ANALYSIS

1. COMPANY PROFILE The company was incorporated as Birla Communications Limited on March 14, 1995 and commenced business on August 11, 1995. Registered office was in Mumbai, Maharashtra. The company name was changed to Birla AT&T Communications Limited on May 30, 1996 following the execution of a joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited. Changed name to Idea Cellular Limited and launched "Idea" brand name in 2002. Idea became a pan-India operator in 2009 Subscriber base as on December 31, 2009: 57,611,872

2. Company’s Vision: To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space. Company’s Mission : We will delight our customers while meeting their individual communication needs time anywhere. We survive because of our customers.

3. TIER 1- Metropolitan Circle

4. TIER 2- Urban Circle

5. TIER 3 – Rural Circle

6. VALUE PROPOSITION

7. CUSTOMER SCOPE: -

8. CHANNEL SCOPE

9. SERVICE SCOPE

10. PROMOTIONAL STRATEGIES ‘2 Minutes Outgoing Free’, ‘Lifelong offer’, ‘Women's Card’, 'Lifetime Idea' etc are some of the offerings of IDEA. IDEA is the firstcellular company to launch music messaging with 'Cellular Jockey','Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services. They are also providing GPRS and EDGE services for transferring data. The new product introduced by IDEA is the EDGE enabled USB Data Card which is named as 'NetSetter'. Initially ‘NetSetter’ was offered to post paid customers only but now available to prepaid customers in selected circles. Idea’s patnership with IIFA awards Associated with IPL MTV roadies and Idea Star Singer Various campaigns showing AbhishekBachchan in different settings showing corporate social responsibility.

11. PARTNERS/COMPLEMENTORS Aditya Birla Nuvo Limited Grasim Industries Limited Hindalco Industries Limited Birla TMT Holdings Private Limited.

12. COMPETITORS BSNL/MTNL BhartiAirtel Reliance Communications Tata Telecom Aircel Vodafone Stel Uninor

13. MERGERS AND ACQUISITIONS In February 2001, acquired RPG Cellcom Limited, the mobile operator in the Madhya Pradesh Circle, with full integration of this Circle with ours achieved by June 2001 Subsequently, in January 2000, merged with Tata Cellular Limited, the mobile operator in the Andhra Pradesh Circle, and integrated its operations by January 2001. Acquired the license for the Delhi Circle during the fourth mobile license auction in October 2001, with network rollout and commercial launch by November 2002.

14. CHALLENGES Maintain Consumer satisfaction level. Maintain the quality of the service which they are providing. New launches and projects in CDMA, 3 G and WiMax Expansion of telecom networks and improving connectivity, specially in rural areas. To increase the market share. Maintain the low cost structure. Postpaid prices. Updating the technology. It faces competition from Government-owned companies such as BSNL and MTNL. It may face additional competition from alternative or new mobile technologies.