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    ACKNOWLEDGEMENT

    This project would never had been an achievable task, had I not been under the great shelter

    of guidance of respected Mr. Nishant Gambhir. His simplified teaching technique based on

    examples had helped me gain more understanding of the subject.

    The very essence of the project work is the linguistic precision which has an impact of

    conveying more detail in least possible words. I am very much grateful to Mr. Navpreet

    Singh Kaushal for their unfailing co-operation.

    I am very much under obligation to mention here, the contributions of my batch mates who

    have, knowingly or unknowingly, provided me the competitive edge which is the driving

    force of the whole labour and extra labour put into the project. I would also take an

    opportunity to thank all the respondents, who have taken pains in answering the questions and

    filled the place of true representatives for deciding the nature of the problem.

    ANIL KUMAR

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    INTRODUCTION

    Exactly ten years ago, Jyoti Basu in Calcutta called Sukh Ram in Delhi in what was the first

    mobile phone call in India. Brick sized cell phones used to cost Rs. 45,000 and each call

    costed Rs. 16.5/minute. Back then, cell phone was a status symbol. Today, there are over 60

    million mobile connections in India (expected to double in number in next 12 months). A

    local call costs around less than Rs 1/min and a cell phone can be purchased for less than Rs.

    2000

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    CONCEPT

    TELECOM SECTOR: A GLOBAL SCENARIO

    The Indian telecom market has been displaying sustained high growth rates. Riding on

    expectations of overall high economic growth and consequent rising income levels, it offers

    an unprecedented opportunity for foreign investment. A combination of factors is driving

    growth in the telecom market, promising rich returns on investments.

    India is the fourth largest telecom market in

    Asia after China, Japan and South Korea.

    The Indian telecom network is the eighth largest in the world and the second largest

    among emerging economies.

    The Indian telecom market size of over US $ 8 billion is expected to increase three

    fold by 2012. The expansion of the telecom industry in India has been fuelled by a

    massive growth in mobile phone users, which has reached a level of 10 million users

    in December 2002, an increase of nearly 100 per cent in 2002.

    This exponential growth of mobile telephony can be attributed to the introduction of

    digital cellular technology and decrease in tariffs due to competitive pressures. For the

    first time in India, the growth of cellular subscriber base has exceeded the fixed line

    subscriber base. However, cellular penetration is still 1 per cent as compared to world

    average of around 16 per cent.

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    INDIAN TELECOM SECTOR

    Indian Telecom sector, like any other industrial sector in the country, has gone through many

    phases of growth and diversification. Starting from telegraphic and telephonic systems in the

    19th century, the field of telephonic communication has now expanded to make use of

    advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile

    phones. Day by day, both the Public Players and the Private Players are putting in their

    resources and efforts to improve the telecommunication technology so as to give the

    maximum to their customers.

    The Indian telecom sector can be broadly classified into Fixed Line Telephony and

    mobile telephony. The major players of the telecom sector are experiencing a fierce

    competition in both the segments.

    The major players like BSNL, MTNL, VSNL in the fixed line and Airtel, Vodafone

    (Hutch), Idea, Tata, Reliance in the mobile segment are coming up with new tariffs

    and discount schemes to gain the competitive advantage.

    The Public Players and the Private Players share the fixed line and the mobile

    segments. Currently the Public Players have more than 60% of the market share.

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    OBJECTIVE

    The purpose of the project is to get better knowledge about the retailers behavior

    towards MTS in the telecom sector in todays scenario because this sector is at the

    booming stage.

    To identify and analyze whether the company is communicating in the market

    positively or not. (MARCOM Analysis)

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    DATA COLLECTION

    Primary data sources like use of questionnaire are included for collecting primary

    data.

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    LIMITATION OF THE STUDY

    The study has following limitations:

    Due to sample size: The sample size of our project is particularly small. A small sample sizehas a greater probability that the observation just happened to be particularly good or

    particularly bad. Therefore it is harder to find significant relationships from the data, as

    statistical tests normally require a larger sample size to justify that the effect did not just

    happened by chance alone.

    Literacy level:In earlier days people dont prior their childrens on studies but firstly

    let their childrens learn business techs but now things are changing people are know

    understanding that due to lack in studies they are lacking behind .so know people are

    making their new generation literate

    Lack of contact with company personnel acted as hindrance in the study.

    The study is based on the limited knowledge & information provided by the

    marketing personnels and individuals who were available for interview.

    The basis of selection of sample for the study was vague. Randomly individuals were

    picked up to provide their responses on the questionnaire.

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    MARKET SIZE, PLAYERS AND TRENDS

    Both fixed line and mobile segments serve the basic needs of local calls, long distance calls

    and the international calls, with the provision of broadband services in the fixed line segment

    and GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and

    the wireless instruments.

    Mobile phone providers have come up with GPRS enabled multimedia messaging,

    internet surfing, and mobile commerce.

    The much-awaited 3G mobile technology has entered in the Indian telecom market.

    The GSM, CDMA, WLL service providers are all upgrading them to provide 3G

    mobile services.

    Radio services have also been incorporated in the mobile handsets, along with other

    applications like high storage memory, multimedia applications, multimedia games,

    MP3 Players, video generators, Camera's, etc. The value added services provided by

    the mobile service operators contribute more than 10% of the total revenue.

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    The 2009 budget has brought further relief to the customers with the reduction in the

    tariffs, both local and long distance, and with slashing down the roaming rentals. This

    is likely to lead to even more people going for cellular services and more and more

    use of the value added services.

    However, landline telephony is likely to remain popular, too, in the foreseeable future.

    MTNL, the largest landline service provider, has recently taken some bold initiatives

    to retain its market share and, if possible, expand it.

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    MAJOR PLAYERS

    There are three types of players in telecom services:

    -State owned companies (BSNL and MTNL)

    -Private Indian owned companies (Reliance Info com, Tata Teleservices,)

    -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea

    Cellular, BPL Mobile, Spice Communications)

    BSNL

    On October 1, 2000 the Department of Telecom Operations, Government of India became a

    corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now Indias

    leading Telecommunications Company and the largest public sector undertaking. It has a

    network of over 45 million lines covering 5000 towns with over 35 million telephone

    connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile,

    Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will

    be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to

    provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the

    third operator of GSM mobile services in most circles, is now planning to overtake Bharti to

    become the largest GSM operator in the country. BSNL is also the largest operator in the

    Internet market, with a share of 21 per cent of the entire subscriber base

    BHARTI

    Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts

    and innovations to its credit, ranging from being the first mobile service in Delhi, first private

    basic telephone service provider in the country, first Indian company to provide

    comprehensive telecom services outside India in Seychelles and first private sector service

    provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited

    was incorporated on July 7, 1995 for promoting investments in telecommunications services.

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    Its subsidiaries operate telecom services across India. Bhartis operations are broadly handled

    by two companies: the

    Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across

    the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data,

    and satellite-based services. Together they have so far deployed around 23,000 km of optical

    fiber cables across the country, coupled with approximately 1,500 nodes, and presence in

    around 200 locations. The group has a total customer base of 6.45 million, of which 5.86

    million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile,

    Bhartis footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is to

    capitalize on the growth opportunities the company believes are available in the Indian

    telecommunications market and consolidate its position to be the leading integrated

    telecommunications services provider in key markets in India, with a focus on providing

    mobile services.

    MTNL

    MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

    telecom services, expand the telecom network, introduce new services and to raise revenue

    for telecom development needs of Indias key metros Delhi, the political capital, and

    Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to

    emerge as Indias leading and one of Asias largest telecom operating companies. The

    company has also been in the forefront of 5 technology induction by converting 100% of its

    telephone exchange network into the state-of-the-art digital mode. The Govt. of India

    currently holds 56.25% stake in the company. In the year 2003-04, the company's focus

    would be not only consolidating the gains but also to focus on new areas of enterprise such as

    joint ventures for projects outside India, entering into national long distance operation,

    widening the cellular and CDMA-based WLL customer base, setting up internet and allied

    services on an all India basis.

    MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market for

    fixed wire line phones is stagnating, MTNL faces intense competition from the private

    playersBharti, Hutchison and Idea Cellular, Reliance Info comin mobile services. MTNL

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    recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent

    over the previous years annual turnover of Rs. 63.92 billion.

    RELIANCE INFOCOMM

    Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

    conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom

    service provider with licenses for mobile, fixed, domestic long distance and international

    services. Reliance Info com offers a complete range of telecom services, covering mobile

    and fixed line telephony including broadband, national and international long distance

    services, data services and a wide range of value added services and applications. Reliance

    India Mobile, the first of Info com's initiatives was launched on December 28, 2002. This

    marked the beginning of Reliance's vision of ushering in a digital revolution in India by

    becoming a major catalyst in improving quality of life and changing the face of India.

    Reliance Info com plans to extend its efforts beyond the traditional value chain to develop

    and deploy telecom solutions for India's farmers, businesses, hospitals, government and

    public sector organizations.

    Until recently, Reliance was permitted to provide only limited mobility services through its

    basic services license. However, it has now acquired a unified access license for 18 circles

    that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile

    network and enrolled more than 6 million subscribers in one year to become the countrys

    largest mobile operator. It now wants to increase its market share and has recently launched

    pre-paid services. Having captured the voice market, it intends to attack the broadband

    market.

    TATA TELESERVICES

    Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over

    200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic

    (fixed line services), using CDMA technology in six circles:

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    Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and

    Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by

    paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services

    as well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90

    million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The

    new licenses, coupled with the six circles in which it already operates, virtually gives the

    CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance

    Info com. The company hopes to start off services in these 11 new circles by August 2004.

    These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab,

    Rajasthan, Uttar Pradesh (East) & West and West Bengal.

    VSNL

    On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned

    corporation - was born as successor to OCS. The company operates a network of earth

    stations, switches, submarine cable systems, and value added service nodes to provide a range

    of basic and value added services and has a dedicated work force of about 2000 employees.

    VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The

    international telecommunication circuits are derived via Intelsat and Inmarsat satellites and

    wide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

    The company's ADRs are listed on the New York Stock Exchange and its shares are listed on

    major Stock Exchanges in India. The Indian Government owns approximately 26 per cent

    equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per cent

    equity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately

    13 per cent and the rest is owned by Indian institutions and the public. The company provides

    international and Internet services as well as a host of value-added services. Its revenues have

    declined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in

    2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL

    has also started offering domestic long distance services and is launching broadband services.

    For this, the company is investing in Tata Teleservices and is likely to acquire Tata

    Broadband.

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    HUTCH (VODAFONE)

    Hutchs presence in India dates back to late 1992, when they worked with local partners to

    establish a company licensed to provide mobile telecommunications services in Mumbai.

    Commercial operations began in November 1995. Between 2000 and March 2004, Hutch

    acquired further operator equity interests or operating licenses. With the completion of the

    acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services

    in 16 of the 23 defined license areas across the country.

    Hutch India has benefited from rapid and profitable growth in recent years. it had over 17.5

    million customers by the end of June 2006.

    IDEA

    Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs

    to become a national player, but in doing so is likely to become a thorn I the side of Reliance

    Communications Ltd. IDEA operates in eight telecom circles, or regions, in Western India,

    and has received additional GSM licenses to expand its network into three circles in Eastern

    India -- the first phase of a major expansion plan that it intends to fund through an IPO,

    according to parent company Aditya Birla Group.

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    OPPURTUNITIES

    India offers an unprecedented opportunity for telecom service operators, infrastructure

    vendors, manufacturers and associated services companies. A host of factors are contributing

    to enlarged opportunities for growth and investment in telecom:

    an expanding Indian economy with increased focus on the services sector

    population mix moving favorably towards a younger age profile

    urbanization with increasing incomes

    Investors can look to capture the gains of the Indian telecom boom and diversify their

    operations outside developed economies that are marked by saturated telecom markets and

    lower GDP growth rates.

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    MTS: AN INTRODUCTION

    Sistema Shyam TeleServices Ltd. was founded in 1998 (original name Shyam Telelink

    Ltd.) and started full-scale business in Rajasthan in 2000. The company obtained its pan-India

    license for provision of mobile services in March 2008 and at present has enough spectrums

    to provide mobile telephony services in 22 telecom-circles, covering Indias 28 states and 7

    union territories, with a population of 130 million.

    As of May 2011, Sistema Shyam TeleServices has over 1 million users spread over more than

    600 cities in Rajasthan, 373 cities in Tamil Nadu (including mega polis Chennai), 247 cities

    in Kerala and 250 towns in West Bengal (including Kolkata). The subscribers base growth in

    Rajasthan has been 8.5 - 12% per month, starting from the network launch on 30th September

    2008. The company continues to implement its strategy of pan-India mobile network

    construction, with the aim to cover over 35 million subscribers with its services (almost 7%

    of Indian market.

    The new head office of Sistema Shyam TeleServices was established in January 2009 in

    Gurgaon one of Indias commercial capitals near Delhi. These new headquarters combine

    the functions of corporate office and technology center, where top management and experts

    of different divisions are equipped with the most modern infrastructure to support their work.

    Since March 2009, Sistema Shyam TeleServices has been able to use the MTS brand for

    advertising and other communication in India as per the agreement signed between the

    company and MTS in December 2008. And since its launch, the MTS brand has been

    successful in every market it has stepped into. The MTS brand is in the top 100 list of global

    brands according to BRANDZ rating of Financial Times in Millward Brown.

    Sistema Shyam TeleServices Limited (SSTL) was founded in 1998 and started its

    operations in the state of Rajasthan in 2000. Presently SSTL has more than 500,000 fixed-line

    and mobile subscribers in the state of Rajasthan and continues to further expand its network

    and develop its service offering. SSTL obtained a unified pan-Indian license to provide

    cellular services in March 2008 and now has spectrum in 22 Indian circles. SSTL is a joint

    venture between Sistema and the Shyam Group of India. Sistema Shyam TeleServices is

    majority-owned by Sistema (73.7%).

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    Some of the information in this press release may contain projections or other forward-

    looking statements regarding future events or the future financial performance of Sistema.

    You can identify forward looking statements by terms such as expect, believe,

    anticipate, estimate, intend, will, could, may or might the negative of such

    terms or other similar expressions. We wish to caution you that these statements are only

    predictions and those actual events or results may differ materially. In addition, there is no

    assurance that the new contracts entered into by our subsidiaries referenced above will be

    completed on the terms contained therein or at all. We do not intend to update these

    statements to reflect events and circumstances occurring after the date hereof or to reflect the

    occurrence of unanticipated events. Many factors could cause the actual results to differ

    materially from those contained in our projections or forward-looking statements, including,

    among others, general economic conditions, our competitive environment, risks associated

    with operating in Russia, rapid technological and market change in our industries, as well as

    many other risks specifically related to Sistema and its operations.

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    MISSION

    We create business leaders in service industries, mainly in high-tech sector. Our mission

    meets the expectations of our shareholders as well as society's interests.

    Sistema invests best finance, intellectual and management resources into business and

    economic development of Russia to achieve a success in the accomplishment of its mission.

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    Corporate Governance

    Sistema was among the first Russian companies to recognize the value of strong corporate

    governance and remains a leader in informational openness and transparency.

    Its system of corporate governance is based on several core principles: transparency in all

    business processes for our investors and partners, maintaining an engaged and professional

    board of directors and maintaining a consistent approach to all issues concerning the

    Corporations management. Sistema applies these principles to all company processes and

    procedures, including strategic management, financial accounting and reporting, audit, risk

    management, HR policy, corporate governance and corporate social policy.

    Sistemas processes and procedures are codified in the Companys Charter, which determines

    the structure and competencies of its governing bodies. The Companys Corporate Code and

    Code of Ethics contain additional commitments that Sistema has made in terms of promoting

    openness, collective decision making, social responsibility, and ethical principles in its

    relationship with partners, governments, employees, and shareholders.

    Sistemas main governing bodies are the General Meeting of Shareholders, Board of

    Directors, President and Management Board. Board committees are operational at the Board

    level; special committees are operational at the President level to make policy

    recommendations. The Companys organizational structure is built on the basis of operational

    management, identifying key issues and establishing bodies with the necessary competencies

    to resolve them.

    Throughout 2007 the Company made several strides to further the development of its

    corporate governance structures. A new set of procedures was adopted by the Board of

    Directors in October 2007 to increase the effectiveness of the Boards meetings. The changes

    call for a slight reduction in the number of planned meetings per year and improving

    preparation and organization processes. This will entail preparing more thorough materials in

    the run up to the Boards meetings and limiting the number of invitees to the Boards

    meetings. Board materials will be first reviewed by the Management Board and Board

    committees before being distributed. The new rules also institutionalize constant flow of

    information between management and the members of the Board of Directors between the

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    Boards meetings.

    Sistema launched an internal corporate governance rating system in June 2007 to measure the

    effectiveness of corporate governance at its subsidiaries. The methodology relies on concepts

    used by ratings agencies such as Standard & Poors, Moodys and Expert RA. The results

    have been used to create action plans to further the development of its subsidiaries corporate

    governance systems.

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    Strategy

    Our strategy is to create companies-leaders on highly potential markets and permanent search

    for the new opportunities for growth.

    Investing in Growth

    In 2007 the Board of Directors approved the principles of the portfolio strategy proposed

    by the management. These principles call for an increase of the share of privately held

    businesses in the portfolio. Following this decision of the Board, Sistema initiated

    several investment projects and M&A transactions in its fast growing businesses of Financial

    Services, Retail, Media, Healthcare and Travel.

    Sistema was active in sourcing and taking advantage of new investment opportunities.

    We acquired control in Indian mobile and fixed-line operator Shyam Telelink with the goal

    of entering the rapidly growing Indian telecommunications market. Sistema will bring its

    Russian and CIS telecommunications expertise to transform Shyam Telelink into a leading

    pan-Indian communications provider.

    The Corporation is developing its business relationships with the Russian state and is now

    seen as a reliable private sector partner capable of providing competitive products and

    services. The new National Center for Crisis Management that Sistemas subsidiaries had

    built for the Russian Ministry of Emergency Situations in 2007 is one example of this

    partnerships potential.

    Active Management

    Sistema is a strategic investor and the controlling shareholder of its core businesses. The

    Corporation sets targets for them, contributes to the development of their strategies, and

    monitors the strategys implementation.

    In 2007 the boards of Sistemas subsidiaries fixed an updated set of KPIs, the so-called

    Criteria Base. These KPIs steer the management towards shareholder value, creating growth,

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    and at the same time target mid-term operational indicators, aiming to outperform

    the competition.

    To complement the ambitious goals set before the management, we initiated a review

    of incentive and remuneration systems. In 2007 the boards of most companies introduced

    annual bonus programs linked to KPIs, as well as long-term stock option plans.

    Adding Value

    Sistemas management believes that growing businesses within a diversified holding creates

    numerous opportunities to add value to the portfolio of the Corporation. The holding structure

    in the relatively immature Russian economy helps raise financing at a corporate level on more

    attractive terms, launch joint projects of businesses and make the best use of cross-selling

    opportunities, and create and maintain a valuable corporate pool of top managers.

    Furthermore, as one of the leading Russian companies, Sistema can more effectively

    represent the interests of its businesses on national and international levels.

    In 2007 Sistema raised $500 million in debt financing to develop its Indian project and

    placed a 6-bn-ruble bond issue in March 2008 on very favorable terms, given the current

    market environment. We launched the Tochka project, a chain of all-in-one retail stores that

    offer goods and services from across the Corporations areas of operations, including mobile

    and fixed-line communications, banking, travel services, and multimedia.

    At the same time, Sistema made a series of senior level appointments in its businesses that

    included not only managers taken from the pool of internal candidates, but also those hired

    from other companies.

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    Sistema's History

    Sistema's ownership structure was formed in 1993. During this year the acquisition of the

    main assets in telecommunications, high-tech, tourism, trade, oil and oil products,

    construction and development was completed

    Last Events

    September 2010

    Shyam Telelink launches cdma mobile network.

    Sistema appoints Sergey Savchenko as chief financial officer of Shyam Telelink.

    Sistema completes licensing process in India.

    August 2010

    Standard & Poors upgrades Sistema corporate rating to .

    Sistema consolidates its ownership of Dalcombank.

    Comstar-UTS has built wireless broadband access network in Tyumen.

    Sistema opens office in India.

    Sistema appoints Sergey boyev as vice president for development of stateprogrammes and non-public assets.

    MTS and Microsoft to work together to deliver mobile services across Russia

    and CIS.

    Sistema completed the creation of healthcare services holding.

    Comstar announces business development strategy for the southern federal

    district of Russia.

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    SITRONICS announces appointment of new head of telecom solutions division.

    Sistema-Hals has appointed andrey solovyev as companys financial director.

    Sistema acquires further 50.5% stake in Dalcombank.

    Sergey Shmakov appointed first vice president of JSC Sistema-Hals.

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    Corporative Culture

    Sistema takes care of employees' education, their professional growth and always pay

    attention to their opinion.

    We share common corporate culture

    The corporate culture of Sistema includes the philosophy and traditions of the organization,

    accepted rules and norms of behavior and the style of mutual relations between employees of

    the corporation. It is not so difficult to form principles of corporate philosophy in a few

    words: concern for each other and the whole company for its employees. If our employees see

    that the corporation cares for their future, then they feel confidence in tomorrow. It ensures a

    comfortable climate in the staff, stability, and it means that the efficiency of the daily work of

    each of us increases. We believe that the human capital investments, including raising of

    skills, social security or improvement of labor conditions, should always be made,

    guaranteeing a maximum return from each of the employees of the corporation.

    An important milestone in the formation of the corporate culture of Sistema was the adoption

    of the Code of Corporate Behavior and the Code of Ethics.

    We work in high tech markets; therefore intellectual leadership is one of the key factors of

    success for us. For this reason we attract and mean to attract only the best personnel. We take

    care of their training, career development and listen attentively to their opinion.

    We are investing in human capital

    The aim of personnel policy of Sistema is the creation of an effective, successful team of

    managers, able to realize the company's business strategy in the conditions of the present day

    market. Creating such a team, we are sure that investments in human potential will bring

    maximal returns to the company, and ensure long term competitive advantages and leadership

    in high tech spheres of economy.

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    At present, Sistema unites more than 90,000 employees; each of them is a perfect

    professional in his business.

    We are building contemporary motivation schemes

    One of the key tasks of the human resources service of Sistema is to give the company's

    employees an opportunity to reveal their capabilities, providing at the same time adequate

    remuneration for successes. For this purpose, there is a system of staff motivation in the

    corporation and subsidiary companies, which directly connects the achievements of an

    employee with his career development and bonus payments.

    We are educating our personnel

    We are striving sincerely so that every employee of Sistema had a personal opportunity to go

    through the extended education, to increase his/her professional skill, getting a possibility of

    the career growth inside the company. Training centers for increasing the professional skills

    are successfully working in large companies of the corporation, like MGTS, MTS, ComstarUTS, RTI Systems, etc. Around 30000 of the employees undergo training in the special

    companys centers, on the courses outside Sistema as well as training in boarders of

    Presidents program every year.

    The Corporate University High School on Management and Innovations provides additional

    opportunities of training to the employees. Sistema jointly with Lomonosov Moscow State

    University organize the courses. The Corporate University gives the employees an

    opportunity to receive high quality professional education without leaving their employment,

    ensuring further career growth.

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    Social Responsibility

    The social responsibility of a large corporation today is a reflection of the complex network

    of relationships within a modern market economy. A critical component of responsibility is

    the nature of the business the corporation conducts and the contribution of its products and

    services to the economy as a whole.

    At the core of Sistemas corporate outlook is the belief that the Companys businesses make

    vital contributions to improving the quality of life in the markets they serve.

    Sistema focuses on growing service oriented high technology businesses that foster the

    creation of an innovation economy in Russia and help diversify the economy to compete on

    the global marketplace. Sistemas business strategy dovetails with the Russian governments

    belief that promoting high technology is a national priority and crucial for the countrys

    development.

    Sistemas products and services provide customers with access to world class

    communications, credit, and modern homes, offices, and infrastructure. As a responsible

    employer and corporate citizen, Sistema has always been on the forefront of adapting

    international best practice to the Russian landscape. Sistema has also played an important rolein the growth of Russian capital markets and creating a positive investment environment in

    the country.

    At the same time, Sistema recognizes that it has a moral obligation as a leading Russian

    company to contribute to the development of a better society in ways not limited to its

    businesses. Sistema is an important patron of the arts, promotes sports, helps preserve cultural

    treasures, contributes to the development of science and education, and reaches out to

    vulnerable layers of society. In 2007 it published its first ever Social Report, which

    highlighted the range of programs and charities it sponsors in the communities where it

    operates.

    Sistema has adopted internationally recognized principles of sustainable development and

    corporate social responsibility and integrates them into its business practices.

    Corporation became one of the first companies in Russia to sign the Global Compact of the

    United Nations (UNGC) in 2002. In 2003, Sistema joined the World Business Council for

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    Sustainable Development (WBCSD). As with other WBCSD members, the corporation has

    committed itself to maintain a high level of transparency and responsibility in all aspects of

    its business.

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    INTERPRETATION AND ANALYSIS OF DATA :

    Here, I am going to tabulate and analyze the data which I have gathered through my

    questionnaire. These tabulation and analysis are deduced with common question which will

    give focus on Marcum analysis.

    This Field Study was conducted on MTS, DELHI to know the views of the retailers

    about the organization.

    A survey of 100 retailers was conducted.

    The questionnaires were given to the following retailers which resides in the area of:-

    PUNJABI BAGH, CHAWRI BAZAR, KAROL BAGH, PATEL NAGAR,

    BHAJANPURA, SHAADRA

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    QUESTIONNAIRE

    1. Which mobile connections are available in your Shop?

    Airtel [400]

    Idea [310]

    BSNL [100]

    Vodafone [350]

    Reliance [150]

    Tata Indicom [90]

    MTS [115]

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    2. Problem of distributor changing

    YES 67%

    N0 33%

    .

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    3. Response of the customer about MTS

    FAVOURABLE 88%

    UNFAVOURABLE 10%

    CANT SAY 2%

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    4. Top three operators

    GSM AIRTEL, IDEA, RELIANCE

    CDMA RELIANCE, TATA, MTS

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    5.Monthly MTS connections sold

    Less than 10 34

    10 20 21

    20 30 13

    30 40 08

    40 50 07

    50 60 06

    60 70 02

    More than 70 09

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    6. Factors responsible for no. 1 player in CDMA

    Low entry price 06%

    Lowest tariff 07%

    Support from company/distributor

    personal

    53%

    High visibility 15%

    Any other 19%

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    7. Media vehicle appropriate to support sales

    YES 84%

    NO 16%

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    8. Push and Pull ratio of MTS

    PULL 91%

    PUSH 09%

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    9. Do you know about new SMS Schemes?

    YES 96%

    NO 04%

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    10. Merchandiser comes for merchandising frequently

    YES 97%

    NO 03%

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    11. Facing the problem of message delay

    YES 56%

    No 44%

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    12. Satisfaction with Merchandising job and the communication material that get

    displayed in your outlet

    YES 87%

    NO 13%

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    13. Problem of network while E-Recharge

    YES 25%

    NO 75%

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    14. Any special comment or suggestion for MTS

    Refund of Claim 07

    Improvement in Service 06

    Do not change Distributor 04

    Schemes 08

    Supply Delay 05

    Replacement problem 07

    Network Improvement 09

    Reduce Cutting 03

    God one to sell 10

    Multimedia sets 08

    Low Commission 10

    Display Problem 03

    No Problem 20

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    CONCLUSIONS

    In the next two years, MTS is expected to become the 2nd largest CDMA in India, after the

    Reliance and soon be in a position to overtake the Reliance as well.

    1. The important facts which could be concluded from our data regarding the retailers

    survey is that they face the problem of distributor changing due to which they have to

    suffer the losses.

    2. It was seen that retailers do not receive their claims on time.

    3. There is a certain decline in sales due to end of schemes (MTS to MTS free).

    4. POS material was not properly distributed among the retailers.

    5. Pull ratio is more as compared to Push.

    6. Most of the customers response favorably when the retailers told them about MTS.

    7. Almost all the retailers are satisfied with the merchandisers job.

    8. Network and message delay problem are the main drawbacks.

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    RECOMMENDATIONS

    1. New distributor should activate the old connections.

    2. Service should be more improved along with networking.

    3. Distributor should be fixed for at least a year.

    4. Advance schemes should be updated to the retailers time to time.

    5. Supply should be on time so that retailers should not face shortage.

    6. Replacement of the defected sets on time.

    7. Reduce cutting of commission of the retailers.

    8. Solve advance activation problem.

    9. Multimedia sets should be introduced along with the present range.

    10. POS material should be first given to those who kept the MTS connections and then

    the others.

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    BIBLIOGRAPHY

    WEB SITES:

    1. www.ficci.com/telecom.htm

    2. www.mtsindia.in

    3. www.sistemashyamteleserviceslimited.com

    Magazines :

    India Today

    Business word

    Business India

    Economic Times

    Material provided by the company

    Survey

    Search Engines:

    www.google.com

    www.wikipedia.com

    46

    http://www.sistemashyamteleserviceslimited.com/http://www.sistemashyamteleserviceslimited.com/
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    QUESTIONNAIRE FOR THE CUSTOMERS

    Personal information

    Name of the Outlet :--__________________________________

    Name of the Person contacted :--__________________________________

    Contact no. :--__________________________________

    Address :--__________________________________

    1. Which mobile connections are available in your Shop?

    Airtel

    Idea

    BSNL

    Vodafone

    Reliance

    Tata Indicom

    MTS

    2. Do you face the problem of changing distributor?

    Yes

    No

    3. Response of the customer when you told them about MTS

    Favorable

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    Unfavorable

    Cant Say

    4. Which are the top three operators in term of sales?

    GSM _________________________________________________________

    CDMA _________________________________________________________

    5. How many monthly MTS connections do you sell?

    Less than 10

    10 20

    20 30

    30 40

    40 50

    50 60

    60 70

    More than 70

    6. Factors responsible for no. 1 player in CDMA

    Low entry price

    Lowest tariff

    Support from company/ Distributor personal

    High visibility

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    Any other (please specify)

    7. Is Media Vehicle appropriate to support sales of MTS?

    Yes

    No

    8. What is the Push and Pull ratio of MTS?

    ___________________________________________________________________________

    9. Do you know about new SMS schemes?

    Yes

    No

    10. Does Merchandiser come for merchandising frequently?

    Yes

    No

    11. Do you face the problem of message delay?

    Yes

    No

    12. Are you satisfied with merchandising job and the communication materials that getdisplayed in your outlet?

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    Yes

    No

    13. Do you have the problem of network busy while E-Recharge from your mobile?

    Yes

    No

    14. Any special comment or suggestion for MTS?

    ___________________________________________________________________________

    ___________________________________________________________________________