A PROJECT REPORT ON A RETAILERS BEHAVIOUR TOWARDS MTS

(SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR MASTER OF BUSINESS ADMINISTRATION)

2010 - 2011

UNDER THE GUIDANCE OF:Mr. NAVOJIT DUTTA (MTS)

SUBMITTED BY:KUKSHI RAWAT M.B.A.(PART - 1)

SISTEMA SHYAM TELELINK SERVICES LIMITED AMRAPALI CIRCLE, VAISHALI NAGAR, JAIPUR
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PREFACE
This project report has been prepared as per the requirement of the syllabus of MBA course structure under which the students are the required to undertake research. We look our project study RETAILERS BEHAVIOUR TOWARDS MTS Jaipur city in Rajasthan. It was a firsthand experience for us as that we were exposed to the professional set-up and were facing the market, which was really a great experience.

During project period, I had very touching experiences. When business is involved, experiences counts a lot, as we know, experience are an instrument, which leads towards success. As we all know that working in market on the grass route level has always been a pleasure.

Now I take this opportunity to present the project report and sincerely hope that it will be as much knowledge enhancing to the readers as it was to use during the fieldwork and the completion of the report.

TABLE OF CONTENT
PARTICULARS:
 ACKNOWLEDGEMENT  INTRODUCTION y CONCEPT OF THE STUDY 07 07 08 09 15 16 17 18 19 21 28 29 32 41 42 43 44  OBJECTIVE  DATA COLLECTION  LIMITATIONS OF THE STUDY  MARKET SIZE, PLAYERS AND TRENDS  OPPORTUNITY  MTS : AN INTRODUCTION  MISSION  CORPORATE GOVERNANCE  STRATEGY  SISTEMA HISTORY  CORPORATIVE CULTURE  SOCIAL RESPONSIBILITY  INTREPRETATION AND ANALYSIS OF DATA  CONCLUSION  RECOMMENDATION  BIBLIOGRAPHY  ANNEXURES y QUESTIONNAIRES

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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. Piyush Bhatia. 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. Navojit sir 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.

KUKSHI RAWAT

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

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.

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.

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)

DATA COLLECTION
y Primary data sources like use of questionnaire are included for collecting primary data.

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 size has 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.

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.  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.

MAJOR PLAYERS
There are three types of players in telecom services: -State owned companies (BSNL and MTNL) -Private Indian owned companies (Reliance Infocomm, 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

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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 thelargest operator in theInternet market, with a share of 21 per cent of the entiresubscriber base

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector withmany firsts and innovations to its credit, ranging from being the first mobile servicein Delhi, first private basic telephone service provider in the country, first Indiancompany to provide comprehensive telecom services outside India in Seychelles andfirst 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. 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 atotal 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.

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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 wireline phones is stagnating, MTNL faces intense competition from the private players Bharti, Hutchison and Idea Cellular, Reliance Infocommin mobile services. MTNL 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 Infocomm 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 IndiaMobile, the first of Infocomm'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 Infocomm plans to extend its

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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: 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 Infocomm. 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.

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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 Telservices and is likely to acquire Tata Broadband.

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 licences. 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 licence 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.

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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.

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 spectrum 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 2009, Sistema Shyam TeleServices has over 1 million users spread over more than 600 cities in Rajasthan, 373 cities in Tamil Nadu (including megapolis 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 centre, 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 Millward Brown.
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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%). 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 that 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.

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 Boards meetings.

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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.

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 panIndian 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.

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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, 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 fixedline 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 2008 Shyam Telelink launches cdma mobile network. Sistema appoints Sergey Savchenko as chief financial officer of Shyam Telelink. Sistema completes licensing process in India. August 2008 Standard & Poors upgrades Sistema corporate rating to Sistema consolidates its ownership of Dalcombank. Comstar-UTS has built wireless broadband access network in Tyumen. July 2008 Sistema announces new organizational structure. EBRD provides a us$50 million syndicated loan facility to finance the expansion of Detsky mir group retail network. Sistema appoints vsevolod rozanov as chief executive officer of Shyam Telelink. v. Mamay appointed as director of Comstar-UTSs south branch. Sistema appoints maxim uvarov as general director of CJSC binnofarm. CEO of MTS mikhail shamolin joins the board of the GSM association. JSC Comstar-UTS appoints I.Gavriletsky as CEO of CJSC converiasvyaz. Moodys confirms credit rating of Sistema-hals OJSC at B1. Comstar acquires ural telephone company. Shyam Telelink selects equipment vendors for its network rollout. Sistema board of directors elects new management board.
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Sochitelecomservice and porttelecom merged into JSC Comstar-UTS. June 2008 New appointments at Sistema-hals. Sistema obtains radio frequencies in four additional circles in India. Sistema increases its stake in shyam Telelink to 73.71%. Intracom telecom enters India. Concern RTI Systems has acquired the majority shareholding of the watt drive group (Austria). Sistema signs US$ 613.3 million standby letter of credit and term loan facility. Comstar to consolidate Comstar-direct. Comstar acquires interlink group in Ryazan. May 2008 MTS announces the appointment of the new chief executive officer. Sistema appoints leonid melamed as president and chief executive officer. Sistema increases its stake in shyam Telelink. Sistema and chinese corporation cpmiec sign agreement on cooperation. Sistema-Hals concludes agreement with leading italian architectural firm. Sergey tischenko has been appointed as president and CEO of RTI Systems concern JSC. Sistema obtains radio frequencies in two additional circles in India. Fitch ratings confirms B+ credit rating for Sistema-hals jsc. Sistema signs memorandum of understanding with das holding LLC. April 2008 MTS ranked in worlds 100 most powerful brands. Sistema repays US$ 350 million eurobond issue. Sistema obtains radio frequencies in eight additional circles in India. Detsky mir and Sistema-hals announce closure of flagship Detsky mir store on Lubyanka square for reconstruction.
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Sistema obtains radio frequences in India. Fitch rates OJSC mobile telesystems (MTS) BB+; outlook stable. Sistema-hals sells 22 Rochdelskaya project. March 2008 Comstar launches long term incentive programme for executives. Comstar to build multimedia FTTB network in Sochi. Nikolay Maximenka appointed mgts general director, a part of Comstar-OTS. Jsc Comstar-UTS president Sergey pridantsev awarded the best top manager. Sistema completes sale of sahles. Sistema places 6 billion ruble bond issue. Sistema signs partnership agreement with the republic of belarus. Newly appointed commercial director of Comstar-UTS. Detsky mir has completed the reorganization of store management network. Comstar-UTS appoints vladislav vasin to the position of government relations director. February 2008 Comstar launches HDTV. MTS increases ownership in its omsk subsidiary to 100%. MTS announces subscriber growth numbers for January 2008. MTS elects a new board of directors. Sistema opens office in India. Sistema appoints Sergey boyev as vice president for development of state programmes 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. 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.

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Sergey Shmakov appointed first vice president of JSC Sistema-Hals. January 2008 Comstar to build first wimax network in armenia. SITRONICS signs contracts with MTS-Ukraine. Federal service for financial markets has registered report on the issue of additional common stocks of Detsky mir center OJSC. SITRONICS extraordinary shareholder meeting elects new board of directors. Comstar builds multi-service ngn network in Ukraine. Moodys investors service confirmed mbrd ratings. MTS announces subscriber growth numbers for Desember 2007. Sistema acquires control of shyam Telelink. Sistema obtains telecommunication licenses in India. Sistema-Hals signs strategic partnership agreement with apsys. Sistema-Hals chooses a strategic partner to develop the kamelia resort complex in sochi. December 2007 TS Retail sets up a new retail brand TOCHKA. Comstar-UTS signs an agreement with Intel for strategic partnership on development of WiMAX first mobile network in Russia. SITRONICS launches production of 0.18 micron chip technology in Zelenograd. Sistema-Hals gains a partnership agreement with Hebei Construction Group, a Chinese stateowned company, to carry out development projects in Russia. Bashcell is purchased by MTS for $38 million. Sistema announces its decision to offer up to RUB 6 billion of unconvertible interest-bearing bonds. Intourist Group of Companies accomplishes the first phase construction of tourist complex Altai. The company Access executes option and becomes a shareholder in Comstar-UTS with a stake of 11,06%.

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MBRD obtains a syndicated loan of $50 million. Sistema-Hals sales stake in 13 CJSC Kostyansky to the partner company MIRAX Group. MBRD consolidates 66% of EWUB. The section of Zvenigorodskoe highway between Moscow Ring Road and Marshall Zhukov Avenue is constructed by Sistema-Hals. Medsi acquires Family Medicine Corporation Sistema launches long-term incentive program for its employees. November 2007 Sitronics sings a strategic partnership agreement with Nokia Siemens Networks. Sistema registers share split by 1,000 times. Sistema-Hals announces the obtaining of the credit line of $200 million from VTB Bank. Comstar UTS acquires Regional Technical Centre (Khanty-Mansi Autonomous Area) and Digital Telephone Networks South for $188 million. MTS and Olympic Committee of Russia announce the establishment of strategic partnership. October 2007 Sistema signes share purchase agreement for the acquisition of additional 41% stake in Shyam Telelink Ltd. As a result Sistema stake in the operator will be 51%. Sistema acquires further 28,16% stake in Dalcombank. As a result Sistema increases its ownership in the bank up to 48,16%. Sistema approves the development strategy for its healthcare services division. Sistema intends to create a chain of 100 clinics by 2011. September 2007 Sistema shares lists on MICEX. Sistema JSFC shares are included in the B list under the symbol AFKS. Sistema registers share split by 1,000 times. MTS acquires 80% authorized capital of International Cell Holding Ltd. MTS purchases 74,9% of Gorky-8 Ltd.
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Sitronics sets up WiMAX network for telecommunication operator in the Kingdom of Bahrain. Project value is $10.2 million. Sitronics prices announced first ruble-denominated bond issue. Issuing size is RUB 3 billion for the term of 3 years. Sistema enters Indian market after acquiring 10% stake of Indian telecommunication operator Shyam Telelink. August 2007 Comstar UTS subsidiary is opened in St. Petersburg. Sochitelecomservice operator is purchased by Comstar UTS. Sistema acquires 20% of Dalcombank. July 2007 Sistema Telecom is incorporated into Sistema as a new division. June 2007 Sistema consolidates 100% of Medexpress network of medical centers. Sistema-Hals` Board of Directors is joined by 3 independent directors. Sistema-Hals approves an option program. MTS increases its share in Uzdunrobita, Uzbek mobile operator, up to 100%. May 2007 MTS acquires federal license allowing it to provide 3G services in Russia. American Hospital Group is purchased by Sistema. Sistema acquires 20% of Medexpress network of medical centers. Comstar founds a business-block Comstar International. April 2007 Sistema gains 2 positions in Svyazinvest Board of Directors.

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Golden Line of Comstar Direct is purchased by Comstar. Sistema increases its share in Sitronics up to 60%. Comstar acquires licenses to provide data transmission in 10 regions of Russia. March 2007 According to the valuation carried out by Cushman and Wakefield Stules & Riabokobylko the value of the Sistema-Hals stake in the property and projects increased by 35%. Sistema-Hals is included in the RUXX (Russian Industrial Leaders Index) database. Comstar acquires licenses to provide data transmission in 8 regions of Russia. Comstar sells its stake in alternative fixed-line telecommunications operator ZAO Metrocom. Sitronics and Chinese ZTE Corporation signs a Memorandum of Understanding for developing communication facilities and consumer electronics. MTS announces its decision to write off costs associated with the acquisition of a 51% stake in Bitel LLP, a Kyrgyzstan-based GSM mobile telephone operator. February 2007 Sistema completes the purchase of 0.48% of its own stock. Sitronics makes an IPO on LSE raising $400 million. The whole company is valued at $2.35 billion. S&P confirms BB- long-term corporate credit rating on Sistema and makes a forecast as positive. S&P assigns BB- long-term corporate credit rating to Comstar, with a positive forecast. Sistema sells 46.19% of ROSNO to Allianz. January 2007 Comstar obtaines licenses for IP Voice and Data transmission, including WiMAX services, in twenty largest regions in Russia Sistema-Hals signs a $187 million credit agreement with Eurohypo AG.

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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

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maximal returns to the company, and ensure long term competitive advantages and leadership in high tech spheres of economy. 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, Comstar UTS, 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 role in 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

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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 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 marcom analysis.

This Field Study was conducted on MTS, Jaipur 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:MANSAROVER, SANGANER, RAJA PARK, RAISER PLAZA, PRATAP NAGAR.

 Problem of distributor changing YES N0 67% 33%

DISTRIBUTOR PROBLEM
YES NO

33%

67%

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.  Response of the customer about MTS

FAVOURABLE

88%

UNFAVOURABLE

10%

CANT SAY

2%

CUSTOMER RESPONSE
100 90 80 70 60 50 40 30 20 10 0 FAVOURABLE UNFAVOURABLE CAN'T SAY

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3.Top three operators

GSM CDMA

AIRTEL, IDEA, RELIANCE RELIANCE, TATA, MTS

4.Monthly MTS connections sold Less than 10 10 20 20 30 30 40 40 50 50 60 60 70 More than 70 34 21 13 08 07 06 02 09

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MONTHLY CONNECTIONS SOLD

34

21 13 8 7 6 2 Less than 10 10 20 20 30 30 40 40 50 50 60 60 70 More than 70 9

5.Factors responsible for no.1 player in CDMA Low entry price Lowest tariff Support from company/distributor personal High visibility Any other 06% 07% 53% 15% 19%

FACTORS FOR NO.1 PLAYER IN CDMA

Low entry price Lowest tariff Support from company/distributor personal High visibility Any other 19% 6% 7%

15% 53%

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6.Media vechile appropriate to support sales YES NO 84% 16%

MEDIA VECHILE APPROPRIATE

YES NO

16%

84%

7.Push and Pull ratio of MTS PULL PUSH 91% 09%

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Push and Pull ratio of MTS

91%

9%

PULL

PUSH

8.Do you know about new SMS schemes YES NO 96% 04%

Knowing about SMS schemes

YES 4% NO

96%

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9.Factors responsible for selling MTS more from Push No print ad No radio ad Less outdoor Less pos materials Any other reason 00 00 01 03 05

10.Merchandiser come for Merchandising frequently YES NO 97% 03%

Merchandiser come for Merchandising frequently

100% 80% 60% YES, 97% 40% 20% 0% YES NO

NO, 3%

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11.Facing the problem of message delay YES No 56% 44%

Faci g t e pr
56%

le

essage elay

44%

YES

No

12.Satisfication with Merchandising job and the communication material that get displayed in your outlet YES NO 87% 13%

Satisficati wit Merc a u icati a t ec

NO 13%

isi g j aterial

YES 87%

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13. Problem of network while E-Rechrge YES NO 25% 75%

Problem of network while E-Rechrge

75%

25%

YES

NO

14. Any special comment or suggestion for MTS Refund of Claim Improvement in Service Do not change Distributor Schemes Supply Delay Replacement problem Network Improvement Reduce Cutting God one to sell Multimedia sets Low Commission Display Problem No Problem 07 06 04 08 05 07 09 03 10 08 10 03 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

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44

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  Unfavorable  Cant Say 4. Which are the top three operator in term of sales?  GSM _________________________________________________________  CDMA _________________________________________________________

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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. If MTS is not No.1 in CDMA, then why do you think No.1 player is holding this position?  Low entry price  Lowest tariff  Support from company/ Distributor personal  High visibility  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

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10 If sell of MTS connections are happening more from push, what do you think are the possible reasons of the same?  No Print Ad  No Radio Ad  Less Outdoor  Less POS Material  Any other reason (please specify) 11. Does Merchandiser come for merchandising frequently?  Yes  No 12. Do you face the problem of message delay?  Yes  No 13. Are you satisfied with merchandising job and the communication materials that get displayed in your outlet?  Yes  No 14. If no, what is the reason?  Creative is not appealing  Communication is not clear  Size of the poster is small  Any other (please specify) 15.Do you have the problem of network busy while E-Recharge from your mobile?  Yes  No 16. Any special comment or suggestion for MTS? ______________________________________________________________________________ ______________________________________________________________________________
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