Table of Contents
1. Executive Summary ..............................................................................................................................................4
2. Description of the brand.......................................................................................................................................4
3. Product category ..................................................................................................................................................4
4. Company ..............................................................................................................................................................5
5. Rationale for choosing the brand/product/company ..........................................................................................6
6. Marketing Strategy...............................................................................................................................................7
7. Segmentation .......................................................................................................................................................7
8. Brand Positioning .................................................................................................................................................8
9. Marketing Action Program ...................................................................................................................................9
9.1 Pay Per Second Billing ..................................................................................................................................9
9.2 Diet Plan .................................................................................................................................................... 10
9.3 Getting Tata Docomo Post paid connection becomes easier ................................................................... 10
9.4 BUDDY NET................................................................................................................................................ 10
9.5 Pay Per Site Initiative ................................................................................................................................ 11
9.6 Free Airtime Rollover (FAT) ....................................................................................................................... 11
9.7 Push 4 all Mail ........................................................................................................................................... 11
10. Situation Analysis .......................................................................................................................................... 12 10.1 Company ................................................................................................................................................... 12
10.1.1 Image in the market .......................................................................................................................... 12
10.1.2 Technology and experience .............................................................................................................. 12
10.2 Collaborators............................................................................................................................................. 13 10.2.1 Distributors & Retailers..................................................................................................................... 13 10.3 Customers ................................................................................................................................................. 14
10.3.1 Market size and growth .................................................................................................................... 14
10.3.2 Miscellaneous.................................................................................................................................... 14
10.4 Competitors .............................................................................................................................................. 14
10.4.1 Actual or potential ............................................................................................................................ 14
10.4.2 Market shares ................................................................................................................................... 15
10.4.3 Strengths and weaknesses (SWOT Analysis)..................................................................................... 16
10.5 Climate (or context) .................................................................................................................................. 17

10.5.1 Political & regulatory environment .................................................................................................. 17
10.5.2 Economic environment ..................................................................................................................... 17
10.5.3 Social/Cultural environment ............................................................................................................. 17
10.6 The Finance behind the deal................................................................................................................... 17 10.6.1 The share holding pattern................................................................................................................. 18 11. Exhibits .......................................................................................................................................................... 22 Product line (Exhibit 1).......................................................................................................................................... 22 GSM and CDMA subscription numbers(Exhibit 2) ................................................................................................ 22 Twitter Klout Score for Tata Docomo (Exhibit 3) .................................................................................................. 23 Twitter Klout classification for Tata Docomo (Exhibit 4) ...................................................................................... 23 12. Appendix ....................................................................................................................................................... 25 FOMA Technology (Appendix I) ............................................................................................................................ 25 Permission to write the case (Appendix II) ........................................................................................................... 29

1. Executive Summary
Wikipedia defines disruptive innovation as an innovation that improves a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. To differentiate their product services from established players, Tata DoCoMo innovated and came out with unique selling propositions that revolved around “pay-as-you-use” and “honesty and customer friendliness”. Based on this concept, the company formed its tagline 'Do the new'.
2. Description of the brand
(One of nine versions of the standard logo, which comes in three color schemes and three character alignments)
The Tata DOCOMO (DO COmmunication over MObile) brand stands for “Do”ing things that you want to do. The Tata DOCOMO brand is all about co-creation and user participation. The youth brand that Tata DOCOMO set out to build has been successfully created in the digital space through a balanced mix of design, innovation, technology and engagement. The brand‟s main mantra “Do the new” is a concept that prompts every citizen to do something new, even if it‟s a small thing. This concept aligns with the company‟s products and services, many of which are new to the market. For example, „Doing the new‟ has meant charging the user per second, and not per minute. The basic tariff is one paisa per second for local and STD calls, a deviation from the industry practice of a 60-second billing.
3. Product category
Tata DOCOMO offers several products and services. A few are listed here.
Local, STD, and ISD with the unique One-Second Pulse
3G life services like Video calling, Video on demand, Full track downloads, Mobile TV, Online gaming and much more.
High speed internet access
Unique daily plans that allow consumers to choose/change their usage plans with ease
Person to Person video calls
Personal / Web-based email access
Online recharge facility

4. Company
Tata DOCOMO is Tata Teleservices Limited's 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 license to operate GSM telecom services in 19 of India's 22 telecom Circles- and has also been allotted spectrum in 18 telecom circles. Of these, it has already rolled out services in all the 18 Circles that it received spectrum in from the Government of India-Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai, Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand, Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.
Tata DOCOMO has also become the first Indian private operator to launch 3G services in India, with its recent launch in all the nine telecom Circles where it bagged the 3G license. In association with its partner NTT DOCOMO, the Company finds itself suitably positioned to leverage this first-mover advantage. With 3G, Tata DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in Japan; the company is the clear market leader, used by nearly 55 per cent of the country's mobile phone users.
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 i-Mode, e-wallet and a plethora of lifestyle-enhancing applications. Last year itself, while most of the rest of the industry was only beginning to talk of 4G technology and its possible applications, DOCOMO had already concluded conducting 4G trials in physical geographies, not just inside laboratories!
DOCOMO is a global leader in the VAS 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 through the Tata DOCOMO brand.
Tata DOCOMO has also set up a „Business and Technology Coordination Council', comprising of senior personnel from both companies. The council 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 to help the company develop its GSM business.
On the CDMA platform, despite being the latest entrant, Tata Indicom has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 84 million customers in more than 450,000 towns and villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline Services.

5. Rationale for choosing the brand/product/company
The Tata DOCOMO brand is the 10th entrant in the crowded Indian telecom market which was already ruled by established brands such as Airtel, Reliance, and Vodafone. Despite the stiff competition the company made a dent in the telecom market due to an innovative marketing strategy. In a short span of time the company has been able to differentiate and distinguish itself from the other brands and own a distinct consumer mind space. The company has brought disruptive innovation to the market not only through it products and services but also through unique marketing initiatives that have captured the minds of the consumers. As it stands today, Tata DOCOMO is the fastest growing brand in terms of market share. We (project team) chose to study and analyze the Tata DOCOMO brand due to its uniqueness and the success of its marketing strategy.
For consumers, the Tata DOCOMO brand offers a host of differentiated services. Tata DOCOMO boasts the following benefits to consumers on its official website.
We are the fastest growing young telecom brand in the country; we never stop innovating and thinking out of the box. With us every day is new.
We don't need creams to be fair, it's in our blood. With us you will get honesty, frankness, transparency. Say hello to the most transparent plans, a world-class network & responsive customer care.
We are the first private operator to launch 3G in partnership with the world leader in 3G, NTT DOCOMO, Japan.
We redefined competition with our pay per second tariffs and decided to let the good news spread, therefore we introduced pay per second on STD & ISD. You can call USA and Canada @1p/sec.
Keeping up with our mantra of doing the new we have made roaming affordable to the common man by extending the pay per second offers on roaming anywhere in India on our network.
We don't bully you to take what you don't need. And that's why; we have pay per site, that lets you pay only for the site(s) you love @Rs.10 per site per month.
We never ever ask you to count your friends. With BuddyNet you can bond with the whole world @1p/6sec On-Net. Be ready!
We don't decide for you, you decide your own pick from our daily, weekly or monthly packs of Talk-time, GPRS, music, cricket updates, night calling etc. starting at Rs.2.
Why should anyone else decide what song you should listen to when you call someone? With My Song hear your song when you call.
We completely believe why should you pay for what's not your fault, that's why with us you get free Missed Call alerts in case you miss a call when you are not in coverage area or your phone is switched off.
Fun in limit is no fun. With us you can download unlimited Call-Me tune @Rs.10 per week.
We don't believe in making you pay for reaching out to us. Call our toll free customer care number anytime.

When we say you are important we mean every single word of it. So why should you wait, have direct access to the customer care executive by pressing 9 anytime during the call.
We are all ears. You can call us or online Live Chat with us, anytime. And guess what, you can access your hometown call centre even when out of town.
6. Marketing Strategy
Being the tenth entrant in the already competitive telecom market, it was difficult for Tata Docomo to differentiate themselves from the existing service providers. Tata was already a well known household brand name in India, however Docomo was hardly known to Indian masses and hence there was a need to establish the Docomo brand. They wanted to create an identity for „Tata Docomo‟ which customers would love and trust.
Tata Docomo has a vision to be the most loved teleservices brand in India. And their marketing research revealed that their service offering should be centered on transparency, simplicity and relevant „life centric‟ innovation to achieve this. They found that they should connect to the opinion makers of the society and create brand attraction among Indian masses. This focused approach can give them visibility in highly competitive market.
Synthesizing this insight, they came up with the thought of “Why do the done... Do the new”. They wanted to inspire the youth to challenge the conventional wisdom and question established paradigms. „Do the new‟ is a concept that prompts every citizen to do something new, even if it‟s a small thing. For Tata DoCoMo, „doing the new‟ has also meant charging the user per second, and not per minute which was a conventional pricing mechanism used by existing telecom players. Simplifying the customer‟s telecom experience and standing by an honest promise became the brand‟s core agenda.
7. Segmentation
Tata Docomo is a GSM brand of Tata teleservices in India. Tata Docomo was introduced by Tata teleservices keeping an eye on mid and higher end of the Indian consumers. They chose Indian youth as their primary target and started occupying the space in young Indian minds by connecting with them at various levels and through multiple channels
The rationale behind this choice were
1. Tata Docomo intended to generate most of its future revenues through its differentiated content based and value added services, which is not so much relevant for low end consumers who are more price sensitive than mid and high end consumers
2. Indian telecom market was soon expecting 3G licenses. This would mean a huge potential for content based and value added services in the near future. Mid and higher end young consumers

8.
3. 4.
5. 6. will be the early adopters of these services as they are more adaptable to change, are dynamic and willing to try new things.
They wanted to connect to opinion makers, and Indian youth would be the best fit to that profile. Indian telecom market was soon expecting 3G licenses. This would mean a huge potential of content based and value added services in coming future. Mid and higher end young consumers will be the early adopters of these services as they are more adaptable to change, are dynamic and willing to try new things.
Indian telecom market was soon expecting Mobile Number Portability (MNP). This would mean a potential of switching of telecom vendors by Indian consumers. And targeting the opinion makers would mean an aspiration build up in masses to switch to the brand that is most admired. Tata teleservices has its CDMA offering which already caters to mass market in India. Hence there was no specific need to address this segment
Brand Positioning
Tata Docomo wanted to create an identity for themselves in the mind of the youth. They realized that their brand should do the following
1. Familiarity – they need to create familiarity for the brand in the mind of their target i.e. Indian youth. Youth should always be able to recognize the brand „logo‟ and its value proposition. In fact, Indian youth should be more than willing to identify themselves with the brand in society
2. Relationship –They need to associate themselves with attributes like transparent, simple and innovative brand in the mind of their target customers. And over the term of their relationship with their customers, they should be consistent to these attributes in every interaction.
3. Experience – They need to ensure that customer gets consistent message and promise irrespective of which channel he chooses to interact with the brand. Brand‟s communication, new offerings and actions should consistent to its promise to the customers
4. Trust – They need to stand up to probity in public life and social dealings to be perceived as socially and culturally compatible brand and thereby gain trust of the society.
In the already cluttered Indian telecom market, Tata Docomo positioned itself as one of the country‟s newest and most-exciting GSM telecom services company that provides value for money and can be easily identified with the attributes as transparency, simplicity and innovation.
1. Positioning based on value for money – Complex pricing mechanisms and processes were used by Indian telecom players. These were not easily understood by consumers and they found difficult to choose the best plans for them. Tata Docomo launched its products with „Pay what you use‟ policy which were attractive for customers.

2. Positioning based on technology – 3G service and Number Portability were soon to be launched in India. And Tata Docomo leveraging its partnership with NTT Docomo positioned itself as a provider ready to provide 3G services in India.
Telecom customers are not really happy with their existing service providers. According to Nielsen Mobile Consumer Insights „Close to one in five (18%) of Indian mobile customers said that they would change their operator if they have the ability to retain their number‟. It was good enough reason to attract customers who are looking for a better provider.
3. Positioning based on innovative ways – Tata Docomo positioned itself based on its „Do the New‟ promise. It introduced multiple innovative offerings like „Buddy Net‟, „Diet SMS‟, „Pay per site‟, „Pay per second‟ etc.
To establish their brand equity in Indian telecom industry, Tata Docomo started with their branding activities
1.
2.
3.
4. 5.
9.
9.1
They ensured that brand engaged the Indian youth through their most preferred channel of interaction i.e. internet. They engaged customers through two-way communication on internet, a practice which was not yet explored by Indian telecom players. They engaged social networking communities like Twitter , Facebook and Orkut.
In mass media they established the sight and association sound of the brand with playful animation films. All their animation films used the characters of their „logo‟ and displayed a video that poses a problem customer can relate to and provides an answer with one of their product offering.
In extension to their „Do the new‟ promise they created an activation platform „CREATE‟ – that allows talented customer‟s to co-create the brand by creating animations, merchandise, jingles and photographs . This was first of its kind platform for Indian customers.
Tata DOCOMO‟s signature tune was created to ensure that the brand was easily recognized and help with the articulation of the brand name. The jingle was created by Ram Sampath.
Tata Docomo launched unique „Drive In‟ stores that are an autonomous exploration zone designed to enable an independent and singular user experience. These are introduced to showcase the available value-added services allowing visitors to explore the latest in the technology and gadget.
Marketing Action Program
Pay Per Second Billing
Tata Indicom offered per second billing for roaming across India, by doing this they extended their "Pay- for-what-you-use" to roaming as well. Customers would be charged for only what they use.
Following are the highlights of the scheme

1 (one) paisa per second for all incoming and outgoing local and STD calls, to any network, to mobile or landline phones, while roaming
No „packs‟, hidden charges or upfront payments to avail this unique offer
Brings in simplicity in tariffs in roaming space
“The roaming value proposition offered by Tata Docomo is a unique and revolutionary idea which symbolizes the spirit of simplicity, innovation and inventive acumen.
9.2 Diet Plan
TATA Docomo launched "Diet Plan" aimed at changing the customers‟ bills would go from “fat” to “fit”.
Some highlights: at Rs299 rental the customer can get 36000 local seconds free (600 minutes) all local and STD calls @ 1paisa / second.
9.3 Getting Tata Docomo Post paid connection becomes easier
Tata Docomo launched “Post pay @ your doorstep" initiative wherein Tata Docomo would assist potential customers with their queries on new post paid connections and through a simple process, customer can get a new post paid connection
Some Highlights: just dial 1800 266 0000 to avail ”Postpay @ your doorstep” service. customers get postpay connections with the comfort from their homes or offices
Customers can call toll free number 1800 266 0000 from any mobile or landline
The representatives are trained to make use of scientific tools like Bill Plan Calculator that would help suggest the best value plan, customized to the needs of the customer, based on their usage amount and usage pattern.
9.4 BUDDY NET
It is a National CUG that allows customers to add unlimited friends from anywhere in India
Local calls to BuddyNet customers (within circle) at 1 paisa for 6 seconds and national calling to BuddyNet customers (other circle members) at 1 paisa for 2 seconds
Free trial period of 30 days for existing customers
Breaking the paradigm of limiting access to only 3 or 5 friends on traditional friends and family concept, Gurinder Singh Sandhu, senior vice president, marketing, Tata DOCOMO, said, “With the launch of BuddyNet concept we are once again changing the rules of the game. Why restrict access to 3 to 5 within the community when you can Do More! BuddyNet will give the customers the choice to stay connected with their friends and family not just locally but anywhere in India with our competitive tariffs.

DOCOMO stands for new and with each new segmented approach we will continue to innovate and encourage customers to Do The New and Do More with their life.”
9.5 Pay Per Site Initiative
Tata Docomo has launched "Pay per Site" initiative for customers across India. 'Pay per Site' gives complete flexibility to customers to cherry pick their most favored sites at a very economical pricing structure. It is a potent market disruptor that aims to enable an innovative service in the data market; offering customers the power to decide on what they surf the most and purchase „packs‟ suited and tailored to specific needs.
Tapping into the huge potential that is today offered by social networking and e-mailing and instant messaging, 'pay per site' aims to offer customers the choice to „DO‟ what they like and pay for it alone,”
The revolutionary offer brings in a more simplified and unique pay-for-what-you-use internet-browsing model and breaks through the clutter in its category.
Customers browsing only three to four sites a day are free from monthly rentals Customer's interested in single website needs to pay only 10/- per site per month Customers browsing multiple sites can pay 25/- per month
9.6 Free Airtime Rollover (FAT)
Tata Docomo has launched again first in the Industry "Free Air Time Rollover" (FAT) offer for its potential post paid customers. In this unique offer potential customers can roll over their current unused free air time to next month. The rollover of free air time is for a period of 6 months. The Free Airtime roll over plan is available under most lucrative 20 options of their popular Diet plans
“This offer is yet another first in the Telecom industry and is true to our core values of honesty and transparency wherein customers get the opportunity to roll over their unused airtime to next month.
9.7 Push 4 all Mail
Tata Docomo launched Push 4 all Mail service for it customers which offered first of its kind personalized email service on SMS. It would enable its customers to access their Gmail, Hotmail, yahoo email accounts on any type of handsets through SMS.
It is a very cost-effective yet fully featured mobile email solution even on low-end mobile devices with the basic SMS interface. It makes every mobile device a Smartphone which offers operators ample opportunities for generating additional revenues from their customers – even from customers not subscribing to data plans.

10. Situation Analysis
In order to profitably satisfy customer needs, the firm first must understand its external and internal situation, including the customer, the market environment, and the firm's own capabilities. Furthermore, it needs to forecast trends in the dynamic environment in which it operates.
A useful framework for performing a situation analysis is the 5 C Analysis. The 5C analysis is an environmental scan on five key areas especially applicable to marketing decisions. Thanks to NetMBA Business Knowledge Centre for a good framework. It covers the internal, the micro-environmental, and the macro-environmental situation. The 5 C analysis is an extension of the 3 C analysis (company, customers, and competitors), to which some marketers added the 4th C of collaborators. The further addition of a macro-environmental analysis (climate) results in a 5 C analysis, some aspects of which for Tata DOCOMO are outlined below.
10.1 Company
10.1.1 Image in the market
Brand Image of Tata in India and DOCOMO in Japan (which has a market share of 50 %)
The Tata group‟s intense activities in 2007 have ensure that it rise 45 places to No. 57 in Brand Finance Top 500 Global Brands, a widely respected ranking of brands by brand value published by the UK-based Brand Finance Plc. No other Indian brand figures in the top 100; Reliance Industries comes in at No. 151 and Indian Oil at No. 215.
The study, which valued the Tata brand at $11.8 billion (Rs47,082 crore), is based on brand value at the end of 2007.
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.
10.1.2 Technology and experience
From the day of the launch itself, the reach and coverage of the TATA DOCOMO GSM network will be far greater than that of any other operator in India at the launch stage. TATA DOCOMO GSM mobile service will have extensive coverage in cities and towns, on national and state highways, at airports and along rail routes, and at places of tourist interest, etc.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 NTT DOCOMO have defined industry benchmarks for 3G technologies, as also products and services such as i-mode and a plethora of lifestyle-enhancing

applications. This will hold TATA DOCOMO in good stead as it launches GSM services. TTSL and NTT DOCOMO are closely engaged in integrating technology, value-added services, products and applications through the mechanism of Business and Technology Cooperation Committee (BTCC). BTCC, which meets regularly, comprises of senior management representatives from both companies.
10.2 Collaborators
10.2.1 Distributors & Retailers
Tata Teleservices Limited (TTSL) had created significant strengths with its high-quality network and extensive retail stores and customer-service outlets covering nearly all of India, where new subscribers have been surging with net monthly increases of more than 10 million.
DOCOMO, as part of its effort to leverage TTSL's continued growth and development, is participating proactively in TTSL's management by providing human resources and technical assistance to help realize improved network quality and the possible introduction of leading-edge, value-added services.
The TATA DOCOMO „Dive In Store‟ is an autonomous exploration zone designed to enable an independent and singular user experience. TATA DOCOMO will be showcasing the rich world of Value Added Services at its „Dive In Stores‟, allowing visitors to explore the latest in telecom technology and gadgets. Overall the „Dive In Store‟ is a unique and revolutionary concept which offers a relaxing and interactive environment for consumers, aimed at inspiring and educating them on the benefits of mobility.”
TATA DOCOMO‟s objective behind setting up these „Dive In Stores‟ is to enable consumers to have a complete mobile „experience‟ in a plush and leisurely setting. The stores are designed to provide a complete mobility experience through innovative showcasing of today‟s and Next-Gen mobile services, applications and devices. The „Dive In Stores‟ are not just retail outlets, but high-end destinations where a consumer can come, sit alone in the lounge, and wade through a services and product experience of the future.
Latest on 3G
Tata DOCOMO, the GSM arm of Tata Teleservices, will set up 4,000 exclusive stores for distribution and marketing of third-generation (3G) products and services. They have already trained about 10,000
people for this, apart from training our employees.

10.3 Customers
10.3.1 Market size and growth
Indian telecommunication Industry is one of the fastest growing telecom markets in the world. The mobile sector has grown from around 10 million subscribers in 2002 to reach 150 million by early 2007 registering an average growth of over 90% year-on-year. The two major reasons that have fuelled this growth are low tariffs coupled with falling handset prices.
10.3.2 Miscellaneous
The following have been discussed previously Few of the previous sections have described about the following: 1. Market Segments
2. Benefits that consumer is seeking, tangible and intangible.
3. Motivation behind purchase; value drivers, benefits vs costs.
4. Retail channels.
5. Consumer information sources
6. Buying process
7. Frequency of purchase.
8. Quantity purchased at a time.
9. Trends
10.4 Competitors
10.4.1 Actual or potential
Airtel, Idea, BSNL, Aircel, Vodafone, RCOM are the few actual competitors as they are established players in the industry and each have positioned their suite of products well in the market.

10.4.2 Market shares
As of March 2007
4.57%
21.95%
2.81%
11.63%
Aircel 30.83%  BhartiAirtel
BSNL
IDEA
Reliance Telecom Vodafone
17.25%
11.20%
17.63%
31.29%
As of March 2010
6.18%
Aircel 22.11%  Bharti Airtel
11.02%
15.75%
BSNL
IDEA
Reliance Telecom Tata DOCOMO Vodafone

10.4.3
Strengths and weaknesses (SWOT Analysis)
Strength
• Pioneer in seconds' tariff plan.
• Brand Image of Tata in India and DOCOMO in Japan (which has a market share of 50 %)
• Variety of Plans on the offer : Tata Docomo focuses not only on the price but also makes sure that the variety of services offered is not compromised
• Affordability of services: With its tariff plans, docomo ensures that all the products that it offers are available to the common man too.
• Signal Strength: One major weakness of this organization would be the lack of adequate infrastructure to service the subscribers that it may initially achieve owing to the low prices.
• Post Paid connection were not available. • Customer service
• 3G Opportunity: With NTT DOCOMO by its side which has an established technology on 3G.
• To introduce new combined plans like SMS, Internet,Calling integrated offers
• Established Market Players (Airtel, Vodafone, BSNL)
• Signal Strength is a weakness and if not corrected it is a threat.
Weakness
Opportunities
Threats

10.5 Climate (or context)
The climate or macro-environmental factors are:
10.5.1 Political & regulatory environment
The Political scenario was very favorable for the telecom industry. The Ministry of Communications and Information Technology (MCIT) had very aggressive plans to increase the pace of growth, targeting 250 million telephone subscribers by end-2007 and 500 million by 2010. Most of the expansion in subscribers is set to occur in rural India. India‟s rural telephone density has been languishing at around 1.9%; So, if 70% of total population is rural, the scope for growth in this Industry is unprecedented. (Refer Exhibit 2)
10.5.2 Economic environment
The Indian economy is on the path of resurgence. The gradual opening up of the economy ensured steady growth even at a time when other countries were in a grip of a massive slowdown. Progressive reforms such as removal of restrictions on foreign investments and industrial de-licensing are responsible for this growth. Tailoring the EXIM policy to promote exports and aligning the import duties to meet the WTO commitments further contributed to the development.
10.5.3 Social/Cultural environment
Mobile Phones have a huge market in the world and especially in India. With the inset of Multi- Nationals the want for a better lifestyle has turned into a need and more precisely the Mobile has become a necessity rather than a luxury commodity. Wireless and Cellular Phones are soon picking up the market in India as the demands of the consumers are growing.
10.6 The Finance behind the deal
Tata Sons Limited, the promoter of Tata Teleservices Limited, has went into an agreement with NTT DOCOMO, under which the Japanese telecom company was to acquire 26 per cent of the common shares of Tata Teleservices Limited—in accordance with the capital-alliance agreement announced by the parties in November 2008.
NTT DOCOMO has also completed its payment obligations under the Tender Offer and acquired 12 per cent of the common shares of Tata Teleservices (Maharashtra) Limited (TTML) through an open offer*, with the Tender Offer having closed on 12 March 2009.This has enabled DOCOMO to own a 26-per cent shareholder in Tata Teleservices Limited and three DOCOMO Directors have also joined the TTSL Board.

10.6.1 The share holding pattern
As you can see here, in the current share holding the company has DOCOMO as a foreign promoter who owns
12.12% of the Tata Teleservices, which converts to a 26% stake in the Tata DOCOMO Joint venture.
PROMOTER'S HOLDING
Foreign Promoters
229,856,926
12.12%
229,856,926
12.12%
229,856,926
12.12%
Indian Promoters Sub Total
NON PROMOTER'S HOLDING
Institutional Investors
Mutual Funds and UTI
Banks Fin. Inst. and Insurance FII's
Sub Total
Other Investors
Private Corporate Bodies NRI's/OCB's/Foreign Others Directors/Employees Government
Others
Sub Total General Public
GRAND TOTAL
1,244,664,393 1,474,521,319
7,808,357 5,609,887 22,377,636 35,795,880
47,292,854 8,872,329 4,700 37,000 66,601
56,273,484 330,606,171
1,897,196,854
65.61% 1,244,664,393 77.72% 1,474,521,319
0.41% 9,153,065 0.30% 2,632,400 1.18% 19,885,068 1.89% 31,670,533
2.49% 47,502,598 0.47% 9,356,478 0.00% 4,700 0.00% 37,000 0.00% 68,401
2.97% 56,969,177 17.43% 334,035,825
100.00 1,897,196,854
65.61% 1,244,664,393 77.72% 1,474,521,319
0.48% 11,886,775 0.14% 3,268,660 1.05% 18,610,789 1.67% 33,766,224
2.50% 49,256,662 0.49% 9,034,015 0.00% 3,700 0.00% 37,000 0.00% 68,401
3.00% 58,399,778 17.61% 330,509,533
100.00 1,897,196,854
65.61% 77.72%
0.63% 0.17% 0.98% 1.78%
2.60% 0.48% 0.00% 0.00% 0.00%
3.08% 17.42%
100.00 (Rs in Cr.)

Owner's Fund
SOURCES OF FUNDS
Mar ' 10
1,897.20 0.00 0.00 (2,563.53)
2,300.43 1,309.00 2,943.10
5,574.14 0.00 2,070.32 3,503.82 196.91
120.00
594.55 1,472.18 (877.63) 0.00
2,943.10
Mar ' 09
1,897.19 0.00 0.00 (2,265.52)
2,036.13 1,076.16 2,743.96
4,552.63 0.00 1,653.55 2,899.08 218.07
75.00
570.13 1,018.32 (448.19) 0.00
2,743.96
Mar ' 08
1,893.56 0.00 0.00 (2,094.15)
2,098.09 528.78 2,426.28
4,524.71 0.00 1,663.58 2,861.13 125.00
0.00
455.15 1,015.00 (559.85) 0.00
2,426.28
Mar ' 07
1,809.50 0.00 0.00 (2,130.71)
1,696.26 332.61 1,707.66
4,053.52 0.00 1,826.85 2,226.67 203.17
0.00
427.52 1,149.70 (722.18) 0.00
1,707.66
Mar ' 06
1,520.59 0.00 0.00 (2,018.20)
1,080.12 1,031.73 1,614.24
3,646.17 0.00 1,384.66 2,261.51 175.08
0.00
329.78 1,152.13 (822.35) 0.00
1,614.24
Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds
Secured Loans Unsecured Loans
Total
USES OF FUNDS
Fixed Assets
Gross Block
Less : Revaluation Reserve
Less : Accumulated Depreciation Net Block
Capital Work-in-progress
Investments
Net Current Assets
Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written
Total
Note :
Book Value of Unquoted Investments
120.00
75.00
0.00
0.00
0.00
Market Value of Quoted Investments
0.00
0.00
0.00
0.00
0.00
Contingent liabilities
565.14
979.37
406.51
423.60
434.62
Number of Equity shares outstanding (in Lacs)
18,971.97
18,971.91
18,935.64
18,094.97
15,205.85
Tata Teleservices (Maharashtra) Ltd.
Mar ' 10
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Income :
Operating Income
Expenses
Material Consumed
Manufacturing Expenses
Personnel Expenses
Selling Expenses
Administrative Expenses
Expenses Capitalized
Cost Of Sales
Operating Profit
Other Recurring Income
Adjusted PBDIT
Financial Expenses
2,210.39
22.98
931.62
146.26
348.92
286.96
(18.79)
1,717.95
492.44
6.81
499.25
331.99
2,034.62
9.36
814.29
112.90
204.77
317.92
0.00
1,459.24
575.38
11.13
586.51
268.68
446.79
1,707.19
7.80
700.59
93.63
161.95
337.74
0.00
1,301.71
405.48
68.90
474.38
182.27
439.35
0.00
1,406.98
3.36
606.24
71.00
238.69
198.62
0.00
1,117.91
289.07
16.81
305.88
177.61
446.23
0.00
(Rs in Cr.)
1,095.13
0.00
525.35
48.56
184.39
213.78
0.00
972.08
123.05
2.05
125.10
142.02
471.90
0.00
Depreciation 520.89
Other Write offs 0.00 0.00

Adjusted PBT
Tax Charges
Adjusted PAT
Non Recurring Items
Other Non Cash adjustments
Reported Net Profit
Earnings Before Appropriation
Equity Dividend
Preference Dividend
Dividend Tax
Retained Earnings
(353.63)
0.01
(353.64)
30.47
25.16
(298.01)
(3,146.69)
0.00
0.00
0.00
(3,146.69)
(128.96)
1.21
(130.17)
(37.64)
8.21
(159.60)
(2,848.68)
0.00
0.00
0.00
(2,848.68)
(147.24) (317.96)
0.93 0.70
(148.17) (318.66)
9.50 7.49
12.93 0.00
(125.74) (310.61)
(2,670.32) (2,544.58)
0.00 0.00
0.00 0.00
0.00 0.00
(2,670.32) (2,544.58)
(488.82)
0.85
(489.67)
(51.39)
0.00
(541.06)
(2,233.41)
0.00
0.00
0.00
(2,233.41)

Exhibits
11. Exhibits
Product line (Exhibit 1)
GSM and CDMA subscription numbers(Exhibit 2)
Year
GSM Subscribers (millions)
GSM Annual growth
CDMA Subscribers (millions)
CDMA Annual growth
2000
3.1
94%
-
-
2001
5.05
76%
-
-
2002
2003
10.5
22.0
91%
110%
0.8
6.4
-
700%
2004
37.4
70%
10.9
70%

2005
58.5
57%
19.1
75%
2006
105.4
80%
44.2
131%
2007
180.0
71%
85.0
92%
Twitter Klout Score for Tata Docomo (Exhibit 3)
* Twitter Klout score for Tata Docomo as on 22nd Dec 2010 (http://klout.com/tatadocomo)
Twitter Klout classification for Tata Docomo (Exhibit 4)
* Twitter Klout classification for Tata Docomo as on 22nd Dec 2010 (http://klout.com/tatadocomo)

Reference
1. http://www.tatadocomo.com
2. http://test.dnb.co.in/Infrastructure/Telecom%20Sector.asp
3. http://www.nttdocomo.com/technologies/present/fomatechnology/
4. http://www.nttdocomo.com/pr/2009/001442.html
5. http://www.tatadocomo.com/downloads/mediaroom/TATA-DOCOMO-Dive-In-Store-in-Trichy.pdf
6. http://trak.in/tags/business/2007/06/19/indian-telecommunication-story-from-10-million-to-150- million-mobile-subscribers-in-5-years/ 7. http://www.indiahousing.com/mobile-phones-india.html
8. http://www.livemint.com/2008/04/22000325/Tata-is-now-57th-most-valuable.html
9. Tata review September 2010 – Ringing in the New www.tata.com/pdf/tata_review_sept.../business_ringing_in_the_new.pdf 10. Tata review September 2010 – Brands that win hearts http://www.tata.com/pdf/tata_review_sept_10/strategy_brands_that_win.pdf 11. Tata Docomo – Launch of ‘Dive In’ Store in Bangalore
a. http://www.tatadocomo.com/downloads/mediaroom/TEC_LAUNCH_Store_in_Bangalore.pdf
12. Q&A: Anil Sardana, Managing Director, Tata Teleservices Ishita Russell
a. http://www.business-standard.com/india/news//docomo-will-havesay-in-our-entire-business- including-cdma//360734/ 13. 11 Aug 2009 ... Nielsen's Mobile Consumer Insights
a. http://blog.nielsen.com/nielsenwire/global/indian-mobile-consumers-looking-forward-to- number-portability/ 14. http://www.tata.com/company/releases/
15. http://www.netmba.com/marketing/situation/

Appendix I
12. Appendix
FOMA Technology (Appendix I)
NTT DOCOMO's 3G FOMA service, deployed in the 2 GHz frequency band, uses packet data transfer speeds ranging from 64 kbps to 384 kbps to support a broad variety of applications that include Internet access, e-mail, file transfers, remote log-in and Internet phone applications. In addition, ISDN-type services functioning on a streamed basis effectively employ nx64 kbps channels to support applications
such as telephony, video-conferencing and Group 4 faxing. Further, high-quality voice services at up to 12.2 kbps are also available. These cutting-edge services are supported by the following technologies.
Network Technology
NTT DOCOMO's 3G network uses an architecture completely different from 1G and 2G. Employment of ATM technology manages packet and circuit switching on the same network node, allowing use of various traffic types for true multimedia capability. Asymmetric communications with different characteristics for up- and down-link are also made possible by ATM's ability to handle these resources separately. Additionally, ATM allows flexible connection services such as point-to-point and point-to- multi-point connections.

Intelligent Networks (IN) are in telecommunications use worldwide and the introduction of 3G service in Japan has greatly enhanced them, not least by providing quicker response to customer needs. What's more, development costs are lower and more easily controlled, while Global Roaming (Virtual Home Environment) has become a practical possibility.

W-CDMA Technology
Two innovative technologies employed in W-CDMA are key to FOMA's unmatched ability to handle a wide range of content including sound, video and still images: Spread Spectrum technology that employs a wider frequency band to transmit radio signals.- Multirate technology that selects speed and transmission channel based on data type and size.
Spread Spectrum method
High-quality, high-efficiency transmission
W-CDMA spreads signals over a frequency range several hundred times broader than conventional
system's, and allocates single time slots to each user. Since this method allows all users to share the broad bandwidth, splitting the bandwidth becomes unnecessary and transmission efficiency is vastly improved. In addition, spread spectrum is highly resistant to disturbance and noise, and the use of a common frequency in all cells minimizes jamming and interference. The need for frequency-switching when a user moves from one station's coverage to another is eliminated to make high-quality communications possible.

Multirate Transmission Method
Efficient, high-speed processing of various data types
Critical to the success of FOMA is W-CDMA's ability to handle the system's massive data content. This is achieved through the use of multirate transmission that automatically selects the optimal transmission speed and route according to data type and size, to assure high-speed high-quality handling of content including voice, still images and video.