4.

Profile of Companies 49

PROFILE OF COMPANIES
4. Profile of Companies 50

4.1 Airtel -Company Background

Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of telecommunications
services. The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBU‘s) - mobile services, telemedia services (ATS) & enterprise services. The
mobile services group provides GSM mobile services across India in 23 telecom circles, while the
B&T business group provides broadband & telephone services in 94 cities. The Enterprise
services group has two sub-units - carriers (long distance services) and services to corporate. All
these services are provided under the Airtel brand.

4.1.1Fact sheet

Name Bharti Airtel Limited.

Business Provides mobile, telemedia services (fixed line) and enterprise

Description services (carriers & services to corporates)

Established July 07, 1995, as a Public Limited Company

Proportionate Rs. 184,202 million

Revenue
Rs. 117,255 million

As per Indian GAAP Accounts

Proportionate
Rs. 74,407 million
EBITDA

Rs. 42,250 million)

As per Indian GAAP Accounts

Shares in Issue 1,897,148,464

Listings The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)

4. Profile of Companies 51

Customer Base 64,370,434 GSM mobile and 2,319,509 telemedia customers

Operational Provides GSM mobile services in all the 23 telecom circles in

Network India, and was the first private operator to have an all India
presence.

Provides telemedia services (fixed line) in 94 cities in India.

Registered Office Bharti Airtel Limited

(A Bharti Enterprise)

Qutab Ambience (at Qutab Minar), Mehrauli Road,

New Delhi - 110 030

Tel. No.: +91 11 4166 6000

Fax No.: +91 11 4166 6011/12

Bharti Airtel understands the importance of partners to remain competitive in a dynamic business
environment. As a step in that direction, the Supply Chain (SCM) function has been created with
a mandate to develop partner relationships to maximize mutual opportunities for growth and
profitability. The SCM organization has a central core team of supply chain subject mater experts
and execution teams operating under different business divisions across the country.

4.1.2 Organization Structure

As an outcome of a restructuring exercise conducted within the company; a new integrated

organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bharti‘s key team players. With effect from March 01, 2006, this unified
management structure of 'One Airtel' enables continued improvement in the delivery of the
Group‘s strategic vision.
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4.1.3 Bharti Airtel - Organization Structure

4. Profile of Companies 53

Bharti Enterprises - Organization Structure

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest
Telecom Business operator with more than 75 million subscribers It also offers fixed line services
and broadband services. It offers its TELECOM services under the Airtel brand and is headed by
Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14
circles. The company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing station at
Chennai, which connects the submarine cable connecting Chennai and Singapore. The company
4. Profile of Companies 54

provides end-to-end data and enterprise services to the corporate customers through its
nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP
and international bandwidth access through the gateways and landing station.

Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti
Airtel owns the Airtel brand and provides the following services under the brand name Airtel:
Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet
Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates). It has presence in all 23 circles of the country
and covers 71% of the current population .In April 2006 Bharti Global Limited was awarded a
telecommunications licence in Jersey in the Channel Islands by the local telecommunications
regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded
Guernsey Airtel with a mobile telecommunications licence. In May 2007 Jersey Airtel and
Guernsey Airtel announced the launch of a relationship with Vodafone for Island mobile
subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar
expansion of its mobile and fixed network. In March 2008, Bharti Airtel rolled out third generation
services in Sri Lanka in association with Singtel. This is because Singapore-based Asian telecom
major Singtel, which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it
has already third generation networks in several markets across Asia.

4.1.4 Subscriber Base

The Airtel subscriber base according to COAI - Cellular Operator Association of India as of May
2008 was:Delhi - 4,055,704 Mumbai - 2,468,016 Chennai - 1,823,532 Kolkata - 1,852,838
Maharashtra & Goa - 4,345,945 Gujarat - 3,004,824 Andhra Pradesh - 6,516,332 Karnataka -
7,316,500 Tamil Nadu - 4,218,705 Kerala - 1,703,298 Punjab - 3,239,200 Haryana - 1,067,990
Uttar Pradesh (West) - 1,624,001 Uttar Pradesh (East) - 3,897,278 Rajasthan - 4,242,006
Madhya Pradesh - 3,084,776 West Bengal & Andaman and Nicobar - 2,106,163 Himachal
Pradesh - 809,829 Bihar - 4,912,900 Orissa - 1,911,070 Assam - 939,746 North Eastern States -
585,213 Jammu & Kashmir - 1,100,069

The total is 67,425,935 or 32.81% of the total 205,460,762 GSM mobile connections in India..

Bharti Airtel is one of India's leading private sector providers of telecommunications services
based on an aggregate of 66,689,943 customers as on April 30, 2008, consisting of 64,370,434
GSM mobile and 2,319,509 Bharti Telemedia subscribers.The businesses at Bharti Airtel have
been structured into three individual strategic business units (SBU‘s) - mobile services, telemedia
services (ATS) & enterprise services. The mobile services group provides GSM mobile services
4. Profile of Companies 55

across India in 23 telecom circles, while the ATS business group provides broadband &
telephone services in 94 cities. The enterprise services group has two sub-units - carriers (long
distance services) and services to corporates. All these services are provided under the Airtel
brand.Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE).

4.1.5 Suppliers /Partners

The company‘s mobile network equipment partners include Ericsson and Nokia. In the case of
the broadband and telephone services and enterprise services (carriers), equipment suppliers
include Siemens, Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology requirements and with
Nortel for call center technology requirements. The call center operations for the mobile services
have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. The company has a
strategic alliance with SingTel. The investment made by SingTel is one of the largest investments
made in the world outside Singapore, in the company.The company‘s mobile network equipment
partners include 1) Ericsson 2) Nokia.In the case of the broadband and telephone services and
enterprise services (carriers), equipment suppliers include 1) Siemens 2) Nortel 3) Corning.

4.2 Hutch (renamed as Vodafone Essar)

Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant
presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the
Company's subsidiary undertakings, joint ventures, associated undertakings and investments.

The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States
the Group's associated undertaking operates as Verizon Wireless. During the last two financial
years, the Group has also entered into arrangements with network operators in countries where
the Group does not hold an equity stake. Under the terms of these Partner Network Agreements,
the Group and its partner networks co-operate in the development and marketing of global
services under dual brand logos. Based on the registered customers of mobile
telecommunications ventures in which it had ownership interests at that date, the Group had 269
million customers, excluding paging customers, calculated on a proportionate basis in
accordance with the Company's percentage interest in these ventures.
The Company's ordinary shares are listed on the London Stock Exchange and the Company's
American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. The Company
had a total market capitalisation of approximately £79 billion at 30 June 2008.Vodafone Group Plc
4. Profile of Companies 56

is a public limited company incorporated in England under registered number 1833679. Its
registered office is Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, England.

4.2.1 HISTORY /BACKGROUND

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal
Telecom Limited, approximately 20% of the company's capital was offered to the public in
October 1988. It was fully demerged from Racal Electronics Plc and became an independent
company in September 1991, at which time it changed its name to Vodafone Group Plc.Following
its merger with AirTouch Communications, Inc. (‗AirTouch‘), the company changed its name to
Vodafone AirTouch Plc on 29 June 1999 and, following approval by the shareholders in General
Meeting, reverted to its former name, Vodafone Group Plc.

4.2.2 FACT SHEETS

Name: Vodafone Group Plc

Provision of mobile telecommunications services. Supplies customers with

Business
mobile voice, paging and mobile data and Internet services. See Vodafone
description:
Services

Established: Awarded mobile licence in the UK in 1982

£35,478 million (year ended 31 March 2008)

Revenue:
£9,828 million

Group EBITDA: £13,178 million

Shares in issue: 53,132,666,870

Listings: London and New York Stock Exchanges

Market
Approximately £79 billion
capitalisation:

Employees: Approximately 72,000

Approximately 269 million registered proportionate customers and approximately

Customer base:
852.3 million venture .

Equity interests in 27 countries Partner Networks in over 40 further countries

29.9 million 3G devices at 30 June 2008. There were an additional 4.2 million
Global network:
Vodafone live! with 3G and Vodafone Mobile Connect 3G.GPRS data card
services in the Group's associated undertakings.
4. Profile of Companies 57

4.2.3 Organization Structure

4. Profile of Companies 58

4.2.4 Major Supplier of Hutch (Vodafone)

 IBM --Vodafone Essar has outsourced the management of all its back office IT operations
to IBM India
 Nokia Siemens –Principal Supplier of network electronics like base tower stations
(BTS),base station controllers (BSC) and transcoders
 Motorola and Sweden‘s Ericsson –Supplier of Mobile Switching centers (MSC) for
Mumbai
 ZTE –GSM Hand set supplier
 Ericsson
 Wimax-Broadband Spectrum facilities
 Qualcomm-UMB Broadband services
 Huawei Telecommunications -3G Broad band services
4. Profile of Companies 59

Figure 4.1 Supplier registration at Vodafone

4. Profile of Companies 60

4.3 Telecommunication major Suppliers Background

4.3.1 Ericsson

From the opening of his repair shop for telegraph equipment in 1876, Lars Magnus Ericsson
envisioned the great potential of phones, and also saw the need to improve the technical
quality.Ericsson contributed to making Stockholm the world's most telephone dense city by the
late 1800s. Ever since, it has been Ericsson's firm conviction that communication is a basic
human need. Ericsson is the only company in the world offering systems for all major mobile
communication standards, actively promoting standardization and open systems.

4.3.1.1 Ericsson's Core values

4.3.2 Nokia

The story of Nokia - a century and a half of innovation, from a riverside paper mill in southwestern
Finland to a global telecommunications leader.Nokia is responsible for developing the best device
portfolio for the marketplace, including sourcing of components Services & Software reflects
strategic emphasis on developing and growing our offering of consumer Internet services and
enterprise solutions and software.. The Corporate Development Office focuses on strategy and
future growth, and provides operational support for integration across all the units.
NAVTEQ is a leading provider of comprehensive digital map data for automotive navigation
systems, mobile navigation devices, Internet-based mapping applications, and government and
business solutions.
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4.3.3 Nortel

4.3.4 IBM DAKSH Hundreds of millions of people, Fortune 500 companies, and government
institutions around the world trust their networks to Nortel's reliable and secure solutions.Nortel is
a recognized leader in delivering communications capabilities that make the promise of Business
Made Simple a reality for customers. Its technologies, for both service provider and enterprise
networks, support multimedia and business-critical applications. Nortel's technologies are
designed to help eliminate today's barriers to efficiency, speed and performance by simplifying
networks and connecting people to the information they need, when they need it. Nortel does
business in more than 150 countries around the world.Since its 1895 founding as Northern
Electric and Manufacturing, supplying telecommunications equipment for Canada's fledgling
telephone system , Nortel has grown to become a global leader in delivering communications
capabilities that enhance the human experience, power global commerce, and secure and protect
the world's most critical information.

IBM Daksh offers business performance improvement rather than just cost-savings and is a step
closer to Business Transformation Outsourcing (BTO). By unlocking revenue generation through
up-selling and cross-selling, improving customer satisfaction scores, optimizing capital use and
reducing operational expenditure, IBM Daksh offers far-reaching and positive impact on
shareholder value .IBM Daksh has worked with a pioneering group of global companies that have
successfully used BPO and BTO to execute a broad range of strategies with strong results . IBM
Daksh is a Leading Continuous 'BPO' player. Has a strong platform of corporate governance. Has
a 20000 strong team that has embraced the IBM Daksh values. Is a winner of multiple globally
recognized awards in the domain of employee and customer satisfaction. Has built a strong
platform of quality around Six Sigma and COPC across the enterprise. Has 14 service delivery
locations. Is known to be profitable since inception
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4.3.5 Hinduja TMT

The Hinduja Group provides a wide range of products & services in over 50 countries.
The group activities are divided into three core areas

Through its Global Investments, the Hiunduja Group is a major player in Automotive
Manufacturing, Financial Services, Banking, Trading, Oil, Media & Communications, Information
Technology, Chemicals & Infrastructure and Projects Development. Quick to grasp new
opportunities, the group is expanding its investments and advisory services in both the old and
new economy sectors. Two divisions of Group which serve Telecommunication sector are

Induslnd Media & Communications Limited (IMC) ,IN2 cable ,IndusInd Media & Communications
Limited (IMC):IMC is India's largest Broadband Multi System Operator (MSO). Its multi-channel
transmission service, INCableNet's is ranked among the 10 largest Cable TV providers in the
world IMC commenced operations in 1995 and has built up india's largest cable television MSO.
IMC has the lion's share of the market in Mumbai city itself.In addition to Mumbai, IMC's network
covers 11 major cities in Northern, Southern and Western India. The company has a strong
presence in Delhi, Ahmedabad, Hyderabad, Bangalore, Belgaum, Agra, Indore, Vadodara
Mysore,Nasik,nagpur..Intel USA has taken a 3.3% effective equity stake in IMC for US$49.23
million in May 2000, giving it a benchmark valuation of US$ 1.5 billion (Rs. 6800 Crores) and
making it one of India's most valuable unlisted companies. The Intel investment has been routed
through Grant Investrade Limited where HF holds majority stake.The proceeds of the investment
are being used for enhancing the broadband capabilities and expansion to other cities.

4.3.5.1 In2cable:

In cognizance with the Company's plans for technological convergence, In2cable has joined
hands with IMC to provide Internet over the existing cable network.
Users across India will thus have access to high-quality Internet services round the clock.The
4. Profile of Companies 63

Company plans to provide this service in 49 cities across the country

In2cable (India) Ltd., a wholly owned subsidiary of Hinduja TMT Ltd., is a "Category A" (all India)
ISP licence holder.It offers its broadband services under an exclusive arrangement with its group
company IndusInd Media and Communications (IMC), using their existing cable network across
India.The proceeds of the investment are being used for enhancing the broadband capabilities
and expansion to other cities.Servicing over 25,000 users covering corporates, cyber cafés and
cable homes.

4.3.6 Teletech

TeleTech is a leading global business process outsourcing (BPO) company that provides a full
range of front- to back-office outsourced solutions.

They perform all of the business critical support processes efficiently and effectively, letting
clients remain focused on their core strategy, competition, and market agility. There services and
solutions include, but are not limited to: Complex customer management,Direct sales and
marketing, Training development and delivery, Recruiting, staffing, and workforce management,
Loan processing, Benefits and claims administration, Vendor management, Payroll
administration, and eCommerce. TeleTech serves two million customers in over 17 countries
and in more than 27 languages every year.Since the beginning, TeleTech has focused its
business on helping clients progressively develop real business solutions for every stage of the
customer lifecycle. Teletech helps in developing business,Managesr customers, and Optimizes
business processes..

4.3.7 Mphasis

Mphasis consistently delivers global Infrastructure Technology Outsourcing, Applications

Services Outsourcing and Business Process Outsourcing services through a combination of
technology know-how, domain and process expertise. Mphasis brings to their clients a credible
and experienced global leadership team driving service delivery through the next generation
global delivery model. MphasiS supports global companies around the world in the improvement
of their business processes..At MphasiS BPO, they provide high quality, value-added voice and
transaction-based Contact Center and Business Process Outsourcing (BPO) services to Fortune
500 companies worldwide. they are experts in customizing onshore, nearshore, and offshore
solutions. these offerings.
4. Profile of Companies 64

4.3.8 WIMAX

WiMAX.com is the leading community portal for the worldwide WiMAX community.
It consists of two integrated components:The WiMAX.com Web site, which is a comprehensive
news and information resource on all things WiMAX. The WiMAX 360 forum, which is a Web 2.0
community site where WiMAX engineers, developers and implementers congregate to share
information and experiences in developing and deploying WiMAX technologies and services.

There goal is to be the most trusted, unbiased, comprehensive source of news, information,
opinion, analysis and community for WiMAX decision-makers worldwide.WiMAX.com aims to be
the first, and only, stop for anyone seeking any information on anything related to WiMAX levels.
Theye provide a one-stop-shop for individuals looking for WiMAX white papers, books, research,
events, jobs and training.Beyond all of that, theyprovide the home and the tools for WiMAX
leaders, developers and decision-makers to communicate among themselves, to share ideas, to
help conquer challenges and to comment daily on WiMAX issues, trends, technologies and
opportunities.

4.3.9 Qualcomm

In July 1985, seven industry veterans came together in the den of Dr. Irwin Jacobs‘ San Diego
home to discuss an idea. Those visionaries—Franklin Antonio, Adelia Coffman, Andrew Cohen,
Klein Gilhousen, Irwin Jacobs, Andrew Viterbi and Harvey White—decided they wanted to build
―QUALity COMMunications‖ and outlined a plan that has evolved into one of the
telecommunications industry‘s greatest start-up success stories: Qualcomm Incorporated.

Qualcomm started out providing contract research and development services, with limited product
manufacturing, for the wireless telecommunications market. One of the team‘s first goals was to
develop a commercial product.. Since its introduction in 1988, OmniTRACS has grown into the
largest satellite-based commercial mobile system for the transportation industry today.This early
success led the company to take a daring departure from conventional wireless wisdom. In 1989,
the Telecommunications Industry Association (TIA) endorsed a digital technology called Time
Division Multiple Access (TDMA ). Just three months later, Qualcomm introduced Code Division
Multiple Access (CDMA), a superior technology for wireless and data products that changed the
global face of wireless communications forever.Today, Qualcomm plays a central role in the rapid
adoption and growth of 3G and next-generation wireless around the world. Qualcomm‘s current
intellectual property portfolio includes more than 7,200 United States patents for wireless
4. Profile of Companies 65

technologies, with more than 145 telecommunications equipment manufacturers licensing them
worldwide.

4.3.10 Huawei

Huawei is a world-leading telecom solutions provider focused on building long-term partnerships

with telecom operators. Through there passionate employees and unmatched R&D capabilities,
they can react quickly to customers' needs with a comprehensive, customized set of offerings.To
enrich life through communication. To focus on customers' market challenges and needs by
providing excellent communications network solutions and services in order to consistently
createmaximumvalueforcustomers. Huawei will continue to invest and play a leading role in
provision of ALL IP-based FMC solutions to ensure that end users are able to experience
Consistent communication services at anytime, anywhere.

They have built up product portfolios including mobile network, broadband network, IP-based,
optical network, telecom value-added service, and terminal. Huawei has an advantage in the
transition toward future-oriented development and can provide competitive communication
solutions and services for customers.