BALANCE SCORE CARD ON TELECOMM SECTOR

BY: Deepshikha Mewati Hemant Guhe Sandeep Kumar Siddharajsinh Rana Tushar Fegde

UNDERSTANDING BALANCE SCORE CARD

Translates an organization`s mission & strategy ..set of performance measures that provides the framework for implementing its strategy Focuses on Finanacial & Non-financial performance to evaluate short run & long run performance Measures an organization`s performance from 4 perspective financialcustomerinternal business process ..learning & growth

The Balanced Scorecard

Oxford University Press 2008. All

rights reserved.

INTRODUCTION
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. It is the fastest growing market in the world

Estimated contribution of nearly 3% to Indias GDP. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008, taking the telecom penetration to over 33 per cent. Largest in the world and the second largest among the emerging economies of Asia.

The Indian telecom industry has been growing rapidly at a CAGR of 40.63 per cent from 2003 to 2008. Telecom sector contributed 3.4 per cent to Indias gross domestic product in for the year 2008 and is expected to contribute 5.4 per cent by 2010.
The (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 and Covering 2000 towns across the country.

Products offered by the telecomm sector

Some of the products which are being offered : Prepaid Postpaid 3G phone Magic Box handsets World Calling Cards Gulf Calling Cards Home Calling cards Recharge home calling cards online pco Data Card Business Solution

FINANCIAL PERSPECTIVE
GDP growth rate - Averaged around 7.9 % from 2002-2008 Rising Tele-density Target of 45% by 2010 Growing per capita income/disposable Income Falling Handset Prices Moderate inflation levels which were prevalent during the past 7 years around 5-6%...right now its almost nil.

Market share of major players

Name of company
Bharti Airtel

Total no of subscribers

% Market

2808277

32.57

Vodafone-Essar
BSNL IDEA Aircel Reliance Comm MTNL BPL All India

2848096
2,503,169

23.85
16.19

1504186
1,001,363 92097 91027

14.92
6.41 3.86 1.45 0.75

10848215

100

Reliance figures are based on notional subscriber base and do not include incremental increases and expansion in new markets

Internal perspective
Focuses on internal operations that create value for for customers there by increasing shareholders value Co-relating the operation with strategy product or cost differentiation Differentiation in terms of quality..such as signal strength, call drop,roaming, call rejection .. Response time at the customer care

generating revenues fron non voice services such as GPRS,Edge technology, 3-G services

 Idea Cost leadershiphigh response time .. Vodafone blend of both

Focusing on lower call tariffs..there by increasing

AMOU & ARPU Stats

Minutes of Usage per Month Mobile Services
USA
838

India

461

China

303

Despite a low teledensity of approximately 19 percent, India has the second highest minutes of usage per month. This offers huge growth opportunity to telecom companies.

Russia

88

ARPU* in India Mobile Services

10 8 6 4 2 0 Q1 2006 Q2 2006 Q3 2006 GSM CDMA Q4 2006 Q1 2007

ARPU (USD per month)

The declining ARPU implies that India Inc. is tapping a large market at the bottom of the pyramid by reducing tariffs; thereby, enhancing affordability.

GROUP 7

10

LEARNING AND GROWTH PRESPECTIVE

OBJECTIVES
Align employee and Organization goals

MEASURES
Employee-satisfaction rating

INITATIVES
Employee participation and suggestions program to build teamwork

Empower workforce

% of line workers empowered to manage processes

Have supervisors act as coaches rather than decision makers

Develop process skill

% of employee Employee training trained in process and programs quality management % of manufacturing processes with realtime feedback Improve online and offline data gathering

Enhance information system capabilities

 Continuosly increasing servicesbringing new tariffs .launching of 3G services Change in Employee Turnover Ratio due to new Telecom players Employee empowerment Employee Satisfaction Employee Training of new services offered by the company

Changing DemogrIIIIaphics
Demand for VAS & Broadband services Among Youth 28 % Urban Population Rapid Urbanization Rising Income level

Source: Mckinsey Report

Technology
CDMA Already there are big players in this segment Reliance , Tata 3G Value added services potential still to be tapped fully 2G/3G GSM Currently commands 70% of mobile subscribers in India
2G/3G

VoIP

Technology

CDMA

WIMAX

CUSTOMER PERSPECTIVE
To satisfy customers to generate more revenue Goal::
Provide quality customer service(handling queries) Timely information(about tariffs) Good Network

Measures::
Feed back(about billing services & queries handled) - Will lead in increased Market share