Vodafone Distribution Strategy

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Vodafone India Sales
and Distribution
[Type the document subtitle]
Varun Vivek (11BSPHH010935)
Karan Ganju (11BSPHH010381)
Vidhi Sharma (11BSPHH010944)
Vidhi Saigal (11BSPHH010943)

Introduction
Industry Profile
India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia on the basis of its customer base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market. Major sectors of the Indian telecommunication industry are telephony, internet and broadcasting. Today, it is the fastest growing market in the world. The total number of subscribers during July-2012 was recorded to be 679.05 million with an increase from the previous year of 0.25%. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$51.26 billion) for 2010–11 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$21.18 billion).The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth.

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Major sectors of telecommunication industry in India are telephony, internet and broadcasting. The primary
regulator
of
telecommunications in India is
Number of Subscribers as of July 2012 (in Millions)
the
Telecom
Regulatory
188.81
200
Authority of India (TRAI). The
180
154.91
160
mission of TRAI is to create and
140
117.62
120
nurture an environment which
94.68
100
65.16
will enable the quick growth of
80
44.50
60
the telecommunication sector
40
5.16 5.23 3.00
20
in the country. One of the
0
major objective of TRAI is to
provide a transparent policy
environment.
TRAI
has
regularly issued orders and directions on various subjects like tariff, interconnections, Direct To Home (DTH) services and mobile number portability. There is 100% FDI permitted in telecom equipment manufacturing. India has a telecom policy aims to encourage private and foreign investment. There is a Revenue-share model for license issued by the Government for telecom services. Unified access licenses are available for providing telecom services on a pan-India basis. Subscribers Figure in last 6 months of 2012 (in Millions)

685.00
677.85

680.00
675.00

May-12

Jun-12

679.05

670.57

670.00

664.08

665.00
660.00

677.35

656.85

655.00
650.00
645.00
Feb-12

1

Mar-12

Apr-12

Jul-12

Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent. It also has helped to increase the transparency of governance with the introduction of e-governance in India. The government has pragmatically used modern telecommunication facilities to deliver mass education programmes for the rural folk of India.The telecommunications industry has impact on every aspect of our lives, from the simple reality of enabling telephonic communication between people in different locations to enabling supply-chains to work seamlessly across continents to create products and fulfil demands.

Few important facts about the Telecom Industry:
Telecom services contribute 30 percent to India’s total service tax revenue. The Indian telecom sector gives direct employment to more than 4,00,000 people, compared to about6,00,000 people in China.

Not just the enabler of software, BPO and IteS companies, it is also the lifeline of a fast growing E-commerce space.
State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore, Jaipur, Ahmedabad, and Kochi on the software services map.
This has helped spread the benefits of a booming Indian economy to beyond metros and large cities, and wealth creation is happening in tier-2cities. Potential of telecom...
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