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INDUSTRY PROFILE:

INDUSTRYOVERVIEW

1.1 Background

The Indian Telecommunications network is the third largest in the world and the secondlargest among the emerging economies of Asia. Today, it is the fastest growing market in

theworld. The telecommunication sector continued to register significant success during theyear and has emerged as one of the key sectors responsible for Indias resurgent Indiaseconomic growth

.1.1.1 G rowth

This rapid growth has been possible due to various proactive and positive decisions of theGovernment and contribution of both by the public and the private sector. The rapid

stridesin the telecom sector have been facilitated by liberal policies of the Government that

provideeasy market access for telecom equipment and a fair regulatory framework for offeringtelecom services to the Indian consumers at affordable prices.

1.1.2 Wi rel ine Vs Wi rele ss

It has also undergone a substantial change in terms of mobile versus fixed phones and public

versus private participation. The preference for use of wireless phones has also been predominant in the sector.

Participation of the private entities in the telecom sector is rapidly increasing rate there by

presenting the enormous growth opportunities. There is a clear distinction between theGlobal Satellite Mobile Communication (GSM) and Code Division Multiple Access

(CDMA)technologies used and the graph below shows the divide between the two.

1.2 Segment wise Statu s

1.2.1 Wi rel ine Serv ices

With increasing penetration of the wireless services, the wireline services in the countryis

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becoming stagnant.On the other hand, Broadband demand has picked up and promises to stabilise fixed linegrowth.

1.2.2 G SM S ector

In terms of the Global System for MobileCommunication (GSM) subscriber base thisnow places India third after China andRussia.China had 401.7 million GSMsubscribers

1.2.2 C DMA S erv ices

CDMA technology was introduced in India as a limited mobility solution. Theintroduction

of CDMA services has created competition, lowered tariffs and offered many citizensaccess

to communication services for the first time

1.2.3 Internet Serv ices

Internet services were launched in Indiaon August 15, 1995. In November 1998the government opened up the sector to

private operators. A liberal licensingregime was put in place to increaseInternet penetration across the country.The growth of IP telephony or greymarket is also a serious concern.

Government loses revenue, while unlicensed operation by certain operators violates thelaw

and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand

likely toincrease in coming years. The scope of services under existing ISP license conditions

are

unclear.

1.3 M anufacture of Telecom Eq uip ment

Rising demand for a wide range of telecom equipment, particularly in the area of mobiletelecommunication, has provided excellent opportunities to domestic and foreign

investorsin the manufacturing sector. The last two years saw many renowned telecom companies

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companies would divest 26 per cent of their equity in favour of Indian publicwithin 5 years, if these companies are listed in other parts of the world.

- The above services would be subject to licensing and security requirements,wherever required.

- Proposals for FDI beyond 49 per cent shall be considered by Foreign

Investment Promotion Board (FIPB) on a case-to-case basis. In the manufacturing sector 100 per cent FDI is permitted under the automaticroute.

In Basic, Cellular Mobile, paging and Value Added service, and Global MobilePersonal Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject to grant of license from Department of Telecommunications

Foreign direct investment up to 74 per cent permitted, subject to licensing andsecurity requirements for the Internet Service (with gateways), InfrastructureProviders (category-II), Radio Paging Service

FDI up to 100 per cent permitted in respect of - ISPs not providing gateways (both for satellite and submarine cables),- Infrastructure Providers providing dark fibre (IP Category I);- Electronic Mail; and- Voice Mail

FDI up to 49 per cent is also permitted in an investment company, set up for makinginvestment in the telecom companies licensed to operate telecomservices. Investment by these investment companies in a telecomservice company is treated as part of domestic equity and is not set of against the foreign equity cap.

Manufacturing - 100 per cent FDI is permitted under automatic route. FDI is subject to the following conditions FDI up to 100 per cent is allowed subject to the conditions that such companies

would divest 26 per cent of their equity in favour of Indian public in 5 years, if thesecompanies are listed in other parts of the world.

The above services would be subject to licensing and security requirements,Wherever required.

Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case basis

3. C OM P ETITION OVERVIEW

3.1 M ajor P layer s

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, IdeaCellular, BPL Mobile, Spice Communications)

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Bharat Sanchar Nigam Li m ited (BSNL)

Name Bharat Sanchar Nigam Limited (BSNL)

Year of Es tabl ishment 2000

C om p any P rof ile Bharat Sanchar Nigam Ltd. is World's 7th

largest Telecommunications Company

providing comprehensive range of telecom

services in India: Wireline, CDMA mobile,

GSM Mobile, Internet, Broadband, Carrier

service, MPLS-VPN, VSAT, VoIP services, IN

Services etc. Within a span of five years it has

become one of the largest public sector unit in

India.

It has a network of over 45 million lines

G lobal P re sence/ M arket ing

covering 5000

Network towns with over 35 million telephone

connections.

Acquisi t ion s / Strateg ic

Alliance s

Future P ro sp ect BSNL plans to expand its customer base from

present 47 millions lines to 125 million lines and

infrastructure

investment plan to the tune of Rs. 733 crores

(US$ 16.67 million) in the next three years.

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M ahanagar T ele phone Nigam Li mited (MTNL)

Name Mahanagar Telephone Nigam Limited (MTNL)

Year of Es tabl ishment 1986C om p any P rof ile MTNL was set up 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 India.s key

metros. MTNL with a market share of about

13% of the National telecom

Network has a customer base of 5.92 million.

The Govt. of

India currently holds 56.25% stake in the

company.

Acquisi t ion s / Strateg ic MTNL has formed a Joint Venture company in

Alliance s Nepal by the name of United Telecom Ltd.

(UTL) in collaboration with Telecom

Consultants India Limited (TCIL) in 2001 for

providing WLL based basic services in Nepal.

MTNL has set up its 100% subsidiary

.Mahanagar Telephone Mauritius Limited.

(MTML) in Mauritius, for providing basic,

mobile and international long distance

.

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Vi de sh Sanchar Nigam Li m ited (VSNL)

Name Videsh Sanchar Nigam Limited (VSNL)

Year of Es tabl ishment 1986C om p any P rof ile The Videsh Sanchar Nigam Limited (VSNL) - a

wholly Government owned corporation. 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.

G lobal P re sence/ M arket ing The company has 52 subsidiaries in 21 countries

Network as well as operations across four continents.

Acquisi t ion s / Strateg ic VSNL acquired Nasdaq-listed Teleglobe

Alliance s International Holdings Ltd for $239 million in

2005 Videsh Sanchar Nigam Ltd acquired Tyco

Global Network, submarine cable system, for

USD 130 million in 2005

Future P ro sp ect The company plans to expand its wholesale

voices services across the EU, to effectively

enable enterprise customers and retail voice

carriers to connect to India. VSNL is adding its

capacity to meet the overwhelming demand for

connectivity to India in the wholesale voice

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services domain. The company is also offering

flexible agreements and charging methods to

meet the growing demands of the wholesale

voice market

Bhart i a irtel

C om p any P rof ile 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 and the Infotel

group.

G lobal P re sence/ M arket ing The mobile business provides mobile & fixed

Network wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia

Services business offers

broadband & telephone services in 94 cities.

Acquisi t ion s / Strateg ic Bharti Telecom and British Telecom formed a

Alliance s 51%:49% joint venture, Bharti BT Internet for

providing Internet services, in 1998

Bharti Tele-Ventures acquired an effective

32.36% equity interest in Bharti Mobile

(formerly JT Mobiles), the cellular services

provider in Karnataka and Andhra Pradesh

circles in 1999

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Bharti Telesonic entered into a joint venture,

Bharti Aquanet, With SingTel for establishing a

submarine cable landing station at Chennai in

2001A 50:50 joint venture between Bharti and

SingTel, to undertake the largest infrastructure

project between Singapore and Indian

companies in 2001

Future P ro sp ect Bharti Airtel company is planning to set up

3000 more towers as part of enhancing their

rural coverage and will now focus on rural and

semi-urban areas

.

R eliance C ommun icat ion

Name Reliance Communications


C om p any P rof ile Reliance Telecom's cellular services are available

in 340 towns within its eight-circle footprint.

Reliance Infocomm also offered for the first

time in India, mobile data services though its R-

World mobile portal. This portal leverages the

data capability of the CDMA 1X network.

Reliance Infocomm offers a complete range of

telecom services covering mobile and fixed line

telephony including broadband, national and

international long distance services, data

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services and a wide range of value added

services and applications aimed at enhancing

productivity of enterprises and individuals.

Global

Pre sence/ M arket ing Reliance Communications has IP-enabled

Network connectivity infrastructure comprising over

150,000 kilometers of fiber-optic cable systems

in India, the US, Europe, Middle East, and the

Asia Pacific region.

Acquisi t ion s / Strateg ic International wholesale telecommunications

Alliance s service

provider, FLAG Telecom amalgamates with

Reliance Gateway, a wholly owned subsidiary of

Reliance Infocomm in 2004

Tata Tele serv ice s

Name Tata Teleservices


C om p any P rof ile 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 bouquet of

telephony services includes Mobile services,

Wireless Desktop Phones, Public Booth

Telephony and Wireline services. Other services

include value added services like voice portal,

roaming, post-paid Internet services, 3-way

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conferencing, group calling, Wi-Fi Internet,

USB Modem, data cards, calling card services

and enterprise services.

Global

Pre sence/ M arket ing Tata Teleservices has presence in across 19

Network circles that includes Andhra Pradesh, Chennai,

Gujarat, Karnataka, Delhi, Maharashtra,

Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan,

Punjab, Haryana, Himachal Pradesh, Uttar

Pradesh (E), Uttar Pradesh (W), Kerala,

Kolkata, Madhya Pradesh and West Bengal.

Acquisi t ion s / Strateg ic Tata Teleservices has acquired Hughes

Alliance s Tele.com (India) Limited [now renamed Tata

Teleservices (Maharashtra) Limited] in 2002

Future P ro sp ect 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.

Vodafone

Name Vodafone

Year of Es tabl ishment Acquired majority stake in Hutch Essar in India,

by buying

out complete stake of Hutch in 2007, Essar is

still minority

stakeholder in company

C om pany P rof ile Vodafone Essar in India is a subsidiary of

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Vodafone Group Plc and commenced

operations in 1994 when its predecessor

Hutchison Telecom acquired the cellular licence

for Mumbai. Vodafone Essar now hasoperations in 16 circles covering 86% of India's

mobile customer base, with over 45.78 million

customers. Vodafone Essar, under the Hutch

brand, has been named the 'Most Respected

Telecom Company', the 'Best Mobile Service in

the country'

and the 'Most Creative and Most Effective

Advertiser of

the Year'.

It has operations in 25 countries across 5

G lobal P re sence/

M arket ing

continents and 40

Network partner networks with over 200 million

customers

worldwide.

Acquisi t ion s / Strateg ic

Alliance s

Future P ro sp ect Vodafone Essar is expecting to touch over 35

million customers across 400,000 shops and

thousand of hutchs own employees along with

employees of its business associates.

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Idea

Name Idea

Year of Es tabl ishment 1995C om p any P rof ile Idea Cellular is part of the Aditya Birla Group,

which is India's first truly multinational

corporation. Aditya Birla Nuvo Ltd. holds 35.7

per cent, Birla TMT Holdings Ltd. 44.9 per

cent, Grasim 7.5 per cent, and Hindalco 10.1

per cent in Idea.

G lobal P re sence/ M arket ing Has a customer base of over 17 million, IDEA

Network Cellular has operations in Delhi, Maharashtra,

Goa, Gujarat, Andhra Pradesh, Madhya

Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-

West, Himachal Pradesh and Kerala.

Acquisi t ion s / Strateg ic Merged with Tata Cellular Limited in 2001,

Alliance s thereby acquiring original license for the Andhra

Pradesh Circle Acquired RPG Cellular Limited

and consequently the license for the Madhya

Pradesh (including Chattisgarh) Circlein 2001 In

2004 acquired Escotel, incumbent cellular

service provider in Haryana, UP(W) & Kerala

and new licensee in HP Acquired Escorts

Telecommunications Limited (subsequently

renamed as Idea Telecommunications Limited)

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in 2006 Merger of seven subsidiaries with Idea

Cellular Limited in 2007

Future P

ro sp ect

Idea also plans to enter rural and neglected

circles as a strategy to gain subscribers. Other

advancements in the telecom industry will help

it cut costs - use of e-mail to send bills to

customers; sharing cell sites; smaller base

transmission stations that will mean lesser

infrastructure requirements and expenses and

independent tower operators. Along with its

plan to go for a national long distance licence, it

will also look at international long distance in

the near future.

4. CH ALLEN G ES AND O PP ORTUNITIES

4.1 Opp ortun it ies

The telecom sector has been one of the fastest growing sectors in the Indian economy inthe

past 4 years. This has been witnessed due to strong competition that has brought downtariffs as well as simplification of policy environment that has promoted healthy

competitionamong various players..The mobile sector alone has been growing rapidly and has emerged as the fastest growingmarket in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA),

thissector is expected to reach a size of nearly 200 million subscribers by financial year 2008.The government has eased the rules regarding inter circle and intra circle mergers. This

hasled to a slew of mergers and acquisitions in the recent past. Also as the sector is moving

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closer to maturity, further consolidation is a reality and this will lead to the survival of more

profitable players in this segmentIn order to further promote the use of Internet in the country the government is taking

proactive steps to develop this sector with the help of the various players in this segment.

For this purpose, the use of broadband technology is being mooted and this will go a longway in improving the productivity of the Indian economy as well as turn out to be the

next big opportunity for telecom companies after the mobile communications segment Non-voice services and VAS are the gold mines. The big takeoff is expected with the

rolloutof 3G services in early 2007, once the spectrum issues are sorted out.Internet users base fast reaching near the English speaking population base. Local

languageand content required for further growthInfrastructure equipment cost is down to a fraction of what prevailed just a few years ago.Operators can plan better expansion plan nowIncreased viability for the operators to expand to semi-urban and rural markets, hence,accelerate growth further Its not without reason that India is tipped to be the worlds third-larges economy by

2050! No wonder if it happens much earlier

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

andlower GDP growth rates.At a time when global telecom majors are struggling to cope with their losses and the

rolloutof 3G networks, which has been a non-starter for close to a year now; India, with its

telecomsuccess story, represents an attractive and lucrative destination for investmen.

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COMPANY PROFILE

In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. WhenBirla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entitieswas a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and was later

branded as !dea.

Then Idea set sights on RPGs operations in Madhya Pradesh which was successfullyacquired, helping Batata have a million subscribers, and the licence to be the fourth operator in Delhi was clinched.

In 2004, Idea (the company had by then been rechristened) bought over the Escorts groupsEscotel gaining Haryana, Uttar Pradesh (West) and Kerala and licences for three more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indianswere on the companys network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. And Idea was leftonly with one promoter, the AV Birla group. When the companys stock listed on the boursesin March 2007, its subscriber base was 13 million with presence in 11 circles. In less thanthree years, the subscriber numbers have more than quadrupled. The public issue wasoversubscribed 50 times and raised Rs 2,450 crore.In June 2008, Idea Cellular bought out BK Modis stake in Spice Communications for Rs 2,700 crore adding Punjab and Karnatakacircles. Modis joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a14.99% stake in Idea. Just around then, Ideas subsidiary, Aditya Birla Telecom sold a 20%stake to US-based Providence Equity Partners for over Rs 2,000 crore.

In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When

Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entitieswas a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and was later

branded as !dea.

Then Idea set sights on RPGs operations in Madhya Pradesh which was successfullyacquired, helping Batata have a million subscribers, and the licence to be the fourth operator in Delhi was clinched.

In 2004, Idea (the company had by then been rechristened) bought over the Escorts groupsEscotel gaining Haryana, Uttar Pradesh (West) and Kerala and licences for three more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indianswere on the companys network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. And Idea was leftonly with one promoter, the AV Birla group. When the companys stock listed on the boursesin March 2007, its subscriber base was 13 million with presence in 11 circles. In less thanthree years, the subscriber numbers have more than quadrupled. The public issue wasoversubscribed 50 times and raised Rs 2,450 crore.In June 2008, Idea Cellular bought out BK Modis stake in Spice Communications for Rs 2,700 crore adding Punjab and Karnataka

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On 19 M 2010, t 3G spec t auc ti n in Ind ia ended. Idea pa id 5768.59 crores for spec trum in 11 c irc les. The c irc les it will prov ide 3G in are Andhra Pradesh, Gu jara t,Haryana, H imacha l Pradesh, Jammu & Kashm ir, Kera la, Madhya Pradesh, Maharash tra &Goa, Pun jab, U ttar Pradesh (Eas t and U ttar Pradesh (Wes t .[4]

On 28 March 2011, Idea launched 3G serv ices in Gu jara t, H imacha l Pradesh and MadhyaPradesh. [5] The launch c ities were Ahmedabad, Sh imla and Indore. Th is makes Idea the s i th pr ivate opera tor (e i hth overa ll to launch its 3G serv ices in the coun try fo llow ingTa taDocomo, R eliance Commun ica tions, A ir tel, A irce l and Vodafone.

Idea curren tly suppor ts up to 21.1 M bps over 2G speeds of 256 Kbps. However, d ifferen t handse ts suppor t differen t speeds, from 384 Kbps, 3.6 M bps, 7.2 M bps or 21.1 M bps. Speedsalso depend on the 3G p lan /recharge that users op t for. [6]

The opera tor announced that IDEA 3G serv ices w ill be ava ilab le in 200 towns of 11 3Gcirc les by m id-Apr il 2011, progress ively grow ing a t the ra te of ten towns per day to cover 750 towns by m id-2011 and 4000 towns by the end of 2012.

[ed it] G Cov erage

Ideas 3G serv ice is curren tly ava ilab le in the fo llow ing c ities in 11 telecom c irc les: Source : [1]

T elecom Ci rc le S ta te/R eg ion No of Town

Citi es/Town s

Andhra Pradesh Andhra Pradesh 0

Gu jara t Gu jara t 2 Ahmedabad, Daman

Haryana Haryana 8Amba la, Bhiwan i, Hans i, H isar, Jha jjar,Pan i pa t, R ewar i, R oh tak

Himacha l Pradesh

Himacha l Pradesh 5Sh imla, Badd i, Mand i, Sundernagar,Dharamsha la

Jammu &Kashm ir

Jammu &Kashm ir

0

Madhya PradeshMadhya Pradesh 3 Indore, Bhopa l, Gwa lior

Chha ttisgarh 0

Maharash tra andGoa

Maharash tra 3 Nagpur, Nash ik, PuneGoa 3 Ponda, Pana ji, Margao

Pun jab Pun jab 0

De lhi Delhi 1 De lhi

Ko lkata Ko lkata 1 Ko lkata

Uttar Pradesh Eas tern U ttar 6 A llahabad, Azamgarh, Jhans i, Kanpur,

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(East) Pradesh Lucknow, Sitapur

Excluding MumbaiSub scr iber ba se

Idea's subscriber base as at the end of January 2011 according to the [2] is as follows

y Maharashtra and Goa - 12,075,220y Madhya Pradesh and Chhattisgarh - 8,401,422y Andhra Pradesh - 7,831,260y Kerala - 6,398,170y Kolkata -10,001,804y Gujarat - 6,632,034y Uttar Pradesh (West) & Uttarakhand - 7,361,534y Delhi - 3,609,746y Haryana - 2,847,079y Uttar Pradesh (East) - 4,935,224y Rajasthan - 2,823,910y Himachal Pradesh - 479,882y Mumbai - 1,822,280y Bihar & Jharkhand - 4,280,626y Tamil Nadu & Chennai - 1,202,343y Orissa - 985,737y Punjab (Spice) - 4,160,189y Karnataka (Spice) - 3,775,443y West Bengal - 1,728,308y Assam - 206,140y Jammu & Kashmir - 93,072y North East India except Assam - 128,807

Totalling to 8 4,2 89 ,641 or 10.9 3% (Approx.) of the total mobile connections in India.

C om pet itor s

Idea competes with 14 other mobile operators throughout India. They are Aircel, AirtelCheers Mobile, BSNL, Loop Mobile, MTNL, MTS, Ping Mobile, Reliance Communications,S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon, Virgin Mobile and Vodafone.

H istory - I dea C ellular

We were incorporated as Birla Communications Limited on March 14, 1995 and granted a certificate of commencement of business on August 11, 1995. Our registered office was in Mumbai, Maharashtra.

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Our name was changed to Birla AT&T Communications Limited on May 30, 1996following the executionof a joint venture agreement dated December 5,1995 between AT&T Corporation and Grasim IndustrieSLimited pursuant to which the Aditya Birla Group held 51% of our Equity Share capital and AWS Groupheld 49% of our Equity Share capital. Our registered office was transferred from Industry House,

1st Floor, 159 Church Gate Reclamation, Mumbai 400 020, Maharashtra to SumanTower, Plot No. 18,

Sector 11, Gandhinagar 382011 Gujarat on October 22, 1996.With effect from January 1, 2001 following our merger with Tata Cellular Limited the joint venture agreement

between AT&T Corporation and Grasim Industries Limited dated December 5, 1995 was replaced bya shareholders agreement dated December 15, 2000 entered into between Grasim Industries Limited

on behalf of the Aditya Birla Group, Tata Industries Limited on behalf of the Tata Group and AT&TWireless Services Inc.on behalf of the AWS Group following which our name was changed to Birla

Tata AT&T Limited on November 6, 2001. Consequent to the introduction of the Idea brand,our name was changed to Idea Cellular Limited on May 1, 2002.The AWS Group exited from the Company on September 28, 2005 by selling 371,780,740 Equity Sharesof the Company, which constituted 50% of the holding of AT&T Cellular Private Limited in our equity sharecapital, to ABNL and by transferring the remaining 371,780,750 Equity Shares to Tata Industries Limited.The Tata Group ceased to be a shareholder of the Company on June 20,2006 when Tata Industries Limitedand Apex Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular PrivateLimited) sold all their shares in the Company to the Aditya BirlaGroup.

On October 26, 2006, P5 Asia Investments (Mauritius) Limited (P5Asia) acquired 14.60% of our EquityShare capital. Under a Governance and Exit Rights Agreement dated October 23, 2006 between P5 Asia,ABNL and Birla TMT, so long as an initial public offering has notoccurred and P5 Asia holds no less than10% of our Equity Shares,ABNL and Birla TMT are required to procure that(a) our Company and its Subsidiaries shall not take or pursue any of the following actions without P5 Asia

s prior consent(such consent to be obtained in a board and/or shareholders resolution) including inrespect of:

(i) any merger with, acquisition of, or amalgamation or consolidation with another company or business;(ii) assuming or permitting to exist any borrowings or indebtedness in the nature of borrowings if theamount of all such borrowings of our Company and its Subsidiarieswould exceed Rs. 6,800 million(iii) entering into a new line of business.(iv) increasing our authorized or issued share capital; or (v) entering into a joint venture and

(b) our Company makes available to P5 Asia certain financial information relating to our Company andits Subsidiaries such as monthly management accounts, quarterly unconsolidated balance sheet and profit

and loss account and the annual audited consolidated balance sheets and profit and loss accounts.P5 Asia also has a right to appoint one director to our Board so long as it holds at least 10% of our totalissued and outstanding Equity Shares. Mr. Biswajit Subramanian has been appointed to our Board by P5Asia pursuant to the exercise of the above right. In addition, any IPO of our Equity Shares requires P5Asias written consent, and, further, in any such IPO, P5 Asia hasthe right to offer for sale such number

of Equity Shares representing up to 10% of the total Equity Shares which are held by it. By itsletters datedDecember 2, 2006 to ABNL and Birla TMT, P5 Asia hasgiven its written consent for the Issue and has

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confirmed that it does not intend to offer for sale any of the Equity Shares held by it in such Issue.

We, either directly or through our Subsidiaries, provide mobile services in the Andhra Pradesh, Delhi,Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra and Uttar Pradesh (West) Circles, and haverecently launched services and as such are in the process of fully rolling-out our network in the Uttar

Pradesh (East), Rajasthan and Himachal Pradesh Circles pursuant to licenses issued by the DoT.

MAJOR EVENTS

The chronology of key events of the Company from incorporation is setout below:

1995:

Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based servicesin the Gujarat and Maharashtra Circles following the original GSM license bidding process

1996:

Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industriesand AT&T Corporation

1997:

Commenced operations in the Gujarat and Maharashtra Circles

1999:

Migrated to revenues share license fee regime under New Telecommunications Policy (NTP)

2000:

Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle

2001:

Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh)Circle Changed name to Birla Tata AT&T Limited

2001:

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Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSMlicense bidding process

2002:

Changed name to Idea Cellular Limited and launched Idea brand name. Commenced commercial operations in Delhi Circle. Reached the one million subscriber mark

2003:

Reached the two million subscriber mark

2004:

Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle.Acquired Escotel Mobile Communications Limited (subsequently renamedas Idea Mobile CommunicationsLimited)Reached the four million subscriber mark First operator in India to commercially launch EDGE services

2005:

-Reached the five million subscriber mark

-Turned profit positive

-Won an award for the Bill Flash service at the GSM Association Awards in Barcelona, SpainSponsored the International Indian Film Academy Awards

-Sponsored the International Indian Film Academy Awards

2006:

-Became part of the Aditya Birla Group subsequent to the TATA Group

transferring its entire shareholding in the Company to the AdityaBirla Group

-Acquired Escorts Telecommunications Limited (subsequently renamed asIdea Telecommunications Limited)

-Restructuring of debt

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-Launch of the New Circles

-Reached the 10 million subscriber mark

-Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.

-Received Letter of Intent from the DoT for a new UAS License for the Bihar

-Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya

-Birla Telecom Limited, pursuant to a letter dated November 22, 2006,agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the

consideration of Rs. 100 million.

2007

-Won an award for the CARE service in the Best Billing or CustomerCare Solution at the GSM AssociationAwards in Barcelona, Spain-Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the Bombay Stock

Exchange and theNational Stock Exchange-Merger of seven subsidiaries with Idea Cellular Limited-Reached the twenty million subscriber mark

2008

- Idea Cellular Ltd has informed that the Board of Directors of theCompany at its meeting held onOctober 20, 2008, inter alia, has appointed the following persons as Directors on the Board of theCompany:

1. Mr. R C Bhargava - Independent Director (Additional Director)

2. Mr. P Murari - Independent Director - (Additional Director)

3. Dr. Hans Wijayasuriya - Non Executive Director (Nominee of TM International Bhd).

-Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa, Kolkata,Assam, North East and Jammu &Kashmir -Acquired Spice Communications with the operating circles of Punjab and Karnataka-Launched services in Mumbai metro in the largest single metro city launch, ever -Launched services in Bihar 2009-Subscriber base as on December 31, 2009: 57,611,872

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-Idea becomes a pan-India operator -Emerging Company of the Year - fastest growing mobile operator inthe worlds fastest growing telecom market

Award and achievement

The company has its retail outlets under the "My Idea" banner. The company has also beenthe first to offer flexible tariff plans for prepaid customer . It also offers GPRS services inurban areas

Idea Cellular won the GSM Association Award for "Best Billing and Customer CareSolution" for 2 consecutive years.

IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the

Telecom sector, at the prestigious Avaya GlobalConnect Customer Responsiveness Awards2011.

Vision:

One of the most common Vision statements Ive come across is to be the most profitablecompany or to be the #1 in the category.

MissionOur circles

The Indian telecommunications market for mobile services is divided into 23 Circles.There are four metropolitan Circles, covering the cities of Mumbai, Delhi, Kolkata andChennai, and 19 Circles classified by theGovernment as category A, category B or category C, which cover the rest of India. These classifications are based principally on aCircles revenue generating potential, with metropolitan and category A Circles having thehighest revenue potential.Established Circles

We operate in the metropolitan Circle of Delhi, the category A Circles of AndhraPradesh, Gujarat and Maharashtra, and the category B Circles of Haryana,Kerala, Madhya Pradesh and Uttar Pradesh (West).

Licenses for the Maharashtra and Gujarat Circles were awarded to us inDecember 1995, with network rollout and commercial launch achieved in 1997.Subsequently, in January 2000, we merged with Tata Cellular Limited, the mobile operator inthe Andhra Pradesh Circle, and integrated its operations into ours byJanuary 2001. InFebruary 2001, we acquired RPG Cellcom Limited, the mobile operator in the MadhyaPradesh Circle, with full integration of this Circle withours achieved by June 2001. We acquired the license for the Delhi Circle during the fourthmobile license auction in October 2001, with network rollout and

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Director Sanjeev Aga 79,430,000.00Director Arun Thiagarajan 130,000.00Director Tarjani Vakil 140,000.00Director Mohan Gyani -Director Biswajit Anna Subramanian 80,000.00Director Gian Prakash Gupta 110,000.00Company Secretary Pankaj Kapdeo -Director R C Bhargava 20,000.00Director P Murari 40,000.00Director Rakesh Jain 80,000.00

Nominee Juan Villalonga Navarro -Alternate Director Shridhir Sariputta Hansa Wijayasuriya 90,000.00

Idea C ellular L td

Indu stry :T elecommun icat ion s - S erv ice P rov ider

(Rs in Crs)

Subsidiary Name Carlos Tower Ltd

Year Mar 10 No Of Shares 50000Face Value (Unit Curr.) 10Investment Cost 0.05Holding (%) 100.00Subsidiary's Year end 201003

NP in Holding Co a/cs (PY) 0.00 NP not in Holding Co a/cs (PY) 0.00 NP in Holding Co a/cs (CY) 0.00

NP not in Holding Co a/cs (CY) -0.01Equity Subscribed 0.05Subsidiary 's Reserves -0.01Fixed Assets 0.00

Net Current Assets 0.00Sales Turnover 0.00Profit After Tax -0.01Product1 -Product2 -

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Fi nanc ial analy sis

Company at a Glance

Idea C

ellular L td

Indu stry :T elecommun icat ion s - S erv ice P rov ider (Rs in Crs)

Financ ial P erformance

Year E nd M ar 10

M ar 09

M ar 08

M ar 07

M ar 06

Equity3,299.84

3,100.10

2,635.36

2,592.86

2,259.53

Networth11,457.23

11,294.42

3,542.27

2,179.15

685.53

EnterpriseValue

27,843.42

20,781.93

33,096.03

26,946.27

0.00

CapitalEmployed

17,983.64

18,873.78

10,057.03

6,429.66

4,084.13

Gross Block 22,834.40

15,562.75

13,204.30

9,202.58

4,650.92

Sales11,850.24

9,857.08

6,719.99

4,366.40

2,007.07

Other Income 587.38 477.37 199.05 46.13 13.84

PBIDT3,283.64

3,248.02

2,462.58

1,521.84

735.16

PBDT2,719.93

2,329.72

1,993.62

1,180.86

476.04

PBIT1,732.44

2,005.16

1,585.82

850.04387.62

PBT 1,168. 1,086. 1,116. 509.06 128.5

L ate st R esult s (Rs C r )

P er iod -E nded

Jun 11 Jun 10 Var [%

Sales4,479.68

3,626.41

23.53

Other Income 0.00 0.00 0.00

PBIDT1,016.91

747.7036.01

PBDT 810.73 671.2320.78

PBIT 420.85 282.67 48.88

PBT 214.67 206.20 4.11

RPAT 149.73 201.64-25.74

EPAT 0.00 0.00 0.00

APAT 149.73 201.64 -25.74

CP 745.79 666.6711.87

Sharehold ing P attern

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ROCE (%) 9.20

RONW (%) 8.95

EV/EBIDTA 8.48

R ate of G rowth (%)

Net Worth 1.44

Sales 20.22

PAT 5.24

M Cap 38.92

ShareHolding Pattern

Idea C

ellular L td

Indu stry :T elecommun icat ion s - S erv ice P rov ider Top of Form

Ownership Pattern as on 30-06-2011 No of Shares

% ShareHolding

ShareHolder

DematShare

Foreign (Promoter & Group) 0 0.0000 0 0Indian (Promoter & Group) 1520679047 46.0288 5 1520679047Total of Promoter 1520679047 46.0288 5 1520679047

Non Promoter (Institution) 598701815 18.1218 285 598701815 Non Promoter (Non-Institution) 1184375794 35.8494 365961 1184361116Total Non Promoter 1783077609 53.9712 366246 1783062931Total Promoter & Non Promoter 3303756656 100.0000 366251 3303741978Custodians(Against Depository Receipts) 0 0.0000 0 0Grand Total 3303756656 100.0000 366251 3303741978

Fund Holding

Idea C ellular L td

Indu stry :T elecommun icat ion s - S erv ice P rov ider Fund Mkt

ValueJun2011

MktValueMay2011

Change inValue

%Change

No of SharesJun 2011

No of SharesMay2011

Changein

No of Shares

%Change

Benchmar k MutualFund

0.23 0.60 -0.37 -61.67 28463 87742 -59279 -67.56

Birla SunLife

5.76 8.30 -2.54 -30.60 722482 1229064 -506582 -41.22

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MutualFundBNPParibasMutualFund

0.61 0.00 0.61 - 76589 0 76589 -

CanaraRobecoMutualFund

3.53 2.93 0.60 20.48 450000 433614 16386 3.78

DSPBlackRock MutualFund

32.28 24.03 8.25 34.33 4047322 3511278 536044 15.27

EdelweissMutualFund

0.00 0.71 -0.71 - 0 104769 -104769 -

FranklinTempletonMutualFund

286.31

205.40

80.91 39.39 35912959

30010471

5902488

19.67

ICICIPrudentialMutualFund

52.28 70.22 -17.94 -25.55 6554982 10402857

-3847875

-36.99

Kotak MahindraMutualFund

1.20 1.03 0.17 16.50 150000 150445 -445 -0.30

L&TMutualFund

0.00 0.35 -0.35 - 0 50650 -50650 -

LIC NOMURAMutualFund

2.49 2.14 0.35 16.36 312500 312500 0 0.00

MiraeAssetMutualFund

3.51 3.09 0.42 13.59 440549 451306 -10757 -2.38

SBIMutualFund

28.30 0.00 28.30 - 3548562 0 3548562

-

SundaramMutualFund

69.02 32.74 36.28 110.81 8654970 4783052 3871918

80.95

TataMutualFund

2.89 2.65 0.24 9.06 388996 389003 -7 -0.00

Taurus 1.05 0.00 1.05 - 131170 0 131170 -

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MutualFundUTIMutualFund

0.00 5.40 -5.40 - 0 800000 -800000 -

Financial Overview

Idea C ellular L td


201003

Equity Paid Up 3299.84 Networth Capital Employed 17983.64Gross Block 22834.4

Net Working Capital ( Incl. Def. Tax) -161.13Current Assets ( Incl. Def. Tax) 4290.4Current Liabilities and Provisions ( Incl. Def. Tax) 4451.53Total Assets/Liabilities (excl Reval & W.off) 22435.17Gross Sales 11850.24

Net Sales Other Income 587.38

Value Of Output 11850.24Cost of Production 9109.77Selling Cost 406.69PBIDT 3283.64PBDT 2719.93PBIT 1732.44PBT 1168.73PAT 1053.66CP 2604.86Revenue earnings in forex 71.27Revenue expenses in forex 74.73Capital earnings in forex 0Capital expenses in forex 2025.21Book Value (Unit Curr) 34.59Market Capitalisation 21597.45CEPS (annualised) (Unit Curr) 7.89EPS (annualised) (Unit Curr) 3.19Dividend (annualised%) 0Payout (%) 0Cash Flow From Operating Activities 1985.13

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Cash Flow From Investing Activit ies -1518.55Cash Flow From Financing Activities -2530.57Rate of Growth (%)ROG-Net Worth (%) 1.44ROG-Capital Employed (%) -4.72ROG-Gross Block (%) 46.72ROG-Gross Sales (%) 20.22ROG-Net Sales (%) 20.22ROG-Cost of Production (%) 29.97ROG-Total Assets (%) -0.15ROG-PBIDT (%) 1.1ROG-PBDT (%) 16.75ROG-PBIT (%) -13.6ROG-PBT (%) 7.53ROG-PAT (%) 5.24ROG-CP (%) 16.08ROG-Revenue earnings in forex (%) 3.8

ROG-Revenue expenses in forex (%) 23.54ROG-Market Capitalisation (%) 38.92Key RatiosDebt-Equity Ratio 0.62Long Term Debt-Equity Ratio 0.55Current Ratio 0.97Turnover RatiosFixed Assets Ratio 0.62Inventory Ratio 265.02Debtors Ratio 31.2Interest Cover Ratio 3.07

PBIDTM (%) 27.71PBITM (%) 14.62PBDTM (%) 22.95CPM (%) 21.98APATM (%) 8.89ROCE (%) 9.2RONW (%) 8.95Debtors Velocity (Days) 12Creditors Velocity (Days) 86Assets Utilisation Ratio (times)Value of Output/Total Assets 0.53Value of Output/Gross Block 0.62

Segment Finance

Idea C ellular L td


Top of Form

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Particulars 201003(12)

200903(12)

200803(12)

200703(12)

REVENUERevenue from Operations 11850.24 9857.08 6719.99 4387.33Less/Add : Inter Segment Revenues 1231.64 734.02 353.67 77.9Total Segment Revenue 13081.88 10591.1 7073.66 4465.23Add : Other Unallocable Income/Exp. -1231.64 -734.02 -353.67 -77.9Other Income 0 0 0 0

Net Revenue from Operations 11850.24 9857.08 6719.99 4387.33

RESULTProfit/Loss Before Interest & Tax 1340.44 1537.59 1394.5 814.16Less : Interest Expense 206.32 450.73 277.64 305.11Other Un-allocable Expenditure 0 0 0 0Add : Other Income 34.61 0 0 0Extra-Ordinary Income/Expense 0 0 0 0

Net Profit/Loss Before Tax 1168.73 1086.86 1116.86 509.05

Income Tax 0 0 0 5.94Deferred Tax 115.07 76.35 65.13 1.05

Net Profit 1053.66 1001.21 1044.36 502.06

OTHER INFORMATIONSegment Assets 19755.31 14901.48 11894.13 6857.28Unallocated Corporate Assets 2271.36 7335.88 858.32 1725.41Total Assets 22026.67 22237.36 12752.45 8582.69

Segment Liabilities 13013.74 10318.7 9251.74 6423.39Unallocated Corporate Liabilities -2444.31 624.25 -45.31 -19.85Total Liabilities 10569.43 10942.95 9206.43 6403.54

Net Assets 11457.24 11294.41 3546.02 2179.15

Capital Expenditure 3014.62 4800.63 5402.31 2797.62Unallocated Capital Expenditure 0 0 0 0Total Capital Expenditure 3014.62 4800.63 5402.31 2797.62

Depreciation/Amortisation 1551.2 1242.86 876.76 671.81Unallocated Depn/Amortn. 0 0 0 0Total Depreciation/Amortisation 1551.2 1242.86 876.76 671.81

Non Cash Expenditure 0 0 0 0Unallocated Non-Cash Exp. 0 0 0 0Total Non Cash Expenditure 0 0 0 0

Fund Flow

Idea C ellular L td

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Total Adjustments (PBT & Extraordinary Items) 1882.35Op. Profit before Working Capital Changes 2936Adjustment For Trade & 0th receivables -88.95Inventories 0.11Trade Payables 124.39Loans & Advances -770.88Investments 0

Net Stock on Hire 0Leased Assets Net of Sale 0Trade Bill(s) Purchased 0Change in Borrowing 0Change in Deposits 0Others -14.87Total (OP before Working Capital Changes) -750.2Cash Generated from/(used in) Operations 2185.8Interest Paid(Net) 0

Direct Taxes Paid -200.67Advance Tax Paid 0Others 0Total-others -200.67Cash Flow before Extraordinary Items 1985.13Extraordinary ItemsExcess Depreciation W/b 0Premium on Lease of land 0Payment Towards VRS 0Prior Year 's Taxation 0Gain on Forex Exch. Tran 0Others 0

Net Cash Used in Investing Activit ies -1518.55Cash Flow from Investing ActivitiesInvestment in Assets :Purchased of Fixed Assets -3384.32Sale of Fixed Assets 8.31capital WIP 0Capital Subsidy Recd 0Financial/Capital Investment :Purchase of Investments 0Sale of Investments 1014.87Investment Income 0Interest Received 265.2Dividend Received 0Invest.In Subsidiaires 0Loans to Subsidiaires 0Investment in Group Cos 0Issue of Sh. on Acqu. of Cos 0Canc. of Invest. in Cos Acq. 0Acquisition of Companies 0

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Employee Cost 563.78Other Manufacturing Expenses 6,012.05

Selling and Administration Expenses 1,390.15Miscellaneous Expenses 219.09

Less: Pre-operative Expenses Capitalised 0.00Total Expenditure 9,153.98Operating Profit 3,283.64Interest 563.71Gross Profit 2,719.93Depreciation 1,551.20Profit Before Tax 1,168.73Tax 0.00

Fringe Benefit tax 0.00Deferred Tax 115.07Reported Net Profit 1,053.66Extraordinary Items 61.41Adjusted Net Profit 992.25

Adjst. below Net Profit -1,529.21P & L Balance brought forward -405.28Statutory Appropriations 0.00

Appropriations -484.46P & L Balance carried down -396.37Dividend 0.00Preference Dividend 0.00Equity Dividend % 0.00Earnings Per Share-Unit Curr 3.19Earnings Per Share(Adj)-Unit Curr

Book Value-Unit Curr 34.59

BS Consolidated

Idea C ellular L td


Year Mar 10SOUR C ES OF FUNDS :

Share Capital 3,301.76Reserves Total 8,026.15Equity Share Warrants 0.00Equity Application Money 44.45

Total Shareholder s F und s 11,372.36 Minority Interest 0.00

Secured Loans 7,316.62Unsecured Loans 542.68Total Debt 7,859 .30

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Total Li ab ilit ies 19 ,231.66 APP LI C ATION OF FUNDS :

Gross Block 27,064.66Less: Accumulated Depreciation 8,890.68

Net Block 18,173.98Lease Adjustment 0.00

Capital Work in Progress 546.47Investments 1,130.37Current Assets, Loans & Advances

Inventories 53.64Sundry Debtors 465.56

Cash and Bank 289.99Loans and Advances 2,853.83Total Current Assets 3,663.02Less : Current Liabilities and ProvisionsCurrent Liabilities 3,844.72

Provisions 223.26

Total Current Liabilities 4,067.98 Net Current Assets -404.96Miscellaneous Expenses not written off 0.00Deferred Tax Assets 479.26Deferred Tax Liability 693.46

Net Deferred Tax -214.20Total Ass et s 19 ,231.66

Contingent Liabilities 3,012.71

Key Financial Ratios

Idea C ellular L td


Mar 10Key RatiosDebt-Equity Ratio 0.62Long Term Debt-Equity Ratio 0.55Current Ratio 0.97

Turnover RatiosFixed Assets 0.62Inventory 265.02Debtors 31.20Interest Cover Ratio 3.07PBIDTM (%) 27.71PBITM (%) 14.62PBDTM (%) 22.95

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CPM (%) 21.98APATM (%) 8.89ROCE (%) 9.20RONW (%) 8.95

Valuation Ratios

Idea C ellular L td


Mar 10Price Earning (P/E) 20.52Price to Book Value ( P/BV) 1.89Price/Cash EPS (P/CEPS) 8.29EV/EBIDTA 8.48Market Cap/Sales 1.82

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SWOT ANALYSIS

Strength sD I dea cellular has more than 65 million customers (July 2008). It is the largest cellular

provider in India, and also supplies broadband and telephone services - as well asmany other telecommunications services to both domestic and corporate customers.

D Other stakeholders in Idea cellular include Sony-Ericsson, Nokia - and Sing Tel, withwhom they hold a strategic alliance. This means that the business has access to knowledgeand technology from other parts of the telecommunications world.

D The company has covered the entire Indian nation with its network. This hasunderpinned its large and rising customer base.

Weakne ssesD An often cited original weakness is that when the business was started by adithya birla

over 15 years ago, the business has little knowledge and experience of how a cellular

telephone system actually worked. So the start-up business had to outsource toindustry experts in the field.

D Until recently Idea did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.

D The fact that the Idea has not pulled off a deal with South Africa's MTN could signalthe lack of any real emerging market investment opportunity for the business once theIndian market has become mature.

Opp ortun it iesD The company possesses a customized version of the Google search engine which will

enhance broadband services to customers. The tie-up with Google can only enhancethe Idea brand, and also provides advertising opportunities in Indian for Google.

D Global telecommunications and new technology brands see Idea as a key strategic player in the Indian market. The new iPhone will be launched in India via an Ideadistributorship. Another strategic partnership is held with BlackBerry WirelessSolutions.

D Despite being forced to outsource much of its technical operations in the early days,this allowed Idea to work from its own blank sheet of paper, and to question industryapproaches and practices - for example replacing the Revenue-Per-Customer modelwith a Revenue-Per-Minute model which is better suited to India, as the companymoved into small and remote villages and towns.

D The company is investing in its operation in 120,000 to 160,000 small villages everyyear. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its'Matchbox' strategy.

D Idea cellular is embarking on another joint venture with Vodafone Essar and IdeaCellular to create a new independent tower company called Indus Towers. This new

business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

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T hreat sD Idea and Vodafone seem to be having an on/off relationship. Vodafone which owned a

5.6% stake in the Idea business sold it back to Idea, and instead invested in its rivalHutchison Essar. Knowledge and technology previously available to Idea now movesinto the hands of one of its competitors.

D The quickly changing pace of the global telecommunications industry could temptIdea to go along the acquisition trail which may make it vulnerable if the world goesinto recession. Perhaps this was an impact upon the decision not to proceed with talksabout the potential purchase of South Africa's MTN in May 2008. This opened thedoor for talks between Reliance Communication's Anil Ambani and MTN, allowing acompeting Inidan industrialist to invest in the new emerging Africantelecommunications market.

D Idea cellular could also be the target for the takeover vision of other globaltelecommunications players that wish to move into the Indian market.

Idea comes to you from Idea cellular Limited, India's largest integrated and the first privatetelecom services provider with a footprint in all the 23 telecom circles. Idea cellular since its

inception has been at the forefront of technology and has steered the course of the telecomsector in the country with its world class products and services. The businesses at Ideacellular have been structured into three individual strategic business units (SBU's) - MobileServices, Idea Telemedia Services & Enterprise Services.

idea project

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