-mail address/fax number/address where applicants can send their CVs. c. Attract the interest of potential and suitable applicants. d. Have the following details: Summary of TTSLs business Level/Title and location of position Position code for each job Job specifications in terms of skills, experience and qualifications required

Job Portals
Leading job portals like Naukri, Times job, Monster etc. Should be used to get CVs for closing positions at the level of M2 to M8. corp TA will maintain an annual matrix of usage of these portals by circle & will also circulate usage on a quarterly basis.
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TTSL Website Open positions up to M2 level should be put on the TTSL website for seeking profile from interested applicants from external world.

All open positions which are to be put on TTSL website will be done so
on approval of Corporate TA head.

SELECTION PROCESS
Having received the applications, the next step is to evaluate applicants experience and qualifications and make a selection.

Screening
Its purpose is to evaluate the application and eliminate applicants whose profiles do not match the job requirements. Short-listing of CVs

The CVs received from various sources are screened by the HR function within 7 day of commencement of sourcing activity. Knowledge & Aptitude Test for campus. It is conducted for all trainees and laterals recruits in the level of M6 & M8 through a testing agency of repute decided and finalized from corporate office. The result of test will be criteria for short listing / screening candidates for the purpose of interview. Psychometric Test: This test is done to find out the CRISP fit.

Interview
This is powerful technique used to assess the capabilities/skills of the candidate and to understand the softer aspects that a difficult to measure from resumes.

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After finalizing a date and time, short-listed candidates are invited for an interview.

Evaluation of candidate
The candidate interviewed are evaluated against the various parameters indicated in the Interview Assessment Sheet (see Annexure 2), which has to be filled-in and signed by all members of the interview panel.

Salary fixation
The selected candidates are required to furnish Documents prior to an offer being made.

Salary comparator
An appropriate salary fitment is generated giving three possible options, based on qualification, age, experience and compensation details of the selected person and basic salary of existing employees at the same level.

Approval & signature

The authority for finalization of salary for salary for levels M4 and below (for all circle positions) shall rest with the Head HR in each circle. All decisions pertaining to salary determination for level M3 & above rest with corporate HR.

OFFER
After selection of the best candidate, email compensation offer is made to him/her. Only if the candidate accepts this & due verification of Ref. Check/medically fit clearance is obtained, an appointment letter detailing the terms of employment is given to him/her. Annexure indicating the list of documents to be submitted at the time of joining is to be given with the appointment letter (Annexure 3).
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It is mandatory for the selected candidate to sign and return the duplicate copy of the letter. The signing authority for offer letters is indicated below: M1 & above M2 & M2A M3A & M3 - CHRO - Corp TA Head. - Corp TA head (for corp. Office) - Regional HR head for region. M4 & below - Corp TA head or representative

not below M3 level for offers in corp. office. And regional HR head/ Circle HR Head ( not below M5 level) for offers in region & circle respectively.

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The Following Flowchart shows the offer and follows up Process:

Finalization of salary
Details of existing compensation break-up

Verbal offer/ E-mail

Is the offer accepted?

No

Commence sourcing activity

yes Pre employment medical check up & Authbridge Verification

Relocation/ notice pay as per policy Submission of documents

Joining

Review Process

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PRE-EMPLOYMENT ACTIVITIES
Once the selected candidate accepts the offer, the recruitment team communicates this information to be concerned units within and outside the organization. There are various pre-employment activities which are as follows: Reference Check Background verification is required for appointment. This is done through third party of repute. Following points may be considered during reference check: For group transfer it is not required Verification on qualification and last 3 employers Termination due to any disciplinary issues

Medical Check-up Medical fitness is also required for the eligible candidate, if he is found unfit; HR reserves the right to withdraw the offer. Medical bills are also reimbursed. (Annexure 4) Relocation If an employee is an outstation candidate, he/she is reimbursed travel expenses for him/herself. For outstation candidate they also provide temporary accommodation.

JOINING FORMALITIES
The employee is required to fill in his /her personal details in a joining report and submit supporting documents related to academic qualification, date of birth, relieving letter and salary details of last employment along with medical fitness reports. A welcome note signed by the Circle HR Head is placed in a joining docket.
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The candidate is permitted to join without a relieving letter from last employer provided he/she submits proof of acceptance of resignation. After completion of joining formalities, at M0 to M2 an organization announcement is displayed and the same is circulated to all Circles by Corp.HR. At levels M3A-M8, a welcome note is displayed as the same is circulated to other offices in the circle. (Joining checklist Annexure 5)

INDUCTION
The new employee then joins the induction program organized by HR.The induction Program is normally held in the last week of the month. It includes a formal welcome by the Circle COO/Designated representative of CHRO in corporate and presentations made by different function representatives on business operations of the company. The employees are also introduced to the basics of telecom through a separate training programme.

TRAINEE PROGRAMS
TTSL has got four broad training schemes for the expertise of its manpower, these are as follows: Management Trainee Scheme The objective of management trainee scheme is to recruit bright and competent young professionals from reputed management institutes to assume management roles after due training and experience. Executive Trainee Scheme Management professionals from tier II management institutes are trained under this scheme to assume lot of implementation roles in the company. Graduate Engineer Trainee Scheme In this young and bright professionals of BE/ B.Tech from premier Engineering Colleges is trained to assume roles in technology, network, IT, operations etc.
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Diploma Engineer Trainee Scheme Bright and young Diploma holders are trained in this to assume roles in technology, network and operation support, etc.

INTER CIRCLE HIRING

Through this process employee may move from one Circle to another or from/to corporate. This may be on account of the employees personal request or on account of business reasons.

PROCESS REVIEW
All the processes that form part of the recruitment cycle need to be monitored on a regular basis. Any deviation from the sequence laid down in this manual should be recorded. A periodic process review is to be undertaken to rationalize processes and to minimize the deviations in actual activities as compared to the norms. A process review is undertaken both at the Circle level and the corporate level.

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INTRODUCTION TO PROJECT & RESEARCH METHODOLOGY

PROJECT OBJECTIVES
How does right recruitment process helps in creating overall efficiency, cost reduction, on time delivery with reference to external customer. To collect the findings, information & analyze to draw conclusion of recruitment process. To explain the documentation used at the various stages of the recruitment & Selection process. To involve employees in creating an environment of openness, trust, fun & pride. To highlight the area where recruitment and selection programs needs improvement. Is the current recruitment process in line with the employees future career planning and his potential?

PROJECT SCOPE
To understand the complete Recruitment & Selection process at Tata Teleservices Ltd. Study and analyze the recruitment season 2010. Find out the efficiencies of recruitment sources. Find out the effectiveness of Recruitment Process through various metrics. To help the company to determine how they make their recruitment and selection programs more effective. To determine various parameters to collect information through questionnaire of employer.

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RESEARCH METHODOLOGY
DEFINITION
Research in common parlance refers to a search for knowledge. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation of enquiry specially through search for new facts in any branch of knowledge. The systematic approach concerning generalization and the formulation of a theory is also research. The purpose of research is to discover answers to questions through the application of scientific procedures.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

- JOHN.W.BEST
Research may be defined as any organized inquiry designed and carried out to provide information for solving a problem.

- EMORY
Research is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.

- ROBERT ROSS

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Descriptive Research Design

Descriptive research design studies are those studies, which are concerned with describing the character of a group. The researcher makes a plan of the study his research work. That will enable the researcher to save and resources such a plan of study or blue print or study is called a research design.

Data Collection
The study was based on questionnaire method. The study was about the Recruitment and Selection System at Tata Teleservices Ltd. and find out the effectiveness of recruitment. There are two types of data collection: Primary data Secondary data

Primary data
The primary data are those, which are collected a fresh and for the first time happen to be original in character. It has been collected through a Questionnaire and personal interview.

Secondary data
Secondary data are those which have already been collected by someone else and which have already been passed through the stratified process. It has collected through the manuals, journals & Internet.

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Research Instrument
Questionnaire containing both closed and open ended questions

Tools for Analysis

Along with the usual statistical tools such as tables, percentages, bar charts, I have used Recruiting Metrics for analyzing the efficiency of recruitment process and arriving at the conclusion.

Recruiting Metrics
Recruiting Metrics should be defined as: A quantifiable measurement that can be compared to established benchmarks AND encourages behaviors focused on candidate quality and client experience. Most often, metrics are designed to measure only the outcome or production of a recruiter regardless of the manner in which those specific metrics are attained. In order to be effective, metrics must measure the correct results and drive the right recruiting behaviors.

Metrics of Today
In Recruiting, the measurement of success is very analytical. The general metrics that need to be focused while recruiting are: quantity, cost, time and quality.

Efficiency metrics
There is way by which we can measure the Quality of the results of the recruiting process using three great Efficiency Metrics.

The efficiency measures in a recruitment process are carried out on the basis of the recruiters work and the productivity of the entire recruitment process.

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The Basic three metrics are as follows: Submittal efficiency The submittal efficiency is measured on the basis of the candidates qualification as per requirement of the job profile. Itis measured by dividing the number of applicants interviewed by the number of applicants who submitted their profiles. This number is expected to be really high but it is relatively average. If the efficiency seems to be below average, then there may appear be some poor actions being conducted by the recruiters, perhaps spending a lot of time while going through resumes or insufficient specification of the job profile. When the efficiency reaches a very low percentage then ordered are delivered to certify the problem areas. Interview efficiency The interview efficiency is measured on basis of the hiring managers evaluating process. It works by extracting the results by dividing the number of applicants who are shortlisted and offered the position by the total interviewed number of candidates. This sort of efficiency can measure up to near to and al little below average as compared to the submittal efficiency. But the same determination actions are applied if the efficiency results are very low. Offer efficiency The last of the three basic efficiencies is measured on the basis of the number of candidates who accept your proposal and commence the position. It is evaluated by dividing the number of candidates to accept the offer by the total number of proposals. The same process of analyzing the efficiency is applied, if it is above average then the job is being well done, if average or near to average then there has to be certain actions taken to modify the process and if its below or very less than average then it is certain that the recruit is doing poor job and negotiations are then carried out to eradicate the offers.
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I.

Source of Hire Data is driven by the percentage of new hires from each defined candidate source. Data also driven by percentage of hires per source, with highest on the job performance and tenure rates. Greater focus on Quality of Hire, Quality of Sourcing Strategy, Cost-Per-Hire, and Time-to-Fill. This metric also helps recruiting managers see sourcing channels in terms of outcomes, not just sheer numbers.

II.

Referral Rates Data is driven by the percentage of hires from employee referrals generated by the recruiter. Greater focus on Quality of Hire, CostPer-Hire, and Time-to-Fill.

Referral rate = No. of candidates hired from employee reference X Total number of hires

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DATA ANALYSIS & INTERPRETATION

ANALYSIS & INTERPRETATION OF DATA
According to the survey number of estimated new hires in recruitment season 2010 is 25. TABLE 1). DETAILS FO R THE RECRUITMENT SE ASON 2011.

Measuring the effectiveness of recruitment process through metrics: Number of candidates

300 250 25 25

Details of candidates
Number of candidates submitted their resumes Number of candidates being interviewed Number of candidates received offers Number of candidates accepted offers (Quality Metrics)

From the above data various efficiencies of recruitment can be calculated, which are written below: Submittal Efficiency = No. of candidates interviewed x 100 Total no. of candidates submitted Interview Efficiency = No. of candidates receives offers x 100 No. of candidate interviewed Offer Efficiency = No. of candidate accepting offer x 100 Total no. of offers

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Result With the use of above formulas, the following results are found:

Submittal Efficiency = 83.33%

Conditions When Submittal efficiency is 100 % it means recruiters missing good candidates because they are not pushing edges to the requisition specifications. When it is too low that means recruiters spend too much time in reviewing resumes. But Submittal efficiency of TTSL recruitment process is 83.33% . It seems that they are doing well.

Interview Efficiency = 10%

Conditions This would be expected to lower than the submittal efficiency since most people want to interview several candidates for one offer. The goal is to shoot 30% efficiency but less than this is not good which means your organization is making offers to one out of every three to four interviewed candidates. If less than one in six candidates interviewed actually receives an offer (16% efficiency), it should be an indicator that it is time to investigate again.

Offer Efficiency = 100%

Conditions If the process yields 80% offer efficiency, or four out of five offers are accepted, you are doing well. Conversely, if less than three in five offers are accepted (60% efficiency), then something in your recruiting processes will need to be modified or
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addressed. Low offer efficiencies could mean the recruiter is doing a poor job of pre-closing the candidate or negating counteroffers. The offer efficiencies percentage can be too high. If 100% of people accept your offers, perhaps you are offering too much money for the job.

TABLE 2). NUMBER OF SELEC TED CANDIDATES THROUGH V ARIOUS RECRUITMENT SOURCES

Sourcing efficiency analysis through pie chart & calculation of

referral rate(Quality Metrics)

Percentage of Recruitment sources Number of Employees hired no. of employees hired Internal Job postings CV database Employee referral scheme Off role employees Job portals Recruitment consultants Job portals Advertisements Total 2 3 19 1 25 8% 12% 76% 4% 100%

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Referral Rate = No. of hires from employee reference X 100 Total Number of Hires

Result: Referral Rate = 76% Inference: 8% of candidates hired from Internal Job postings, 12% from CV database, 4% from off role employees 76% of candidates hired from employee. So employee referral scheme is most prominent in this recruitment season.

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TABLE 3). MINIMUM WO RK EXPERIENCE REQUIR ED FOR DIFFERENT MANAGEME NT LEVELS.

Management level Higher level ( M3 & above) Middle level ( M6 to M4) Lower level ( M7 & M8) Inference

Work experience 9 15 years 3 8 years 1-3 years

TTSL preferred those people at the higher level management who have high work experience i.e. 9 to 15 years. 3 to 8 years of experience is required at middle level of management. Minimum work is required at lower level because they have less responsibilities than higher and middle level management people.

TABLE 4). NUMBER OF CANDID ATES HIRED AT DIFFERENT MANAGEMENT LEVELS IN RECR UITMENT 2011.

Analysis of hiring at different management levels Management levels Higher level management Middle level management Lower level management Total Number of candidates hired 4 Percentage of no. of candidates 16%

20

80%

1 25
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4% 100%

Inference 16% candidates hired at higher level management. 4% candidates hired at lower level management. But 80% candidates hired at middle level management, it shows that higher number of vacancies found at middle level. TABLE 5). REFERRAL F EE UNDER EMPLOYEE RE FERRAL SCHEME

Management level M7/M8 M5/M6 M3/M4 M2 & Above

Referral fee 5000 10,000 15000 20000

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Inference
If a candidate hired through employee referral scheme in return employee would get some referral amount. The referral amount increases with the increase in the management level at which employee gets selected. TABLE 6). NUMBER OF CANDIDATES HIRED AT V ARIOUS DEP ARTMENTS IN 2011.

Analysis by departments Department Number of candidates hired Marketing Sales HR Finance Technology CSD Total 1 24 25 Percentage of hired candidates 4% 96% 100%

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Inference In this recruitment 96 % employees are hired in sales department. Only 4% employees are hired in marketing department. There is no hiring in any other department.

TABLE 7). NUMBER OF MALE AND FEMALE CANDIDATES HIRED IN Gender 2011. Percentage

Number of candidates

Male Female Total

22 3 25

88% 12% 100%

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Inference
There are 88% male candidates are selected in recruitment 2010. 12 % female candidates are selected.

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FINDINGS, RECOMMENDATIONS & CONCLUSION

FINDINGS FROM THE STUDY
i. Tata Teleservices Ltd. (TTSL) has a clearly stated Recruitment & Selection Policy. ii. iii. The number of estimated new hires in recruitment 2010 is 25. TTSL prefer internal source of recruitment because employees in the organization get the opportunity within the organization, it has better growth prospects. iv. v. vi. Effectiveness of recruitment process analyzed through Quality Metrics: Submittal efficiency of TTSL recruitment process is 83.33%. It seems that they are doing well. Interview efficiency is 10%. The offer efficiencies is 100% i.e. all the selected people accept the offers. Referral rate at TTSL is 76%. Sourcing efficiency analysis through Quality Metrics: 8% of candidates hired from Internal Job postings 12% from CV database 4% from off role employees 76% of candidates hired from employee referral. So employee referral scheme is most prominent in this recruitment season. vii. Effectiveness of Recruitment process analyzed through Cost Metrics: TTSL outsourced a company called Authbridge for verification/ reference check of its new hires. It takes 1200 Rs. /candidate. Total expense for verification is 30,000 in 2010.
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Other cost associated with this recruitment 2010 is Referral amount paid to the employees because 19 out of 25 new hires through employee referral.

viii.

Management level based analysis: 16% candidates hired at higher level management, 4% candidates hired at lower level management, But 80% candidates hired at middle level management, it shows that higher number of vacancies found at middle level in this recruitment season. Xi. If a candidate hired through employee referral scheme in return employee would get some referral amount. The referral amount increases with the increase in the management level at which employee gets selected. Department based analysis: X. 96 % employees are hired in sales department, Only 4% employees are hired in marketing department. There is no hiring in any other department.

Gender based analysis: 88% male candidates are selected in recruitment 2010. 12 % female candidates are selected.

Xii. To hire higher level management, they prefer advertisement and recruitment consultants. xIII. The cost of recruitment consultants is approx. 8% of total CTC at M3 & below levels and approx. 12% of total CTC at M3A & above level. Xiv. Top 3 recruiting challenges are as follows : Quality recruitment Retention of newly hired candidates Hiring of senior level management employees.

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Xv. Provide travel entitlement for outstation candidates who are appearing for the interview. Xvi. Provide medical tests reimbursement to the employees.

RECOMMENDATIONS
i. The interview efficiency of TTSLs Recruitment & Selection Process is 10%, which is less than the optimum (16%, selecting 1 out of 6 candidates) interview efficiency so they should investigate their process. It may be possible that recruiters are overly selective. So take care about this efficiency. ii. The offer efficiency is 100%, it can be too high but 100% means perhaps you are giving too much salary to the new hires or any other factor is associated with it so new hires dont deny your offer. iii. Even though you hires from the external source, the main source of recruitment is internal but you should have look towards the external world to hire new pool of talent. So that candidates from external world can also work with you.

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SWOT ANALYSIS:
STRENGTHS
Early Mover - Pioneer in India on one second billing concept. Innovative pricing models for almost everything be it voice calls, VAS services, and IVR interactions. Global leader in value added services. USP : Value Added Services like Timed SMS Diet SMS Comic-on-the-go Interactive GPRS application, TATA i-Channel Strong Alliance: Trusted TATA brand combined with proven

technological edge of NTT DOCOMO. Plans affordable by common people Active in social media sites like Twitter, Facebook, StumbleUpon, Technorati etc, one of their strategies for marketing their products and creating an online presence

WEAKNESS
Signal Strength Customer Service Low Price Low Quality trap (due to excessive focus on only price based selling)

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OPPORTUNITIES
Scope to expand the coverage across the growing indian market: Vas services market to grow to 450 billion rupees by 2010 Introduce new plans targeted to internet users Introduce 3g compliant services since docomo has the expertise in 3g Introduce new combined plans like sms, internet, calling integrated offers Association with microsoft to launch the new generation windows mobile 6.5 smart phones Trais plan to introduce mobile number portability in early 2010 Vas for rural segment like integration with e-choupal, mandi prices, weather information, fish shoal movement etc.

THREATS
Cut-throat competition from other major service providers No strong pod other than price Late entrant in indian market Trais plan to introduce mobile number portability in early 2010

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CONCLUSION
The Recruitment and Selection Process is one of the basic HR processes. Recruitment & Selection is very sensitive as many managers have a need to hire a new employee and this process is always under a strict monitoring from their side. HR management is a part of every managers responsibilities. ese responsibilities include placing the right person in the right job, and then orienting, training, and compensating to improve his or her job performance. Tata Teleservices uses two sources of recruitment internal and external source. But they prefer internal source because it gives opportunity to employees within the organization. After recruitment Selection process takes place. This entails establishing the best fit between job requirements and the candidates profile. Selection process includes screening, interview and various tests. Then offer is made to the candidate if he/she accepts it employee undergone through various pre- employment activities like reference check, medical tests, etc. It is imperative to have an efficient and responsive tracking mechanism to evaluate the impact of recruitment on the topline and bottomline. Metrics not only help in evaluating the robustness of internal processes but also provide inputs on customer satisfaction and vendor evaluation parameters. Various metrics like quality metrics, time metrics, cost metrics & Review process is used to find out the effectiveness of recruitment processes.

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QUESTIONNAIRE QUESTIONNAIRE ON RECRUITMENT PROCESS & SOURCE OF RECRUITMENT

1) Do you have a clearly stated Recruitment & Selection Policy?

Yes No
2) What is the quality of Tata Teleservices Recruitment Process? _____________________________________________________ 3) What is the number of estimated new hires in the year 2010? _____________________________________________________ 4) Give the following details for the recruitment season 2010

Number of candidates submitted their resumes Number of candidates being interviewed Number of candidates received offers Number of candidates accepted offers
5) Which source of recruitment do you prefer and Why?

Internal External Any Other

why_______________________________________________

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6) Please write down the number of selected new hires from different recruitment sources in this recruitment season.

Selected through Internal Job postings CV database Employee referral scheme Off Role employees Recruitment Consultants Job Portals Advertisements Walk Ins
7) Which management level is to be filled with various recruitment sources written below?

Internal job posting_________________________________ Off role employees_________________________________ Recruitment consultants_____________________________ Advertisements____________________________________ Job portals_______________________________________ TTSL website_____________________________________ Walk Ins_________________________________________
8) Write down the number of candidates hired at different management levels in recruitment 2010.

Higher level management Middle level management Lower level management

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9) Which is the best recruitment source for hiring higher level management people and why?

Advertisement Recruitment consultants Job portals

10) How much cost is associated with the various recruitment sources?

Recruitment consultants_____________________________ Job Portals_______________________________________ Advertisements____________________________________

11) What is the minimum work experience is required for the following management levels?

Higher level management____________________________ Middle level management____________________________ Lower level management____________________________

12) What will be your top priority?

Retaining current employees Hiring new ones

13) What is the referral fee under employee referral scheme?

M7/M8__________________________________________ M5/M6__________________________________________ M3/M4__________________________________________ M2 & Above______________________________________

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14) How many male and female candidate have you hired in recruitment 2010.

Number of male candidates

___________________________________________

Number of female candidates

___________________________________________ 15) Number of candidates hired in various departments.

Marketing

HR

Sales

Technology

Finance

CSD

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16)

Do you provide medical test reimbursement?

Yes No

17)

Do you provide any travel entitlement for outstation candidates coming for the interview?

Yes No
18) What are the top 3 recruiting challenges? ______________________________________________________________

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ANNEXURES
JOB DESCRIPTION Date: Position Title: Grade: Reports to: Function BU: Corporate/Circle: Contacts of this position: Internal: External: For managers & above only No. of direct reportees: reportees: Budget of area of responsibility ( in lacs Rs.): Job code: No. of indirect Sub Function: Location: Version:

ANNEXURE 1
Organ gram: Job Purpose:

Job responsibilities

Activity code:

Responsibilities % time spend Responsibility 1 Activity 1 Activity 2 Responsibility 2

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Responsibility level

Measurement criteria

Activity 1 Activity 2

Competencies: Professional knowledge 1 2 3 Skills 1 2 3 Personal attributes

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ANNEXURE 3

APPOINTMENT LETTER (SAMPLE)

(Date) Mr. /Ms.(name) Address Dear Mr. Please refer to the interview and discussion s you had with us recently. We are pleased to offer you the position of _______(Designation) in the __________(Function) on the following terms & conditions: 1. You will receive a Basic salary of Rs._____ per month. All other allowances and benefits as applicable to you are detailed as applicable to you are detailed in Annexure A. 2. Your place of posting will be _____(Location) till the company intimates you otherwise. 3. You will be governed by and agree to abide by the General Terms & Conditions of Service of the Company, as enclosed at Annexure B. 4. You will be governed by ana agree to abide by the provisions of the Tata code of Conduct, a copy of which is enclosed with this letter. 5. Your appointment is subject to your behind certified medically fit by a medical practitioner reorganized by us, and on receipt of satisfactory references. 6. You will be on probation for a period of six month from date of your joining the company, subject to the conditions detailed in the General terms & conditions of service 7. You will furnish to us copies of all relevant certificates, including relieving certificate from your present employer at the time of joining. You will also submit to us 4 copies of your recent passport sized and 1 stamp sized photographs on red colour background at the time of joining.
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Within 3 days of receipt of this letter, you are requested to sign and return the duplicate copy of this letter in token of your acceptance of the terms of appointment, including the general terms & conditions of Service and the provisions contained in the Tata Code of conduct. You are requested to join the services of the company not later than _________(Date) failing which please consider the offer to be withdrawn, unless an extension to the date of joining has been mutually agreed in writing. We take this opportunity to thank you for the interest you have shown in our organization and look forward to welcoming you on board.

Yours faithfully, For Tata Teleservices Limited ________ (name) ________(Designation) I accept the offer of Appointment

__________________ (Signature)

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ANNEXURE 4

INVESTIGATION FOR PRE-EMPLOYMENT MEDICAL CHECK UP

SL.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 DESCRIPTION CBP SRL ransam or ESR Fasting Blood Sugar UREA CREATININE SGPT X-RAY Chest PA view ECG Blood Group & RH Blood HIV (ELISA) Vision Sight Color Blindness Complete Urine Exam Physicians Consultation

TOTAL:

Max Limit upto Rs. 1500/-

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ANNEXURE 5

JOINING CHECKLIST Pre joining

1 2 Curriculum vitae Interview assessment sheet Highest education qualification 3 Salary Fitment 3 Salary certificate/payslip for last employer 4 Comparator 4 Relieving/acceptance of resignation from last employer 5 6 Job Description Pre- joining communication letter 7 Appointment letteracceptance 8 Medical report 8 7 P.F. Declaration & Nomination Form Code of Conduct declaration 7 Conflict of interest declaration 9 Reference check letter 9 Welcome on board notice/ organization announcement 10 Any other 10 Payroll information data 5 6 Photographs Gratuity nomination form 1 2

Post joining
Joining report Certificates- age of proof

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