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Business Plan For TeleTouch Ltd (2010-2011)
CONTENT
Board of director............................................................................................................................6
EXECUTIVE SUMMARY............................................................................................................7
THE TELETOUCH WAY.............................................................................................................8
Sales Force Development..............................................................................16
Teletouch Ltd Business Plan for the Financial Year 2010 to 2011.................18
FUND REQUIREMENT OF INDIVIDUAL DEPARTMENT......................................19
TELETOUCH COMMITMENT TO CSR...............................................................21
OCCUPATIONAL SAFETY AND THE ENVIRONMENT.........................................22
THE COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY ..........................23
.....................................................................................................................23
Strategic Planning Department...................................................................................................24
Components of business Environment..........................................................25
Strategy planning..........................................................................................33
Competition with privatization:-....................................................................46
ONE YEAR EXPANTION PLAN.........................................................................56
SWOT ANALYSIS............................................................................................58
Operation Department.................................................................................................................60
Service providers..........................................................................................64
Customer service centre...............................................................................64
CUSTOMER CARE...........................................................................................66
NETWORK COVERAGE...................................................................................67
NETWORK TRAFFIC........................................................................................68
PROCUREMENT OF TECHNOLOGY, HARDWARE AND NETWORK....................70
TECHNOLOGY WHICH IS BEING PROVIDED BY TELETOUCH...........................70
PROCUREMENT OF WIRE LESS HARD WARES................................................72
SIM AND PHONE REQUIRENMENT..................................................................77
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VALUE ADDITION...........................................................................................81
SUPPLY CHAIN MANAGEMENT.......................................................................82
DISTRIBUTION CHART....................................................................................83
We are procuring wireless hardware equipment from Cisco System, ..........83
COST DETAILS OF THE CDMA PHONES WHICH WILL BE PROCURE BY

OPERATION DEPARTMENT.............................................................................85
INVENTORY MANAGEMENT............................................................................98
How the government policies are helping to the telecom Industry in South
Africa...........................................................................................................105
PESTLE ANALYSIS........................................................................................111
Finance Department...................................................................................................................115
Income tax.................................................................................................. 121
Tax Planning................................................................................................125
IDENTIFICATION OF THE TOTAL FUND REQUIREMENT, BROKEN UP INTO

NEEDS OF EACH INDIVIDUAL DEPARTMENT................................................127
We have Balance sheet of TeleTouch Ltd for the year ended 2009-2010. . .149
BALANCE SHEET FOR THE YEAR ENDING 2010-2011..................................155
Marketing Department..............................................................................................................156
Sales Expenditure.......................................................................................159
BUSINESS PLAN...........................................................................................161
Technology..................................................................................................169
TeleTouch sim offer.....................................................................................177
RECHARGE COUPONS..................................................................................187
TELE TOUCH SERVICES................................................................................189
Tele touch calling cost.................................................................................194
International calls........................................................................................197
In House Department.................................................................................................................205
The cost of web design in South Africa.......................................................211
Out door event in South Africa....................................................................215
2
There are some Public Holidays and Nationwide Events in South Africa that
people of South Africa celebrate in a social manner so we have option to
promote product by it as a outdoor event. South Africans love public
holidays; they celebrate their constitution, landmarks in political history and
even a few cultural pastimes (like National Braai Day ... yes, they take a
whole day off work to celebrate their braai / BBQ culture). See the list below
of the public holidays in South Africa as well as nationwide events, which
could affect our outdoor plans....................................................................215
2. New Year's Day .............................................217
4. Christmas Day.........................................................................................218
Friday, 25 December 2009..........................................................................218
5. Family Day..............................................................................................218
Monday, 13 April 2009................................................................................218
6. Freedom Day...........................................................................................218
Monday, 27 April 2009................................................................................218
7. Public Holiday..........................................................................................218
Monday, 10 August 2009............................................................................218
8. Day of Goodwill ......................................................................................218
Saturday, 26 December 2009.....................................................................218
Value Chain Analysis :- ...............................................................................237
Legal rule and regulation for the advertising in South Africa......................239
HR Department..........................................................................................................................264
PERFORMANCE APPRAISAL PRACTICE.........................................................272
Training Need arises at three levels............................................................277
Training Courses and Programs.................................................................281
TRAINING REQUIRED IN DIFFERENT DEPARTMRNT WISE EMPLOYEES.........287
HR CHALLENGES IN RECRUITMENT.............................................................293
Voluntary termination.................................................................................302
Involuntary termination...............................................................................303
Termination by mutual agreement..............................................................304
Sales Department........................................................................................................................306
3
POPULATION ESTIMATES FOR ALL NINE PROVINCES ARE:...........................309
LAND AREA BY PROVINCE............................................................................310
Our employees are:-...................................................................................316
Tele touch world..........................................................................................317
Tele Touch’s sim plan..................................................................................319
REACHARGE COUPONS................................................................................322
MONTHLY SALES OF TELE TOUCH...............................................................324
Motivational practices.................................................................................326
Sales budget...............................................................................................326
Products (features, versions and variants)..................................................327
Sales promotion practices...........................................................................344
IT Department............................................................................................................................346
Business plan for TeleTouch limited............................................................347
CALL CENTER SERVICE (OUTSOURCE).........................................................348
Cost analysis of the IT department..............................................................353
We need RAND = 44080000......................................................................353
SOFTWARE OF IT DEPARTMENT AND ITS FUNCTIONALITY...........................354
HIERARCHY OF IT DEPARTMENT IN TELETOUCH..........................................357
RECOMMENDATION..............................................................................................................358
CONCLUSION...........................................................................................................................363
BIBLIOGRAPHY.......................................................................................................................364
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ACKNOWLEDGEMENT
We are sincerely thankful to Institute of

productivity and management, Meerut for
providing us the opportunity to prepare a report
on “TeleTouch Ltd.” a telecom industry. We are
thankful to Prof. Sham Sharma Sir for guiding us
in every stage of this report, without his support,
it would have been very difficult for us to prepare
the paper so meaningful and interesting.
We are also thankful to the librarian, computer lab

in-charge and Print out section of Institute of
productivity and management, Meerut who have
helped us during the course of this project paper
in different ways. We are also thankful to our
whole team for their coordination.
TAPAN RAY
Chairman
TeleTouch limited
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GROUP-9B
TeleTouch Limited
Board of director
Submitted by Tapan Ray

Vikash kumar
Vivek kumar vikrant
Varun sharma
Yamini mudgal
Institute of productivity & management
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EXECUTIVE SUMMARY
TeleTouch’s success is strengthening by strong business principles

with respect to its partners and employees, as well as a desire to
invest in improving the quality of life of local communities. We are
pleased to report that our Company will make further progress
during the year 2010-1011, with continuing execution of our
strategy and delivery of our financial targets. After the end of two
strife-torn years, teletouch is eager for large and large volume of
market share of South African telecom industry. we see the that
south African economy on recovery path and the positive signs are
,stock market quotes are climbing ,interest rates are low ,diamond
industry back to good old days and other industry are back on
track . Mr. T T Mboweni, Governor of the South African Reserve
Bank, at the ordinary general meeting of shareholders deliver the
same views .so all these factors approach towards the healthy and
booming economy of South Africa. Therefore, there is ample
opportunity for teletouch limited to cash in the situation, and
profitably deliver the telecom service to the people of south Africa.
To grab the opportunity of changing economic scenario, and
mobile sector growth, management of TeleTouch limited prepare a
business plan for the financial year 2010-2011. This business plan
will show you that how the different operational areas of teletouch
limited have strategic plan to acquire the market share of 11%
from present level of 5.5%. In near future board will continue to
be alert to other developing market opportunities. Our goal is to
be the communications leader in an increasingly connected world.
We believe TeleTouch is well positioned to continue delivering
value to both customers and shareholders. We would like to thank
the Board for its support, insight and counsel in recent years we
also like to thank our employees for their ongoing customer
focuses and wish them every success in the future.
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THE TELETOUCH WAY
Driving the future of communication
TeleTouch will be one of Africa's most admired Companies and the

pride of South Africa.
TeleTouch a winning company Where everyone is imbued with a

spirit to win, to be passionate in whatever we do, to be the best,
to never give up, to work harder than anybody else, to know that
our best is better than anybody else’s best. Losing is just not an
option. We area team and competition is our sport.
TeleTouch is a respected company And professionalism are the

cornerstones of how we do business. Everyone we deal with is an
equal partner, and we deal straight.
TeleTouch is a caring company Which cares about what it does

and how it does it, which is always fair? And which respects every
single person. Sincerely caring about everything we do every
minute of every day, is our way of life.
TeleTouch believes that it can Enhance people’s lives and

empower them by making it possible for all people in Southern
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Africa to have access to mobile telecommunications. We have the

will and the means to do so, and we will strive to do so
In a sensible manner. We will democratize telecommunications.
TeleTouch will seek out the impossible to do Mobile

communication has been made possible by the most innovative
Technology in the world. This technology will continue to develop
and make possible things we cannot even dream of today. We will
remain the most Competent and innovative of all in this
technology, to not only make every dream Come true, but to
dream the dreams. We will use our passion and our common
Sense to do the impossible. Indeed, we will seek out the
impossible to do.
And in everything we do always also make sure that our

shareholder remains happy with and proud of their investment in
TeleTouch.
TeleTouch is a dynamic company with a pioneering spirit and is

dedicated to growth and increasing value for its shareholders.
Value is created through new investment opportunities with a view
to achieving sustainable returns, enhancement and advancement
of products, services and technologies such as 3G,wiMax as well
as investment in the competence of our employees and the
leadership of our management. In order to achieve continued
growth, TeleTouch continues to focus on expansion on the South
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African telecom circles and is consistently evaluating new

investment opportunities. However, this expansion continues to be
managed cautiously to comply with good corporate governance.
TeleTouch is well positioned to continue expansion into the South
African telecom sector, which is essential for the maintenance of
satisfactory levels of growth
In South Africa, We are enjoying 5.5% market share in South

Africa. As marketing department considered the cell-c (TeleTouch
JV partner) which is at the third place enjoying nearly 12% of
market share. It has made a significant growth in short span of
time.
If we considered the present competition in telecommunication

industries, we have many opportunities to grow into the market
by 2010-2011. As cell-c has targeted the young generation we
should also target this young generation and backward population
to grow up at high level into the market because it is the
generation, which use mobile phone services more than the
others. So the segmentation of market should be according to the
population by keeping this in mind that we have to focus more on
the young generation. And we would continue with the same
segmentation of the market.
There are four major cities in South Africa: Johannesburg, Cape

Town, Eastern Cape and Northern Cape. In these four cities
teletouch is going to penetrate because in these cities there are
major populations and approximately 80% of population is literate
and the ratio of fixed line users is also very high. So it is easy to
penetrate over there.
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For marketing of any product or service we should considered the

four P’s of marketing i.e. product, price, place and promotion. The
strategic department sets pricing policy of our product and in-
house advertising department is handling the promotion and about
place we have already mentioned. So we are considering all four
p’s in a significant manner.
In pestle analysis, we have covered the political view, the

economy in South Africa, the social view and technological view,
legal view and environmental view. It is elaborated in the report of
marketing department in which the political summary of South
Africa is represented and in social view, we have covered the
population of South Africa according to the different origins,
cultures, languages and religion of people. There are so many
factors also but the factor which has been considered above our
significant for initial establishment and according to the
technological view as we know that South Africa technology is
advance and people are influenced by Americans.
If we talk about the strengths then for teletouch government is

supporting as which is making its best efforts to improve the
telecom industry. Vodacom and telecom are the threats for the
teletouch.
We have made the five-year plan also for the expansion of our
business in south Africa. We have made our business strategies by
keeping in our mind the FIFA world cup, which is going to be held
in 2010. In order to capture the population, which is not, using
cell phones the marketing department is giving attention more.
Because teletouch is going to make its market share double from
5.5% to 11%. So the strategy needs to be made very effectively
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and efficiently and for making strategy of marketing different

aspects are considered like simplicity, brand positioning,
improved and enhanced services, flexible offers, distribution mix,
direct marketing and the most important better customer services.
As we have to keep an other eye to our customer, what do our
customer want, what they need, how they get satisfied etc.
We are also considering value of money, choice of services,

individuality in product, subject to availability, exclusive SIM CARD
offers which are given in the report of the marketing department
and our different special teletouch services are also given in that
report.
So we are prepare an effective business plan for expansion of our

business from 5.5% to 11% in the fiscal year 2010-2011.
In south Africa For telecommunication business these days,

scaling the heights of success is not always an easy task. This is
because today's corporate world has become extremely complex
and intricate. For telecommunication, business to succeed
nowadays it is very important that the organization's employees
play a key role. This does not only refer to employees doing the
best job possible, but it also means that every employee must be
right for the job that they are doing. What this translates into is
that every employee who is working at his or her own position is
the best possible candidate for that job.
The telecommunications sector continues to be characterized by

intense competition and increasing demands by our customers for
cost effective and value added services. The continued war for
talent in an environment of skills scarcity has compounded this
challenge. At the very centre of successfully dealing with these
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challenges is the depth and caliber of people we have in the

organization. Harnessing and mobilizing the skills of our
employees is a critical element of growing in a sustainable fashion.
Key focus of activities
The key thrust of our Human Resource strategic imperative is

driven by the need to attract, develop and retain high caliber
employees to meet the growth needs of the organization in an
environment where war for talent is fiercer than ever. The past
year the Teletouch focus was the entrenchment of core leadership
practices and skills, the alignment of training to deliver best in
class customer service, the training of our technical staff with
regards to the latest technology reviewing of the reward and
recognition practices to deliver customer centricity and entrench
our employee value proposition, expanding the pool of females in
core areas of the business thereby ensuring gender diversity,
strengthening our employee wellness programme, the rolling out
of learner ships and other skills development initiatives and
refining our recruitment and selection processes.
Our Human Resources strategy continues to be creating and re-

enforcing a compelling value proposition for our employees that
attracts the best talent and retains that talent within Teletouch.
Our focus this year was on honing management skills, succession
And enhancing individual competencies to improve business

performance. We will strive to create a pool of talented and
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capable people to meet the future needs of the business including

expansion into the rest of the continent.
Building Teletouch’s Workforce
The department contributes to building Teletouch’s workforce

through four key themes:-
1. Informing people about Teletouch opportunities, employment

standards and workplace.
2. Attracting new workforces to Teletouch and workplaces.
3. Developing the skills and knowledge of employee and

supporting high performance workplaces.
4. Retaining workers in Teletouch.
With the dedicated and talented staff in Teletouch, I am confident

that we will meet the goals and performance targets we’ve
established for the department and company.
VALUES AND BELIEFS OF TELETOUCH
Recognition of Potential We see opportunity for everyone.
Respect we treat everyone as we would like to be treated.
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Caring we want everyone to do well.
Learning we always strive to improve.
Commitment we believe our work makes a difference.
Self-determination we believe people should make their own

decisions.
STRATEGIC PRIORITIES 2010-2011
Through the Department’s review of external opportunities and

challenges, the following strategic priorities have been identified
For HR department in ensuring Teletouch economic prosperity and
productivity:
Building and educating tomorrow’s Workforce Priority
“Building and Educating Tomorrow’s Workforce” is a key focus for

2010 11. The objective of this is to ensure the availability of a
skilled and productive workforce to meet Teletouch economic
growth, now and in the future.
Employment Standards Linkage
Efforts will be made to ensure that employment standards

legislation and programs support the continued productivity of
Teletouch workforce while maintaining an effective balance in
employer and employee relationships.
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Sales Force Development
The efforts associated with the sales Force Development strategic

priority are going to contribute to the Building and Educating
Tomorrow’s Workforce Priority. Partnering with industry,
employers to promote coordinate and support strategies that
foster the growth of the Teletouch sales force through the
development, attraction and retention of skilled and productive
workers are key actions for 20010-11. South Africa is a great
place of opportunities for telecommunication industry. After made
joint venture with Cell C in South Africa teletouch has made a
significant growth. Cell C which is at the third place is enjoying a
great market share in the market. It has got its license in 2003. In
this short span of time it has made a significant growth.
Numerous studies have demonstrated that effective management

of talent contributes to a company’s bottom line and creates a
sustainable competitive advantage. We believe that the effective
management of talent is embedded in the practices, policies and
values that Teletouch employs in managing its employees.
Application of these principles has created a culture and
environment in which our employee’s thrive.TeleTouch prides itself
as being an employer of choice. We remain committed to
continually raising the bar on people practices, as we acknowledge
the fact that technology is only an enabler and that wealth
creation is driven increasingly by people. The success of Teletouch
depends on enthused, committed and highly talented employees.
16
In our latest update on South Africa’s telecommunications market,

we have revised our forecasts for the development of South
Africa’s mobile telephony and broadband internet markets, and
extended our forecasts for these market segments through to the
end of 2011. Teletouch Limited continued the consistent growth
mobile market at the end of March 2010, with a 5.5% share of
market. Other mobile operators with significant market share
include Vodacom, Cell C, MTN and state-owned operator Telkom.
Based on the latest data, it appears that South Africa had 40 mn

mobile subscribers at the end of year 2010. South Africa’s
telecommunications market contains revised and extended
forecasts for the development of the country’s fixed-line, internet
and mobile telephony services. Our new forecasts reflect Q308
data published by South Africa’s leading telecoms operators,
including fixed-line incumbent Telkom, and the country’s two
largest mobile operators, Vodacom and MTN. South Africa’s mobile
subscriber base grew by 7.3% in the first nine months of 2010.
By the end of September 2010, mobile penetration had reached
97.9%. Although the fourth quarter of the year has traditionally
provided a higher rate of growth, we believe that subscriber
growth in general is slowing significantly. Overall, we estimate
that the sector grew by 10.7% in 2010. By the mid of 2011; the
mobile penetration rate had risen to almost 101%.
Meanwhile, in the first half of its financial year (which ended on

September 30 2010), fixed-line incumbent Telkom reported that it
had 5.5ml fixed access lines in service, down 2.5% year-on-year
(y-oy). Despite Telkom’s continued fixed-line losses, our new
customer forecast also reflects the fixed-line customers of South
Africa’s ‘second national operator’ Neotel, which began offering
fixed-wireless services in mid-2010. We believe that the
proliferation of fixed wireless services has already started to
17
mitigate the rapid decline of the sector. So we are in a condition

to increase our mobile users.
In addition to revising our year-end estimate for the size of the

South Africa’s various telecoms market segments at the end of
2010, our new forecasts have been adjusted and extended to the
end of 2015.
In our newly updated mobile users for South Africa, we estimate

that we have 2.38ml mobile users in operation at the end of
2009; this reflects growth of 5.5% for the last two years. Now we
estimate that we are in a condition so that we can achieve 11%
market share in the period 2010-2011. We believe that our
prediction of 4.8 ml mobile users will be achieved by the end of
the year 2011.
Teletouch Ltd Business Plan for the Financial Year 2010 to

2011
Financial Plan
The market and related entry strategy mentioned earlier in this

Business Plan is reflected in the assumptions used to build the
financial model and corresponding pro-forma financial statements.
The management of Teletouch Ltd, believes these projections to
be on the conservative side and, therefore, very attainable.
Income Statement
The income statement presented here demonstrates the projected
results of operations for the period FY 2010 through FY 2011 on a
consolidated basis for Teletouch Ltd.
Sources & Uses of Funds
We will be raising the funds from both external as well as internal
sources. Our company might raise new funds from the following
sources:
Equity Shares @ 2R R. 10 million
(Debenture @ 12%) R. 10 mill
Unsecured Loan (Bank) R. 110mill
Secured Loan (African Development Bank) R. 600 mill
18
Retained earnings profit (Desh ki Awaj R. 172.8mill

from India)
1,025,939,800 -total exp of department
We have profit in 2009-2010 = R 471,294,447
Out of which we are going to invest from last year profit –

R132,139,800
Identification of the total fund requirement, broken up into needs

of individual department
FUND REQUIREMENT OF INDIVIDUAL DEPARTMENT
IN HOUSE ADVERTISING 200000000
OPERATION DEPARTMENT 400000000
H.R DEPARTMENT 355148000
STRATEGY DEPARTMENT 10000000
IT DEPARTMENT 26100000
MARKETING DEPARTMENT 10000000
SALES DEPARTMENT 18991800
FINANCE DEPARTMENT 1700000
RESERVE 4000000
TOTAL 1,025,939,800
Strategic Goals
• Switch focus from manufacturing to become a more customer-

centric organization
• Build a single, centralized customer database populated with
information that extends far beyond basic contact information
• Provide universal access to the system at any time and
from anywhere
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• Provide customer segmentation and profiling, lead and

opportunity management, sales forecasting, customer order and
delivery management, and profitability analysis functionalities for
sales and marketing
Results
 129% internal rate of return
 15% increase in revenue per sales employee
 20% increase in remote resolution of service issues per
month
 10% increase in revenue per service employee
 1% improvement in inventory turns
 2-day reduction in order to delivery time
 Improvement in service for channel partners
 Enhancement of customer service, which led to improved
customer satisfaction
 Sharper competitive edge
The balance sheet related to the projection of Rand

5,757,448,872 for Fiscal Year (FY) 2010 to 2011. This
represents Teletouch Ltd able to meet projections based upon its
planned growth targets.
License revenues consist of license fees for the company's

software. Service revenues consist of fees for customer-defined
customization, installation, and product support services. In
addition, other lesser service revenues are for maintenance fees
and training fees. After establishing the necessary infrastructure in
the year 2010to year 2011, Net Profit/Sales will grow in FY
2011Gross margin is projected to stay high from FY 2010 onward
and grow in FY 2011 as the company attains economy of scale.
Other Income and Expense are associated with debt service,

amortization of excess acquisition costs and interest income.
THE NET PROFIT IN RAND IS R 3,668,038,347
WE ARE REPATRIATED TO INDIA AT THE END OF THE FINANCIAL
YEAR R 733607669.4 MILLION RS AND REST WE KEPT THERE FOR
FURTHERE INVESTMENT.
We are going to give the dividend 30% of the profit 110,
0411,504.1
20
Rest of the profit that is 2,567,626,842.9 we will repatriate to

India R 770,288,052.87. Rest of money R 1,797,338,790.03 we
will utilize to pay interest and for further investment.
TELETOUCH COMMITMENT TO CSR
TeleTouch as a South African company and one, which has
expanded its footprint into South Africa, believes that it will
continue to grow if it operates in functional communities. It firmly
believes that social development is not a responsibility that can be
handled solely by governments, but needs the cooperation of
companies like ours. With this philosophy in mind, TeleTouch
established in 2008 the TeleTouch Foundation to coordinate the
company’s community upliftment programmes. Over the past few
years, Vodacom has invested more than R180 million in various
initiatives that are aimed at redressing the effects of social
deprivation, particularly in disadvantaged communities of which
R20 million was spent during the year under review (2010-11)
(shown by other expenses in p&l account)
Strategy
TELETOUCH Foundation makes an amount available each year for
social upliftment for which non-governmental organizations,
government departments and civic societies who have projects
that meet Foundation criteria within the focus areas, compete. The
Foundation augments the funding with in-kind support through the
man-hours that some members of staff volunteer in the projects.
Projects benefiting children and the youth enjoy priority in
Foundation funding..
Focus areas
From the list of challenges facing developing countries, TeleTouch
Foundation chose education, health and welfare as well as safety
and security as the main thrust of its activities. This was done to
complement government efforts in these areas. The 2003
corporate and social research lists these three areas in the top ten
areas that were identified by communities as critical priorities for
redress. As a communications technology company, every
endeavor is made to use technology to find solutions for the
country’s social problems. Strategic partnerships with
organizations that share similar objectives are continually sought
21
in an effort to reach as many beneficiaries as possible. TeleTouch

South Africa has recently
assumed responsibility for coordinating all CSR activities on a
group-wide basis. TeleTouch role in these areas may be described
as follows:
 Education – to help develop a human resource base for the

information communications technology industry;
 Health and welfare – to help reduce the impact of HIV/Aids
and other diseases in the communities where we do
business.
 Safety and security – to help counter the effect of criminal
activity in the communities where our employees and
customers live. The Foundation also considers, to a lesser
extent, projects in the areas of arts and culture, community
sports and the environment.
OCCUPATIONAL SAFETY AND THE ENVIRONMENT

TeleTouch Limited achieved a high rating of 96% following an
external audit by DEKRA Germany for fulfillment to South African
Health and Safety legislation. The DEKRA environmental prize is
oriented towards the environmental protection. All three ISO
certifications namely ISO 9001 (Quality), ISO 14001
(Environmental) and OHSAS 18001 (Health and Safety), were
retained by teletouch limited. A variety of direct engagement
programmes have been under review during the course of the
year 2009-2010. Their purpose is to be proactively responsive in
building channels of communication with individuals and entities
that both benefit from, and are impacted by, cellular
communications. In this way teletouch limited aims to create a
platform that will inform all stakeholders of the issues at large and
allow them ,to contribute to the resolution of concern. Ultimately,
the Group strives to build an environment that will recognise the
drivers governing the demand for operational effi ciencies while
also providing the means to allay any attendant public concern
through a process of open and honest
dialogue. TeleTouch supports the view of the World Health
Organisation (“WHO”) International EMF Project which has
concluded that ‘current evidence does not confirm the existence of
any health consequences from exposure to low level
Electromagnetic Fields (“EMF”).
22
THE COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY
Corporate governance refers to a blend of law, regulation and

voluntary practices that are able to attract capital and talent
enable the organization to perform efficiently and ethically,
generate long-term wealth and value for all its stakeholders and
respect the interests of society as a whole.
At TELETOUCH Limited, we believe in, and abide by, the following
principles of effective corporate governance:
 Transparency in exposé and communication of relevant

financial and operational information.
 Accountability, supported by robust internal processes of
management oversight and control for monitoring of
performance and risk.
 Integrity and ethics in all our dealings.
 Balancing the enforcement and protection of the rights of all
stakeholders, thus creating wealth and value in the long
term.
 Independence of directors in reviewing and approving
corporate strategy, major business plans and activities as
well as senior management appointments;
 Well defined corporate structure that establishes checks and
balances and delegates decision making to appropriate levels
in the organization.
We believe that establishing trust with our customers, investors,

employees, business partners, Shareholders and the public at
large require that we go beyond regulatory compliance and adopt
a culture and process for credible self-regulation that transcends
mere form.
23
GROUP-6B
TeleTouch Limited
Strategic Planning Department
Submitted by Ramesh Roy

Ravindra Rawani
Rinku Sahu
Ruchi Wadhwa
Sachin Chaturvedi
24
Components of business Environment
Factors affecting Business Environment
Internal environment External Environment
Micro Environment Macro Environment
25
1) Demographic Environment
Demographic environment differs from country to country and

from place to place within the same country. It may also change
over time .Important Demographic factors are:
 Age-Composition
 Sex- Composition
 Economic satisfaction of population
 Education level
 Family size and structure
 Size of population and population growth
 Urban –rural population
Demographic environment prevailing in South Africa is given

below-
South Africa has an uncommon demographic profile; marked by a

heterogeneous population base, In South Africa 79.7% of
population consist of black people and represent different ethnic,
9.1 % consist of white people, colored’s 8.8%and 2.4% are
categorized as Indian/Asian.
Size of Population-
In 2001 – (44,819,778)
In 2007 – (47,850,700)
 Age structure
0-14 years: 32.1% of total percent

(Male 7, 17 million/female 7, 21 million)
15-64 years: 63% of total percent
(Male 58 million/female 14, 74 million)
65 years and over: 4.9%of total percent
(Male 0, 8 million/female 1, 39 million)
26
Estimates are for 2001.
 Population growth rate
1.06% (2006 est.)

-0.46% (2007 est.)
0.82% (2008 est.)
• Birth rate
20.63 births/1,000 population (2001)
17.94 births/1,000 population (2007 est.)
• Death rate
12.6 deaths/1,000 population (2006 est.)

22.4 deaths/1,000 population (2007 est.)
• Deaths
567,488 (2004)
599,000 (2006 est.)
• Net migration rate
-1.56 migrant(s)/1,000 population (2002 est.)

-0.08 migrant(s)/1,000 population (2007 est.)
4.98 migrant(s)/1,000 population (2008 est.)
There is an increasing flow of Zimbabweans into South Africa and

Botswana in search of better opportunities since the almost
complete collapse of Zimbabwe's economy.
 Sex ratio
At birth: 1.02 male(s)/female

Under 15 years: 1.01 male(s)/female
15-64 years: 0.95 male(s)/female
65 years and over: 0.63 male(s)/female
Total population: 0.95 male(s)/female (2006 est.)
 Ethnic groups
• Black 79.5%,
• White 9.2%,
• Colored8.9%
27
• Asian 2.5% (2006 est.)
 Religions
Zion Christian 11.1%,

Pentecostal/Charismatic 8.2%,
Catholic 7.1%,
Methodist 6.8%,
Dutch Reformed 6.7%,
Anglican 3.8%,
Other Christian 36%,
Islam 1.5%,
Hinduism 1.2%,
Judaism 0.3%, other 2%, unspecified 1.4%, none 14.9%
(2001 census)
 Languages
11 official languages, including Afrikaans, English, Southern
Ndebele, Northern Sotho, Sesotho, Swati, Tsonga, Tswana,
Venda, Xhosa, Zulu.
Other spoken languages include San dialects, Portuguese,

German, Indian (Hindi, Punjabi, Gujarati, Bengali & Telugu)
and Tamil (mostly Indian Tamils with a significant population
of Sri Lankan Tamil and Far East Tamil).
 Literacy
Age 15 and over, can read and write

Total population: 86.4%
Male: 87%
Female: 85.7% (2003 est.)
Total population: 85%
Male: 86%
Female: 85% (2000 est.)
28
The following is a list of the ten most populous

cities/municipalities in the country, with their populations from the
2001
Percent
Population Population Change
Rank Municipality
(2001) (1996) from 1996-
2001
Johannesburg,
1. 3,225,812 2,639,110 22.2%
Gauteng
Durban, KwaZulu-
2. 3,090,117 2,751,193 12.3%
Natal
Cape Town, Western
3. 2,893,251 2,563,612 12.9%
Cape
4. East Rand, Gauteng 2,480,282 2,026,807 22.4%
5. Pretoria, Gauteng 1,985,984 1,682,701 18.0%
Port Elizabeth,
6. 1,005,776 969,771 3.7%
Eastern Cape
East London, Eastern
7. 701,881 682,287 2.9%
Cape
Vereeniging,
8. 658,422 597,948 10.1%
Gauteng
Bloemfontein, Free
9. 645,441 603,704 6.9%
State
Thohoyandou,
10. 584,469 537,454 8.7%
Limpopo
List of largest cities in South Africa by population
High population growth rate indicates cheap labour and more

demand in the economy .cheaper labour and growing markets
have encouraged many multinational companies to invest in
developing countries. If labour is easily mobile between different
occupation and religions .labour supply will relatively smooth and
wage rates will be lower .If labour is heterogeneous in respect of
language, caste and religion, than management of such labour
force becomes a more complex task. Education level is also
important Demographic factors affecting business. IF public is
highly educated, supply of unskilled labour will decrease. On the
other hand if education level is low then supply of unskilled labour
29
will increase. If customer is highly educated then business unit

must be very particular about the quality of product.
There is no single Culture of South Africa. As South Africa is so

ethnically diverse, it is not surprising that there are vast cultural
differences as well.
2) Economic Environment
Economic Environment refers to those economic factors which

have impact on the working of the business that are-
Economic System, Economic policy, nature of economy, trade
cycles, economic resources, level of income, distribution of income
and wealth, statutory provision. Economic environment
Of business is very complex in nature. It keeps on changing with
the change in government policies, changes in political situations
etc .It mainly has three elements-
• Economic Conditions
• Economic policies
• Economic system
Economic environment condition of South Africa
South Africa has a two-tiered economy; one rivaling other

developed countries and the other with only the most basic
infrastructure. It is therefore a productive and industrialized
economy that exhibits many characteristics associated with
developing countries, including a division of labour between formal
and informal sectors and an uneven distribution of wealth and
income. The primary sector, based on manufacturing, services,
mining, and agriculture, is well developed.
South Africa's transportation infrastructure is among the best in

Africa, supporting both domestic and regional needs. OR Tambo
International Airport serves as a hub for flights to other Southern
African and International countries. South Africa also has several
30
major ports that make it central point for most trade in the
Southern African region.
South Africa held its first multi-racial elections in 1994, leaving the
newly elected African National Congress (ANC) government with
the daunting task of trying to restore order to an economy harmed
by sanctions, while also integrating the previously disadvantaged
segment of the population into it. As of 2005 agriculture, that
once dominated the economy, contributes only 3.4% to the
country's GDP, while services now account for 65.1%.
South Africa has rich mineral resources. It is the world's largest

producer and exporter of gold and platinum and also exports a
significant amount of coal. Another major export is diamonds.
During 2000, platinum overtook gold as South Africa's largest
foreign exchange earner. The value-added processing of minerals
to produce ferroalloys, stainless steels, and similar products is a
major industry and an important growth area. The country's
diverse manufacturing industry is a world leader in several
specialised sectors, including railway rolling stock, synthetic fuels,
and mining equipment and machinery.
South Africa is a member of the World Trade Organization (WTO).

U.S. products qualify for South Africa's most-favored-nation tariff
rates. South Africa also is an eligible country for the benefits
under the African Growth and Opportunity Act (AGOA), and most
of its products can enter the United States market duty free.
South Africa has done away with most import permits except on
used products and products regulated by international treaties. It
also remains committed to the simplification and continued
reduction of tariffs within the WTO framework and maintains
active discussions with that body and its major trading partners.
South Africa has a sophisticated financial structure with the JSE

Securities Exchange, a large and active stock exchange that ranks
18th in the world in terms of total market capitalization. The
South African Reserve Bank (SARB) performs all central banking
functions. The SARB is independent and operates in much the
same way as Western central banks, influencing interest rates and
controlling liquidity through its interest rates on funds provided to
private sector banks. Quantitative credit controls and
administrative control of deposit and lending rates have largely
31
disappeared. South African banks adhere to the Bank of

International Standards core standards
Telecommunication sector in South Africa
The domestic telecommunications infrastructure provides modern

and efficient service to urban areas, including cellular and internet
services. In 1997, Telkom, the South African telecommunications
parasitical, was partly privatized and entered into a strategic
equity partnership with a consortium of two companies, including
SBC, a U.S. telecommunications company. In exchange for
exclusivity (a monopoly) to provide certain services for 5 years,
Telkom assumed an obligation to facilitate network modernization
and expansion into unnerved areas. A Second Network Operator
was to be licensed to compete with Telkom across its spectrum of
services in 2002, although this license was only officially handed
over in late 2005 and has recently begun operating under the
name, Neotel. Four cellular companies provide service to over 20
million subscribers, with South Africa considered to have the 4th
most advanced mobile telecommunications network worldwide.
The four cellular providers are Vodacom, MTN, Cell C and Virgin
Mobile SA.
South Africa's government is deeply concerned about managing

the country's rich and varied natural resources in a responsible
and sustainable manner. In addition, numerous South African
non-governmental organizations have emerged as a potent force
in the public policy debate on the environment. In international
environmental organizations, South Africa is seen as a key leader
among developing countries on issues such as climate change,
conservation, and biodiversity
Socio-Culture Environment
Business is an integral part of society and both influence each

other. Culture refers to cultivating behavior of individual with in a
society. Following Socio-cultural Factor affect business
Environment.
• Urbanization
• Joint and nuclear family system
32
• Religion
• Taste and preferences
• Customs and Traditions in society
• Health and Quality of life
• Languages
• Business ethics
The type to be manufactured and marketed, the way in

which business should be organized and governed, the
values and norms of business are all influenced by social
structure and culture of a society. Cultural differences are
one of the most difficult problems in international business.
Differences in the language are another important problem
area in international business.
South Africa has a wide mix of religions. Many religions are

represented in the ethnic and regional diversity of South
Africa's population.
Political environment
The influences of political Environment on business are

enormous. Political environment includes
• Political Ideology of Government
• Political stability in the country
• Foreign policy of government
• Defense and military policies
• Welfare activities by government
Strategy planning
Describing the nature of the current telecommunication landscape
and Teletouch's responses to it is a complex task. Teletouch is a
33
company with enormously intricate systems providing vital

services to South Africa, investing billions of Rands to upgrade its
network to allow South Africans to communicate with the world
whilst it faces pricing pressure and aggressive competitors. I am
proud that the Teletouch Group, in the face of increasing
competition in the telecommunication sector, has once again
delivered continued revenue growth in its mobile business
segments.
Teletouch’s vision
To be a leading customer and employee centered91k Information

Communication and Technology (ICT) solutions service provider.
Our values
• We are proud and passionate about who we are and what we

do;
• We will act with honesty and integrity;
• We promote an entrepreneurial and innovative mindset;
• We treasure diversity; and
• We are performance driven.
Teletouch now enters a challenging period as its direct fixed-line

competitor, mobile operators, VANS and ISPs entering our
traditional market resulting in pressure on our product and
services pricing. However, Teletouch believes that its commitment
to invest in and build the Next Generation Network (NGN) will
deliver the required benefits in terms of products and services
volumes at a reduced cost.
Teletouch is proud to have on its joint venture strategy with the

South Africa based emerging company Cell C during the year. We
are excited about the developing opportunities created by the Pan
African connectivity and convergence strategies through the joint
venture.
Delivering value to our shareholders
34
The Group is continuing its drive to create value for its

shareholders and is pleased to have declared an ordinary annual
dividend of 35 percents per share on Dec 2, 2008, it is payable on
march 9, 2009, to shareholders recorded in the register of the
Company at close of business on 31 march, 2009.
The telecommunication landscape is changing rapidly and

requiring Teletouch to invest in the future. Customer demands are
increasing and the dynamics of product, price and service levels
needs renewed approaches to create attractive value propositions.
Competitive forces are also constantly changing as a result of
emerging new business models due to the triple and quad-play
convergence opportunities and the ability of ISPs and VANS to
disinter mediate voice from the fixed-line operator. Reputation
and image are increasingly becoming differentiators as the
commoditization of voice continues. In addition, regulation is
moving towards favoring new entrants and South Africans are
demanding a reduction of input costs to stimulate economic
growth.
Teletouch is fully aware of the challenges and is responding

innovatively to protect and grow its market while taking
telecommunications into the future through investment into its
NGN to other parts of Africa.
The tariff reductions were offset in part by volume growth in data

services, increased revenue from mobile outgoing calls and rental
and service fees.
Offering value to customers
Teletouch's strategy is to become an Information Communication

Technology (ICT) solutions provider for global, corporate, business
and residential customers, moving up the value chain, providing
35
higher level products and services to our traditional voice and data
products. This strategy has been validated by our success in
winning large corporate customer accounts and delivering to their
ICT requirements from voice products and services to network
management.
Teletouch's aim is to enhance the customer experience by

introducing innovative value enhancing bundled products and
services. In line with this strategy, Teletouch Closer bundles
rental, call answer, peak minutes and off-peak minutes into a
package which allows the customer to pay a flat monthly charge.
Teletouch Closer now bundles PCs to improve the PC penetration

rate in South Africa.
Teletouch's strategic intent to retain and grow revenues has led to

the development of flat rate plans to combat the negative minutes
of use trend in the consumer market and term and volume
discount packages for the corporate market. The sales of the term
and volume discount plans have performed exceptionally well. In
addition, arbitrage opportunities between local and long distance
and the gap between Standard time and Call more rates are being
reduced while, this tariff rebalancing is taking place.
Through bundled products Teletouch intends to increase its

annuity income, create a value comparison for customers and
improve our competitive position
Competitive pricing and volume growth
TeleTouch announced an overall average tariff decrease on our

regulated basket of products and services.
36
The reduction of telecommunication costs should allow Telkom to

retain existing customers, attract new ones and will benefit all
South Africans and contribute positively to the economy.
Multi-Bond
Multi-Bond, a Private Telecommunication Department in

Johannesburg with a Unified Access License allowing fixed, mobile,
fixed-wireless, international and data service, was created in April
2010 for R1,485 million.
Multi-Bond will focus on brand awareness and promotional

campaigns to increase the revenue of fixed-wireless and mobile
customers and will offer easy to understand high value bundles,
differentiated on voice quality and service.
Broadband Internet with ISP services will target high value

bundles and high quality IP NGN services is planned to be
launched for Government, Corporate and Business customers.
Metro Ethernet services are planned to be deployed in Lagos to
attract high-end corporate users and Carrier Class wholesale
products and services are planned to be introduced by establishing
an earth station to provide international connectivity.
Our group strategy
Our vision is to be a leading customer and employee centered

information and communications technology solutions service
provider. We are focused on balancing the needs of all
stakeholders while seeking long term sustainable and profitable
growth. Our commitment to the socio-economic transformation of
South Africa underpins this strategy.
Teletouch intends to continue to focus on the following primary

imperatives to support growth:
37
 Enhancing customer satisfaction through customer

centricity;
 Retaining revenue and generating long term growth,

including expansion in Africa;
 Create a Next Generation Network in order to support

profitable growth through prudent cost management;
 Engaging Teletouch's employees to maintain our

competitive advantage;
 Repositioning Teletouch stakeholder management to create

healthy relationships with all stakeholders; and
 Capitalizing on the growing mobile communications and ISP

markets in South Africa and other African markets.
Enhancing customer satisfaction through customer centricity
Teletouch's customer service has been under pressure as a result

of the reduction in our workforce and increased customer
demands. Our continued key strategic focus is improving customer
centricity by placing the customer at the centre of decision making
in Teletouch. This includes improved service delivery and
customer communication processes, end-to-end customer
ownership and accountability, actionable customer insight,
network capacity and reliability and market focused products and
services.
Teletouch acknowledges that sustainable and profitable growth in

the customer base requires creating and strengthening capabilities
focused on managing customer relationships and learning from
acquired customer information. Revenue is protected through
managing the customer experience and grown through
anticipating customer needs.
Retaining revenue and generating growth, including expansion in

Africa Teletouch is pursuing growth opportunities beyond South
African borders and is developing new offerings in its rapidly
transforming markets in order to supplement diminishing voice
revenue streams with new ones. Teletouch's aim is to minimize
38
the impact of competition from existing or new entrants and

penetrate new markets to supplement diminishing revenue
streams.
Teletouch main focus will be to:
 grow data and converged internet protocol services

throughout South Africa and the African continent;
 seek to increase DSL penetration to 15% – 20% of total

fixed access lines by the 2011 financial year, by focusing on
price, content, speed and channels to market and offering
best in class prices for entry-level broadband packages to
encourage new entrants into the market;
 grow annuity income by increasing sales of bundled product

and service packages;
 develop new fixed-mobile products;
 develop and increase penetration of internet protocol and

voice over internet protocol solutions; and
 Grow selected wholesale markets.
Teletouch is also seeking new value enhancing opportunities

outside South Africa primarily on the African continent to achieve
continued growth. Teletouch aims to expand its footprint on the
African continent, and will want leverages from those investments
and will continue to search for other opportunities to extend our
presence in Africa.
Creating a Next Generation Network in order to support profitable

growth through prudent cost management Teletouch is in the
process of establishing the capability and capacity in its network,
operating support systems, and information technology and
employee skills to develop its NGN. This is expected to facilitate
broadband and internet protocol based services in support of
Teletouch's growth strategy, while at the same time enabling
future cost savings. Teletouch is adopting an evolutionary
39
approach through incremental roll out of a NGN capability and will

gradually and selectively be evolving from its dynamic networks.
Teletouch believes that its NGN strategy will enable it to:
 offer new products, services and features based on

broadband delivered over a NGN, thereby creating new
sources of revenue;
 remain competitive in a rapidly growing market, where new

NGN-based services are created and offer faster time to
market;
 selectively migrate high revenue and converged services

and products towards a network with reduced network
infrastructure, thereby minimizing long-term capital
expenditure on legacy network infrastructure and
opportunities for operating expenditure savings; and
 Retain revenue for products, services and features delivered

over its current network.
Engaging Teletouch's people to maintain our competitive

advantage Teletouch is continuing to develop programmers
designed to enhance employee satisfaction in order to sustain a
culture of engagement with its people. Teletouch is focusing on:
 improving its employee engagement in order to become an

employer of choice;
 improving performance and productivity;
 building its employee competencies and enhancing its

leadership capabilities;
 transforming towards a customer centric corporate culture;
 detaining top talent.
Repositioning Teletouch stakeholder management to create

healthy relationships with all stakeholders Teletouch is seeking to
effectively manage stakeholder relationships, particularly with
40
ICASA and Government, as they are critical to future pricing

levels.
Capitalize on the growing mobile communications and ISP

markets in South Africa Teletouch is urgently re-evaluating its
mobile strategy and investigating opportunities with mobile
partners to provide an integrated and consolidated service
provider model across the fixed and mobile value chain, with
integration capabilities into the managed hosting environment.
There can be no assurance that Teletouch's current mobile

strategy will change or that Teletouch will be successful in
pursuing any new mobile opportunities. Vodacom's strategic
objectives are to achieve sustainable growth in profits and cash
flow, while maintaining its leading market position in South Africa,
growing its operations in other African countries and establishing
new operations in select African countries.
Teletouch is also seeking to execute its Pan African hubbing

strategy through its investments in Multi-Bond in Johannesburg.
Prospects for the year ahead
Our total revenues in the financial year ending March 31, 2009 are
expected to be impacted by tariffs, increased competition and the
migration from dial-up services to ADSL services and the
introduction of cost-based interconnection.
Our strategic initiatives to improve service levels are expected to

result in above inflationary increases in operating expenses, the
result being an expected wireless EBITDA margin between 37%
and 40%, excluding new subsidiaries acquired and any further
acquisitions.
Employee expenses are expected to increase to cater for the

strong demand for Teletouch's products and services which are
expected to increase as prices are further reduced in competitive
response actions. In addition, the necessity of retaining our vital
skills will put upward pressure on employee expenses.
41
Total capital expenditure is expected to be between 18% and 22%

of revenue.
The mobile business is focused on maintaining its market share

and acquiring operations in Africa. Through improved efficiencies,
no material changes to the EBITDA margin are expected.
The financial guidance provided above takes into account our drive
to deliver cost efficiencies. We are in the process of renegotiating
service and equipment contracts, sourcing equipment directly
from original equipment manufacturers and improving
maintenance support and licensing models.
Direction and time for the company growth:-
Introduction
The purpose of this company is to construct a vision of South

Africa telecom sector till the year 2020, i.e., about two decades
from now. Development being a continuous process, the choice of
the year 2020 is just an arbitrary division of time, a pre-defined
time horizon to take stock of what is likely to be achieved.
Pre-portrayal of a stage of development in future requires

understanding of the process of change, the dynamics that set law
of motion. In attempting to do so, the present paper deciphers the
recent past.
Process of change is often volatile and responsive to intervention

and global circumstances impacting it. In such an inherently
dynamic situation it is convenient to assume that cross-country
experiences incubate the most recent seeds of change. This is
because countries at various stages of development encapsulate
developmental experiences that occur with the passage of time.
The present paper isolates the agents of change based on

international experiences and situates India in this development
continuum. The agents of change, as observed from international
perspective, have been broadly categorized into economic
structure, competition policy and technology. Economic reforms
42
and liberalization have driven telecom sector through several

transmission channels of which these three categories are of
major significance.
The paper, as it unfolds, is divided into six sections. Section 1

gives a brief account of the era of competition that was heralded
in Indian telecom sector and the results achieved. Analysis of the
results, particularly comparison with other major countries
intrigued further discussions on economic structure, synergy
between telecom and IT, competition policy and technology in
sections 2.3.4 and 5 respectively. Logical extension of the
arguments, as they developed, extended to a vision for 2020 in
each of these sections.
The current policy configurations of India’s telecom sector have

been listed in the Appendix.
Economic Structure:-
It has been observed that ‘growth in the number of new telephone

subscribers has far exceeded the growth in the global economy’ in
the last twenty years. This shows that aggregate growth alone
does not determine telecom expansion and there may be need to
look at composition of growth as well. However, influence of
economic structure on telecom expansion (or for that matter on
achievable level of tele-density) does not find explicit
consideration in today’s literature on telecom economics as much
as the other two factors, i.e., competition and technology. One
plausible reason could be because of the importance that has been
attached to income gap as a factor explaining digital divide.
Moreover, income gap, by itself subsumes differences in certain
structural characteristics and therefore diverts the focus of
attention from structural gap to income gap1. Proponents of
‘income determinism’ may stop short of addressing structural
factors because of their primary concern regarding income
transfer between the developed to the developing countries as the
only way to address the problems of digital divide. Structural
issues, on the other hand, are more pertinent to the believers of
‘leapfrogging’ capabilities of the countries who are on the wrong
1
43
side of the divide. It is for them that the present paper goes on to
prove that the effectiveness of direct promotion of
telecommunications as a complementary policy to overall
macroeconomic reforms will be determined in an important way
by how structural issues in the economy are addressed.
Competition Policy
Countries often differed in pattern of sequencing and the speed of

liberalization. Competition has been controlled within limit by state
policy through licensing of limited number of market players in
certain segments granting thereby a period of exclusivity to the
operators. Heterogeneity of routes to sect oral reforms, as seen
from the examples of some of the Asian countries, classified into
different combination of policies and approaches to telecom
reform, are presented below:
1. Competition in the fixed line segment with state owned

incumbents: China, India and Korea.
2. Privatization of state owned incumbents but deferred

competition through exclusivity granted to private investors:
Hong Kong, Indonesia, Malaysia, Pakistan and Singapore.
3. Simultaneous introduction of privatization and competition:

Japan and Sri Lanka.
4. Opening up of local market to competition first: Hong Kong,

India and Singapore.
5. Opening up of competition in the international services first:

Korea, Malaysia and the Philippines.
6. Introduction of second domestic long distance carrier first:

China
7. The sector ministry exercises regulatory functions: China,

Indonesia, Japan, Korea, Malaysia, Taiwan and Thailand.
8. Separate regulator with the responsibility for interconnection

lying with the dominant operator while regulator is
responsible for arbitration of disputes: Hong Kong, Pakistan
and Philippines.
44
In most countries, restricting the number of licensees or imposing

geographic limitations has limited competition. In India, for
instance, competition in cellular telephony was allowed in a
duopoly mode. This was gradually increased to licensing of four
operators in each of the four metros and thirteen circles. Basic
service in India is still limited to one private operator competing
with state owned incumbents in the circles. Though private sector
has been licensed and they are laying infrastructure, metros are
still in the grip of public sector monopoly and it will take a while
before private competition takes place. Differences in modes of
privatization have been observed in other countries. In Thailand,
private entry was allowed through Build Operate and Transfer
(BOT) mode while the network was controlled by the state. In
Vietnam, network was publicly managed with foreign operators
participating in provision of training, equipment and supervision
through Business Cooperation Contracts (BCCs). China did not
allow private entry in the telecom sector and limited competition
between state-owned entities of the ministries. Many countries in
Asia restricted foreign equity participation. For example, China,
India, Indonesia, Korea, Malaysia, the Philippines and Thailand
limited foreign equity below fifty per cent.
It is interesting to note that competing technological standards

have also limited competitions. Countries are divided in their
technical options for mobile networks. While Europe predominantly
opted for Global System for Mobile communications (GSM)
technology and USA for Code Division Multiple Access (CDMA),
within Asia, China, India, Indonesia and Malaysia have opted for
GSM in cellular mobile network, whereas Hong Kong, Korea, the
Philippines, Singapore and Thailand have opted for CDMA
However, several countries are now opting for more than one
standards. For example, in USA, ‘Companies like AT&T and
Cingular are increasingly moving to GSM’2. ‘China is going with
some CDMA as well.’3 India is using CDMA in Wireless in Local
Loop (WLL). Multiple technological standards fragment market
2
3
45
rendering base stations purchased from one company unworkable

with switches bought from another company potentially limiting
the scope of exploitation of economies of scale that could accrue
in a multi-vendor environment.
The way multiple technological standards may confuse regulatory

stance leading to market failures can be seen from the recent
experiences of several vendors while trying to launch 3G in
Europe. European Union has mandated a single technological
standard called ‘Wideband CDMA’ (W-CDMA) for 3G coverage.
Some of the companies that sought to launch 3G services in
September 2002 (deadline stipulated in the licenses for the launch
of services) faced the difficulties that networks and handsets of
different vendors could not work with each other. ‘CDMA2000’,
another standard for 3G, which is working successfully in Asia and
USA could not be adopted in Europe because European operators
did not have freedom to use ‘CDMA2000’ as per their licensing
restrictions.
Which competition policies worked better than others? Literature

cites certain developmental experiences to draw conclusions from
‘before and after’ and ‘with or without’ evaluations. The purpose
here is to cite these references. In the absence of more detailed
information, examination of the validity of such conclusions is not
intended here.
Competition with privatization:-
World over, there is an observable trend of growing number of

state owned telecom incumbents being privatized. In 2000, from
among the member countries of the ITU, those with fully or
partially privatized incumbents outnumbered countries with fully
state-owned operators. It has been observed that ‘countries with a
privately owned incumbent operator account for 85 per cent of the
world market by revenue. Those with fully state-owned operators,
in mobile as well as fixed lines, account for just two per cent.’
It has been suggested that privatization with competition works

better than privatization without competition. For example, Chile
started privatization in 1988 but did not limit competition through
46
grant of exclusivity period or licensing obligations. Argentina, on

the other hand, privatized in 1990, but granted seven-year
exclusivity period, which was subsequently extended by three
years. Moreover, Argentina imposed licensing obligation in terms
of stipulated growth rate of 6.5 per cent. In the decade following
privatization, Chile far exceeded Argentina in terms of network
growth. Moreover, starting with half of the tele-density, Chile
surpassed Argentina in ten years’ time.
The issue of granting a ‘period of shared exclusivity’ versus

‘allowing more extensive market entry’ has been discussed in the
literature. Experience of
UK has been cited in this context. Telecom expansion was

reportedly much more rapid in the United Kingdom (i) after the
expiry of exclusivity period from 1982-90, that was granted to
Mercury, the second operator and (ii) after cable TV operators
were permitted to offer tele-services4. Therefore, it was concluded
that open competition was better than duopoly. Both USA and
Canada lost in terms of their mobile tele-density-rankings in the
world in the 90s. Two reasons which have been cited for this are:
(i) persistence with regional duopoly for too long, and (ii) slow
transition from analog to digital systems.
Notwithstanding the merits of the above conclusions whatsoever,

it can be argued that privatization of existing state-owned
incumbent operator is not the only way to promote private
investment. Opening up of new services not preoccupied by state
monopoly can attract private investors, provided regulatory
policies do not inhibit growth of private markets in such areas.
Growth of private mobile operators in India is a case in point.
However, it is necessary for the regulatory authority to ensure
that state incumbent does not inhibit growth of competition.
Operationalisation of these ideas is not without hazards. A conflict
of common occurrence relates to interconnection issues.
Interconnection between state-owned fixed line incumbent
network and private mobile network has been a bone of
4
47
contention in many countries. ‘…incumbent telecommunication

operator, which often holds a monopoly…can set the price,
typically at a high multiple of the actual cost’.
Technology trend:-
Broadly speaking, technologies of mobile telecommunications and

Internet are going to set the contours of further technological
progress in the current decade and the next. The most recent
initiative aims at convergence of voice and data received from
multiple sources, both web based and real time video streams, in
mobile handheld devices. Global satellite systems, mobile
handsets and calling cards have made virtual presence possible
almost everywhere and anywhere overcoming the barriers of
distance, topography and remoteness.
There has been phenomenal growth in mobile subscribers in the

world in the nineties, increasing from 11 million in 1990 to 941
million by the end of 2001. In 1991, less than one per cent of the
world population had a mobile phone. The proportion has grown to
the vicinity of one phone per every six people by the end of 2001.
Similarly, one-third of the total number of countries of the world
had cellular network in 1991. The ratio rose to over 90 per cent by
end-2001. Considering that the fixed telephone lines numbered
just over a billion in this year, it is likely that mobile phones would
surpass fixed line in 2002. It is interesting to observe that China
has surpassed USA to become the largest mobile market of the
world. In Africa, mobile subscribers outnumber fixed line
subscribers in more than half the countries5. Mobile telephony has
emerged as the major growth driver in this sector. But for
expansion in mobile network, there would have been hardly any
growth in telecommunications in many countries. In developed
countries, mobile phones have complemented fixed lines whereas
in many developing countries with low-level fixed line penetration,
mobile has already surpassed fixed lines filling up supply gaps
created due to inadequate growth in the latter. It has been
observed that ‘the ability of a country to grow its mobile network
to the point where it overtakes the fixed-line network is not a
48
function of its wealth…the crossover point can come as low as a

fixed teledensity of 0.4 (for instance, in Malwai) to as high as 75
(the case of Luxembourg) and at any point in between.
There are three important economic implications of mobile

explosion for the developing countries. First, by offering a viable
techno-economic alternative it is helping in improving telecom
penetration bypassing shortages of fixed lines. Consequently, it is
bringing along with it all concomitant economic benefits of
enhanced telecom accessibility. Second, it is promoting a better
entrepreneurial culture and supporting employment generation
through proliferation of kiosks. Third, there has been a shift in
investment burden from state to private sector and the
consumers.
The pace at which 3G is going to proliferate in India will depend

upon, inter alia, the market demand for higher bandwidth data.
There is a view that perhaps the present demand for high speed
data (greater than 64 kbps) can be met cost effectively with
General Packet Radio Service (GPRS). While pent up demand for
emerging data-needs can be met by using 2G systems like Short
Message Service (SMS), GPRS etc., the drive for 3G in Indian
market can come from ‘corporate roaming traffic via international
visitors’
Substantial work needs to be done in developing 3G relevant

contents so as to expand its market. Initiative has already been
launched in these areas. For example, Sonera (formerly Telecom
Finland) has already launched information portal for mobile
phones including Internet localisation services.Future work in this
area will be in the form of adding more value to the new services.
Advanced plans are necessary to develop vibrant industries for 3G

applications. This may call for investments. A synchronized growth
of user industry and 3G technologies would ensure that pay-off
period in investment is minimized. Developing knowledge based
industry to provide mobile applications would reduce uncertainties
regarding return from private investment in 3G technologies.
As a preparatory groundwork to usher in 3G, it is essential to

demarcate areas where massive harmonization efforts would be
49
needed. This would entail upgrading hardware and software for

high bandwidth multimedia services. Harmonization would also be
needed between the two emerging varieties of CDMA, i.e.,
wideband CDMA that also supports fixed network and CDMA –
2000. Since it is likely that both these solutions would ultimately
support fixed and mobile applications, a marriage of the two would
prevent technological fragmentation of the market.
There is need to develop deeper understanding of the evolution of

new end-users in the market for the mobile multimedia services.
Multimedia service providers will emerge as important
shareholders in the network value chain. Countries should envision
new partners, new entities, and new stakeholders in the business
models. Multimedia portals will be important components of such
business models.
There is need for further work to match regulatory perspectives

emerging as a part of the convergence regime with the
requirements of 3G. Another important area of work will involve
further thought over efficient billing model ---- a transition from
time dependent billing model to content dependent billing.
The revenue model in the telecommunications sector is going to

change significantly in times to come. In many cases PTOs have
started offering free Internet to augment revenue from telephone
lines6. In the Philippines, a global leader in SMS use in mobile
handsets, revenue from SMS contributed a growing share of
mobile revenue. SMS proved to be much cheaper than voice call.
The following changes should be adopted in product and services

for the teletouch:-
Internet Connectivity:-
South Africa is among the top 20 countries in the world

whenranked by the number of Internet nodes. The Internet
community in South Africa is about 30 times larger than the next
largest African countries, Egypt. Full Internet facilities are
available throughout the country with about 150 Internet Service
Providers (ISPs) commercially available. The upstream bandwidth
is available through the public telecommunication operator,
Telkom South Africa, or by leasing part of the bandwidth from
Telkom for private networks. The current international bandwidth
50
stands at 90Mbps, of which 60Mbps are connected directly to the

United Kingdom and United States.
The topology of South Africa’s Internet consists of about 10

“top-level” operators each with their own leased line Internet
links, as well as a number of “second level” ISPs who share their
international bandwidth of the top-level operators. Most of the
links are carried through the SAT-2 fibre cable across the
Atlantic to the US, but there are also satellite providers. One of
the largest top-level operator is the South African Internet
Exchange (SAIX).
SAIX is a product of Telkom and is South Africa’s largest,

commercial Internet Access Providers. SAIX has the largest
Internet network in South Africa, powered by an assortment of
Cisco routers. There are 50 Points of Presence (POP)
established by SAIX throughout the country, and they are
expected to grow to about 80 by the end of 1999. The
bandwidth belonging to SAIX is approximately 14.5Mbps with
upstream link to the United Sates. Many commercial ISPs in
South Africa are subscribers of SAIX, and they range from large
companies, such as Global Internet Access, medium-size
companies, such as Intekom, and a variety of small companies.
SAIX also caters to corporate clients who want to establish their
own private Internet network.
Apart from the commercial entities, two non-for profit ISPs are
available in South Africa: SangoNet in Johannesburg, and
HealthLink in Durban. SangoNet is the first non-academic
Internet provider in South Africa and is a member of the
Association for Progressive Communication (APC). The focus of
SangoNet is to support Internet development within the NGO
sector both in the country and in Southern Africa region.
Internet Service Providers:-
There are over 150 Internet Service Providers in South Africa.

Here are some of the major ones:
 UUNET Internet Africa

 Internet Solution
 LIA
51
 CompuServe
 Global-One
 IBM
 Intekom
 M-Web
 CiTEC
Internet policy:-
Telkom challenged ISPs on the grounds that Telkom’s monopoly
over telecommunication services also extends to Internet access.
SATRA consequently analyze the issue and ruled that Internet was
under the competitive demand and would not fall under
conventional voice network Internet Protocol is consequently
provided under Value Added Network Services (VANS) license
under section 40 of the Telecommunication Act. However, the
legal battle is far from over. Telkom is presently seeking legal
advice about lodging an appeal.
Training and Development:-
The Telecommunication Act of 1996 created the Human

Resources Development Fund. Telecommunication licensees will
contribute to the fund and these contributions will be paid into
the National Revenue Fund. The Fund will be used to pay grants
and subsidies to “promote the provision of adequately skilled
human resources at all levels of the telecommunications sector
in numbers sufficient for the telecommunication needs of the
Republic.”
The Act enables the payment of the following 11 types of

donations, contributions, subsidies and grants by the Director-
General:
1. Donations and contributions to the funds of the South African

Qualifications Authority
2. Telecommunication education, research and training
Training and retraining of unskilled and under-skilled persons
52
Training of artisans and technicians Undergraduate tertiary

education.
a.the extension or improvement of courses of study and
instruction in telecommunication, technology and engineering at
universities and technikons (5)
b.the awarding to students of bursaries, scholarships, prizes and
other financial assistance for the purposes of undertaking any
such course (6)
c.the facilitation of the mobility of teaching staff and students of
universities or technikons, between those institutions and the
telecommunication industry (7)
d.the provision of assistance in the fields of telecommunication,
technology or engineering by one university or technikon to
another (8)
Broadcasting/Media:-
Broadcasting policy:-
South Africa’s broadcasting industry is scheduled to be open for
competition in the year 2000. One of the areas in broadcasting
that will be opened to competition is signal distribution. The
Independent Broadcasting Authority (under the Ministry of Posts,
Telecommunications and Broadcasting), is responsible for
regulating broadcasting signal distribution. IBA interprets signal
distribution competition as “the establishment of transmission
infrastructure, maintenanceand operation of signal distribution
facilities by or on behalf of the broadcasters.”
Broadcasting and media agency:
The Independent Broadcasting Authority (IBA) is the responsible

body for licensing media broadcasters. It also formulates the
broadcasting policy but this responsibility will be transferred to
SATRA once the government approves the merger between SATRA
and IBA.
Radio and television:

 Private TV operator
 National radio: SABC Radio
 Other radio stations
53
 Private Radios: 5FM, KFM, Radio Pulpit, Radio Oranje, Cape

Talk, Highveld Stereo, 702 Talk Radio.
 University Radio: 104.5 University of Cape Town Radio,
89.7 Rhodes Music Radio
 Amateur Radio: Zululand Amateur Radio Club
 Radio Trunking Operators: Q-Trunk, One-2-One, and
FleetCall
Radios per 100 inhabitants: 31.6 (1995)

Television per 100 inhabitants: 12.43 (1997)
Home satellite dishes/antennas: approximately 78,000 (1996)
The NGN is expected to provide cost-saving opportunities through

system efficiencies, automatic assurance and fulfillment, and
human capital efficiencies as a result of the pursuit of turnkey
capital programmers.
Our mobile review process is gaining momentum. On September

3, 2008, Teletouch issued a cautionary announcement advising
shareholders that we are in discussions with Vodafone and MTN.
Teletouch is committed to pursuing a converged future – fixed,

mobile and data – to retain and grow our revenue within South
Africa. We are working hard to deliver the benefits of the future
converged communications standards to our shareholders.
Recognition of the value of our employees
Teletouch's skilled and experienced workforce is our competitive

advantage and is also highly attractive to our competition. Rapidly
changing technology, increasing specialization and capacity
requirements necessitate ongoing development and training of our
employees.
Teletouch continues to invest significantly in our employees to

ensure that the appropriate business skills are available to meet
customer requirements.
For the year ended March 31, 2008, Teletouch spent R20 million
on training and development and employees.
54
Tele touch continues to identify high potential individuals within

the Company that can be developed for future senior management
positions to ensure all future employee requirements are met. In
addition, Teletouch's expansion into other parts of Africa and
competitor poaching of our talent, demands that our succession
plans are robust.
The Company has demonstrated the strength of its succession

plans by appointing 25 senior manager vacancies from within the
Company, utilizing the existing skills and potential of the current
employee base, while at the same time increasing the skills pool
with outside appointments.
Key NGN and capacity achievements
Increased demand and bandwidth hungry applications have

required Teletouch to upgrade its capacity. The following are the
key investment areas:
• Teletouch has grown its national and international IP network

capacity by 60% to 28.9 Gbps and 60% to 2.4 Gbps, respectively;
• The bandwidth of the local and national transport networks have

increased 12% to 5.7 Tbps and 20% to 1.2 Tbps respectively;
• Data networks have seen Diginet and Diginet Plus Services

increase bandwidth by 20% to 20.8 Gbps;
• The ISP network has grown 30% to 104 Gbps to cater for
increased ADSL services; and
• The SAT-3 cable's capacity has trebled to 120 Gbps from 40

Gbps.
Teletouch company spent R 28,972,288 000 during the year

ended financial year 09-10 in line with its 5 year R140 billion
capital expenditure programme. Projects are prioritized according
to internal rate of return for Teletouch. Existing infrastructure is
optimized to decrease capital requirements for service
provisioning.
55
Teletouch Media
On August 31, 2008 Teletouch announced the creation of

Teletouch Media (Pty) Limited. Teletouch Media has applied to the
Independent Communication Authority of South Africa (ICASA) for
a commercial satellite and cable subscription broadcast license.
This license will be granted on September 12, 2009. Teletouch
Media's vision is to be Africa's "digital media provider of choice"
and is developing a set of new digital media services to address
the diverse needs of both the consumer and business markets.
Teletouch Media will provide services through a wide range of
digital platforms, positioning itself in new, high growth areas of
the information, communication and entertainment market.
Teletouch Media is seeking to develop a digital service portfolio

across three core service areas:
 Content over the Internet (online content services and ISP

services);
 Content over satellite (Satellite TV and radio); and
 Content over a "Quality of Service" network (IPTV including

broadcast and on-demand TV and interactive services).
ONE YEAR EXPANTION PLAN
In South Africa Tele Touch achieved the good poison within two
years. South Africa has the good business environment because
 Sound economic policies

 Favorable legal and business environment
 World-class infrastructure
 Access to markets
 Gateway to Africa
 Trade reform, strategic alliances
 Cost of doing business in SA
 Ease of doing business in SA
 Industrial capability, cutting-edge technology
 Competitiveness
56
In one year expansion plan we have planed to expansion

Tele touch in East Rand, Pretoria, Vereeniging and Limpopo
because in these cities have large population and growth rate of
population is very high. Our main aim is to capture a customer list
of 5.5 million but also as we know that in present scenario,
spectrum (the radio frequency on which mobile signals travel) is a
scarce resource on which the new telecom wars are being fought.
Therefore, we must confine this limited resource as early as
possible. Also according to SATRA, it is given that if the subscriber
base of an organization reaches to half million then it gets 1.8MHZ
radio frequency. Whose value is much more than the expenses
that we spend to acquire these customers. Now for achieving this
we have some plans
 Offering an approx free (loss making prosperity)-for CDMA &

GSM service for 2G to capture the available customer in this
sector.
 We should decrease the cost of connections, hand set &

tariffs.
 We will provide more value and benefit to retailers because

they directly connected with customers.
 These offers will be given only limited time period, when we
achieved our target 1.4MHZ of spectrum from government
we will neutralize these above expenses with that money
which we are giving to CELL C. Also parallel with the co-
operation of our finance department to cut unnecessary cost.
We will also more focusing on GSM compared with CDMA

because:-
(a) Customers like the flexibility of choosing their handset.
(b) Intentional roaming, especially in Europe is difficult on CDMA

and we could not afford to loose the customer those who travel as
they would typically be high uses once.
57
 We will make and managing healthy relationship with

the politicians that is inviting them on product launching
product promotion providing them special offers etc.
 We will also make sound relationship with media by inviting

them on many occasions, and attract them by do social
works.
SWOT ANALYSIS
STRENGTH
Strong Capital-: Teletouch has a big amount of capital and very

less debt. So from this capital structure it can easily expand
business, develop infrastructure, to provide more salary to its
employees to take risky decision, complete the mission statement
for serve the society.
Global exposure-: Teletouch is presently working in more then

three country. And in the today world when customer became
more clever so you can not cheat some one. And teletouch is
not working in India only but it is working in three countries.
Sector coverage-: Telecom industry is fast growing industry and

for have a good market share one company should have strong
market share. For keeping this factor in mind Teletouch
provided both form of mobile services like CDMA and GSM. And
in future it is planning ti provide 3G also.
Large Employee-: Teletouch has more then 1300 employees and

95 costumer care which provide continue services. So the
fulfillment of Gap number three of services of marketing it has
95 customer cares.
WEAKNESS
1. Lack of infrastructure-: Due to new company its infrastructure

is not well maintained.
2. New company-: Teletouch is a new company so it has not so

much famous and a negative image of buyer produced although
Telecom sector is new.
58
OPPORTUNITY
1. 3G-: 3G technology is used in some country so by using 3G

teletouch can expand their business. It is proved by the trend
and research that the coming future in telecom sector is 3G.
2. Development of South Africa-: South Africa is developing so

fast and buyer purchasing power increases so fast. Also for a
developed economy mobile became a very much necessary.
THREATS
1. Large number of competitors-: There are 7 telecommunication

companies in South Africa. And all 7 are very settled so its
competitors are its main threat.
2. Level of awareness among competitors-: All company has well

diversified portfolio so make a faith in South Africa people is
difficult. And they know the mentality of buyer and they make
plan according to people choice.
59
GROUP-1B
TeleTouch Limited
Operation Department
Submitted by
Abhishek Singh
Anand vikas
Anusha kesari
Amit kumar
Basant kr Yadav
60
DISTRIBUTION OF WORK
Department Operation
Vice president Anand vikas
Executive supply chain Basant kr Yadav
Executive operation planning Abhishek Singh
Executive external liaison Amit Kumar
61
Executive operation planning Anusha kesari
62
TeleTouch
Operation department plays a vital role in the success of

concerned company because it Characterizes operations
management and its connections with the corporate strategy with
the purpose of gaining competitive advantages.
That’s why we need to do Operational planning (OP) which is a

subset of strategic work plan. It describes short-term ways of
achieving milestones and explains how, or what portion of a
strategic plan will be put into operation during a given operational
period. An operational plan is the basis for, and justification of an
annual operating budget request.
Operational plans should establish the activities and budgets for

each part of the organization for the next 1-3 years. They link the
strategic plan with the activities the organization will deliver and
the resources required to deliver them.
The OP is both the first and the last step in preparing an operating
budget request. As the first step, the OP provides a plan for
resource allocation, as the last step, the OP may be modified to
reflect policy decisions or financial changes made during the
budget development process.
Operational plans should be prepared by the people who will be

involved in implementation. There is often a need for significant
cross-departmental dialogue as plans created by one part of the
organization inevitably have implications for other parts.
63
Service providers
TeleTouch Limited has Joint venture with Cell C for the distribution
of its services. Cell C is referred to as service providers. As in year
2010-2011 we are expanding our business by 5.5% to 11%. So
that in this year we had planned not establish our own network
and services that’s why in this year TeleTouch will Outsource it’s
services Such as Network sharing with Cell C and Customer care
service with the Accenture call centre.
TELE WORLD
It is selling point as well as customer service center of TeleTouch.
Customer service centre

We fully recognize the importance of providing a high level of
customer service support in acquiring and retaining customers in
South Africa's competitive mobile cellular environment. That is
why we will provide our costumer 24/7 service, all year round.
Customer care center is the primary point of contact for resolution
of enquiries and complaints of Cell C subscribers. Each Customer
Service Centre is charged with, and committed to, providing
timely and complete resolution of subscriber concerns in an
accessible and courteous environment. To achieve this, our service
provider has adopted the following principles:
64
Official Languages: Each Customer Service Centre will use staff

best suited to communicate with TeleTouch's subscribers in their
preferred official language during normal business hours.
Customer Service Representatives (CSR's) of differing ethnic and
linguistic backgrounds are employed. All calls to a Service Centre
will be recorded.
Centre Staffing: Customer Service Centre staffing is optimized so

that at all times a sufficient number of CSR's are available to
provide timely resolution of each caller's complaint or query.
CSR Hiring: TeleTouch’s human resource department and its

Service providers are committed to hiring and training a top-
quality workforce of customer service representatives. The
representatives are mandated to provide a prompt, courteous and
knowledgeable service and to attend to the resolution of
subscriber enquiries and issues. We are committed to an
employee selection and hiring process that provides equal
opportunity and empowerment to qualified personnel, embraces
the Employment Equity Act No 55 of 1998, and supports active
recruitment of employees and contractors from historically
disadvantaged groups.
CSR Training: All the Customer Service Representative must be

trained and developed by TeleTouch’s employees. This training
and testing program is specifically designed to facilitate acquisition
and retention of the knowledge and skills required for the position.
Each CSR must fully understand and conform to the operational
and ethical standards set forth in this Customer Service Code of
Conduct.
65
CUSTOMER CARE
TeleTouch is outsourcing the service of call centers from Accenture
call centre. Earlier we required 95 call centre staff to facilitate 2.37
million subscribers, as our subscribers will be doubled in the next
year so we also have to increase the call center staff that will be
approximately 180. The primary focus for customer care has been
on expanding capacity in the call centers. Calls answered will be
doubled. And consolidated service levels also improved.
Recruitment and focus management continued, and new staffing
models have been adopted to improve flexibility as staff is
scheduled more effectively to meet call volume demand. Special
station of call centers has been very successful.
We will establish our own data call centre to focus on the support
of GPRS and 3G/HSDPA products. For the first time staff has been
trained on both telecommunications and information technology
skills and customer feedback has been positive.
66
NETWORK COVERAGE
In this year we will run our network in the fallowing nine areas:
 Eastern Cape
 Free State
 Gauteng
 KwaZulu-Natal
 Limpopo
 Mpumalanga
 Northern Cape town
 North West
 Western Cape
67
NETWORK TRAFFIC
Customer growth and connections
According to a recent survey, South Africa has been rated as the

world’s fourth fastest and Africa’s fastest growing mobile market,
with coverage on 80% of the total population, TeleTouch is having
5.5% market share in 2009-2010 with the 2.37 million
subscribers, it will be 11% in 2010-2011 with 4.75 million
subscribers. “Because South Africa offers an extraordinary
penetration rate in this burgeoning market, one of the highest in
the developing world,” said the report.”
As we have to twice our market share to capture 11% market

share that’s why our subscriber will grow by 2.38 million With the
majority of the growth from the prepaid market. Loyalty and
retention programs continue to play an integral role in achieving
the strategy of retaining market share and attracting new
customers.
International Roaming
TeleTouch had international roaming agreements with 395 mobile

communications network operators in 168 countries it’s never
been easier and cheaper to keep connected to our customers with
their family, friends and business while traveling. With our
roaming schemes they can have their cell phone with them when
they travel to any of the networks with which TeleTouch has
roaming agreements throughout the world. TeleTouch is opening
up the whole world for their subscribers.
68
no matter where they go in Africa, they can make and receive

calls using their TeleTouch cell phone for just R5 a minute. If they
prefer to just send SMSs, this is even more affordable at only
R1.50 per SMS.
Now they can also stay connected while traveling all over the
world with TeleTouch SMS Roaming from just R1.50 per SMS, it’s
the most affordable and convenient roaming option.
If they plan to access the Internet using using their TeleTouch

modem, for that has to pay roaming costs involved.
69
PROCUREMENT OF TECHNOLOGY, HARDWARE AND

NETWORK
We will procure our service through the fallowing service provides:
SERVICES SERVICE PROVIDERS
Technology, hardware & Siemens, Shunlong Technology

Equipment Co, Cisco Systems, Caixiang
Trading Co. Ltd
Core Network Cell C
3 G Network Cell C
Radio Network Cell C
Call Centers Accenture
Customer Service Centre TeleTouch (TeleWorld)
TECHNOLOGY WHICH IS BEING PROVIDED BY TELETOUCH
1G NMT, AMPS, Hicap, CDPD, Mobitex, DataTAC, ETACS
2G GSM, Iden, D-AMPS, IS-95, PDC,CSD, PHS, GPRS,

HSCSD,WIDEN
2.75G EDGE/EGPRS, CDMA2000(1xRTT)
3G UMTS,(W-CDMA), DMA2000, 1xEV-DO/IS-856, FOMA,TD-

SCDMA, GAN/UMA , WiMAX
3.5G UMTS (HSPA+) · CDMA2000 (EV-DO Rev.B/3xRTT)
70
TECHNOLOGY WHICH WILL BE PROVIDED BY TELETOUCH

IN
2010-2011
We will introduce these latest technologies in this expansion year:
3.75G UMTS (HSPA+) , CDMA2000 (EV-DO Rev.B/3xRTT)
4G Flash-OFDM · 3GPP LTE
1800MHz and 3G spectrum
From a technical regulatory perspective, TeleTouch is well

positioned for future growth. TeleTouch has permanent 1800MHz
and 3G spectrum licenses. Both the 1800MHz and 3G spectrum
fees are the same as the 900MHz spectrum fees. In light of this,
TeleTouch accepted the additional universal service obligations
imposed by ICASA, The Department of Communication assisted in
the identification of some beneficiaries within various government
departments. The license stipulates that roll-out can only
commence upon approval of the implementation plans by ICASA.
The implementation plans in respect of 1800MHz and 3G was
submitted to ICASA in 2008. Airtime used on the SIM cards will be
charged at a uniform commercial prepaid rate to be agreed
between all three mobile cellular operators and the internet usage
71
rates at a 50% discounted rate, as provided for in the

Telecommunications Act.
PROCUREMENT OF WIRE LESS HARD WARES
TeleTouch is purchasing there wireless hardware equipment from

Cisco System, which are:
Wireless Broadband Routers with Modems

these routers make a broadband connection with your ISP and put
it out over the air so local network wireless users can access it.
It's an all-in-one solution for Internet connectivity - a cable
modem, Internet-sharing router, switch, and access point in one
box. The built-in wireless-g access point allows up to 32 wireless
devices to connect to your network at 54Mbps without running
cables through the office. It's also compatible with wireless-b
devices, at 11Mbps. And, as is true for most wireless routers, it
includes an SPI firewall and wireless security features to protect
your PCs, your data,
Cost Price: $117-$160 / R1184-1619
Wireless Routers
These units are very similar to the wireless routers with modems
discussed above, but with one critical difference: They don't
include a modem. If you buy one of these you'll need to buy a
separate broadband modem to connect between your ISP and
your router. Buffalo's Wireless-G MIMO240 Broadband Router
72
(WZR-G240) is typical: Its MIMO (Multiple In, Multiple Out)

technology claims up to 10X faster throughput than standard
802.11g.
Cost Price: $122 / R 1234
Travel Routers
There may come a time when you're on the road or just across
town, and need to share your wireless connection with co-workers
or customers. 3Com's Office Connect Wireless 54Mbps 11g Travel
Router is no bigger than a pack of cards, yet the lightweight,
portable device lets you share secure, high-speed Internet access
wherever a broadband connection is available. Up to 16 wireless
users can connect to the travel router. With its internal antenna,
compact form, and convenient carry case, it also transports easily.
Cost Price: $48-$83 / R 485-839
Dual-Band Routers
With three different flavors of IEEE's 802.11 wireless standard in
general use. Netgear's Double 108 Mbps Wireless Firewall Router
solves the problem by serving two simultaneous 108 Mbps
networks to ensure the highest speeds and the best quality of
service no matter what flavor of client adapter users have in their
computers. In addition to a 108 Mbps wireless-b/g network, users
can access a wireless-a network as well. The "fast lane" 802.11a
network is ideal for applications that demand the highest
bandwidth, including high quality video streaming and VoIP
applications.
73
Cost Price: $46 / R 465
74
VoIP Routers
Many companies are turning to VoIP technology to cut phone bills
by using the internet to place calls. The only catch is that VoIP
requires high-performance, high-bandwidth throughput to avoid
voice break-up and other undesirable telephony events. SMC
Networks' Barricade g VOICE ADSL Router combines an ADSL
wireless router with a Voice over IP gateway, giving you an
integrated voice and data office network in one box. You can share
your ADSL Internet connection with local PCs through a built-in
four-port Ethernet hub, or make wireless connections via a 54
Mbps access point. Plus you can plug in a telephone and save
money by using the fully featured VoIP gateway.
Cost Price: $130-$162 / R 1315-1639
Cordless Internet Telephony Kits

If your office uses Skype, Linksys' Cordless Dual-Mode Internet
Telephony Kit (CIT300) is aimed at you. It comes with the
handset, charger and a USB Base Station that plugs directly into
your computer. Dual-mode capability lets you choose whether to
make calls over a standard telephone line or with the Skype
application running on your PC. Just select who you want to talk to
from your contact list on your handset, press a button, and get
ready to talk. Cost Price: $82-$95 / R 829-961
75
Wireless Access Points

You can expect to get an effective 100-foot radius of indoor
service from a single wireless router, and 300 feet outdoors,
where there are fewer obstacles to interfere with the radio waves.
If you want to expand the service area of your wireless network
beyond that, you need to deploy additional wireless access points.
Usually these repeaters are connected with your main router by
standard Ethernet cables, but sometimes they use wireless
connections. 3Com's Wireless 7760 Dual-Radio 11a/b/g PoE
Access Point (3CRWE776075) is a cost-effective dual-band, Power
over Ethernet (PoE) solution. Providing ultra-fast speeds, this
access point supports a total of up to 128 wireless users.
Cost Price: $195-$210 / R 1973-2125
76
SIM AND PHONE REQUIRENMENT
In South Africa TeleTouch will procure their CDMA phones from

the following suppliers. these suppliers are very old in there
respective fields and are reliable so it would be better for our
group to get in touch with these group for good products at
reasonable prices because we will purchase in a bulk.
Product specification and their bulk price are given below
As in 2011 TeleTouch has to capture 11% market share of South

Africa. So we have to capture 2.38 million new subscribers. Out of
which 0.59 million subscribers will be CDMA user.
That’s why TeleTouch will purchase .62 million CDMA

phones out of which 0.03 million CDMA phones will be kept
as an inventory.
Only 2.78 million SIM cards will we procure in that financial

year.
We will also buy wire less modem from Cisco system.
So to run the operation department smoothly, we will need

approximately Rs 2 billion / (R 418,147,606)
Rest product detail is given further:
77
78
OPERATIONAL EXPENSSES
AV.
EQUIPMENTS QUANTITY TOTAL IN RS
COST
CDMA (MOBILE
PHONE) 6,20,000 2,200 1,364,000,000
SIM CARDS 2,780,000 10 27,800,000
WIRELESS
HARDWARE 40,000 5,500 220,000,000
OPERATIONAL
EXPENSES 388,200,000
RS-2,000,000,000
R- 418,147,606
EMPLOYEE REQUIREMENT CHART OF OPERATION

DEPARTMENT
DESGIGNATGION CURRETLY REQUIRED TOTAL

WORKING
EMPLOYEE EMPLOYEE
EMPLYOEE
V.P. 1 ---- 1
EXCUTIVE 4 --- 4
REGIONAL 9 --- 9
MANAGER
79
TERRITORY 20 24 44
MANAGER
WORKING STAFF 52 66 108
TOTAL 86 90 176
80
VALUE ADDITION
Value added refers to the additional value of a commodity over

the cost of commodities used to produce it from the previous
stage of production.
Value addition action must meet all the three following criteria:
1) The customer is willing to pay for this activity.

2) It must be done right the first time.
3) The action must some how change the product or services in
some manner.
TeleTouch will launce new service in 2010-2011, i.e. Adobe’s

flash cast product, which will provide a variety of small
animation services, such as weather information to the
subscribers. Adobe’s Flash Lite allows gaming and mobile
application providers to develop quick Flash-based applications.
Vertical-specific applications such as an ATM-like interface on
mobile screen can also be expected to perk up the m-banking
industry.
As we are already providing 1G, 2G, 2.75, 3G AND 3.5G services

in South Africa. So to add more value in our service we will launch
few latest technologies i.e. 3.75G & 4G
We are providing 17 types of products which are equipped with

latest technologies.
We are more focusing on the clarity and availability of the network

so that we couldn’t loose the satisfaction of our current and
potential subscriber.
81
SUPPLY CHAIN MANAGEMENT
In telecommunications industry, demand & supply chain

management (DSCM) needs reliable design and versatile tools to
control the material flow. The objective for efficient DSCM is
reducing inventory, lead times and related costs in order to assure
reliable and on-time deliveries from manufacturing units towards
customers.
To minimize component buffers and tied-up capital in supply

chain, planning and timing the components availability plays
significant role. Practical actions to improve efficiency in SCM are
as follows.
• Set up continuous visibility to channel inventory and sell

through.
• Share the demand information in the whole chain continuously.
• Plan and execute based on end user demand.
To minimize the risk for components availability in case of demand

fluctuations, supplier managed inventory (SMI) is often used.
Through SMI the focus is shifted from monitoring single deliveries
to monitoring stock levels. SMI component buffers will be kept
near to manufacturing unit, providing necessary flexibility. Against
forecasted demand, suppliers follow gross requirements and keep
the component levels between agreed minimum and maximum
levels. Traditional min & max levels are between 7 to 14 days.
Keeping 14 days components in buffer ties-up lot of capital.
82
DISTRIBUTION CHART
Factory Distributor TeleWorld Sales

User
SUPPLIERS
We are procuring wireless hardware equipment from Cisco

System,
Cisco Systems, Inc.

225 North 9th Street, Suite 500
Boise, Idaho 83702,
Phone: (800)553-NETS, South Africa - Johannesburg
 CDMA Phones is being procure by two suppliers
Global elect limited
Business Type: Distributor/Wholesaler
Product/Service: Telecommunications,
South Africa
83
Premier online distributors cc
Business Type: Manufacturer, Trading Company,
Product/Service: Mobile Phone, Memory Card, MP4, MP3
South Africa
 We will procure our Sim card from Shunlong Technology
Co. ltd. It’s Chinese Company

 We will manufacture our All the recharge cards & Tariff
vouchers Caixiang Trading Co. Ltd. It’s Chinese Company.
84
COST DETAILS OF THE CDMA PHONES WHICH WILL BE

PROCURE BY OPERATION DEPARTMENT
Here product wise purchasing cost and sources from where we will
buy our products are giving below:
NOK-616 CDMA Phone
Rs- 5500
R 1150
SHAPE \* MERGEFORMAT NOK-
2365 CDMA Phone RS- 2980
R 623
It will be procured by
85
Company Name: PREMIER ONLINE DISTRIBUTORS CC

Distributor/Wholesaler Product/Service: Mobile Phone, Memory
Card, MP4, MP3, Flash Driver
NOK-2255 65K CDMA

Phone
Rs- 1750
R 367s
NOK-2115 CDMA Phone
RS-1290
R 270
86
South Africa
87
NOK-2865 CDMA Phone
Rs- 2000
R 419
South Africa
88
NOK-2355 CDMA
RS- 1750
R 365
NOK-3125 CDMA Phone
RS-1350
R 283
89
Company Name: global elect limited
South Africa
SAM-6015 CDMA/GSM Dual-mode

Phone
RS- 3580
R 750
90
NOK-3155 CDMA Phone
RS- 1650
R 345
South Africa
NOK-6255 Refurbished CDMA

Phone
91
RS- 1280
R 268
NOK-6235
Rs- 1380
R 290
South Africa
92
NOK-6265 Refurbished CDMA

Phone
Rs- 3500
R 733
South Africa
93
94
MB-556 CDMA Mobile Phone
Rs-1750
R 367
MOT-V3c
CDMA Phone
Rs 1780
R372
95
South Africa
KN-K22+ CDMA phone
Rs- 5450
R 1140
MB-588 CDMA Phone
Rs 1850
R 387
96
South Africa
97
INVENTORY MANAGEMENT
The work of inventory management depart is to manage the right

product at right time at right place for right people. And here in
TeleTouch we will have to procure the Sims and cell phones from
the manufacturer or suppliers and then we will then supply it to
our outlets in such a way that it causes minimum cost. So first of
all we will procure the forecasted amount of Sims and cell phones
for one year. As per our estimation we will purchase the following
material in limited amount as below.
CDMA cells - .62 million
Estimated sell for one year - .59 million
Stock - .03 million
In the similar way for Sims for one year:-
Sims - 2.78 million
Sale - 2.38 million
Inventory - .5 million
Out of 2.38 millions of Sims .59 million of Sims will be sold with
CDMA PHONES. And 1.79 millions of Sims will be sold without cell
i.e. will give GSM service. And we will keep .5 millions of sim in
stock.
In order to sell our product in a very harmonic way we will have to

consult the dealers, whole sellers, and retailers in South Africa.
A big trend is for organizations to blend their operational

functions under the umbrella known as supply chain management.
Often, the first two functions to merge are purchasing and
inventory management.
98
So, as a purchasing professional, we must understand inventory

management principles to remain valuable.
First, we must know how much
inventory to have on hand to ensure continuity of supply in the
event of an uncharacteristic increase in either demand and/or lead
time. This quantity of inventory is called the safety stock. There is
no universally used formula for determining safety stock quantity,
but PurchTips Edition 86 suggested a risk adverse calculation.
Second, we must know when to reorder materials for inventory.

Generally, this point in time is determined when the quantity of
materials in stock decreases to a certain level, called the reorder
point. The reorder point is determined by the formula:
ROP = SSQ + (QUD x ALT)
Where,
ROP = Reorder Point
SSQ = Safety Stock Quantity
QUD = Quantity Used Daily
ALT = Average Lead Time (in days)
Third, we must know how much to order. A complex mathematical

equation determines the Economic Order Quantity, or EOQ. The
equation recognizes the tug of war between acquisition costs and
inventory carrying costs: when we order bigger quantities less
frequently, your aggregate acquisition costs are low but your
inventory costs are high due to higher inventory levels.
Conversely, when we order smaller quantities more often, our
inventory costs are low but our acquisition costs are higher
because you are expending more resources on ordering. The EOQ
99
is the order quantity that minimizes the sum of these two costs.
Fortunately, inventory management systems calculate the EOQ for
us.
100
REORDER POINT FORMULA
In real life situations the assumption of independence in the

probability distributions made in the example above may not be
valid and the number of time periods may also be large. In such
cases the approach adopted earlier can become much more
complex.
That is the reason why one can adopt a much simpler formula
which gives reasonably reliable results in calculating at what point
in the level of inventory a reorder has to be placed for
replenishment of stock. The formula along with its application is
given below, using the notation developed earlier.
Reorder point = S x L + F (S x Rx L)
Where
S = Usage in units
L = Lead time in days
R = Average number of units per order
F = Stock out acceptance factor
The stock-out acceptance factor, `F', depends on the stock-out

percentage rate specified and the probability distribution of usage
(which is assumed to follow a Poisson distribution). For any
specified acceptable stock out percentage the value of `F' can be
obtained from the figure presented below.
So these two formulas will be used by each parties so that there

will be less probability of arousal of any problems.
As per our estimation, there will be sell of .59 million of CDMA

cells, so per month sale can be calculated easily.
So sale of CDMA sale per month will be .0491 million along with
Sims.
And in case of Sims we have estimated to sale 2.38 million per

year. And out of 2.38 million of Sims, .59 million will be sold with
CDMA cells. So remaining 1.79 million of Sims will be sold per
year. So for one month the no. of Sims to be sold will be .149
million.
101
The total area of South Africa is approx 1220471.69sq. Km

and it is distributed as follows:
WESTERN CAP
Area: 129 370 square km (10.6% of total area)

Population : 3 633 080 (9% of total population)
Population density : 28.1 per square km
EASTERN CAPE

Population : 6 436 790 ( 16% of total population)
NORTHERN CAPE

Population : 737 310 (1.8% of total population)
ORANGE FREE STAT
Area: 129 480 square km (10.6% of total area )

Population : 2 726 840 (6.8% of total population)
KWAZULU/NATAL
Area: 180 square km (7.6% of total area)

NORTH-WEST

GAUTENG
Population : 6 869 100 (17% of total population)
102
EASTERN TRANSVAAL
NORTHERN TRANSVAAL
Population: 5 201 630 (12.9% of total population)
we will have to cover all these areas. So will hire the local people
who have good awareness of the areas and the number of
distributor, wholesalers and retailers which will be confirmed by
the territory management, they will be supplied by the goods as
per the requirements by the people who are hired by we people.
As the area is very large so it will be better for us to have our own
vehicle. And after knowing the total number of distributors , we
will distribute our products among them in such a way that the
cost of inventory will be minimum for them, beside this there are
also some factors which are to be considered like amount of
product sold, potential customer , area of the territory,
accessibility etc. and when our product will come in the market
then after 4 or 5 consecutive months we will have clear cut idea
about the selling of the products and then we will be fully able to
calculate the amount of products to be distributed and where on
the basis of above given formulas.
As we have decided to sale 2380000including of Sims card and

CDMA phones per year. So per month sale will be approx 198333
Sims card+ CDMA phones. Suppose that if we will sale 30
products including both to the end user through retailers then the
number of retailers will be 6611. Then on an average as we know
that one wholesaler can handle approx 50 permanent retailers
then the numbers of wholesalers will be 132. and as per our
estimation we think that 1 distributor can handle approx 10 – 15
wholesalers so the numbers of distributors will be 11-12 .and as
we know that there are only 8- 9 main regions so we will
distribute our 12 distributor according to area of the regions. As
we know that total area of South Africa is not very small so it will
103
be better for us to have our own vehicle rather than hiring the
vehicle for the distribution of our products. And we know that we
are going to procure our products not regularly so it will be better
for we people to implement market oriented distribution, so that
we will be nearer to the market place and the cost of distribution,
transportation, warehousing will be relatively low.
104
How the government policies are helping to the telecom

Industry in South Africa
The government policies in South Africa for telecom industry

are not only helping to telecom industry only but it also helps to
economy, Operator and consumers:
 It Create dynamic competitive markets that deliver economic

benefits to consumers.
 Maximize access to a diverse range of communications
and/or ICT services.
 Deliver choices to consumers and value for money or high
quality ICT services.
 Ensure consumer protection from abuse from service
providers in the form of high tariffs.
 Improve regulatory independence for policy-makers and
operators
To The Economy
 It will lead to a conflict free ICT ( information &

Communication Technology)
 It would enhance quicker rollout and growth of both wireless
technologies,
 Broadband and internet; and Faster roll-out would ultimately
lead to the achievement of the objectives of
 Universal access and extension of services to rural areas.
105
TO THE Regulator
 It encourages free and easy deployment of new technologies

and associated Services in the ICT sector.
 It simplifies the procedure of licensing in the telecom sector.
 It ensures flexibility and efficient utilization of scarce
resources
 It encourages efficient small operators to cover niche areas,
in particular, Rural, remote and underserved areas as far as
the provision of ICT services is Concerned
 It enhances easy entry and level playing field for all
operators.
To the Operators
 It would afford an operator the freedom to provide

multiple services under a Single authorization.
 It would enable the operator take advantage of new
technologies faster.
 It would enhance economies of scale and greater
efficiency as a result of Optimum sharing of infrastructure
and resources;
 It would lead to cheaper cost of providing services and
cheaper cost of services would increase market and
profitability of Operators.
106
To the Consumers
 Consumer expectation of one-stop service availability would

be met Lower operating cost resulting from economies of
scale would transform into lower tariffs.
 Reduction in set-up costs would significantly lessen access
cost, making ICT Services more affordable.
 Increased access would create enabling environment for the
growth of other Businesses create employment opportunities
and raise the standards of Living of people.
 Savings from reduction in the number of devices that the
consumer would require to own.
Government Policies that Hinder in Expansion Plan
Entry barriers
There are considerable barriers facing a new entrant into telecom

networks, some of which are absolute advantages and others that
have been strategically created. The size of the barriers is
reflected in the high market shares of incumbents in liberalized
markets years after they were opened to competition. Probably
the biggest barrier to entry is the natural monopoly conditions
that seem to be present in the residential local loop. In the US,
the incumbents still hold around 96% of the market. Of course,
liberalization in an expanding market will result in greater
Penetration by the entrant under the same scale economy
conditions, allowing them to also benefit from this barrier. Another
entry barrier that is usually cited is consumer inertia, which can be
ascribed to the following factors:
107
Local carrier switching costs
The once-off costs of switching suppliers For telephony this usually

includes the administrative cost of switching, informing
friends/clients of the change in number, and changing official
stationary with the number on it. Number portability overcomes
this problem.
Long-distance carrier switching costs
Selection of the long-distance carrier would normally involve the

entry of a pre-dialing code to select an alternative carrier to the
default carrier. The default carrier is clearly at an advantage
because subscribers don’t need to enter a code before dialing – a
cost to the subscriber. Carrier pre-selection overcomes this
problem.
Quality risk
Consumers will be uncertain of the product quality of the entrant

but certain for the incumbent. The risk premium is built into the
ongoing costs of the service, not just a once-off cost. This may be
lowered if the entrant already has a reputation from another
market. Of course, if incumbent quality is poor, then this may turn
out to work in favor of the entrant.
Marketing
The incumbent has less need to advertise, as all current

consumers are already aware of them (which of course may work
against them if their reputation is poor). They also have a
108
database of all existing telephone users that they can use to both
identify who has left them for the entrant (in whatever service)
and approach directly to persuade them to switch back.
RECOMMENDATIONS
 Determine the size of the telecommunications market by

providing licenses for the purposes of delivering
telecommunications services.
 To foster healthy relations between the different service
providers by overseeing interconnection agreements so that
service providers have equal access to the network provided
by the dominant operator.
 To resolve disputes and maintain a level playing field or
regulate for fair competition so that the dominant operator
does not abuse his or her dominance in the market place.
 To meet public policy goals so that consumers are protected
against high prices, poor quality of service, inadequate
infrastructure, limited services, unsafe equipment and
neglect by the service providers.
 To address consumer complaints and solve them amicably.
 To ensure efficient use of the frequency spectrum and space
for the provision of information technology services.
 To encourage investment, innovation and optimum growth of
the sector and operators’ performance.
 To administer the numbering plan so that there are sufficient
numbers available.
109
 To monitor compliance with national and international

telecommunications equipment suppliers and service
providers.
REGULATORY AFFAIRS
The regulatory environment was vibrant in the current financial
year; with inter alia the Electronic Communications Act (“ECA”)
and the Independent Communications Authority of South Africa
(“ICASA”) Amendment Act being promulgated on July 19, 2006;
the publication of the framework for converting existing licenses
and the Notice of Intention to Prescribe Regulations in terms of
the Licensing Framework applicable to Individual and Class
Licenses, are at the “in comment” phase. The Information and
Communication Technology (“ICT”) BEE Charter, after more than
a year of continued industry consultation and negotiation, is also
nearing finalization. The Charter will be subject to alignment with
minimum requirements of the Department of Trade and Industry’s
(“DTI”) Codes of Good Practice. On January 29, 2007 the
Authority also initiated an inquiry into the market for wholesale
fixed and mobile call termination rates. The process is still
ongoing. Further, MNP was implemented since September 10,
2006 without any significant impact.
110
PESTLE ANALYSIS
Political Analysis
 Government type: republic
The language of political risk assessment reflects the master

narrative of wealthy capitalist investors. At its core, this master
narrative is reflected in the quote of Hasbrouck at the beginning of
this essay: "money is cowardly, it looks for safety and safety
means certainty, transparency and stability". Moreover, 'money',
in other words wealthy investors, is--to paraphrase Adam Smith--
under no obligation to invest in developing economies. They will
only invest for selfish reasons, namely for profit, and the rewards
Have to reflect the risk involved.

The macro political risk image of South Africa can best be
portrayed as being of a medium risk category. The serious political
risks, such as war, revolution, and coup detach, hostile neighbors,
and military involvement in politics, violent racial, sectarian and
ethnic conflict is low at present. Their resurgence in the medium
term (10 years) can be judged as being unlikely. More pertinent
and realistic political risk is posed by social and political-economic
risk, as pointed out in the analysis above. The leadership
succession dispute in the ruling alliance; the country-wide
vehement and at times violent popular protests regarding
inadequate municipal services; corruption; crime, especially the
high rate of violent crime; inefficient government administration;
poverty; the Aids pandemic; trade union activism; affirmative
action and BEE; inflexible labor policy; a rigid business policy
environment--including tax regimes; and uncertainty regarding
private property, all pose noteworthy political risks. These risks
are not of the cataclysmic type. Individually they may seem
innocuous. Taken as a whole, collectively, these political risks add
up to foreign 'money' being cautious, even 'cowardly' and holding
back on investing in South Africa. Since political risk at its core
constitutes an assessment of possible losses caused by
government action, alleviation of the risks are also quite evidently
111
in the domain of corrective action by government. The ANC

government has done much to drive down the cataclysmic political
risks in the last decade. If the Government applies its mind, the
more mundane political risks can also be assuaged and the faint-
hearted foreign investors invited to 'come to the party' of South
Africa's economic reconstruction.
Economic policies
Since the advent of democracy in 1994, South Africa's economy

has been undergoing structural transformation, with the
implementation of macro-economic policies aimed at promoting
domestic competitiveness, growth and employment and increasing
the economy's outward orientation.
Key economic reforms have given rise to a high level of macro-

economic stability. Taxes have been reduced, tariffs lowered, the
fiscal deficit brought under control, and exchange controls relaxed.
Government expenditure has also been restructured towards

social services that are contributing to a better quality of life for all
South Africans.
South Africa's central bank, the SA Reserve Bank, maintains its

independence from the government. The Bank's programs of
inflation targeting have shown good results: the real interest rate
has stabilized and the currency remains at competitive levels.
Consumer inflation came in at under 5% from 2004 through 2006
before global prices pushed it up to 6.5% in 2007. In 1994 it
stood at 9.8%.
The government has made it clear that foreign investment is

welcome in South Africa, and investor-friendly policies support the
public pronouncements. In 2005, the government began
formulating a new strategy to boost the country's economic
growth rate to 6% of GDP by 2014 and reduce unemployment.
Implementation of the strategy – involving large-scale state

investment in infrastructure, small business and skills
development, and interventions targeting specific areas of the
economy – is well under way.
Legal
112
South Africa has a world-class, progressive legal framework.

Legislation pertaining to commerce, labour and maritime
issues is particularly well developed, while laws relating to
competition policy, copyright, patents, trademarks and
disputes conform to international norms and conventions.
Sanctity of contract is protected under common law, and

independent courts ensure respect for commercial rights and
obligations. The independence of the judiciary is guaranteed by
the Constitution.
South Africa's financial systems are sophisticated, robust and well

regulated. South African banking regulations rank with the best in
the world, while the sector has long been rated among the top 10
globally. Foreign banks are well represented and electronic
banking facilities are extensive, with internet banking a growth
feature of the sector.
The JSE Limited rates among the top 20 stock exchanges in the
world by market capitalization. The JSE's rules and their
enforcement are based on global best practice, while the JSE's
automated trading, settlement, transfer and registration systems
are the equal of any in the world.
Technology
South Africa's industrial production growth is well above the

average for developing markets.
The country's manufacturing output is increasingly technology-

intensive, with high-tech manufacturing sectors –such as
machinery, scientific equipment and motor vehicles – enjoying a
growing share of total manufacturing production since 1994.
South Africa's technological research and quality standards are

world-renowned. The country has developed a number of leading
technologies, particularly in the fields of energy and fuels, steel
production, deep-level mining, telecommunications and
information technology.
Socio-cultural
113
For many different reasons, several individuals, including myself,

have decided to move to South Africa and launch a new business
venture as full and equal partners. We will be assembling many
different types of seats and selling and distributing them to a wide
variety of telecom services around the world. The socio-cultural
characteristics of advertising and marketing play a very important
role in having a successful business.
In order not to create a business or cultural blunder, which would

have a negative effect on our success, extensive market research
and analyses, must be performed. Market researchers have the
ability to uncover adaptation needs, potential name problems,
promotional requirements, and proper market strategies. Those
issues as well as several others will play a major role in any
company that will be doing business in a foreign market. One way
to test a potential market is to perform a Market Opportunity
Analysis.
114
GROUP-1B
TeleTouch Limited
Finance Department
Submitted by Sakshi Sharma

Satish Tiwari
Sailendra Jha
Shivani Arora
Shruti Garg
115
TeleTouch Ltd Finance Department
Clear inputs on whether the expansion will be from internal

accruals or some external funding, and if so, how much and
from what source?
Sources of funds

sources.
Our company might raise new funds from the following sources:
Secured Loan (African Development R. 600 mill

Bank)
Retained earnings profit (Desh ki Awaj R. 172.8mill

from India)
R 1,025,939,800 -total exp of department
We have profit in 2009-2010 = R 471,294,447

132,139,800 R
Ordinary (equity) shares
Ordinary shares are issued to the owners of a company. They

have a nominal or 'face' value, typically of R 2. The market value
116
of a quoted company's shares bears no relationship to their

nominal value, except that when ordinary shares are issued for
cash, the issue price must be equal to or be more than the
nominal value of the shares.
We will be raising R.10 million through this source. The number of

shares to be issued will be 100,000 at the market price of R.100
New shares issues
A company seeking to obtain additional equity funds may be:
a)An unquoted company wishing to obtain a Stock Exchange

quotation
b) An unquoted company wishing to issue new shares, but without
Obtaining a Stock Exchange quotation
c) A company which is already listed on the Stock Exchange

wishing to issue additional new shares.
The methods by which our company can obtain a quotation on the

stock market are:
a) An offer for sale
b) A prospectus issue
c) A placing
d) An introduction.
117
Loan stock
Loan stock is long-term debt capital raised by a company for

which interest is paid, usually half yearly and at a fixed rate.
Holders of loan stock are therefore long-term creditors of the
company.
Loan stock has a nominal value, which is the debt owed by the
company, and interest is paid at a stated "coupon yield" on this
amount. The rate quoted is the gross rate, before tax.
Debentures are a form of loan stock, legally defined as the written

acknowledgement of a debt incurred by a company, normally
containing provisions about the payment of interest and the
eventual repayment of capital.
Debentures with a floating rate of interest:
These are debentures for which the coupon rate of interest can be
changed by the issuer, in accordance with changes in market rates
of interest. They may be attractive to both lenders and borrowers
when interest rates are volatile.
Retained earnings
118
For any company, the amount of earnings retained within the

business has a direct impact on the amount of dividends. Profit re-
invested as retained earnings is profit that could have been paid
as a dividend. The major reasons for using retained earnings to
finance new investments, rather than to pay higher dividends and
then raise new equity for the new investments, are as follows:
a) The management of many companies believes that retained

earnings are funds which do not cost anything, although this is not
true. However, it is true that the use of retained earnings as a
source of funds does not lead to a payment of cash.
b) The dividend policy of the company is in practice determined by

the directors. From their standpoint, retained earnings are an
attractive source of finance because investment projects can be
undertaken without involving either the shareholders or any
outsiders.
c) The use of retained earnings as opposed to new shares or

debentures avoids issue costs.
d) The use of retained earnings avoids the possibility of a change

in control resulting from an issue of new shares.
Another factor that may be of importance is the financial and

taxation position of the company's shareholders. If, for example,
because of taxation considerations, they would rather make a
capital profit (which will only be taxed when shares are sold) than
receive current income, then finance through retained earnings
would be preferred to other methods.
119
A company must restrict its self-financing through retained profits

because shareholders should be paid a reasonable dividend, in line
with realistic expectations, even if the directors would rather keep
the funds for re-investing. At the same time, a company that is
looking for extra funds will not be expected by investors (such as
banks) to pay generous dividends, nor over-generous salaries to
owner-directors.
Bank lending
Borrowings from banks are an important source of finance to

companies. Bank lending is still mainly short term, although
medium-term lending is quite common these days.
Short term lending may be in the form of:
a) An overdraft which a company should keep within a limit set by

the bank. Interest is charged (at a variable rate) on the amount
by which the company is overdrawn from day to day;
b) A short-term loan, for up to three years.
Medium-term loans are loans for a period of from three to ten

years. The rate of interest charged on medium-term bank lending
to large companies will be a set margin, with the size of the
margin depending on the credit standing and risky ness of the
borrower. A loan may have a fixed rate of interest or a variable
interest rate, so that the rate of interest charged will be adjusted
every three, six, nine or twelve months in line with recent
movements in the Base Lending Rate.
120
Knowledge and dynamism in tax planning. How will you

manage tax planning?
South African tax for investors
South Africa has a well-developed and regulated taxation regime

based on international best practice. Here are the tax basics for
foreigners investing or working in SA.
The tax regime is set by the National Treasury and managed by

the South African Revenue Service (Sars). Some key points:
 Business profits are taxable in South Africa if the business is

conducted in SA.
 Income from services is taxable in South Africa if the
services are rendered in SA.
 Businesses must file annual income tax returns with Sars.
 Businesses may select their own financial year-end.
 For individuals, the tax year runs from 1 March to 28
February.
 Two provisional tax payments based on an estimate of
annual income are made during each financial year, the first
after six months, and the second at the end of the financial
year.
Income tax
The principal source of direct taxation revenue in South Africa is

income tax. Individuals are taxed on a progressive basis up to a
maximum rate of 42% on taxable income exceeding R215 000 per
annum. A uniform rate of tax is applied to all individuals,
irrespective of gender or marital status, and without child rebates.
Tax on the income of non-South African residents is source-based,

meaning that all income arising from a source within (or deemed
121
to be within) South Africa is taxed, irrespective of the residence of

the recipient of the income.
Domestic companies are taxed at a flat rate of 30%. However,

branches and agencies of foreign companies which have their
effective management outside South Africa are subject to taxation
on South African-sourced profits at a rate of 35%.
Trusts (other than special trusts) are also taxed on a progressive

basis up to a maximum rate of 42% on taxable income exceeding
R100 000.
Value Added Tax (VAT)
The principal source of indirect taxation revenue in South Africa is

Value Added Tax (VAT). If a subsidiary or branch of a foreign-
owned company sells goods or provides services, it must register
as a vendor with Sars and charge and pay over VAT.
The standard rate of VAT is 14%. Exports, certain foodstuffs and

other supplies are zero-rated, and certain supplies are exempt
(mainly certain financial services, residential accommodation and
public transport).
Capital gains tax
122
Capital gains tax is levied on non-residents to the extent that they

dispose of immovable property situated in South Africa, or have a
permanent establishment in SA and dispose of an asset of that
establishment.
Double taxation agreements
South Africa has entered into double taxation agreements with

most of its trading partners, including: Austria, Belgium, Canada,
Cyprus, Denmark, France, Germany, India, Ireland, Israel, Italy,
Japan, Korea, Malta, Mauritius, the Netherlands, Norway,
Singapore, Sweden, Switzerland, Taiwan, Thailand, the United
Kingdom and the United States.
Other taxes
Other taxes affecting subsidiaries or branches of foreign-owned

companies:
If a firm employs personnel, it must register as an employer with

Sars and deduct tax (PAYE) from its employees' salaries.
Regional service council levies on gross revenue and salaries.

Rates vary between regions but approximate 0.14% and 0.35%
respectively, to which VAT must be added.
A skills development levy at the rate of 0.5% of payroll is payable.
123
Transfer duty is payable on land and buildings (10% in the case of

a corporate purchaser, but exempt if VAT is charged).
Stamp duty at 0.25% is payable on transfer and issue of shares.

Stamp duty is also payable on certain other agreements, such as
leases and mortgage bonds.
Customs and excise taxes
Compulsory workmen's compensation, assurance and

unemployment insurance fund premiums are payable, although
these are relatively insignificant. There are no other social security
payments.
5 golden rule of managing tax planning
Just as rules are important for good living so also there are some
golden rules of tax planning. The five simple yet effective golden
rules of tax planning are:
1. spread the taxable income among various members in your

family; Take full advantage of tax exemptions available under the
law;
3. Take full advantage of permissible tax deductions and rebates

available on stipulated tax-saving investments;
4. Make optimum use of tax-exempted incomes; and
5. Simple tax planning is smart tax planning.
How We Can Help
124
KPMG Tax professionals can help you to manage your business’s

tax situation effectively. Here are a few of the many tax-planning
strategies that may be applicable:
 Compensation Strategies. By adjusting the mix of salary

and dividends they receive, entrepreneurs have a significant
opportunity to manage their overall corporate and personal
taxes.
 Corporate Tax Management. The key to effectively

managing the amount of taxes payable from year to year is
identifying all allowable deductions and reserves. And major
transactions undertaken by the corporation—such as
financing, succession planning, asset protection, strategic
planning or expansion into other markets—must be reviewed
for tax implications.
 Corporate Reorganization. In some circumstances, a

reorganization of the corporate structure can help manage
taxes more effectively. For example, restructuring the
corporate group and its individual shareholders may help
utilize business and capital losses, manage federal and
provincial capital taxes, enhance the small business
deduction, and access the $500,000 capital gains deduction
of family members.
Tax Planning
 Mergers, acquisitions and pooling of resources – sale of

assets vs sale of
 Shares
 Transfer of fixed assets, stocks, debtors etc – income tax
and stamp
 Duty implications
 Exemptions available for income tax and stamp duty
purposes
 New vehicle vs existing vehicle – tax considerations
 Sale and leaseback arrangements
125
 Related party arrangements – transfer pricing issues

 Comparison of “controlled companies” for transfer pricing
purposes as Opposed to “controlled transfer purposes”
 Funding requirements in a corporate restructuring exercise
and the
 Related income tax implications
 Tax incentives – issues to consider in carrying out the
corporate
 Restructuring exercise
 Cross border issues
126
IDENTIFICATION OF THE TOTAL FUND REQUIREMENT,

BROKEN UP INTO NEEDS OF EACH INDIVIDUAL
DEPARTMENT
FUND REQUIREMENT OF EACH INDIVIDUAL DEPARTMENT IN

RAND
IN HOUSE ADVERTISING 200000000
OPERATION DEPARTMENT 400,000,000
H.R DEPARTMENT 355148000
STRATEGY DEPARTMENT 10000000
IT DEPARTMENT 26100000
MARKETING DEPARTMENT , 10000000
SALES DEPARTMENT 18991800
FINANCE DEPARTMENT 1700000
RESERVE 4000000
R 1,025,939,800
127
NET WORTH OF COMPNY SINCE 05-06 TO 07-08 in India
NET WORTH = TOTAL ASSETS-TOTAL LIABILITIES
05-06 RS 4,422,415,610
4B, 422M, 415 TH, 610H
-371076240
-371M, 76
TH 240H
6.7 RS 4,051,339,370
4B, 51M, 339 TH, 370H
+802,864,120
+802M,864
TH,120H
7.8 RS 4,854,203,490
4B,854M,203 TH 490 H
128
Clear inputs on whether the expansion will be from internal

accruals or some external funding, and if so, how much and
from what source?
Sources of funds

sources.
Our company might raise new funds from the following sources:
Retained earnings profit (Desh ki Awaj) R. 172.8mill
Ordinary (equity) shares
Ordinary shares are issued to the owners of a company. They

have a nominal or 'face' value, typically of R 2. The market value
of a quoted company's shares bears no relationship to their
nominal value, except that when ordinary shares are issued for
cash, the issue price must be equal to or be more than the
nominal value of the shares.
We will be raising R.10 million through this source. The number of

shares to be issued will be 100,000 at the market price of R.100
129
New shares issues
A company seeking to obtain additional equity funds may be:
a) an unquoted company wishing to obtain a Stock Exchange

quotation
b) an unquoted company wishing to issue new shares, but without

obtaining a Stock Exchange quotation
c) a company which is already listed on the Stock Exchange

wishing to issue additional new shares.
The methods by which our company can obtain a quotation on the

stock market are:
a) An offer for sale
b) A prospectus issue
c) A placing
d) An introduction.
Loan stock
Loan stock is long-term debt capital raised by a company for

which interest is paid, usually half yearly and at a fixed rate.
Holders of loan stock are therefore long-term creditors of the
company.
130
Loan stock has a nominal value, which is the debt owed by the
company, and interest is paid at a stated "coupon yield" on this
amount. The rate quoted is the gross rate, before tax.
Debentures are a form of loan stock, legally defined as the written

acknowledgement of a debt incurred by a company, normally
containing provisions about the payment of interest and the
eventual repayment of capital.
Debentures with a floating rate of interest:
These are debentures for which the coupon rate of interest can be
changed by the issuer, in accordance with changes in market rates
of interest. They may be attractive to both lenders and borrowers
when interest rates are volatile.
Retained earnings
For any company, the amount of earnings retained within the

business has a direct impact on the amount of dividends. Profit re-
invested as retained earnings is profit that could have been paid
as a dividend. The major reasons for using retained earnings to
finance new investments, rather than to pay higher dividends and
then raise new equity for the new investments, are as follows:
a) The management of many companies believes that retained

earnings are funds which do not cost anything, although this is not
true. However, it is true that the use of retained earnings as a
source of funds does not lead to a payment of cash.
131
b) The dividend policy of the company is in practice determined by

the directors. From their standpoint, retained earnings are an
attractive source of finance because investment projects can be
undertaken without involving either the shareholders or any
outsiders.
c) The use of retained earnings as opposed to new shares or

debentures avoids issue costs.
d) The use of retained earnings avoids the possibility of a change

in control resulting from an issue of new shares.
Another factor that may be of importance is the financial and

taxation position of the company's shareholders. If, for example,
because of taxation considerations, they would rather make a
capital profit (which will only be taxed when shares are sold) than
receive current income, then finance through retained earnings
would be preferred to other methods.
A company must restrict its self-financing through retained profits

because shareholders should be paid a reasonable dividend, in line
with realistic expectations, even if the directors would rather keep
the funds for re-investing. At the same time, a company that is
looking for extra funds will not be expected by investors (such as
banks) to pay generous dividends, nor over-generous salaries to
owner-directors.
Bank lending
132
Borrowings from banks are an important source of finance to

companies. Bank lending is still mainly short term, although
medium-term lending is quite common these days.
Short term lending may be in the form of:
a) An overdraft which a company should keep within a limit set by

the bank. Interest is charged (at a variable rate) on the amount
by which the company is overdrawn from day to day;
b) A short-term loan, for up to three years.
Medium-term loans are loans for a period of from three to ten

years. The rate of interest charged on medium-term bank lending
to large companies will be a set margin, with the size of the
margin depending on the credit standing and risky ness of the
borrower. A loan may have a fixed rate of interest or a variable
interest rate, so that the rate of interest charged will be adjusted
every three, six, nine or twelve months in line with recent
movements in the Base Lending Rate
133
IDENTIFICATION OF SPECIFIC STEPS EACH DEPARTMENT

CAN TAKE FOR IMPROVING PRODUCTIVITY AND REDUCING
COSTS.
IMPROVE YOUR HR PROCESSES, REDUCE YOUR COSTS AND GET

BETTER AND FASTER RESULTS
Web-based job boards, newspapers and recruiters have

dramatically changed the hiring process. Despite what these
recruitment services advertise, finding the dream employee hasn't
become that much easier. Online resources have delivered
massive amounts of resumes without a process for managing
them. Candidates are responding to job listings at Internet speed,
however hiring managers are responding much the same way they
have for years. Keyword and other types of search and
interpretation technologies fail to address the root problem in
resume management and candidate identification. These
technologies are inadequate for quickly identifying and ranking the
best candidates.
The window of availability for the best-qualified candidates is very

narrow. The key issues for improving the quality of new hires are
speed and accuracy. However, the process for filtering resumes is
still no more accurate than a keyword search. Even such
automated systems as resume scanners, keyword and Boolean
searches and artificial intelligence (AI) systems are little more
than yellow highlighters on steroids. These systems can sort
groups of candidates into different piles and incrementally speed
the selection process, but they haven’t increased the accuracy of
matching the best candidates to job descriptions and ranking
them.
The problem of ensuring the hiring of high quality personnel cuts

to the very heart of an organization’s success. For no matter how
high the demand for a product or service, it’s the organization’s
people – human assets – that must deliver. The C-level executive
is counting on HR to align the function’s priorities with those of the
organization. Ultimately, the human assets are the creators of
134
value within an organization. This is why C-level executives must

be concerned with ensuring that HR departments have adequate
resources to fulfill their vital tasks of sourcing, evaluating, ranking
and managing resumes. The dynamics to fill positions is time
sensitive and crucial as the best candidates for any position are
only available for a short period.
Ideal Hire’s Power Match™ is a patented (U.S. 5,592,375) web-

based solution providing an alternate approach for managing
resumes from all sources, matching and ranking qualified
candidates to jobs. It does this by requiring a common vocabulary
1 and terminology to describe skills, industry experience and
education by both hiring managers that write the job descriptions
and job candidates.
Additionally, Power Match taps into an organization’s internal

talent resources before looking outside the organization. It does
this by keeping track of employee skills and depth of experience.
This provides a powerful tool for better managing human assets
and boosting employee morale. Furthermore, Power Match
provides a system for managing profiles,
135
Contacting candidates and scheduling interviews. By delivering a

huge improvement in the speed and quality of hires and hiring
metrics, PowerMatch delivers quality talent and a rapid return on
investment.
Resume Interpretation Technologies
The original technology for evaluating and ranking resumes was

the yellow highlighter. In some organizations, it is still in use
along with resume scanners, keyword search, Boolean search and
AI systems. Resume scanners for digitizing resumes are time
consuming because manual intervention is required for scanning,
and character recognition software still makes errors that have to
be manually identified and corrected. Once a resume is available
in digital format and manually corrected, only then can it be
subjected to a keyword search to determine how many times a
particular word shows up in a resume. The number of times a
word is used does not equate to the skills, depth of experience or
education of a candidate. The result of keyword searching is
usually a huge pile or database filled with irrelevant resumes.
A Boolean search expands the keyword search to include a string

of words and/or phrases. This means either the HR or hiring
manager has to interpret what those words or phrases mean.
Creating an accurate command search string for a Boolean search
can be complicated and time-consuming. More often than not, HR
managers are not skilled in the nuances of writing Boolean search
command strings. Even if a successful string is created, the results
may be fewer but do not reflect the depth of experience level of
candidates.
AI systems take evaluation and ranking a step further by

attempting to interpret what different combinations of words and
phrases might mean. The relationships between words and
phrases and their definitions as defined in existing vocabulary or
captured through previous experience are used to interpret the
meaningfulness of the resume. However, systems using AI are still
addressing the symptom by trying to interpret the meanings.
136
The Resume Barrier
The barrier to streamlining the process for matching candidates to

open job descriptions has been the resume. All these different
types of candidate identification systems begin with the same
basic document – the resume – written with the terminology and
vocabulary its author is accustomed to using. The technology
behind almost every automated system for qualifying job
candidates is based on trying to understand or interpret it. Syntax
and style inconsistencies lead to inaccuracy and interpretation
difficulties. The problem is a lack of standards for creating both
job description and resume. This makes the old curriculum vitae
out of synch with today’s need for speed, accuracy and the digital
environment. Improving the evaluation and ranking systems
required re-engineering both job description and resume in a way
that would still be usable for both the hiring manager and the
candidate.
PowerMatch The hiring process consists of four phases,

including:
1. Sourcing
2. Selection
3. Assessment and Interview
4. Offer and Hire
Most companies experience the greatest inefficiencies and largest

process delays during the selection phase, where piles of resumes
must be evaluated and ranked according to how well they match
job description requirements.
Power Match was designed specifically to improve hiring metrics

by making the selection phase easier and faster to identify higher
quality candidates. Without changing sourcing processes, all
137
applicants are directed to create a simple Candidate Profile. It

immediately and automatically matches and ranks them to all
open jobs now and in the future. The technology behind
PowerMatch resides on the organization’s website Careers Page
and is transparent to users. As each new job profile is created, all
stored candidate profiles are continuously sorted and ranked by
education, industry experience, skills and depth of experience as
specified by the hiring manager.
Job Profile
The hiring process begins with a job opening. The hiring manager
completes a job profile in Power Match in four steps. The first step
allows the hiring manager to cut and paste an existing job
description. Secondly, the hiring manager completes the education
requirement for the job by selecting degree and field of study from
pull-down menus. Third, the hiring manager decides whether
experience in a particular industry is needed by selecting from
pull-down menus. Lastly, the hiring manager selects skills 3 and
certifications organized in pull-down menu templates. The hiring
manager simply checks off the appropriate skills and certifications,
and decides how many years of experience in each skill is needed
for the job. The job profile is then immediately posted to the
careers page of the company web site. Another feature allows jobs
to be posted directly from PowerMatch onto paid Internet job
posting boards, if the company has an account.
Candidate Profile
Candidates create their own profiles in about 10-12 minutes using

the same four steps as the hiring manager used to create the job
profile. With a resume in hand, filling out a profile is easy and
consists of contact information, education, industry and skills.
After completing the contact data, the candidate completes the
education template which includes the education institution, type
of degree and field of study, etc. As many institutions as
necessary can be accommodated. Next the candidate selects their
138
Industry experience from a pull-down menu. As in the education

template, as many of the candidate’s industries as are appropriate
can be accommodated. Lastly, the candidate selects skills and
certifications organized in pull-down menus. The candidate simply
checks off the appropriate skills and indicates the years of
experience in each skill.
The Power Match application consists of over 10,000 skills

categorized by relevant industry. Historically over 500,000
candidates who started the profiling process, more than 83%
completed the process. This rate of completion is more than 2X
better than what most career sites experience. The pull down
menus with lists of education, industries and skills actually makes
the profile much easier to complete than a traditional job
application.
Matching and Ranking
Notice that the process for the hiring manager to create a job
profile and the process for a candidate to create a candidate
profile are nearly identical. This minimizes inaccuracies. This
means that the hiring manager chooses education, industry and
skills that will be exactly matched to the education, industry and
skills of a candidate. Each time job profile is created and posted
on the company website Careers Page, or a candidate completes
their profile, Power Match immediately searches for qualified
candidates in the database and automatically ranks the candidate
profiles based on the hiring manager’s specific job requirements
criteria. The hiring manager simply reviews the profiles from the
top ranked candidates and decides who to screen, interview and
hire.
Additional Features
Ideal Hire provides Power Match as an ASP service to companies

on their web site. The application can be integrated with existing
Applicant Tracking Systems that are HRXML based.
139
Power Match simplifies communication with candidates through its

own email system, so the HR or hiring manager’s company email
address is kept separate and uncluttered by hundreds or
thousands of email resumes. Improving communication with
candidates will make it worth their effort and provide a positive
experience with the hiring organization.
Managing profiles is also made easy with PowerMatch’s database.

For example, job profiles can be stored in the Jobs Library for use
against future job openings. This feature saves managers
considerable time opening new jobs and helps ensure that
consistent information is maintained.
140
Building Better Teams
Better management of human assets is a crucial responsibility,

shared by managers and the HR department. The key to
managing any team, department or organization is to understand
the team’s experience and total skill set. By creating employee
profiles, their education, industry experience and skills in various
departments, groups and teams can lead to the identification of
the combinations of factors that lead to higher performance.
Using this information to construct a model of high performing

groups, allows subsequent groups to be created with the same
characteristics. This leads to better management, higher
performance and lower costs throughout the organization.
Additionally, identifying missing experience, skills or depth of
experience within the organization allows the hiring managers
and/or the HR department to take corrective action. Power Match
allows better management of human assets, which are often
misunderstood and mismanaged.
Improving the Value of the HR Department
The hiring process should be considered a strategic process within

any organization because the cost of bad hiring decisions can be
staggering in the executive suite as well as on the production line.
Lost productivity, legal issues, morale and benefits directly impact
the bottom line of every organization. The business impact of the
HR department and the value it delivers can be tremendous.
By giving the HR department the tools for identifying higher

quality job candidates and maintaining higher quality employees
that are aligned and in-synch with the business, employees will be
much more productive. PowerMatch makes these high-quality
hires possible by reducing the potential for error in selecting
candidates, as well as speeding up the process.
Additionally, the Power Match system can reduce costs by

relieving HR employees from manually evaluating, ranking and
141
matching talent. This reduction in the HR staff to employee ratio

and their overhead can provide a significant cost saving. Thus, the
continuing value an HR department delivers – finding, hiring and
retaining the best people – is enhanced with Power Match.
Speedy and Cost Efficient Identification and Recruitment of

Talent
The problems associated with identifying job candidates, including

speedy evaluation, ranking and sorting of resumes take a heavy
toll on an organization’s bottom line. The time spent manually
screening resumes is costly and inefficient. Job board keyword
search utilities can sort candidates into smaller piles but do not
provide an accurate qualification of a candidate. More
142
Sophisticated Boolean search and AI systems attempt to interpret

resumes, but fail to address the real problem – the use of
common terminology and vocabulary as well as consideration for
the depth of candidate experience.
Because both the job profile and the candidate profile are
completed using the same education, industry and skill lists,
Power Match delivers a tremendous improvement in the time to fill
and in the quality of matched candidates. Because of the huge
increase in efficiency, the Human Relations (HR) department can
realize payback within months. Additionally, Power Match allows
better management of the organization’s human assets and the
ability to quickly fill all jobs with the best available talent.
Strategic Goals
• Switch focus from services to become a more customer-centric

organization
• Build a single, centralized customer database populated with

information that extends far beyond basic contact information
• Provide universal access to the system at any time and
from anywhere
• Provide customer segmentation and profiling, lead and

opportunity management, sales forecasting, customer order and
delivery management, and profitability analysis functionalities for
sales and marketing
Results
• 129% internal rate of return
• 15% increase in revenue per sales employee
• 20% increase in remote resolution of service issues per month
• 10% increase in revenue per service employee
• 1% improvement in inventory turns
143
• 2-day reduction in order to delivery time
• Improvement in service for channel partners
• Enhancement of customer service, which led to improved

customer satisfaction
• Sharper competitive edge
Strategic Goals
• Improve customer-facing processes and efficiencies to get closer

to customers
• Properly equip the customer service center to meet new volume

of customer information, product, and services needs
• Streamline operations to increase efficiencies, integrate different

customer service departments, and standardize business
processes
•Integrate operations centers to give customer service

representatives access to a common, centralized customer
database that tracks all customer interactions and inquiries
Results
• R45.312 million in increased customer service center
Productivity
• R17.792 million in increased help desk productivity
• R 313, 6000 in cost savings from reduced payment Cycles
• R1881600 in savings from more accurate billing
Strategic Goals
144
• Increase the strategic importance of procurement
• Further improve supplier relationships with e-procurement
• Reduce indirect spend
Results
• Achieved a R323.84 million return in the first year
• Reduced retrospective purchase orders from 55% to 7%
• Improved clarity and depth of information that expose maverick

spending immediately
• Decreased support costs
• Provided an easier way to measure performance of
Purchasing professionals
• Increased credibility and improved standing of the
Procurement department among senior executives
• Became an important milestone on the way to strategic sourcing
Strategic Goals
• Enhance performance-oriented and competency oriented
Personnel management
• Support decision making that maximizes people value
• Establish an enterprise-wide infrastructure that lays the

foundation for responsible business management
Results
145
• 176% ROI expected
• 44% IRR anticipated
• R7680 million in annual cost savings from more efficient
Human resource operations
• Better decision-making support through real-time access to
Human
Resource data and improved analysis functionality
• Enhanced system security
• Improved interface with internal information systems
• Better quality of service
• Improved performance-oriented and competency oriented
Human resource management, which supports decision making

to
Maximize people value
• Faster system response to human resource policy changes and
More flexibility in applying policy changes
Strategic Goals
• Maximize business value through collaboration with the

company’s largest technology suppliers
• Reduce inventory costs
• Ensure high-quality customer service
• Contribute to the reduction of acquisition prices
• Reduce lead time of network creation
Results
146
TRADING & PROFIT AND LOSS A/C FOR THE YEAR ENDING 2009-
2010

Amount Amount Amount Amount
To opening 1,092,33
stock 5 By Sales 3,669,034,482
To Purchase 260,360,00 Recharge 911,275,8

account 0 coupon 62
CDMA Mobile 212,800,0 749,482,7

phone 00 Talk time 58
5,560,0 443,793,1
Purchase of sim 00 VAS 03
Scheme of
Wireless 42,000,0 plan of 485,689,6
hardware 00 sim 55
Hardware
To Direct sets & 585,689,6
expenses technology 00
Operating 77,640,00 493,103,5

expenses 0 Services 03
3,329,942,44
To Gross profit 7
3,669,034,78
Total 2 Total 3,669,034,482
To gross profit
C/F
Balance
352,898,00 By gross
To salary 0 profit B/F 3,329,942,447
To training and 18,000,00

development 0
To recruitment 1,000,00
exp 0
To 200,000,00
Advertisement 0
100,000,0
Ad agency 00
30,000,0
Sponsorship 00
30,000,0
Out door event 00
Print 20,000,0
media\Hording 00
20,000,0 147
Other expenses 00
110,000,00
• 20% to 40% reduction in unused network inventory
• 1% to 5% reduction in component prices due to the supplier’s

ability to reduce its average inventory levels by 25%
• Improved customer service by achieving a 90% on-time

installation rate and reducing the maximum installation lead time
to 10 days
• 90% reduction in forecasting and planning cycle times
•Increased frequency of forecast planning, which improved the

accuracy of both the demand plan and supply plan and reduced
inventory costs for both the company and its suppliers
• 30% to 40% increase in employee productivity due to improved

communications with suppliers
• Creation of a foundation for extending collaborative
processes to other product lines and international subsidiaries
Strategic Goals
• Automation of demand planning process across all business

units
• Integration of agent stores into planning and distribution

systems
• Introduction of standardized business processes
• Compilation and integration of all demand planning, Distribution,

and logistics-related business data to create transparency and
visibility of past, current, and future operations transactions
Results
• 133% ROI
148
• 3.8-year payback period
• R 8032000 is 5-year net present value• R 6,400,000 increase in
revenue per year due to accelerated store replenishment
• R 8,960,000 per year reduction in inventory carry costs
• R2688000 per year profit increase from improved product

margins
• Improved transparency and accuracy of demand
Planning numbers
• Improved forecast frequency and granularity
• New level of reporting
• Improved negotiating power with suppliers resulting In better
Deals and rates.
Here we are giving type of strategy with the expected results

(outcomes). So Tele touch can apply any of them for improving
productivity as well as reducing cost.
We have Balance sheet of TeleTouch Ltd for the year ended

2009-2010
149
BALANCE SHEET FOR THE YEAR ENDING 2009-2010
Liabilities Amount Amount Assets Amount Amount
1,203,827,9 707,107,0
Capital 80 Fixed Assets 32
Add new issue 17,381,8

10,00,000 Current Assets 76
10,000,00 132,547,6
@ R 10 0 Debtors 70
10,000,0
Deposit 00
471,294,44 1,685,122,4
Add net profit 7 27 Bank
10,000,0 730,373,2
Debentures@12% 00 82
10,000,0 4,092,7
Unsecured Loans 00 Cash 56
Add loan from 300,000,00 778,1

African 0 Prepaid interest 36
Development 300,000,0 Loan and 406,024,2

Bank 00 advances 18
3,182,5
Current Liabilities 43
2,008,304,9 2,008,304,9
Total 70 Total 70
150
R 28,972,288,000 TOTAL EXPENDITURE 2009-10

144,861,440,000 RS
We are raising this much of fund
We are having a program which are telecasted on star plus at

prime time 8pmto 9pm
This is a talent hunt program in singing field and the name of the
program is Desh ki Awaz and our Judge are A.R Rahman, Sunidhi
Chauhan, Krishna kant.
There is Voting system through TeleTouch connection and We are

expected to make profit that is 864 million Rs which we would
invest in South Africa that is R172.8 million
Retained earnings profit (Desh ki Awaj from R. 172.8mill

India)
1,025,939,800 -total exp of department
We have profit in 2009-2010 = 471,294,447 R
151

132,139,800 R
IDENTIFICATION OF THE AMOUNT OF PROFIT TO BE

REPATRIATED TO INDIA AT THE END OF THE FINANCIAL YEAR
152
Trading & Profit And Loss A/C For The Year Ending 2010-2011
Amount Business
Amount Plan For TeleTouch Ltd (2010-2011)
Amount Amount
To opening stock 1,292,335 By Sales 4,931,034,482
Recharge
To Purchase account 322,360,000 coupon 1,553,275,861.90
CDMA Mobile 272,800,00 Talk time 1,109,482,758.4

phone 0 (Sales) 5
Purchase of
sim 5,560,000 VAS 443,793,103.38
Wireless Scheme of
hardware 44,000,000 plan of sim 665,689,655.07
Hardware
sets &
To Direct expenses technology 665,689,600.09
Operating expenses 77,640,000 services 493,103,503.11
To Gross profit 4,529,742,147
Total 4,931,034,482 Total 4931034482
To gross profit C/F
Balance
By gross
To salary 332898000 profit B/F 4529742147
To training and development 20000000
To sales exp 1555800
To recruitment exp 800000
To Advertisement 200000000
Ad agency 98000000
Sponsorship 30000000
Out door
event 30000000
Print
media\Hording 22000000
Other
expenses 20000000
To outlet
service 110000000
To Rent of office 120000000
To interior decoration exp 36000000
To market research 10000000
To Office expenses 1700000 153

To Miscellaneous exp 1200000
THE NET PROFIT IN RAND IS R 3,668,038,347 (VALUES IN RAND)
WE WILL REPATRIATE TO INDIA AT THE END OF THE FINANCIAL

YEAR R 733,607,669
AND REST WE KEPT THERE FOR FURTHERE INVESTMENT.
We are going to give the dividend 30% of the profit 110,

0411,504.1
Rest of the profit that is 2,567,626,842.9 we will repatriate back

to India R 770,288,052.87
Rest of money R 1,797,338,790.03 we will utilize to pay interest

and for further investment.
154
(VALUES IN RAND)
BALANCE SHEET FOR THE YEAR ENDING 2010-2011
Liabilities Amount Amount Assets Amount Amount
Fixed
Capita 1,183,827,980 Assets 4,056,651,234
Add new issue Current

1,000,000 Assets 90,381,876
at the rate of R
10 each 10,000,000 Debtors 172,547,670
Deposit 10000000
Add profit 3668038347 4861866327 Bank 1,996,372,982
Debentures@12% 10,000,000
Unsecured Loans 110,000,000 Cash 4,116,974
Add loan from Prepaid

African interest 778,136
Development Loan and

Bank 600,000,000 advances 1,497,600,000
Reserve & surplus 172.800.000
Current Liabilities 2782545
Total R5,757,448,872 Total R5,757,448,872
155
GROUP-4B
TeleTouch Limited
Marketing Department
Submitted By MD.NOOR ISLAM

NAYYA JAIN
NIKHIL BHARTI
OM SHANKAR
PARAS GOEL
156
Manager &
VICE DIRECTOR Population
Province sales Capital
PRESIDENT MKT (2001)
executives
1MANAGER+20
Eastern
SALES Bhisho 0 6,436,761
Cape
EXECUTIVE
1MANAGER+20
Free State SALES Bloemfontein 0 2,706,776
EXECUTIVE
1MANAGER+20
Gauteng SALES Johannesburg 1 ONE 8,837,172
EXECUTIVE
1MANAGER+20
KwaZulu-
SALES Pietermaritzburg 0 9,426,018
Natal
EXECUTIVE
1MANAGER+20
Limpopo SALES Polokwane 0 5,273,637
EXECUTIVE
1MANAGER+20
Mpumalanga SALES Nelspruit 0 3,122,994
EXECUTIVE
1MANAGER+20
Northern
SALES Kimberley 0 822,726
Cape
EXECUTIVE
1MANAGER+20
North West SALES Mafikeng 0 3,669,349
EXECUTIVE
1MANAGER+20
Western
SALES Cape Town 1 4,524,335
Cape
EXECUTIVE
Total:9MANAGERS,180SALES
EXECUTIVE,2V.P,1CHAIRMAN,1 DIRECTOR TWO ONE 44,819,768
MKT
EMPLOYEES FOR TELETOUCH
157
Annual total salary: 4140000 rand
Expenditure of marketing and sales
PROVINCE CAPITA OUTL No. OF INFRASTRUCTUR INTERIOR TOTAL

L ET/S SERVI E DECORATI
ERVI -CE ON
CE CENT- OFFICE
CENT ERS
RE
Eastern Bhisho 10 2 20 MN RAND 5 MN RAND 35 MN

Cape MN RAND
RAND
Free State Bloemfo 10 2 10 MN RAND 5 MN RAND 25 MN RAND

ntein MN
RAND
Gauteng Johanne 20 4 20 MN RAND 5 MN RAND 45 MN RAND

sburg MN
RAND
KwaZulu- Pieterm 10 2 10 MN RAND 3 MN RAND 23 MN RAND

Natal aritzbur MN
g RAND
Limpopo Polokwa 10 2 10 MN RAND 3 MN RAND 23 MN RAND

ne MN
RAND
Mpumalana Nelsprui 10 2 10 MN RAND 3 MN RAND 23 MN RAND

t MN
RAND
Northern Kimberl 20 4 20 MN RAND 5 MN RAND 45 MN RAND

Cape ey MN
RAND
North West Mafiken 10 2 10 MN RAND 4 MN RAND 24 MN RAND

g MN
RAND
Western Mafiken 10 2 10 MN RAND 3 MN RAND 23 MN RAND

Cape g MN
RAND
158
EXPENDITURE OF MARKETING IN SOUTH AFRICA
TOTAL = 266 MN RAND
Sales Expenditure
Total sales value % Gross margin

Recharge coupon 1553275861.90 31.8%
Talk time 1109482758.45 22.72%
Value added 443793103.38 9.10%

services
Scheme of plan of 665689655.07 13.37%
sim
Hard ware sets & 665689600.09 13.35%
technology
SERVICES(Voice 493103503.11 9.66%
mail2 SMS, Tele
touch
Live!,3.75G,4G)
TOTAL 4931034482 100%
IN THE ABOVE TABLE ITS SHOWS Construct a working

spreadsheet so that the bottom-right cell shows the total sales or
gross margin, or profit, whatever you need to measure Left cell
shows the item and from which item we have got how much sale
Total sales value % Gross margin

Talk time 1109482758.45 22.72%
Value added services 443793103.38 9.10%

Scheme of plan of sim 665689655.07 13.37%
Hard ware sets & 665689600.09 13.35%
technology
159
SERVICES(Voice mail2 493103503.11 9.66%

SMS, Tele touch
Live!,3.75G,4G)
TOTAL 4931034482 100%
160
BUSINESS PLAN
Marketing Department
South Africa is a great place of opportunities for

telecommunication industry. After merging with Cell C in South
Africa TeleTouch has made a significant growth. Cell C which is at
the third place is enjoying a great market share in the market. It
has got its license in 2003 .In this short span of time it has made
a significant growth.
There are many competitors in the market and competition is

really very dense among them. If we talk about the time period of
2008-2010 then in this time period we can say that we can expect
a growth for teletouch.
In the present scenario if we talk about the present situation then

after merging with Cell C it has shown a fine percentage of growth
in the market. It has targeted the young generation when it
merged with Cell C. Even in future also it would continue with the
same segmentation of the market.
There are four major cities in South Africa. They are

Johannesburg, cape Town, eastern Cape, Northern Cape. In these
four cities Tele Touch is going to penetrate. These cities acquire
major portion of the population. Approximately 80% of the total
population is literate. So it is quite easy to enter such a market. If
we look at the fixed line user then this ratio is also high. People
are also using mobile phones in a great ratio. Internet utility has
also increased to 35% only in the area of Cape town.
161
If we talk about the four P’s of marketing i.e. Product, Price, Place
and Promotion then earlier also we have discussed about it that
Our product is the telecom service to the customer. Pricing policy
will be according to the price set by the strategy department. The
place for our service is the four cites which have been mentioned
above. Promotion schemes mainly will be through advertisement.
The African telecommunication sector has grown at the

fastest pace in last three years as countries are
increasingly concentrating on spreading the services.
Strengths
According to the United Nations International Telecommunications
Union (ITU), the African continent has seen the fastest growth in
the communication technology in last three years (2005-07) and
will emerge as a vital market for the telecommunication industry,
as reported by The Economic Times.
ITU revealed that last year, 65 Million new subscribers were added
to the total subscriber base in Africa. Mobile phone subscription
has also seen an unprecedented growth with one-third of the
population using mobile whereas only one in every 50 people had
mobile phone in 2000. In 2001, South Africa alone had over 50%
of total subscribers in Arica, but by 2007, 85% of total subscribers
were residing in other countries of the continent.
ITU also revealed that the African mobile phone industry proved
all predictions wrong. The Information and Communication
Technologies (ICT) industry of Africa is rapidly growing and
Liberalization and transnational telecommunication services have
given operators an opportunity to extend their business dimension
and are providing various services.
Most of the African countries have set up their own independent

regulatory bodies that are entrusted to maintain fair and
competitive environment in the telecom industry. Consequently,
people are getting benefits of low prices of quality telecom
162
products.
Furthermore, the mobile communications have seen a huge

infrastructure development and service extension. Heavy
investments in the African telecommunication market because of
vast growth opportunities for investors and extension of wireless
and mobile communication technologies have tremendously
contributed to the growth of African telecom industry.
However, though all the African countries have population that can
purchase handset and have enough infrastructure equipment
suppliers, yet they need to form pacts with each other so that the
probable problems could be sough out. African telecom industry’s
growth could be affected by the maintenance and approach
towards extension of services in rural areas; therefore, countries
should cooperate with each other.
Opportunities
South Africa has experienced significant growth in the number of

mobile users since GSM mobile services were launched in the
country in 1994. The penetration rate for mobile users increased
from an estimated 2.4% at March 31, 1997 to an estimated 84%
at March 31, 2007. As a result, Vodacom's South African revenue
increased 24.1% and 19.1% in the 2006 and 2007 financial years,
respectively. While we believe the mobile penetration rate will
continue to increase, we do not expect that it will continue to grow
at the same high rates that it has experienced in the recent past.
Consequently, Vodacom is placing increased focus on customer
retention and maintaining its market leadership by providing
innovative value added services and data products and superior
customer service as well as seeking new associate business
opportunities in South Africa and gearing up to provide total
converged solutions to corporates. Vodacom's previous focus of
customer acquisition and selective growth in other African
countries still remain focus areas. In furtherance of this strategy,
in the 2005 financial year, Vodacom signed an alliance with its
shareholder, Vodafone, which gives Vodacom access to Vodafone's
branded products and services, global research and development
163
and access to Vodafone's marketing and buying powers. In

addition, Vodacom launched the first commercial 3G network in
South Africa in December 2004. Vodacom also launched Vodafone
Mobile Connect Cards, 3G/GPRS/HSDPA datacards providing fast,
secure access to corporate networks from computers, Vodafone
live!, with global and local content, picture and video messaging
and downloads, Mobile TV and BlackBerry®. In addition, Vodacom
recently launched 3G with HSDPA, giving its customers access to
global high speed broadband communications.
164
A large part of the growth in mobile services was due to the success of
prepaid services. Approximately 86.5% of Vodacom's South African
mobile customers were prepaid customers at March 31, 2007 and
93.2% of all gross connections were prepaid customers in the 2007
financial year. During the 2007 financial year the growth in contract
customers in South Africa exceeded the growth in prepaid customers
as a result of the migration of the South African middle class from
prepaid to contract services. The increasing number of prepaid users,
who tend to have lower average usage, together with the lower overall
usage as the lower end of the market continues to be penetrated have
resulted in decreasing overall average revenue per customer.
Threats
South Africa's post-apartheid governments have made remarkable
progress in consolidating the nation's peaceful transition to democracy.
Programs to improve the delivery of essential social services to the
majority of the population are underway. Access to better opportunities
in education and business is becoming more widespread. Nevertheless,
transforming South Africa's society to remove the legacy of apartheid
will be a long-term process requiring the sustained commitment of the
leaders and people of the nation's disparate groups.
The Truth and Reconciliation Commission (TRC), chaired by 1984 Nobel

Peace Prize winner Archbishop Desmond Tutu, helped to advance the
reconciliation process. Constituted in 1996 and having completed its
work by 2001, the TRC was empowered to investigate apartheid-era
human rights abuses committed between 1960 and May 10, 1994; to
grant amnesty to those who committed politically motivated crimes;
and to recommend compensation to victims of abuses. In November
2003, the government began allocation of $4,600 (R30,000)
reparations to individual apartheid victims. The TRC's mandate was
part of the larger process of reconciling the often conflicting political,
economic, and cultural interests held by the many peoples that make
up South Africa's diverse population. The ability of the government and
people to agree on many basic questions of how to order the country's
society will remain a critical challenge.
One important issue continues to be the relationship of provincial
and local administrative structures to the national government.
Prior to April 27, 1994, South Africa was divided into four
provinces and 10 black "homelands," four of which were
considered independent by the South African Government. Both
the interim constitution and the 1997 constitution abolished this
system and substituted nine provinces. Each province has an
elected legislature and chief executive--the provincial premier.
165
Although in form a federal system, in practice the nature of the

relationship between the central and provincial governments
continues to be the subject of considerable debate, particularly
among groups desiring a greater measure of autonomy from the
central government. A key step in defining the relationship came
in 1997 when provincial governments were given more than half
of central government funding and permitted to develop and
manage their own budgets. However, the national government
exerts a measure of control over provinces by appointing
provincial premiers.
Although South Africa's economy is in many areas highly
developed, the exclusionary nature of apartheid and distortions
caused in part by the country's international isolation until the
1990s have left major weaknesses. The economy is in a process of
transition as the government seeks to address the inequities of
apartheid, stimulate growth, and create jobs. Business,
meanwhile, is becoming more integrated into the international
system, and foreign investment has increased. Still, the economic
disparities between population groups are expected to persist for
many years, remaining an area of priority attention for the g
Political analysis
The licensing and provision of telecommunications services in the

Republic of South Africa has historically been subject to the
Telecommunications Act and the extensive regulations made
under the Telecommunications Act. The Telecommunication Act
was repealed when the Electronic Communications Act came into
effect on July 19, 2006.
The Electronic Communications Act aims to supplement or replace

sector specific legislation and change the market structure from a
vertically integrated, infrastructure based, market structure to a
horizontal, service based, technology neutral, market structure
with a number of separate licences being issued for different
areas, and to clarify the different roles of ICASA and the Minister
of Communications in policy development, licensing and
regulation. The Act seeks to promote convergence and establish
the legal framework for convergence in the broadcasting signal
distribution and telecommunications sectors. While a new licensing
166
regime has been created by the Electronic Communications Act, all

existing licences are to remain valid until converted to new
licences in accordance with the new licensing regime. Regulations
made under the Telecommunications Act are also to remain in
force until new regulations required are made to fully implement
the provisions of the Electronic Communications Act. We expect
that the new licensing framework will result in the market
becoming more horizontally integrated and will substantially
increase competition in our fixed-line business. In addition, the
process of converting our licences to the new licensing framework
may be lengthy and complex and could result in the imposition of
additional obligations and limitations in connection with the
converted licences, which could disrupt our business operations
and decrease our net profit. As a result, the regulatory
environment is evolving, lacks clarity in a number of areas and is
subject to interpretation, review and amendment as the
telecommunications industry is further developed and liberalised.
In addition, the regulatory process entails a public comment
process, which, in light of the politicised issue of privatisation of
industries such as telecommunications in South Africa, makes the
outcome of the regulations uncertain and may cause delays in the
regulatory process. A number of significant matters have not been
addressed or clarified.
Economic analysis
South Africa has a two-tiered economy; one rivaling other
developed countries and the other with only the most basic
infrastructure. It therefore is a productive and industrialized
economy that exhibits many characteristics associated with
developing countries, including a division of labor between formal
and informal sectors, and uneven distribution of wealth and
income. The formal sector, based on mining, manufacturing,
services, and agriculture, is well developed.
The transition to a democratic, nonracial government, begun in

early 1990, stimulated a debate on the direction of economic
policies to achieve sustained economic growth while at the same
time redressing the socioeconomic disparities created by
apartheid. The Government of National Unity's initial blueprint to
address this problem was the Reconstruction and Development
Program (RDP). The RDP was designed to create programs to
167
improve the standard of living for the majority of the population

by providing housing--a planned 1 million new homes in 5 years--
basic services, education, and health care. While a specific
"ministry" for the RDP no longer exists, a number of government
ministries and offices are charged with supporting RDP programs
and goals.
The Government of South Africa demonstrated its commitment to

open markets, privatization, and a favorable investment climate
with its release of the crucial Growth, Employment and
Redistribution (GEAR) strategy--the neoliberal economic strategy
to cover 1996-2000. The strategy had mixed success. It brought
greater financial discipline and macroeconomic stability but failed
to deliver in key areas. Formal employment continued to decline,
and despite the ongoing efforts of black empowerment and signs
of a fledgling black middle class and social mobility, the country's
wealth remains very unequally distributed along racial lines.
However, South Africa's budgetary reforms such as the Medium-
Term Expenditure Framework and the Public Finance Management
Act--which aims at better reporting, auditing, and increased
accountability--and the structural changes to its monetary policy
framework, including inflation targeting, have created
transparency and predictability and are widely acclaimed. Trade
liberalization also has progressed substantially since the early
1990s. South Africa reduced its import-weighted average tariff
rate frommore than 20% in 1994 to 7% in 2002. These efforts,
together with South Africa's implementation of its World Trade
Organization (WTO) obligations and its constructive role in
launching the Doha Development Round, show South Africa's
acceptance of free market principles.
Financial Policy
South Africa has a sophisticated financial structure with a large
and active stock exchange that ranks 17th in the world in terms of
total market capitalization. The South African Reserve Bank
(SARB) performs all central banking functions. The SARB is
independent and operates in much the same way as Western
central banks, influencing interest rates and controlling liquidity
through its interest rates on funds provided to private sector
banks. Quantitative credit controls and administrative control of
deposit and lending rates have largely disappeared. South African
banks adhere to the Bank of International Standards core
standards.
168
The South African Government has taken steps to gradually

reduce remaining foreign exchange controls, which apply only to
South African residents. Private citizens are now allowed a one-
time investment of up to 750,000 rand (R) in offshore accounts.
Since 2001, South African companies may invest up to R750
million in Africa and R500 million elsewhere.
Technology
South African fixed-line communications market
While South Africa features a highly developed financial and legal

infrastructure at the core of its economy, it also suffers from high
levels of unemployment and income disparity. With respect to the
economically disadvantaged communities of the population,
communications providers must compete with other basic
necessities for customers' limited resources. In a number of areas
of the country and for particular communities, mobile services are
the preferred alternative to fixed-line services, primarily due to
mobility. Although the fixed-line penetration rate in South Africa
was only 9.8% and 10.0% as of March 31, 2007 and March 31,
2006, respectively, due to the diverse rural geography and
demographic factors in South Africa, we do not expect South
Africa's fixed-line penetration rates to increase in the near term.
In the 2007 and 2006 financial years, our total fixed access lines
decreased primarily due to a decrease in the number of residential
PSTN lines, partially offset by an increase in ISDN channels and
business postpaid PSTN lines. Residential postpaid PSTN lines
were adversely impacted by customer migration to mobile and
higher bandwidth products such as ADSL and lower connections,
while the decrease in prepaid PSTN lines was primarily as a result
of customer migration to mobile services and our residential
postpaid PSTN services. Similarly, traffic declined in both the 2007
and 2006 financial years, being adversely affected by the
increasing substitution of calls placed using mobile services rather
than our fixed-line services and dial-up Internet traffic being
substituted by our ADSL service, as well as the decrease in the
number of residential PSTN lines and increased competition in our
169
payphone business. During the same period, ISDN channels and

ADSL services have increased, driven by increased demand for
higher bandwidth and functionality. In light of these market
conditions, we will seek to maintain existing customers in the face
of increasing competition and increase sales of data products while
utilizing existing capacity, largely through increased sales of our
bundled products.
TECHNOLOGY WHICH IS BEING PROVIDED BY TELETOUCH
1G, 2G, 2.75G, 3G, TECHNOLOGY WHICH WILL BE PROVIDED

BY TELETOUCH IN 2010-2011.
We will introduce these latest technologies in this expansion year:
3.75G, 4G
WIRE LESS HARD WARES
Wireless Broadband Routers with Modems

Wireless Routers
Travel Routers
Dual-Band Routers
We are providing 16 type of CDMA sets
VoIP Routers
Many companies are turning to VoIP technology to cut phone bills
by using the internet to place calls. The only catch is that VoIP
170
requires high-performance, high-bandwidth throughput to avoid

voice break-up and other undesirable telephony events. SMC
Networks' Barricade g VOICE ADSL Router combines an ADSL
wireless router with a Voice over IP gateway, giving you an
integrated voice and data office network in one box. You can share
your ADSL Internet connection with local PCs through a built-in
four-port Ethernet hub, or make wireless connections via a 54
Mbps access point. Plus you can plug in a telephone and save
money by using the fully featured VoIP gateway.
Cordless Internet Telephony Kits

If your office uses Skype, Linksys' Cordless Dual-Mode Internet
Telephony Kit (CIT300) is aimed at you. It comes with the
handset, charger and a USB Base Station that plugs directly into
your computer. Dual-mode capability lets you choose whether to
make calls over a standard telephone line or with the Skype
application running on your PC. Just select who you want to talk to
from your contact list on your handset, press a button, and get
ready to talk.
Wireless Access Points

You can expect to get an effective 100-foot radius of indoor
service from a single wireless router, and 300 feet outdoors,
where there are fewer obstacles to interfere with the radio waves.
If you want to expand the service area of your wireless network
beyond that, you need to deploy additional wireless access points.
Usually these repeaters are connected with your main router by
standard Ethernet cables, but sometimes they use wireless
connections. 3Com's Wireless 7760 Dual-Radio 11a/b/g PoE
Access Point (3CRWE776075) is a cost-effective dual-band, Power
171
over Ethernet (PoE) solution. Providing ultra-fast speeds, this

access point supports a total of up to 128 wireless users.
Five Year marketing Plan
As per the report given by strategic dept. we would like to state

that we are going to expand our business in Verreniging having a
population of all most 5,97,948 and which is also the 7th largest
city of South Africa. From the survey it was found that only 60.2%
of the people are using cellphones.
Another city is Pretoria and Ginpopo having a population of

1,985,984 and 584469. Thus we find that we have a lot of
opportunities to expand in these areas as only 70% of the people
use cellphones there.
BUSINESS STRATEGY
We would like to state that TeleTouch is paying its service in 18

different places. Among them our major concern would be on
places like Eastern cape, Johannesburg, Northern Cape and Cape
town since in 2010 FIFA world cup is going to be held. And the
remaining 14 places would be our main attention to be focused, in
order to capture the remaining 20 % of the population which is
not using cell phones.
Following are the competitive strategy, TeleTouch must adopt for

doubling its market share from 5.5% to 11%:-
• It should utilize its well established brand to meet lifestyle

aspirations in the South African market.
• Its should cater its value proposition to the market, justifying

a premium price by utilizing the strength of its brand.
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• Simplicity would be the second piece of strategy of

TeleTouch.
• As TeleTouch is providing both prepaid and postpaid offers, it

will be central for TeleTouch to push a simple and flexible
offer in the market to attract its target market and capture
market share in an increasingly postpaid market.
• It should focus more on its Distribution mix. For this it

should open its own shops and telesales outlets which will be
complementary to the existing network.
• It would be important if we use a comprehensive range of

direct marketing strategies to reach our market, including
SMS messaging, direct mail and e-mail.
• We would also focus our attention on providing Conference

calling which has become important in the organizations
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TeleTouch must also focus on better Customer Service
If we want to have a secure data network in place, we've to add

the tools—such as Customer Relationship Management (CRM)
software tied to your unified communications phone system—that
will help us to serve customers better. Before upgrading our
network, there are some things to consider. Such as:
• What do our customers want? It's no use spending on

technology that doesn't solve our company's particular
customer service problems. Talk to customers and send out
surveys to determine what improvements they'd like to see.
Talk to others in your industry to see what's working and
what's not.
• Ask the employees what they need. Frontline sales
people and customer service representatives (reps) have a
good idea of what's working and what's not. It would be
better to involve them from the beginning as we have to
create solutions designed to meet everyone's needs.
• Prepare the workers for a change. Create a transition
plan that alerts employees to the changes to come. Focus on
the benefits to them.
• Work with the partner for an easy transition. The time
required to upgrade the network and add customer service
applications depends on factors such as company's number
of employees, locations and customer needs. A proper help
must be taken from the partner for a real-world estimate of
how long it might take and how best to transition with
minimum disruption.
A proper way must be designed to collect, organize, analyze, and

disseminate information about customers, including purchases and
returns, buying habits, past inquiries, and service contracts.
Adding wireless connectivity to the network can also help to serve

customers better. With wireless connectivity, we can:
• Stay in touch wherever you go. Wireless IP phones are as

easy to use as traditional cordless phones but have a far
greater signal range and can provide much more
functionality. With wireless IP phones, our workforce can
roam the sales floor, office, campus, or warehouse,
answering customer inquiries and accessing company data,
such as an inventory database.
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• Speed delivery and reduce delivery errors. Enable

delivery vehicle personnel to access the company database
for updated delivery and customer information from their
vehicles.
Because of the low density of fixed line phones in South Africa, cell
phones are the only means through which the locals can communicate
with each other. They are also a status symbol that cuts across the
many color and cultural barriers of South Africa. For many of South
Africa’s poorest, owning a cell phone means owning a symbol of
modernity and luxury in a country which has had more than its share of
hardship. A quarter of South Africa’s population of 40 million currently
uses a mobile phone, with low-income people as the fastest growing
group of cellphone owners. Our ambitious plans for expansion are
driven by a belief that it can capture the younger, less-moneyed
segment of the cellphone market with an innovative pricing structure as
well as an attractively hip branding campaign. The company’s focus is
on offering fresh, lifestyle-driven products as well as a range of
reduced-rate options and per second billing, which can make a
difference among price-conscious consumers (most cell phone providers
charge by the minute). These features represent an appealing
proposition to the average person on the street, and in Africa that
person is black.
We would also focus on recognizing customers as “individuals with

different communication needs.” The goal is to appeal to a
population that includes stay-at-home moms to corporate
climbers, or otherwise put, the youth and yuppie markets –
two crucial, ever-expanding facets of the cell phone business in
South Africa. One way TeleTouch would approach these markets
during these period by offering subscribers greater flexibility in
their contract options, per second billing, and one-rate plan fees
to wave the connection fee.
We would also have to go for a teaser campaign so that consumer

could also get to know this brand.
So far if we the product mix is concerned we would like to pay the

attention of the department that we are providing services like
GSM, CDMA, WiMAX, and 3G services in those 20 places. It
includes mobile and fixed line wireless voice, data, and value
added services.
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Some new offers will be launched in SMS and MMS, as we know

that the demand in the fields of telecommunications is increasing
rapidly.
Individuality:
1. We will launched the first cellular product developed

specifically for the youth, called ‘tele youth’.
2. Our contract subscribers are afforded the luxury to choosing
their own cellular number, subject to availability.
Choice:
1. Our prepaid subscribers are able to switch between different

tariff options, when they feel like it – a first for S.A
2. Choosing your most frequently called numbers and saving

money on these become a reality with the introduction of our
friends and family discounts.
Value for money :
1. We will be the first to introduce ‘CALL ME BACK’ across

network, allowing customers to ask someone to call you on
your or TeleTouch – free of charge.
2. We will be offering per seconds billing across all prepaid and
contract packages.
3. We would also take directory enquiries one step further by
sending you a requested number via SMS at no charge.
4. When customers buy a chat card with value of R150 or more
consumers will get extra airtime value, up to R75 free.
Since our target customers range from 17-60 years so our product
must be designed on this basis. As different age people have
different reasons to choose there way of communications.
The company is under the growing stage and thus its to work
much on aggressive advertisement, should go for new market, go
for niche marketing.
The dept. has to work on the areas of products and services, the
availability of distribution points of recharge cards and vouchers
which would yield higher levels of satisfaction.
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TeleTouch sim offer
1)6 month R300
You get R390
The 6 month steady chat card gives you R390 worth of airtime
spread evenly over 6
months for only R300.
That means you get R65 airtime per month.
2) 12 month R900
You get R1200
The 12 month steady chat card gives you R1200 worth of

airtime spread evenly over
12 months for only R900.
You get up to R300 off any cell phone of your choice.
3) 18 month R1350
You get R1800

4) 24 month R1750
You get R2400

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That means you get up to R100 airtime per month.
5) New friends & family
With TeleTouch new Friends and Family service you can now
select not 4 but 7 of your most frequently dialed numbers to
receive our discounted Friends and Family rates. So you will be
saving money every time you call your mum, best friend,
boyfriend…
Plus if you select another TeleTouch number to be on your Friends

and Family list you will be paying the lowest mobile rate in South
Africa when you call them - 75c per minute off peak and R1.50 per
minute during peak times.
As a TeleTouch subscriber you can choose seven Friends & Family

numbers on any of our prepaid packages:
* Steady chat
* Easy chat standard
* Easy chat all day
* Easy chat per second
As a TeleTouch subscriber, you can choose seven Friends & Family

numbers on any of these contract packages:
* All control chat options
* All casual chat options
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* All active chat options
You can choose any mobile or fixed national number, except

special numbers like premium, shared or international numbers to
be your Friends & Family numbers.
6) Control chat 50
Contract length (months) 12 or 24
Connection fee R 114
Monthly fee R 50
Included monthly airtime R 50
Included SMS per month 25
7) Control chat 75
Monthly fee R 75
8) Control chat 100
Monthly fee R 100
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9) Control chat 125
Monthly fee R 125
10) Control chat 150
Monthly fee R 150
Monthly fee R 175
180
Monthly fee R 200
Monthly fee R 225
Monthly fee R 250
Monthly fee R 300
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Monthly fee R 350
Monthly fee R 400
Monthly fee R 450
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Monthly fee R 500
Monthly fee R 600
Monthly fee R 700
Included monthly minutes R 850
21) Casuals SMS
Contract length (months) 1, 12 or 24
Monthly fee R 115
Included monthly minutes
Included SMS per month 200 anytime SMS
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22) Casual chat 100
Monthly fee R 115
Included monthly minutes 100 off-peak
Included SMS per month
23) Casual chat anytime
Monthly fee R 130
Included monthly minutes 50 anytime
24) Active chat 100
Monthly fee R 250
25) Active chat 220
Monthly fee R 399
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26) Business chat standard
Monthly fee R 185
Included monthly minutes none
27) Business chat 400
Contract length (months) 1,12 or 24
Monthly fee R 650
Monthly fee R 1100
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Monthly fee R 1500
30) Telemetry
Monthly fee R 42
Included monthly minutes
Included SMS per month 80 anytime SMS
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RECHARGE COUPONS
1) Additional airtime top up
You can top up at any stage during the month if you require
additional airtime or load
Multiple steady chat vouchers.
Either goes to the nearest ATM or purchase a chat card or

steady chat card at any
Participating TeleTouch outlet country wide.
2) R5
Recharge your airtime with TeleTouch chat cards or at ATM or
Standard Bank Auto-Bank near you.
3) R25
4) R35
5) R39
6) R50
7) R70
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Standard Bank Auto-
Bank near you.
8) R150

Standard Bank Auto-
Bank near you.
9) R300
10) R500
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TELE TOUCH SERVICES
1) Our superb service doesn't stop at our borders.
With international roaming we give you great network coverage

abroad.
Tele touch now has: 395 Roaming Partners in 166 countries

around the world and is also offering its subscriber’s access to four
Maritime Services and one satellite network. Better yet, our
fantastic tariffs mean that you'll always know what you're paying,
wherever you go - no "out of order" payphones that gulp down
coins, no hotel phone rates and no lopsided bills when you get
home. There's simply no easier way to stay Connected.
2) Cell phone is lost or stolen
You must contact the Contact Centre on 140, free from a Tele
touch cell phone to obtain
an ITC number. Only once the ITC number is obtained can you
report the matter to the
Police for a case number. The case number is only used for T-
Cover incidents or to
Blacklist your cell phone.
3) Its easy and uncomplicated.
First of all, your phone needs to support GPRS in order for you to
receive MMS on your phone.
If your phone doesn’t support GPRS you can still receive MMS by
using the Web as your phone.
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MMS can be sent and received:
Tele touch phone to Tele touch phone, Tele touch phone to other
networks, web to Tele touch phone, Tele touch phone to email
It is not complicated at all!
There are two means in which you can send MMS and that is with
your phone or the web or both.
If you own a cell phone that possesses a camera and GPRS

facilities it is most likely that it can send and receive MMS.
Subscribers with MMS phone will be able to send and receive MMS
on their phones. Once registered on the web and if MMS is
activated, subscribers will be able to send MMS from the web to
cell phone.
To activate your phone with MMS you can:
Request MMS settings at anytime by simply dialing *147#.
You will then receive MMS settings on your cell phone.
If prompted for a PIN, please enter 12345. All you have to do is to

save the settings you receive.
Then switch off your cell phone and turn it on again after a few
seconds.
With the activation process a confirmation will appear informing

you as to whether or not your cell phone is MMS compatible. If it
is not MMS compatible you will be able to use the web site as a
MMS phone to receive MMS’s. In which case you will receive an
SMS with a logon address, message id and password.
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4) Standard services
T-fax & T-data T-fax lets you send and receive faxes; while T-
data lets you send and receive e-mail, all via your cell phone and
laptop or PDA.
Dual sim - You don't have to have multiple personalities to qualify

for dual SIM…it simply means that you can have two mobile
phones with separate SIM cards that are linked, enabling you to
be reached wherever you are.
32k SIM -card with WIB (Wireless Internet Gateway Browser) -

provides additional web-based applications.
Voice mailbox answers your incoming calls when you are

unavailable.
Fax mail allows you to receive fax messages in your voice

mailbox.
Emergency services dial 112 to call police, fire or ambulance

services.
Directory enquiries dial 146 to find white and yellow pages

numbers.
Customer service dials 140 for information and assistance.
Call barring bar calls and prevent unauthorized use of your cell
phone.
Call waiting lets you know someone else is trying to get through
while you're on a call.
Call holding lets you put one call on hold while you make or take
another.
Call forwarding forward calls to another number.
*CLIP (calling line identity presentation) so you know who's

calling before you answer. (*monthly cost attached)
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CLIR (calling line identity restriction) hide your number when

calling another person.
Call me back it’s free, it's convenient, it's simple…and you can
use it 5 times a day across all mobile networks.
Per second billing why pay for more than you actually use?
SMS packs add a pack to your existing contract to receive a fixed

number of sms messages a month.
Minute collection didn’t use all your free minutes this month?
Don't panic, you can use them next month.
5) MISSED CALL
With missed call notification you will be notified of calls received

when your phone was switched off.
You will get a sms with the number date and time of the call you
missed as soon as You switch your phone back on.
All you need is for your voice mail to be activated.
No cost to activate.
6) How conference call works
Making or receiving a conference call is as easy as making a

normal call. All you have to do to initiate a conference call is to
call the first person and ask them to hold while you setup the
Conference Call. Then press the "hold" button to place him/her on
hold.
Then call the second person and invite them to join the
Conference Call. And put them On hold.
Once all the calls are activated, press "options" and go to

"conference: to start the Conference Call. Put the conference on
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hold by pressing "hold". Repeat the process until you have a

maximum of six people, including yourself, on the Conference Call.
To end the conference, simply end the call.
Just remember that your phone has to be activated for Conference

Call, and that the originator is charged for the calls made from
his/her phone.
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Tele touch calling cost
For control that’s tighter than a Victorian corset, try control chat!
There's something reassuring about predictability, knowing what

you can guarantee on and what to be prepared for. No matter
what you are doing, you want a consistent contract so that you
know what you are in for every month!
With control chat, managing your cell phone bill has never been
easier.
In fact, it offers you the best of both worlds – it provides you with
the stability and benefits of a contract but with the freedom to
choose upfront how much you want to spend each month.
You get to choose a contract period of 12 or 24 months and for

the duration of your contract a set amount will be debited from
your bank account and credited to your cell phone account every
month.
Plus, aside from helping you control your cellular expenditure,

once you have reached your monthly contract limit – and really
need to make that call – you can simply top up your airtime
immediately with tele touch instant recharge.
You can accumulate a maximum airtime balance equal to three

times your control chat monthly credit amount (i.e. control chat
50 where you get R50 of value you can carry over R150 and
control chat 125 where you get R145 of value you can carry over
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a maximum of R435). Note: the maximum rollover amount

excludes any recharges done by yourself
Unused SMS's will not rollover to the next month
So what do you get with each control chat package?
# Control chat 50 gives you 25 free monthly SMS
# Control chat 125 gives you R145 airtime and 100 free monthly
SMS
# Control chat 300 gives you R350 airtime and 100 free monthly
SMS
What more could you ask for – It’s the choice of having control in
the palm of your hand.
Friends & family peak
Tele touch to Tele touch R 1.25
Tele touch to other mobiles & landlines R 2.00
Friends & family off-peak
Tele touch to other mobiles & landlines R 1.00
Peak call p/m
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Tele touch to other mobile R 2.50
Tele touch to telkom R 2.25
International calls
Country Price
Australia R 9.00
Botswana R 4.00
Canada R 9.00
Cayman Island R 9.00
Greenland R 9.00
Lesotho R 4.00
Malawi R 4.00
Malaysia R 9.00
Mozambique R 4.00
Namibia R 4.00
New Zealand R 9.00
St Helena R 9.00
Swaziland R 4.00
UK R 9.00
USA R9.00
Zambia R 5.00
Zimbabwe R 5.00
Rest of the world R 13.00
SMS per message R 0.60
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Off peak call p/m
Tele touch to other mobile R 1.40
Tele touch to telkom R 1.30
International calls
Country Price
Australia R9.00
Botswana R 4.00
Canada R 9.00
Cayman Island R 9.00
Greenland R 9.00
Lesotho R 4.00
Malawi R 4.00
Malaysia R 9.00
Mozambique R 4.00
Namibia R 4.00
New Zealand R 9.00
St Helena R 9.00
Swaziland R 4.00
UK R 9.00
USA R 9.00
Zambia R 4.00
Zimbabwe R 4.00
Rest of the world R 13.00
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SMS per message R 0.25
Plan for In-house advertisement dept.
South Africa is one country which is light years ahead of other

countries when it comes to mobile advertising. It is considered
the hottest market right now and the numbers speak for
themselves. The average response rate for mobile advertising
campaigns in South Africa is anywhere from 10% to 25%, which is
nothing short of amazing.
Mobile phone is considered the hottest advertising medium in

South Africa today and it is predicted that mobile advertising will
cover most of the country in next three years.
Teletouch witnessed rapid success during the initial years, but

gradually began to struggle with changing market dynamics and
stiff competitive pressures leading to: slowing subscriber growth
high customer churn escalating costs with little scale advantages
lack of clear focus.
The result, an inadequate growth trajectory, was against a

backdrop of substantially bigger competitors with deep pockets.
TeleTouch needed a fast turnaround to pull its business back to
stability, and then move towards profitability and growth in line
with Shareholder expectations. The Solution TeleTouch looked
diagnose the problem and formulate a solution, a joint team of
consultants and TeleTouch team members worked diligently to
assess the market prospects and strategic options for TeleTouch.
Working closely with the TeleTouch Management Team/Executive
198
Committee, the team devised an inspiring vision and a 3-year

corporate strategy to put the company back on the path to
profitability and growth. The key elements of the strategy were to
focus on operational efficiency for increased service levels and
margins exploit increased efficiency to offer best value for
money services aggressively increase market penetration via
new pricing complement own customer base with targeted Mobile
Virtual Network Operators to penetrate hard to-reach
segments.
The Result The implementation of the strategy has resulted in

significant and cash flow improvement without workforce
reduction. Positive signs are evident throughout the business,
signaling success: strategy execution is being driven by the board
of director supported by a fully committed executive team
company-wide clarity on the strategic direction enabling focus
step-change improvement in customer experience improved IT
and network operations ensuring service quality. At the outset,
highly experienced cell c consultants with specific mobile sector
expertise conducted a thorough review of teletouch strategy and
future outlook through an intense exercise lasting 2.5 weeks. It
became clear that the existing strategy did not take into account
the changing market realities. This had led to a lack of clarity
and focus throughout Teletouch that was hampering growth and
profitability Teletouch management team agreed with the team’s
findings, and entrusted Cell C with the critical responsibility of
leading an effort to help develop Teletouch long-term strategy and
vision. A joint cell c and Teletouch team launched a
comprehensive 14-week project to redefine the company’s
corporate strategy and vision. The team started with developing
199
unconstrained views of market opportunities and likely evolution

scenarios based on rigorous data-driven analysis. Then having
modeled and tested various strategic options, the team was able
to develop Teletouch new vision and a promising 3-year corporate
strategy. The recommended strategy was embraced by Teletouch
management team and approved by its Board as it offered
practical steps towards value creation, supported by clearly
defined plans to execute them. cell c then continued to support
TeleTouch through key deployment stages of the corporate
Strategy, working intimately with the company through a phased
approach: Implementation Planning identified and quantified
opportunities to improve operational efficiency identified
measures to fix the basics throughout the business established
implementation plans with benefits tracking, and a clear
governance structure.
Channel Strategy derived an integrated view of profitability

across the existing channel portfolio developed clear channel
strategy to grow penetration and profitability created a detailed
implementation program for existing and new channels IT
Assessment assessed IT capabilities to support current and future
business requirements evaluated sourcing options and
determined optimal solution supported by a clear business case.
Outlined recommendations to improve quality and operational

efficiency. Teletouch adopted key principles from its Collaborative
Business Experience methodology, by working alongside
TeleTouch throughout the corporate strategy development and
key deployment stages. TeleTouch continues to growth and
strategic strength.
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Teletouch has launched an ambitious new direct marketing

program; the initiative is multi-faceted and will comprise a
number of on-going, fully automated direct marketing programs.
"We will be using a comprehensive range of direct marketing
strategies to reach our market, including sms messaging, direct
mail, and e-mail,"
We will automate the marketing processes required to plan,

define, execute and optimize multi-dimensional campaigns.
"Key to a successful campaign is the establishment of a dialogue

between marketer and customer, facilitated by the tailoring of the
messages to suit specific niche markets - with a tone appropriate
to these niches,". "From a technical perspective, we will have
'closed-loop' data flows, meaning that interaction with our
customers will be facilitated through a number of avenues,
including our call center, and will often be triggered by events
pertinent to them."
The objectives of the program are a "better user experience" and

the support of the teletouch brand in South Africa through the use
of integrated data systems for the benefit of its customers.
The teletouch implementation effort was successfully completed

within three months, including the creation of a marketing data
mart. "Rapid deployment is typical of teletouch marketing projects
and key to achieving an early return on investment," "teletouch
joins an impressive group of major telecommunications brand that
have improve their marketing processes and gain business
advantage."
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Our solutions integrate existing infrastructure to orchestrate the

assembly, enhancement and delivery of optimal role based
business processes to the appropriate channels. Business value is
realized through improved employee productivity, savings in
operational costs, and increased business adaptability.
This news release includes "forward-looking statements" that are

subject to risks, uncertainties and other factors that could cause
actual results or outcomes to differ materially from those
contemplated by the forward-looking statements. Forward-looking
statements in this release are generally identified by words, such
as "believes," "anticipates," "plans," "expects," "will," "would,"
"guidance," "projects" and similar expressions which are intended
to identify forward-looking statements. There are a number of
important factors that could cause the results of teletouch to differ
materially from those indicated by these forward-looking
statements, including, among others, potential difficulties in the
assimilation of operations, strategies, technologies, personnel and
products of acquired companies and technologies, the impact of
perceived or actual weakening of economic conditions on
customers' and prospective customers' spending on teletouch;
quarterly fluctuations in teletouch revenues or other operating
results.
In case you’re wondering how it’s possible, let me explain.
1. Mobile advertising is cost effective. It’s way cheaper than

traditional advertising methods like TV, magazines, or radio. And
it delivers tremendous results.
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2. You can create a mobile advertising campaign and launch it

within a week’s time. And you can see the results in a day or two.
This is simply unimaginable in the case of traditional advertising.
3. Most importantly, South African mobile users are prolific when

it comes to mobile web. A majority of mobile users use mobile
internet very regularly and this helps mobile advertisers create
interactive mobile advertising campaigns to reach out to them.
Already, South African students have mobile advertising as part of

their syllabus, in case you don’t know. It can only mean one thing
and that is the next generation will be even more receptive to
mobile advertising.
The current economic crisis has taken its toll on a lot of companies
around the world. Traditional advertising campaigns are not as
successful as they used to be and this has made everyone think
really hard to come up with a new strategy. The new strategy,
apparently, is something that has been in the news for quite some
time now. It is called mobile advertising.
Teletouch decided to start their own mobile fan club for their ‘The
Block’ tour this year. While we were touring, we added at least a
1000 fans to our club each night. Over a span of just over 60
days, we have over 30,000 loyal fans in our mobile fan club. All
these fans get regular updates on tour schedules, merchandise
info, ticket sales, and venue details.
It took around one and a half years for Echo Management to build
an email list of 17,000 members for country pop singer LeAnn
Rimes. Later, we decided to give mobile phone advertising a try.
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The result – over 24,000 members added to the list with just 16
shows.
We promoted Lil Wayne’s album ‘Tha Carter III’ by organizing a

mobile advertising campaign. The result – 124,000 phone calls in
the first week and a mobile fan list consisting of 90,000 members
in a surprisingly short period of time. The label has now made this
mobile list into a premier mobile fan club.
We sent both mobile alerts and email alerts to customers offering

discounts and promotional offers. The mobile alert campaign was
16% more effective than the email campaign. Also, people who
received mobile alerts spent, on an average, $13 more than
people who received email alerts.
A lot of experts believe that mobile marketing will be the key

format of marketing in 2009-10. A mobile marketing campaign is
very easy to create, even easier to manage, can easily reach the
target customer base, and most importantly, gives amazing
results. So, the future, like I’ve always said, is mobile.
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GROUP-5B
TeleTouch Limited
In House Department
Submitted by Puja Chauhan

Pramod Nath Mishra
Priyanka Jain
Rajiv Lodaria
Rakesh Bhardwaj
Institute of productivity & manageme
205
Functional Area:- In-house Advertising Department
Name Designation
1. Pooja Chauhan Chief Executive-Promotion
2. Rajiv Kumar Lodaria Executive-Audio Visual
3. Priyanka Jain Executive-Print
4. Pramod Nath Mishra Executive-Sponsorship
5. Rakesh Bhardwaj Executive-Outdoor Event
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1. Preparation of a detailed Promotion plan with specific

budgets and territory to be operated based on the guidelines
of the Board, Marketing Departments and other
Departments.
2. Identification of specific steps to achieve pre-defined

Advertising Goals and laying down of measuring standards to
assess the effectiveness of the money to spent.
3. Value chain analysis.
Ans: - The different mediums via which TeleTouch is going to

promote itself are as follows.
1. Out Of Home Media: - OOH Media is India’s largest out-of-

home television company. We leverage our robust Business, In-
store and Leisure Network to display audio-visual
advertisements and engage urban consumers while they work,
shop and play.
Our medium combines the strengths of audio-visual

communication with the visibility of outdoor. The ability of this
new medium to ensure that advertisers get their message
across their most difficult to reach consumers with regularity,
across different day parts and in a seamless way, is what
differentiates this medium of communication from any other
medium.
We have already installed over 4900 screens in more than 22

cities across India and propose to set up as many as 30,000
screens in the next 18-24 months. This would make us India's
largest digital out-of-home television company.
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2. RBT :- It means Ring Back Tone.

What happens in it is that whenever a customer calls in our
network, he/she will hear a jingle of our company.
The jingle will be in different languages :-
In English: - “TeleTouch….feel the Touch”.
We will give this service free of cost to our customers with

new connections for the first six months.
3. Television :- We will also give advertisement in the

television alsoAnd different types of programmes, news even
cricket matches are coming on the televisions. Therefore we
will give advertisements in between those programmes,
news, matches etc. And this will help a lot in increasing our
sales.
4. Radio/FM :- Since Radio and FM are the very good source

of advertisement, and also in different cities FM Radios plays
a very vital role among the youths. Therefore our plan is to
advertise very heavily with this medium.
5. Newspapers :- We will also advertise ourselves via different

newspapers also. These newspapers includes Daily Son, The
Star, Cape Times, The Herald, Pretoria News etc.
6. Magazines :- Our advertisements will also be placed on

different magazines like Black Business Quarterly,
Entrepreneur Magazine, Gateway, Fairlady, Cosmopolitan,
Marketing Mix etc.
7. Internet :- Since internet is the fastest medium of

everything. And now most of the people are using Internet
regularly for different-different types of work. Therefore, we
will also give advertisement of TeleTouch in the internet also.
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8. Hoardings :- In different cities and towns, near traffics and

public places we will advertise ourselves through hoardings.
9. Website :- We are also launching our website for

advertisement. The address will be www.teletouch.com ,
so that the customer would get the whole the information
about our services very easily.
TeleTouch is going to work in the following territories.
1. Eastern Cape
2. Free State
3. Gauteng
4. KwazuluNatal
5. Limpopo
6. Mpumalanga
7. Northern Cape
8. North West
9. Western Cape
The chart present under is representing the Province name,

the total number of hoardings, total expenses of the
hoardings and the total population of that particular area.
Sl No Province No. of Cost Population

Hoardings Cover
1 Eastern Cape 15 375000 6436761
2 Free State 10 250000 2706776
3 Gauteng 18 450000 8837172
4 KwazuluNatal 20 500000 9426018
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5 Limpopo 12 300000 5273637
6 Mpumalanga 13 325000 3122994
7 Northern Cape 04 100000 822726
8 North West 08 200000 3669349
9 Western Cape 10 250000 4524335
TOTAL Rs 27560000
Since, TeleTouch is going to advertise with different mediums

which are mentioned above.
Therefore, we are giving cost of some of the mediums.
The cost of web design in South Africa
Typically the two elements to a magazine or newspaper

advertisement involve production (the cost of the design and
producing the material for publication) and the media cost the cost
of fighting (the exposure) of the advertisement in the publication.
In this example we have selected a typical market related full

page A4 full color magazine advertisement with a monthly
circulation of 24,000 and a readership of 56,000.
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Design and Media cost Total cost of CPM

Production of one month
ad
R9,600.00 R12,000.00 R21,600.00 R214.00
The CPM is the amount an advertiser pays for every 1000 times
the ad (readership) is recorded. Cost per thousand, or CPM is a
way of measuring the cost of displaying an advertisement. There
is a set price range for hosting not for every time the web page
(page impressions/readership) on your site is viewed a thousand
times.
Now we can see the expenditure for web advertising.
Design and Media cost Total cost for CPM

production (hosting) 1 month
R12,000.00 R250.00 per R12,250.00 16%

month
Cost per thousand, or CPM is a way of measuring the cost of

displaying a web page. There is a set price range for hosting not
for every time the web page (page impressions/readership) on
your site is viewed a thousand times.
When compared to the costs associated with traditional

advertising methods in south africa such as direct mail, newspaper
or magazine ads, or radio and television, the cost of a web site is
nominal.
Different Print Media of South Africa, via which we are going

to advertise ourselves.
South Africa has 20 daily and 13 weekly newspapers, most in

English. Some 14.5-million South Africans buy the urban
212
dailies, while community newspapers have a circulation of 5.5-

million. There is also a range of general and specialized news
websites which, in terms of the speed and breadth of their
coverage, are on a par with the best in the world.
In the below table we can see overview of different

newspapers.
Name of the Average daily Average

Newspaper sales
Daily readers
Daily Sun 301800 301800
The Star 171542 616000
Sowetan 118261 150000
Die Burger 109513 562000
The Citizen 90978 466000
Cape Argus 75549 407000
Isolezwe 58848 391000
Daily News 56256 308000
Cape Times 51285 316000
213
Business Day 42322 113000
The Mercury 40526 213000
Daily Dispatch 33535 226000
The Herald 30230 193000
Volksblad 28707 126000
Pretoria News 28055 86000
The Witness 23804 167000
Diamond Fields 8954 55000
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Out door event in South Africa
There are some Public Holidays and Nationwide Events in South

Africa that people of South Africa celebrate in a social manner
so we have option to promote product by it as a outdoor
event. South Africans love public holidays; they celebrate
their constitution, landmarks in political history and even a
few cultural pastimes (like National Braai Day ... yes, they
take a whole day off work to celebrate their braai / BBQ
culture). See the list below of the public holidays in South
Africa as well as nationwide events, which could affect our
outdoor plans.
These are as follows :-
1. Classic Car Events in South Africa
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All South Africa's provinces where we offer our service we

arrange a range of activities from deep sea diving and shark cage
diving to mountain climbing and abseiling, elephant-back safaris,
fishing, surfing, cycling race, hang gliding, hot-air ballooning,
whale watching and advertise our brand.
216
2. New Year's Day
Friday, 10 April 2009
3. Good Friday
Friday, 01 January 2010
217
4. Christmas Day
Friday, 25 December 2009
5. Family Day
Monday, 13 April 2009
6. Freedom Day
Monday, 27 April 2009
7. Public Holiday
Monday, 10 August 2009
8. Day of Goodwill
Saturday, 26 December 2009
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We are going to advertise from following advertisement

companies.
1. CARAT International European Media Planning.

2. Kinetic Ad Agency of WPP Group.
3. OMD
Profile and work distribution of the companies are as

follows.
1. CARAT International European Media Planning.
Carat International is a division of Carat, the world's largest

independent media agency with more than $16 billion in
219
worldwide billings. Carat has 106 offices located in 94 cities and

56 countries globally. Carat International is focused on delivering
strategic communication services to global brands in addition to
the management of all Carat's key international clients. These
include Philips, Adidas, BMW, Vodafone, SCA, Opodo, Danone,
Disney and Renault.
TeleTouch is going to appoint Carat International as its pan

European media planning agency for brand advertising.
Existing in-house department will continue to the campaigns

through out country while Carat International will handle the
media planning of television, radio, web .
Commenting on the appointment, Tapan Kumar Ray, TeleTouch’s

Chairman responsible for global branding, said: "The appointment
of our first Pan European media planning agency is part of our
strategy to establish a strong global brand and position ourselves
as the world's leading mobile multimedia company.
"We chose Carat International, which will work alongside kinetic

our global brand advertising agency, and the incumbent local
media buying agencies, because of its imaginative media selection
and plans for a branding campaign as well as its robust network
and strong team."
Total amount given is Rs 400000000 i.e. about

R80000000(approx).
2. Kinetic Ad Agency of WPP Group
Our second media agency is Kinetic Ad Agency of WPP Group

which is a media agency that understands how to communicate
with people on the move. They plan and buy all forms of media
when target audience is Out of Home. They invest in
understanding how they live their lifestyles and the best
220
environment in which to involve them with your message.
If there’s an effective way to communicate with people on the

move, they’ll find it. From roadside posters to digital screens; and
everything in between. .
They have an ongoing commitment, across the world, to

understanding and engaging with people on the go, whatever
media they choose to consume. They will manage our investment,
local or global, to ensure best advertiser value from Out of Home
media and outdoor advertising. To achieve this, as an Out of
Home media agency they operate distinct and specialist business
areas, which should make it easier for you to identify which
service is most relevant to our immediate communication goals.
Kinetic is a truly global network; offices in 23 markets and ever-

expanding links to new territories through our historic partners.
The Kinetic positioning is the same across the world, offering a
dedicated expertise in out of home planning and buying solutions,
forging strong working relationships with clients, agencies,
suppliers and media owners across all aspects of communication
on the move.

R10000000(approx).
3. OMD
The third media agency is OMD by which we are going to

advertise. OMD is the world's biggest media services brand
with billings of $26.3bn in 2007 (according to RECMA). As the
main media brand within marketing services giant Omnicom, it
is closely associated with advertising networks BBDO, DDB and
TBWA, although some business is handled by secondary shop
PHD Network. Reflecting the creative abilities of its partners,
OMD has a reputation for innovative and unusual media
planning and buying.

R8000000(approx).
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The chart below shows the expenses of the ads per viewer on
Television in South Africa :-
Weekly Newspapers in South Africa :-
222
Daily Newspapers in South Africa :-
223
TeleTouch is going to advertise through the FIFA(Federation

International de Football Association) World Cup Matches which
is going to held on June-July 2011 South Africa.
224
We have a talk with the FIFA organizing committee, South

Africa. Total amount given to the FIFA is Rs 400000000 i.e.
about R80000000.
The next FIFA world cup is due to be held in South Africa in June
and July 2010 Federation international de football association

(FIFA) is the World governing body of association football. FIFA
has appointed the South African foot ball
association, one of its member associations, with the
organization and staging of the 2010 FIFA World cup and for
this purpose the South African foot boll association has created
the local organization committee (LOC). The government of
republic South Africa supports the organization and has
provided certain guarantees to FIFA to support the organization
of the 2010 FIFA world cup. FIFA is the owner of all rights in
relation to the 2010 FIFA world cup, which include all media,
marketing, licensing and ticketing rights.
FIFA World Cup Sponsors:-
FIFA world Cup Sponsors are a maximum of 8 companies to

which FIFA has granted or will grant the second most
comprehensive package of global advertising, promotional and
marketing rights in relation to the FIFA 2010 World Cup.
Till now six companies have taken the sponsorship of the FIFA
World Cup matches. TeleTouch is the seventh one.
The name of the companies are as under:-
1. TeleTouch
2. Anheuser-Busch
3. Continental
4. MTN
5. Castrol
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6. McDonald’s
7. Satyam
The address of the organizing committee is :-
2010 FIFA World Cup Advertising Committee South Africa
Marketing Division
SAFA House
76 Nasrec Road
Nasrec
Gauteng
South Africa
Tel :- +2711 567 2010
+2711 494 3161
Email :- marketing@2010saloc.com
FIFA Licensing Representative :-
Global Brands Group
Email :- enquiries@globalbrandsgroup.com
Tel :- +2711 537 4641
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There are a large number of aids which were given by TeleTouch

in the Television, Hoardings, Print Media, Websites, Football
grounds, Roads etc. Some of them are as under.
227
228
229
230
231
232
233
234
235
236
Value Chain Analysis :-
237
TeleTouch is going to give a lot of advantages. Some of the

advantages are as under :-
1. Since, we are going to advertise through all the ten biggest

FM Radio Channel of South Africa that covers almost 65% of
the total area of South Africa. These local channel advertise
in local language also, that helps in awareness of all the
information such as schemes, tariffs etc to the customer. As
a result, this gives an extra edge to the company TeleTouch.
2. Also, TeleTouch is doing the advertisement hugely. We are
conducting a large number of Outdoor events like festivals,
holidays. As a result, people of South Africa feels that
TeleTouch is for them. And this is a value addition to us.
3. We are also giving training the dealers, distributors about
the different features and functions of the tariffs and
schemes of TeleTouch, so that the customer will get all the
information in a right and easy way. This leads to the
customer satisfaction.
4. Since TeleTouch is investing a very huge amount i.e. more
than a billion in advertisement. And this is only for the
convenience for the customer.
5. We are also advertising on the basis of segmentation that
means each and every segment of the customer is targeted
and advertisement are made keeping in mind of these
particular segments. This leads to the customer awareness.
6. TeleTouch has also taken the co-sponsorship of the FIFA
world cup-2010. Since it is a world cup and is forecasting in
all over the world. Therefore, it will help us in the form of
global advertisement.
7. TeleTouch has appointed the Carat European International
Advertisement Agency for advertisement in all the provinces
of South Africa. This will increase the reach of the
TeleTouch.
238
Legal rule and regulation for the advertising in South Africa
The Advertising Standards Authority of South Africa (ASA) is an

independent body set up and paid for by the marketing
communications industry to regulate advertising in the public
interest through a system of self-regulation
Self-regulation is a system by which the marketing communication

industry voluntarily regulates the content of advertising. The three
parts of the industry — the advertisers who pay for the
advertising, the advertising agencies responsible for its form and
content, and the media that carry it — work together, to agree
advertising standards and to set up a system to ensure that
advertisements which fail to meet those standards are quickly
corrected or removed.
The Code of Advertising Practice is the guiding document of the

ASA. The code is based upon the International Code of Advertising
Practice, prepared by the International Chamber of Commerce.
The code requires all advertising to be legal, decent, honest and
truthful, and be prepared with a sense of responsibility to the
consumer.
If a person believes that the content of an advertisement is

untruthful, misleading or harmful in any way, a complaint may be
lodged with the ASA. Any person can lodge a complaint regarding
the content of an advertisement. The ASA will deal with
complaints about advertising content but not with complaints
about contractual matters or service standards.
Consumer complaints are dealt with free of charge while

competitor complaints are subject to a filing fee.
It has been amended to include provisions which place restrictions

on the advertising these are
Section 1 – introduction
239
1. Preamble
all advertisements should be legal, decent, honest and

truthful.
All advertisements should be prepared with a sense of

responsibility to the consumer.
All advertisements should conform to the principles of fair

competition in business.
No advertisement should bring advertising into disrepute or

reduce confidence in advertising as a service to industry and
to the public
2. Scope
Commercial advertising
The primary object of this Code is the regulation of commercial

advertising, it applies therefore (except as expressly provided
further on) to all advertisements for the supply of goods or
services or the provision of facilities by way of trade, and also to
advertisements other than those for specific products which are
placed in the course of trade by or on behalf of any trader.
Non-commercialadvertising
In addition the Code applies, so far as is appropriate, to
advertisements by government departments and agencies and to
those by other non-commercial organizations and individuals.
Politicaladvertising
the provisions of paragraphs 2.1 and 2.2 above shall no be
interpreted to bring political advertisements into the sphere of the
ASA's functions. As in the case of any advertisement the individual
medium shall determine whether any political advertisement
presented to it is acceptable.
240
Controversialsubjects/Advocacyadvertising
To the extent that any advertisement:
· Expresses an opinion on a matter which is the subject of

controversy; and
· That controversy involves issues within the areas, broadly
defined, of public policy and practice, then that opinion shall not
be subject to the provisions of the Code relating to misleading
claims except that-
All advertisements which contain such controversial statements

should:
· be readily recognizable as advertisements;

· cause no confusion as to the identity or status of advertiser;
· whenever such information is not readily available state the
advertiser's address and telephone number.
3. Interpretation
3.1 This Code is to be applied in the spirit, as well as in the

letter.
3.2 In assessing an advertisement's conformity to the terms of

this Code, the primary test applied will be that of the probable
impact of the advertisement as a whole upon those who are
likely to see or hear it. Due regard will be paid to each part of
its contents, visual and aural, and to the nature of the medium
through which it is conveyed.
3.3 In assessing the impact of an advertisement, the ASA may

consider, inter alia -
3.3.1 the surrounding circumstances; and
3.3.2 that the language used in the advertisement as a whole

may justify departure from the literal meaning thereof.
3.3.3 survey data, conforming to the requirements of Clause
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4.1 of Section II, indicating the probable impact as a whole

upon those who are likely to see or hear it.
3.4 The ASA will consider public sensitivity and social concern in
interpreting advertising.
3.5 In advertising aimed at, featuring or likely to influence
children, it should be realized that because of the credulity and
lack of experience of a child, the interpretation of the Code as
embodied in Section I, Clause 3 will be interpreted narrowly, as
children would be likely to attach a more literal meaning to
advertising.
In the interpretation of this Clause, the word "children"

will also include "young people".
3.6 When objections in respect of advertisements that were

amended resulting from an ASA ruling are received, both the
original and amended version will be taken into consideration.
3.7 Where the overall impression of the advertisement as a
whole is in doubt, the ASA may, at the cost of the advertiser
concerned, call for a consumer reaction test by independent
research, acceptable to the ASA.
3.8 The Code binds advertiser, advertising practitioner and

media owner, but the principal responsibility for observing its
terms lies with the advertising practitioner when the services of
a practitioner are retained.
3.9 In determining whether an advertisement is in breach of

the provisions of the Code, it is not the quantity of complaints
that is determinative, but the validity of the complaints.
3.10 The Code gives effect and is subject to the Constitution of

the Republic of South Africa 1996.
The ASA code at clause 14 of section II
Advertising addressed to or likely to influence children should

not contain any statement or visual presentation which might
242
result in harming them, mentally, morally, physically or

emotionally.
Sponsorship Code
1. Introduction
Commercial sponsorship is an essential source of funding for many

activities at local, national and international levels.
Without sponsorship, many disciplines would face extreme

difficulties and possibly, extinction.
Through sponsorship, the nation's sporting, cultural,

environmental, artistic, media, humanitarian and educational
heritage is nurtured, enhanced and spectator choice widened. All
parties to sponsorship - the sponsor, the sponsored event or
activity, the media, the participant(s), the viewers and spectators
- benefit from involvement.
Although sponsorship is an integral part of the marketing strategy,

it differs from advertising as well as from patronage with respect
to objectives, messages and control.
As with all financial investments, a potential sponsorship

investment has to offer a viable return to justify a corporate
sponsor's involvement. Sponsorship decisions are increasingly
being made at strategic level within marketing departments, with
directors accountable for investment decisions and the resulting
returns. A corporate sponsor is accountable for investment
decisions to four major stakeholders: its staff, its clients, its
shareholders and the community. It is essential that a sponsor is
able to justify corporate sponsorship expenditure and ultimately
can produce a return on investment.
Sponsorship offers a potentially valuable platform for marketing

communication between a company and its target market.
Successful involvement in sponsorship shows that a company and
its brand are part of a wide beneficial involvement in society of
which the consumer is a participating member.
243
Therefore the strategic marketing rewards of a successful

sponsorship in terms of exposure, awareness and positive image
building are immense. To ensure successful sponsorships the
entire sponsorship industry should operate according to uniform
rules to lay a strong foundation for continued positive growth and
healthy rewards for the industry and the nation.
It must be stressed that this Code of Practice is a "living"

document and will be updated and amended when the need
arises, by the industry as a whole.
2. The purpose of the Code
The ASA Sponsorship Code sets down basic principles and

guidelines for good practice and fairness in sponsorship enabling
sponsorship to play its proper role in the best interests of all
concerned.
Sponsors have a right to fair return on their sponsorship

investment as well as to protection of this right (providing such
investment is managed effectively by the sponsor and the
sponsorship activity is adequately and appropriately supported by
the sponsor).
All categories of sponsors legally permitted to conduct business

may sponsor any activity, event, team, individual or organisation
and may define sponsorship objectives, provided their sponsorship
is consistent with the principles of fairness and good faith outlined
in this Code.
Broadcasting rights holders, acting responsibly and within the

agreed terms of this Code, have the right to seek a fair return on
their investment in selling the broadcasting rights to an event.
A rights owner, acting responsibly and within the agreed terms of

this Code, has the right to seek a fair return on its investment in
the staging of an event and to maximise the promotion and
exposure of such an event.
Sponsors, acting responsibly and within the agreed terms of this

Code, have a right to seek a fair return on their investment and to
244
maximise the promotion and exposure of such an event or

broadcast.
Sponsorship agents and consultants, acting professionally,

ethically and responsibly within agreed terms of this Code have
the right to earn income or commission when acting on behalf of
sponsors and/or rights owners. Unethical behaviour such as
double dealing and unscrupulously high commission is
unacceptable in terms of this Code and ultimately this behaviour
will be detrimental to the event or activity sponsored.
The Code is designed as an instrument for self-regulation within

the framework of national and international laws. It is also
designed to serve as an interpretative aid and reference guide to
the parties in clarifying uncertainties or disputes arising under a
sponsorship. It should be used in conjunction with ASOM's
Sponsorship Guidelines. (Refer to the Appendix of this Code).
The major roles of this Code:
•Sponsorship. Provides a service to the public and as such

sponsorship communications should be factual, honest, and
decent and should not violate any laws of the country. No sponsor
or party to the sponsorship shall in any way bring sponsorship (as
a valuable marketing tool and means of generating funds) into
disrepute and thereby reduce confidence in sponsorship as a
service to the public.
•All those who subscribe to this Code shall not prepare nor accept
any sponsorship or surrounding promotions which conflict with this
Code and shall withdraw from any sponsorship or surrounding
promotions deemed unacceptable in the light of the stipulations of
this Code.
•This Code establishes the criteria for professional conduct for all
parties involved in sponsorship to protect the consumer and
ensure fair play among sponsors. Its articles form the basis for
dispute resolution where there is a conflict of interest.
-To protect a sponsor by ensuring that the right to a fair return on

commercial investment in sponsorship is understood by all and is
not jeopardised by unethical practices such as ambush marketing.
245
-To protect and promote a sponsored event or activity by ensuring

that all parties involved do not exploit the sponsorship to the
detriment of the sponsored event or activity.
-To protect the rights of the broadcast rights holder to the benefit
of its commercial interests and the promotion of the broadcast of
the sponsored event to the fullest benefit of the event, the
participants and the viewing audience.
-To ensure that professional, ethical conduct is maintained by all

parties involved in a sponsorship programme, particularly agents
and third parties. Agents and consultants should be transparent in
all their dealings and should operate contractually through a sole
mandate, not working for two or more clients that may compete in
the same industry sector.
•To educate and inform all parties and potential parties to

sponsorship of their rights and obligations in terms of this Code.
3. Definitions
Certain key terms are defined to ensure effective comprehension

of and adherence to the terms of this Code.
3.1 Sponsorship
Sponsorship is a form of marketing communication whereby a

sponsor contractually provides financial and/or other support to an
organisation, individual, team, activity, event and/or broadcast in
return for rights to use the sponsor's name and logo in connection
with a sponsored event, activity, team, individual, organisation or
broadcast.
The objective of investing in sponsorship is to create a positive

association between a sponsor's image, product or brand and a
sponsored event or activity, team, individual, organisation or
broadcast, within the sponsor's target market in order to attain
marketing and corporate objectives.
In the interests of correct adherence to the general principles of

the Code, it is necessary to highlight the distinction between
broadcast sponsorship and event, team, organisation, individual,
activity sponsorship.
246
3.1.1 Event (Team, individual, organisation or activity)

sponsorship: This incorporates all rights afforded to a sponsor
under a sponsorship contract relating to an event itself Rights are
sold to sponsors by concerns that own and/or represents the
events (team, individual, organisations or activity). These
concerns consists of right holders, advertising and event
marketing agencies, and event promoters. The rights afforded to
an event sponsor may include aspects such as advertising boards
at a venue, visibility on clothing, press and public relations drives,
merchandising and promotions. Broadcast rights are usually not
offered as a part of an event sponsorship contract.
An event sponsor may sell part of the rights to another party in

accordance with the rights owner.
3.1.2 Broadcast sponsorship: This incorporates all the rights

involved in the broadcast of events or scheduled programmes,
television credits and trailers and others as stipulated in a
broadcast sponsorship contract. These rights are afforded to
broadcast sponsors by the rights holding broadcaster, who
purchased these broadcast rights from the television rights owner.
A broadcast sponsor mayor may not be a sponsor of an actual
event being broadcast.
3.2 Sponsor
A sponsor, title sponsor, presenting sponsor, association sponsor,

sub sponsor/co-sponsor, technical sponsor or official supplier is a
corporation, organisation or other legal person that contractually
provides financial and/or other sponsorship support to the
sponsored party in return for contractual rights to a related event,
activity, team, individual organisation or broadcast.
3.3 Sponsored party
A sponsored party is an organisation, body, individual,

broadcaster, team or other legal person who contractually receives
financial and/or other support from a sponsor and in return is
contractually obliged to provide a sponsor with rights to the
sponsored party's event, activity, team, individual, organisation or
broadcast as agreed to in the sponsorship contract.
3.4 Audience
247
The public, individuals or organisations exposed to the

sponsorship or at which the sponsorship is directed, including
spectators and television audiences.
3.5 Product
The term "product" refers to any goods or services.
3.6 Brand
Refers to the name of the product or service promoted by the

sponsorship.
3.7 Ambush Marketing
The attempt of an organisation, product or brand to create the

impression of being an official sponsor of an event or activity by
affiliating itself with that event or activity without having paid the
sponsorship rights-fee or being a party to the sponsorship
contract.
3.8 Rights Owner
The sporting Code/federation organisation or broadcaster who

owns the rights to an event, activity, team, individual,
organisation or broadcast. A sponsor purchases these rights to
associate their name with the event, team, individual,
organisation, performance, artiste or activity for the duration of
the sponsorship contract.
3.9 Sponsorship Agent/Consultant
Sports/event marketing agencies market the rights to an event,

team, individual, organisation or activity to potential sponsors on
behalf of the sporting Code, federation, organisation or
broadcaster in return for a commission which is usually a
percentage of the rights-fee or a mutually agreeable set fee.
3.10 The Media
The media refers to any print or electronic exposure regarding

the . Sponsorship programme.
4. Scope of this Code
248
The Code applies to all sponsorship related to corporate images,

brands, products, services or events, teams, activities, individuals
or organisations of any kind. It applies to all promotions
surrounding the sponsorship (advertising, sales promotions, direct
marketing, public relations and publicity).
This Code does not apply to any sort of funding which lacks a
commercial or communication purpose, such as donations.
5. Interpretation
This Sponsorship Code of Practice is to be applied in the spirit as

well as to the letter of the terms and principles stipulated herein.
Provided that the contents of this Code and its principles shall be
subject to the provisions of any applicable and/or relevant to
existing legislation which may, whether directly or indirectly have
a bearing on the contents of this Code.
Where discrepancies in interpretation do arise, existing legislation,

previous case histories and ASOM's Sponsorship Guidelines should
be used for guidance and clarification (a copy of ASOM's
Sponsorship Guidelines is included in the appendix).
It should also be noted that the Advertising Code of Practice is

applicable to sponsorship as well as advertising, especially
advertising and promotions surrounding the sponsorship.
6. The Sponsorship Industry Control System
The Advertising Standards Authority of South Africa (ASA) is an

independent body established and funded by the industry to
ensure that its system of self¬regulati0':1 works in the public's
interest. It has an independent chairman.
The Sponsorship Dispute Resolution Committee and Sponsorship

Appeal Committee consists of members nominated by signatories
to the Sponsorship Code of Practice and is representative of:
•Marketers (ASOM)
•Media (NAB & PMA)
•Sponsorship Consultancies
249
•Codes and Federations of all sponsor able events, activities or

individual . Advertising Agencies (AAA)
The Code is administered by these Committee and the ASA

Rulings are made by peers.
Responsibility for observing the Code rests with the sponsor, the
sponsorship intermediary (sports marketers/event managers or
advertising agencies), the rights holders (sporting Codes) and the
medium involved in communicating the sponsor's message to the
public.
7. Sanctions
There are two aspects of sanction - legal and ethical.
Legal Sanctions: Legal Complaints should be dealt with in terms

of the law, i.e. the Trade Marks Act or breach of contract.
The ASA's function is not to enforce the law, although it may

advise people of their rights and obligations and the possible
consequences of their actions.
Ethical Sanctions: The ASA in the case of precedent and/or the

Committees may require the withholding of advertising space or
time from advertisers. The ASA reserves the right to impose any
other form of sanction warranted by particular circumstances.
8. Complaints
Complaints regarding a breach of the Code should be addressed

to:
The Advertising Standards Authority PO Box 41555
CRAIGHALL
2024
Fax: (011) 781-1616
250
All that is required is a letter indicating the basis of the complaint

and, in the case of a printed advertisement promoting a
sponsorship association, a copy of the advertisement concerned.
Where the complaint relates to broadcast sponsorship or

advertising associated with a sponsorship on television, radio or
on cinema screens, information should be furnished on where and
when the broadcast or advertisement was transmitted or
screened.
Where signs or posters are involved, the exact wording of the

advertisement associated with a sponsorship should be provided.
Anonymous complaints cannot be accepted but the confidentiality

of complainants will be maintained at the discretion of the
Committees, if this is specifically requested
Advice is willingly given by telephone to prospective complainants

but investigations will not be undertaken without written
confirmation from the complainant.
9. General Principles
The following general principles form the basis of the Code:
9.1 All sponsorship should be legal, decent, honest and truthful

conforming to accepted principles of fair competition in business.
9.2 All sponsorship packages should be prepared with a sense of

responsibility to all parties to the sponsorship and the public.
9.3 The terms, conditions and conduct should be based on fairness

and good faith between all parties to the sponsorship.
9.4 No sponsorship should bring the sponsorship industry into

disrepute or reduce confidence in sponsorship as a service to the
marketing industry, the media and the public.
9.5 Sponsorship and related communications should not be

misleading, untruthful or indecent.
10. Sponsorship rules and provisions
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These rules and provisions serve as guidelines and apply to all

categories of sponsorship, parties to sponsorship and sponsorship
practices, without exception.
Article 1 - Clarity and accuracy
Sponsorship and all related communications should be clear and

accurate to all persons and organisations involved in a sponsorship
covering any rights or privileges granted to a sponsor.
Article 2 - Autonomy
2.1 Sponsorship should respect the autonomy of the sponsored

party in managing its own activities and properties, provided the
sponsored party fulfills the objectives set out in the sponsorship
contract.
2.2 Where a sponsored party's intellectual or creative properties

are part of a sponsorship agreement, its creative freedom should
be respected.
Article 3 - Imitation and confusion
Imitation of the representation of other sponsorships should be

avoided if this misleads or generates confusion, even when applied
to non-competitive products, companies or events.
Article 4 - Parties to a Sponsorship
4.1 A sponsor should take particular care to safeguard the

inherent artistic, cultural, sporting, environmental, media,
humanitarian and educational or other content of a sponsored
event, activity or organisation and avoid any abuse of its position
that may damage the identity, dignity or reputation of the
sponsored party.
4.2 A sponsored party should never abuse, defame, demean or

impinge the image of trade marks of a sponsor or jeopardise the
goodwill or public appreciation earned by these.
4.3 A sponsored party must do whatever they can to protect the

sponsor's rights, goodwill and image and must not damage this.
252
4.4 Advertising on the pitch by an organisation other than the

event sponsor is only permitted if the event sponsor is in full
agreement and has provided written consent.
Article 5 - The Sponsorship audience
The audience should be clearly informed of the existence of the

sponsorship with respect to a particular event, activity,
programme or person and the sponsor's own message should not
deliberately offend the audience's religious, political or social
convictions or professional ethics.
This does not restrict a sponsor from supporting avant-garde or

potentially controversial artistic or cultural activities, nor is a
sponsor required to censor a sponsored party's message.
Article 6 - Children and Young People
Sponsorship which is addressed to or likely to be influential on

children and young people should avoid taking advantage of their
natural credulity and lack of experience or of harming children and
young people mentally, morally or physically or of straining their
sense of loyalty toward parents or guardians.
Article 7 - Artistic and historical objects
7.1 Sponsorship may never be used in a manner that may

endanger artistic or historic objects.
7.2 Sponsorship aiming to protect, restore or maintain cultural,

artistic or historical properties or their diffusion should respect the
interest of the public.
Article 8 - Sponsorship and the environment
8.1 Sponsors and sponsored parties should consider the potential

environmental impact of sponsorship in planning, organising and
carrying out sponsorship activities.
8.2 Any sponsorship message fully or partially based on a positive

or reduced negative environmental impact should be substantiated
in terms of actual benefits to be obtained.
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Article 9 - Ethics
9.1 Organisations, bodies, facility owners and promoters and other

rights holders are ethically bound to be transparent in all their
dealings with sponsors. If there is no mention of multiple sponsors
in an agreed contract, organisations, bodies, promoters and other
right holders are prohibited from dealing with any other potential
sponsor for the same rights.
9.2 Sponsors should be included in and kept informed of all the

decision making processes of the sponsored party(ies) in respect
of the sponsored activity as stipulated in the contract and as this
relates directly to the success of the sponsorship.
9.3 Sponsors subscribing to this Code have the right to protect the
image of their products or services and brands involved in a
sponsorship. A sponsored party is ethically bound to respect this
right and should fully adhere to a sponsor's wishes regarding the
use of products or services, brands, logos, theme pieces and
related material and should fully adhere to a sponsor's wishes
regarding the use of products or services, brands, logos, theme
pieces and related material consistent with the terms contained in
item 1.4 of these rules and provisions.
9.4 Broadcast rights owners should, where possible, offer the

event sponsor first right of refusal of the broadcast rights.
9.5 A product or logo that is not directly associated with the

sponsor of the event, activity, team, individual or organisation
may not be visibly used or displayed during the event.
9.6 Sponsorship agents and consultants are obligated to full

disclosure to their client and should be transparent in their
dealings. They should not work on behalf of clients (sponsors) that
may be competing in the same industry sector. The contractual
relationship should be based on a sole mandate.
Unethical behaviour such as double dealings and unscrupulously

high commission is unacceptable in terms of this Code, as such
practices are detrimental to the sponsorable events and activities.
Article 10 - Honesty
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10.1 All parties to a sponsorship should be honest and

transparent in all their dealing with other sponsorship parties in
accordance with accepted business practices.
10.2 Sponsorships should not be framed in a way that may abuse

the trust of consumers or exploit an audience's lack of experience,
knowledge or credulity.
Article 11 - Unacceptable sponsorship practices
11.1 Ambush marketing:
The following ambush strategies are unacceptable and strictly

prohibited under the terms of this Code and shall be subject to the
provisions of Clause 5 of this Code:
11.1.1 Media Strategies
No organisation, other than an official sponsor, may directly or by

implication create an impression that its communications relate to
a specific event or create an impression that they are an official
sponsor of such an event.
11.1.2 Usage of athletes/sportspersons/performers/artistes:
No organisation, except the sponsor with contractual rights to do

so, may use endorsements of athletes, sportspersons, performers
or artistes in its advertising to create the perception in consumers'
minds that its company is connected with the event sponsorship.
Athletes, performers or artistes with individual sponsorship

contracts may not, without specific permission from the primary
event sponsor, promote their individual sponsor's logo in any way
while associated to the primary event sponsor and subject to the
obligations of the primary sponsor's contract as part of the team.
Sponsors with rights to associate with a team (team sponsors) do

not have the right to associate themselves with an individual
member of that team, unless this is specifically provided for in the
agreement between the team, the individual and the sponsor. The
onus is on the sponsor to ensure that their rights are protected
under the sponsorship contract thereby preventing competing
brands or products from legally associating themselves with the
event.
255
11.1.3 Supporting sports federations and bodies:
No organisation supporting national federations and sporting

bodies and promoting its products with logos and names of such
federations or sporting bodies may create the impression of being
associated with events in which such federations or sporting
bodies are participating, unless it has a contractual right to do so.
11.1.4 Sales promotions before and during an event:
No organisation, other than an official sponsor with contractual

rights to do so, may launch event-related sales promotions to give
the impression of sponsoring such an event. Only an official
sponsor may use statements relating to being an official sponsor
on its packaging or other promotions.
11.1.5 Corporate hospitality
At major events no organisation, other than those with contractual

rights to do so, may offer meeting points for press conferences
and VIP's or invite top athletes, performers or artistes for clients
and the press, creating the impression that it is sponsoring an
event with which it is not legally connected.
11.1.6 Sponsors ambushing sponsors
Where there is more than one official sponsor of an event, there

may be specific agreements between sponsors and organisers on
the promotional access granted to sponsors under a sponsorship
contract. Here one sponsor may not ambush another sponsor by
using any aspect of any event not specified in the contract to
promote its name.
11.1.7 Event "Airspace":
Airspace should be respected and use must not conflict in any way
with the sponsorship.
The event sponsor's rights should be respected by companies

and/or brands not associated with the event as far as utilising
airspace above the event as a platform for communicating
messages to an audience watching the event.
The sponsor should also ensure that the airspace is protected as a

condition of the sponsorship of the contracty.
256
Article 12 - Rights under the South African Constitution
12.1 All rights afforded to individuals and juristic persons under

the Constitution of South Africa are to be observed and adhered to
in all sponsorship contracts and practices and among all parties to
a sponsorship.
11. Adjudication
Should the parties prefer the ASA and/or the Committees to rule
on a matter covered under Clause 9, the ASA and/or the
Committees will adjudicate provided that:
11.1 both parties agree in writing that the matter be considered

by the ASA and/or the Committees;
11.2 both parties agree in writing to abide by the ruling made by

the ASA and/or the Committees.
12. Appeal Mechanism
12.1 Any party who feels aggrieved by a ruling of the Sponsorship

Dispute Resolution Committee may appeal against such a ruling to
the Appeal Committee.
12.2 The ASA Directorate together with the Chairman and two
Appeal Committee members will however retain the discretion to
reject an appeal if, after due consideration of all circumstances
and factors, it is found by unanimous decision that the appeal is
either:
i. a frivolous appeal in the event of a clear and direct

contravention of the Code;
ii. a malicious or wilful appeal.
12.3 Pending adjudication of the appeal, the decision of the

Sponsorship Dispute Resolution Committee must be adhered to.
12.4 The decision made by the Sponsorship Dispute Resolution

Committee is appealable only within the boundaries and scope of
the complaint and corresponding ruling. A call for further
information by the Committee or a commission to do research,
constitutes an interim ruling and is not appealable as a return day
257
(the next sitting of the Committee) provides opportunity for the

final hearing decision.
13. Procedural Guide
These procedures are designed to assist any person wishing to

complain about a breach of the Sponsorship Code. Adherence to
these procedures will ensure effective and timeous resolution of
complaints. The procedures are designed to grant all concerned a
fair and equal opportunity to be heard without fear of bias. '
It should however, be noted that the ASA is not a court of law,

and these procedures, which serve as a guide, are not wholly
inflexible. Should circumstances arise where good and valid
reasons justify a departure from usual procedure, these will be
taken into account, but always at the discretion of the ASA and/or
the Committees.
Lodging a formal complaint
13.1 The formal complaint
All formal complaint should meet the following criteria:
13.1.1 The complaint should be in writing.
13.1.2 The grounds on which the complaint is based must be

clearly stated.
13.1.3 In the case of advertising, the relevant advertising should

be attached, or the time, date and nature (TV, radio, outdoor or
cinema) should be specified.
13.1.4 Preferably, the address, contact name and number of the

offending party should be included.
13.1.5 The details of the complainant should be clear. The

anonymity of complainants will be maintained at the discretion of
the ASA and/or the Committees, if specifically requested
13.1.6 If possible, and if known, the relevant clauses of the

Code .should be cited. Should the complainant not be able to do
so, the ASA and/or the Committees will consider the complaint in
terms of the clauses it regards as relevant and deal with the
complaint as if it was lodged in terms of those clauses.
258
13.2 Documentation and Representation
13.2.1 All documentation submitted must conform to the

following specifications:
•Relevant to the complaint considered
•Only essential background information
•Clear and concise
•Systematic approach
•As factual as possible
13.2.2 Representation, personal or otherwise should be brief and

to the point:
•It is not necessary to reiterate issues already covered in

correspondence or documentation previously submitted as the
Committee members will be au fait therewith.
•Representation serves the purpose of summarising. Clarifying or

adding new information only and should be limited to such
purpose.
•Presentations will normally be limited to 10 (ten) minutes per

party. Should additional time be required a written request must
be submitted to the ASA Directorate within a reasonable period
prior to the hearing.
13.3 The Directorate
13.3.1 The ASA Directorate shall have the primary responsibility

of applying the Code.
13.3.2 The ASA Directorate shall give attention to possible

breaches of the Code, brought to its attention by a formal
complaint or in any other way acceptable to the ASA Directorate,
by investigating and ruling on the matter or referring it to the
Sponsorship Dispute Resolution Committee for a ruling.
13.3.3 Any party who feels aggrieved by the ruling of the ASA
Directorate may request that the matter be referred to the
Sponsorship Dispute Resolution Committee.
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13.3.4 Once a ruling has been given by the ASA Directorate or by

the Sponsorship Dispute Resolution Committee, it shall be the
responsibility of the ASA Directorate to ensure that the ruling is
adhered to and carried into effect.
13.3.5 Frivolous or invalid complaints will not be considered.
13.3.6 If the complaint appears, prima facie, founded, it is sent to

the respondent for written comment. The respondent will usually
be allowed 5 working days to respond to a complaint or enquiry.
Circumstances may however warrant an immediate or longer

period of response, as determined by the ASA Directorate.
13.3.7 Should the respondent ignore a reasonable request for co-

operation, the ASA will issue and AD ALERT to its media members
(including newspapers, magazines, radio, television and Printing
Industries Federation).
13.4 Sponsorship Dispute Resolution Committee
13.4.1 The Sponsorship Dispute Resolution Committee will

consider all complaints either through referral to it or through a
request by any party who feels aggrieved by a ruling made.
13.4.2 The relevant information and documentation as submitted

by the respective parties will be remitted to the Committee
members and it is therefore vital that such information and
documentation is clear, comprehensive and concise. It is not
necessary to state the full text of the clauses applicable -
reference to the number and section will suffice.
13.4.3 Personal representation is permitted at the hearing.
13.4.4 A maximum of three persons per side is normally

permitted and the names and designations of such persons should
be submitted to the ASA within a reasonable period as determined
by the ASA.
13.4.5 A short time for questions and any further clarification

required by the Committee is provided for.
13.4.6 Written submissions should reach the ASA 7 days prior to

the hearing.
260
13.4.7 Rulings of the Sponsorship Dispute Resolution Committee

shall be conveyed to the parties concerned as soon as possible
after the meeting. This is usually done in writing on the day
following the hearing.
13.4.8 Any party who feels aggrieved by the ruling of the

Sponsorship Dispute Resolution Committee shall have the right to
appeal to the Sponsorship Appeal Committee against such ruling,
in accordance with the appeal procedure.
13.4.9 Should an appeal be lodged, the decision must be adhered

to until reversed by the Sponsorship Appeal Committee.
13.4.10 The Chairperson of the Sponsorship Dispute Resolution

Committee may co-opt any person or persons to serve on the
Committee to assist in determining any specific complaint.
13.5 Appeal Committee
13.5.1 Any party who feels aggrieved by a ruling of the

Sponsorship Dispute Resolution Committee may appeal against
such ruling to the Appeal Committee.
13.5.2 The Directorate, the Chairperson and two Sponsorship

Appeal Committee members will however retain the discretion to
reject an appeal if, after due consideration of all circumstances
and factors, it is found by unanimous decision that the appeal is
either:
•An unfounded appeal in the event of a clear and direct

contravention of the Code.
•A malicious or wilful appeal.
13.5.3 Any request for an accelerated appeal will be at the sole

discretion of the Chairperson of the Sponsorship Appeal
Committee, who will, if granted, determine the procedure.
13.5.4 Pending adjudication of the appeal, the decision of the

Sponsorship Dispute Resolution Committee must be adhered to.
13.5.5 The decision made by the Sponsorship Dispute Resolution

Committee is appeal able only within the boundaries and scope of
the complaint and corresponding ruling. A call for further
information by the Committee or a commission to do research,
261
constitutes an interim ruling and is not appeal able as a return

date (the next sitting of the Committee) provides opportunity for
the final hearing and decision.
13.5.6 Notice of appeal must be given in writing and lodged at

the offices of the ASA by close of business within 4 weeks of the
date of notification of the decision appealed against.
13.5.7 The notice of the appeal should be supported by full

documentation on the matters forming the subject thereof and as
many copies as may be required by the Executive Director
(usually 12) must be submitted to the ASA. The documentation
must be clearly paginated.
13.5.8 To cover the cost of the appeal, both the complainant and
the respondent will be required to lodge a sum of money, the
amount to be advised by the ASA., lodged with the Directorate to
serve as an guarantee. The Chairperson of the Appeal Committee
may either at the conclusion of the appeal hearing or within a
reasonable period thereafter, award the cost of the appeal against
any on or other of the parties, normally the loser, or in such
proportion as the Committee may determine.
13.5.9 A copy of the appeal documents will be submitted to the

respondent within 3 working days of receipt by the ASA.
13.5.10 The respondent will be entitled to reply thereto within 7

working days of the date on which it was submitted.
13.5.11 A copy of a document which may be submitted by the

respondent in reply to the appeal will be submitted to the
appellant within 3 working days from the date of receipt by the
ASA before the appeal is considered.
13.5.12 The parties and/or their representatives will be entitled to

appear before the Sponsorship Appeal Committee.
13.5.13 The Sponsorship Appeal Committee will consider an

appeal within 4 weeks of the date on which the appeal was
lodged, subject to the availability of the Chairperson.
13.5.14 The Sponsorship Appeal Committee may refer any matter

back to the Sponsorship Dispute Resolution Committee for
reconsideration or for such action as the Appeal Committee may
determine.
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13.5.15 The Sponsorship Appeal Committee may co-opt any

person or persons to serve on the Committee.
13.5.16 Expert evidence and research may be considered and

solicited by the Appeal Committee, the costs of which are to be
allocated at the discretion of the Appeal Committee.
13.6 Enforcement of Rulings
Where a ruling made by the ASA and/or the Committee pertaining

to advertising, the advertising should be withdrawn as soon as
possible but within the following deadlines:
•Newspapers: Immediately as deadlines permit
•Radio: Immediately as deadlines permit
•Television: Immediately as deadlines permit
•Magazine: Immediately as deadlines permit
•Outdoor:3 months or as determined otherwise by the ASA and/or

the Committees
•Pamphlets & Leaflets: As determined by the ASA and/or the

Committee
•Packaging :3 months or as determined by the ASA and/or the

Committees
The ASA and/or the Committees may reserve the right to impose
any other form of sanction warranted by particular circumstances
such as:
13.6.1 Withholding of advertising space;
13.6.2 Pre-clearance requirement;
13.6.3 Adverse publicity; and
13.6.4 Referral to a disciplinary hearing
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GROUP-8B
TeleTouch Limited
HR Department
Submitted by Sweta Adhana

Sonam Dawar
Sumant K. Singh
Sushant Ambuj
Swati Goel

HUMAN RESOURCE DEP[ARTMENT
264
HR has to create proactive business information otherwise there

wont be a shift from operational to strategic business partnership.
Number of employees working in different departments for

the 5.5% market share.
SALES DEPARTMENT
1 General Manager = 20000 rand
4 Regional Managers = 17000*4 = 68000 rand
9 Assistant Managers = 13000*9 = 117000 rand
108 Employees = 7000*108 = 756000 rand
IN-HOUSE MARKETING
1 Chief Executive = 25000 rand
4 Executive = 14000*4 = 56000 rand
36 Assistant Executives = 11000*36 = 396000 rand
FINANCE
1 Vice President = 25000 rand
1 Personal Assistant = 5000 rand
9 finance Executive = 10000*9 = 90000 rand
9 Head clerk = 4500*9 = 40500 rand
27 Clerks = 3500*27 = 94500 rand
18 Peons = 1500*18 = 27000 rand
STRATEGIC DEPARTMENT
265
4 Executives = 10000*4 = 40000 rand
9 Provincial Incharges = 8500*9 = 76500 rand
12 Area Mangers =8000*12 = 96000 rand
IT DEPARTMENT
5 Senior Managers = 20000*5 = 100000 rand
5 Team managers = 16000*5 = 80000 rand
10 Supervisors = 14000*10 = 140000

rand
15 Help Desk Team Leaders = 11000*15 = 165000 rand
25 Service Help Desk Executives = 9000*25 = 225000 rand
Outsourcing of 185 Employees = 4000*185 = 740000 rand
OPERATION DEPARTMENT
4 Executives = 10000*4 = 40000 rand
9 Regional Managers = 17000*9 = 153000 rand
20 Territory Managers = 14000*20 = 280000 rand
52 Working Staff = 6000*52 = 312000 rand
HUMAN RESOURCE DEPARTMENT
266
25 Managers = 14000*25= 350000 rand
5 BOARDS OF DIRECTORS = 30000*5 = 150000 rand
1 CHAIRMAN = 35000 rand
But in order to increase the market share from 5.5% to 11% some
additional number of employees will be required.
Presently we are working in 4 provinces and within 2 years we are

planning to expand our business
Sales Department 82 employees are more required.
6000*82 = 492000 rand
In In-House Department
36 Assistant Executives = 10000*36 = 360000 rand
9 Additional Assistant Executives = 10000*9 = 90000 rand
In IT Department
15 Senior Managers = 18000*15 = 270000 rand
10 Team Managers = 14000*10 = 140000 rand
10 Supervisors = 13000*10 = 130000 rand
10 Help Desk Team Leader = 10000*10 = 100000 rand
20 Service Help Desk Executives = 8000*20 = 160000 rand
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In Operation Department
24 Territory Manager =13000*24 = 31200 rand
66 Working Staff = 5000*66 = 330000 rand
In between some employees will leave the organization and some

move to the higher posts while some will get transferred. So a
proper check should be done to ensure that the demand and
supply of employees is similar.
Once the job requirements and selection criteria for the position
have been determined, employers are immediately faced with a
decision— how to generate the applications needed to fill its labor
needs. Whether or not a particular vacancy should be filled
internally or externally typically depends on the nature of the job,
availability of qualified candidates, company policies, and
recruiting costs.
Although similar in many respects, internal and external recruiting

sources differ in terms of planning, effort and time required to
implement, and cost. Therefore, every employer should weigh the
pros and cons of recruiting employees through each source based
on company’s own needs. Irrespective of the source(s) selected,
employers must use fair and consistent practices that comply with
applicable regulatory requirements.
While many companies find this option to be a valuable resource,

it assumes the availability of qualified internal candidates.
However, specialized skills or experience may not always be
readily available within the company. This is particularly common
in smaller companies. Applicants hired from outside of the
company may also be a source of new ideas and knowledge, which
could help to expand the company’s internal capabilities and
prevent the inbreeding of ideas and attitudes.
268
So we have to decide to use the recruiting method which needs to

develop a system for locating and enabling qualified job
candidates to apply for the position. This involves establishing
formal procedures for using and communicating system
requirements. Posting internal jobs is effective only when done
before external job postings are made available. Employees
should be made aware of vacancies by placing notices in areas
where employees regularly frequent such as lounges, elevators,
and near time clocks.
Recruitment can be done externally also through newspaper and

trade publication advertisements, educational institutions, labor
and community organizations, job fairs, employee referral
programs, state agencies, professional search firms, on-line
recruiting sites, employee leasing, temporary agencies, billboards,
and past employees. The amount of time, effort, and cost involved
varies by source. The first five sources stated require the company
to take a more active role in the process, while the remaining
sources inherently limit the company’s role.
The recruitment of employees will be done both from India and

from South Africa. The top level employees and bottom level
employees will be recruited from South Africa only as it will be
easy for them to run the organization because they are much
aware about their culture than that from the ones recruited from
outside. But the managers can be recruited both India as well as
South Africa. Training should be provided to the Indians about the
culture of South Africa so that it will be easy for them for going
and working out there.
After deciding the recruiting process, and when new employees

join the organization it is very important to keep good
communication with the employees, technology can assist but can
never replace the impact of face to face communication.
269
Other key focus areas include Talent Management and

Performance Management which highlights the need for the
attraction and retention of skills. Also, we will interact with
employees through South African Human Resource Internet
Platform. Through this workplace related information, policies and
procedures, employment equity, training and development plans
should be informed to the employees so that they will feel more
attached to the organization, as they would be get informed that
what new is going on in the organization.
Compensation policies are also such that to attract and retain

more and more employees.
As far as the organization is concerned, employee compensation is

designed to do three things:-
(1) To attract capable employees to the organization,
(2) To motivate them toward superior performance,
(3) To retain their service over an extended period of time.
The intent of this policy is to provide an available, concise source

of information concerning the compensation policies and
procedures.
Employees are appointed to an employee class based upon

established parameters of each employee class. Specifically, all
employees assigned to an employee class have the following in
common: salaried (exempt) or hourly (non-exempt) status;
vacation leave accrual schedule; holiday schedule; benefit
eligibility; and full- or part-time status.
Factors affecting compensation policies are:-
(1) Supply and demand for employee skills,
270
(2) Labor organizations,
(3) The firm’s ability to pay,
(4) Productivity of the firm and the economy,
(5) Cost of living, and
(6) Government
Integrate compensation with the other areas of human resource

management. And Emphasize transparency, monitoring, reporting
and accountability.
The vision for compensation will assist the pubic service in

attracting and retaining key employees of telecommunication
sector.
Training and development of employees is also important because

the technology is advancing day to day and in order to keep the
employees abreast of new technologies it is very much important.
And in telecommunication sector more and more advancement is
done so training of employees is important.
Some of the expenses occurred in teletouch Ltd. are:-
Traveling expenses cost 1000000 rand per annum
Trip expenses cost 250000 rand per annum.
Extra expenses cost 200000 rand per annum.
Recruitment expense cost 800000 rand per annum.
271
PERFORMANCE APPRAISAL PRACTICE
Performance appraisals are essential for the effective management

and evaluation of staff. Appraisals help develop individuals,
improve organizational performance, and feed into business
planning. Formal performance appraisals are generally conducted
annually for all staff in the organization. Each staff member is
appraised by their line manager. Directors are appraised by the
CEO, who is appraised by the chairman or company owners,
depending on the size and structure of the organization.
Annual performance appraisals enable management and

monitoring of standards, agreeing expectations and objectives,
and delegation of responsibilities and tasks. Staff performance
appraisals also establish individual training needs and enable
organizational training needs analysis and planning.
Performance appraisals also typically feed into organizational

annual pay and grading reviews, which commonly also coincide
with the business
planning for the next trading year. It generally reviews each

individual's performance against objectives and standards for the
trading year, agreed at the previous appraisal meeting. It is also
essential for career and succession planning - for individuals,
crucial jobs, and for the organization as a whole.
Performance appraisals are important for staff motivation, attitude

and behavior development, communicating and aligning individual
272
and organizational aims, and fostering positive relationships

between management and staff.
Performance appraisals, a powerful tool, provide documented

feedback on an employee's level of performance. They help
determine continued employment, promotion, transfer, bonuses,
and pay raises, and allow for improved communications between
managers and employees. The actual performance appraisal
documents become part of an employee's permanent record and
can greatly influence lives and careers. It provides a formal,
recorded, regular review of an individual's performance, and a
plan for future development.
Job performance appraisals - in whatever form they take - are

therefore vital for managing the performance of people and
organizations.
While designing the performance appraisal firstly we have to do

the performance planning. Designing the appraisal form as per as
the vision of organization. Than managing the performance of the
employees by observing them, finding solutions to their problems
and providing them the feedback.
Performance of the employees is generally appraised through

ratings, reviews and through documentation. After appraisal the
performance of the employees can be upgraded by providing
employees with adequate coaching and counseling. And the
performance of the employees should be rewarded by giving them
rewards or through appreciating their work performance through
which they got more motivated.
273
Appraisals must not discriminate against anyone on the grounds of

age, gender, sexual orientation, race, religion, disability, etc.
Performance appraisals should be positive experiences. The

appraisals process provides the platform for development and
motivation, so organizations should foster a feeling that
performance appraisals are positive opportunities, in order to get
the best out of the people and the process.
Various forms of performance appraisal are confidential report,

rating scale, 360 degree feedback, checklist method, field review
method and much more.
Q) Laying down standards and procedures for recruitment,

training, development, promotion, transfers, and termination for
all levels of employees, including the board of directors operating
in the joint venture at South Africa. This will form part of the
business plan.
Ans) since it is very much clear that HR department of any

organization is the most important department of that
organization. Because for any department people are the main
resource and so their maintenance is very important. And this
important task is done only through HR department. The goal of
human resource management is to help an organization to meet
strategic goals by attracting, and maintaining employees and also
to manage them effectively
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After our joint venture with CELL C our HR department is

functioning very well. We are facing some difficulty to adapt with
new culture but in few days we will certainly achieve the
maximum output.
Now the standards and procedures for recruitment that we have

adopted are as follows:-
Recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the
organization. Recruitment is the activity that links the employers
and the job seekers.
Recruitment is a continuous process whereby the firm attempts to

develop a pool of qualified applicants for the future human
resources needs even though specific vacancies do not exist.
Now the steps that we are following for recruitment of executive in

Teletouch South Africa are as follows:-
1) We are finding the number of vacancy that are needed in

each of the departments of Teletouch.
2) Then we are preparing job description and people

specification required for the job.
3) Then we are advertising the vacancy through the In-house

advertising department.
4) There after we arranges the GDs interviews by giving the

specifications to our In-house advertisement department.
5) Then we short list the candidates.
6) Thereafter we hold the responsibility of managing the

response.
7) Thereafter interview is conducted after the permission of

chairman and the decision is made for the suitable and
selected candidate.
we put a great amount of emphasis on people relations. While

recruiting people, our emphasis is not just on qualifications, but
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more on the mindset. We prefer people who have functional

experience, and who have worked in various line functions.
For freshers ours is a four-pronged selection process

encompassing a written test, psychometric test, group discussions
and interviews. Freshers are inducted into the company within one
day,
While for senior professionals, interviews and group discussions

are held and candidates are finalized within 2-3 days.
For new employees, our company has a two-month induction

program. Further training imparted to fresh recruits is need based,
and on-the-job training is provided to recruits who are inducted in
specialized areas. Technical and soft skills training are also
imparted from time to time to our employees. The training module
is conducted by Mr. Sumant kumar Singh our HR training head.
And further training details are stated as follows:-
Training and development is most important part of success in any

company and we are working right now with South African
telecom industry we have joint venture with Cell C, South Africa
third largest cellular provider. So we have to gives the appropriate
training to our employees. So I Sumant kumar Singh HR training
head talk with my senior and conduct to each and every
department senior member for the purpose of employees training.
So first I will aware what is training. Training is defined as
“It is a learning process that involves the acquisition of

knowledge, sharpening of skills, concepts, rules, or changing of
attitudes and behaviors to enhance the performance of
employees”
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Training Need arises at three levels
Organizational Level – Training need analysis at organizational

level focuses on strategic planning, business need, and goals. It
starts with the assessment of internal environment of the
organization such as, procedures, structures, policies, strengths,
and weaknesses and external environment such as opportunities
and threats
Individual Level – Training need analysis at individual level

focuses on each and every individual in the organization. At this
level, the organization checks whether an employee is performing
at desired level or the performance is below expectation. If the
difference between the expected performance and actual
performance comes out to be positive, then certainly there is a
need of training.
However, individual competence can also be linked to individual

need. The methods that are used to analyze the individual need
are:
• Appraisal and performance review
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• Peer appraisal
• Competency assessments
• Subordinate appraisal
• Client feedback
• Customer feedback
• Self-assessment or self-appraisal
Operational Level – Training Need analysis at operational level

focuses on the work that is being assigned to the employees. The
job analyst gathers the information on whether the job is clearly
understood by an employee or not. He gathers this information
through technical interview, observation, psychological test;
questionnaires asking the closed ended as well as open ended
questions, etc
There are various methods of training, which can be divided in to

cognitive and behavioral methods
The various methods that come under Cognitive approach are:
 LECTURES
 DEMONSTRATIONS
 DISCUSSIONS
 COMPUTER BASED TRAINING (CBT)
 INTELLEGENT TUTORIAL SYSTEM(ITS)
 PROGRAMMED INSTRUCTION (PI)
 VIRTUAL REALITY
Behavioral methods are more of giving practical training to the

trainees. The various methods under Behavioral approach allow
the trainee to behavior in a real fashion. These methods are best
used for skill development.
The various methods that come under Behavioral approach are:
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 GAMES AND SIMULATIONS
 BEHAVIOR-MODELING
 BUSINESS GAMES
 CASE STUDIES
 EQUIPMENT STIMULATORS
 IN-BASKET TECHNIQUE
 ROLE PLAYS
Both the methods can be used effectively to change attitudes,

but through different means Another Method is MANAGEMENT
DEVELOPMENT
MANAGEMENT DEVELOPMENT
The more future oriented method and more concerned with

education of the employees. To become a better performer by
education implies that management development activities
attempt to instill sound reasoning processes Management
development method is further divided in two parts
ON THE JOB TRAINIG
The development of a manager’s abilities can take place on the

job. The four techniques for on-the job development are:
• COACHING
• MENTORING
• JOB ROTATION
• JOB INSTRUCTION TECHNIQUE (JIT)
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OFF THE JOB TRAINIG
There are many management development techniques that an

employee can take in off the job. The few popular methods are:
 SENSITIVITY TRAINING
 TRANSACTIONAL ANALYSIS
 STRAIGHT LECTURES/ LECTURES
 SIMULATION EXERCISES
 CASE STUDY
These are the basic training process which used by the

companies We have joint venture with Cell C south African
telecommunication since we new in south Africa so we have to
provide many types training and development program to our
employees. There are some major barriers in the transfer of
training when it comes to giving training in other countries
We are providing the following training and development

program to our employees for better performance right now.
We have decided different training for different employees.
If you work in another country so you have to make aware your

employees about the country’s culture, language, and social
structure to those employees who are not aware about the
country’s culture, language, and social structure. And we are
providing following trading
Culture
o Values and Norms
o Attitude
o Age, Gender, and Professional Status
Language
o Spoken
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o Unspoken
Social Structure
o Individual
o Group
o Assumptions
This is the most important for our company because without the
knowledge of the above written company can be face problem.
Rapid technological changes, network security threat, mobile

application development, growing IP deployment in the sector
have brought back the training and development in the priority
catalog.
 Preferred Training methods in telecom sector are
 On-the-job training
 Brainstorming sessions
 Distant learning
 Workshop
 Short-term interactive sessions
 Seminar
 Online e-Learning
 CBT training program
 Computer Lab Work
 Group study
Training Courses and Programs

 Basic Course in Mobile Communication
 Assembling OS, the Mobile Operating System
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 Binary Runtime Environment for Wireless
 Diploma in Mobile Communication
 Diploma in Wireless Technologies
 Foundation Course in Mobile Communication
 Advanced Diploma in Mobile Communication and Software

Technology
 Internet Protocol Multimedia Subsystem ,IMS
 Certificate Course in Mobile Communication
 Voice Over IP
We are going to provide training by the following step
Start with employee orientation
The first days of work are crucial to a new employee’s success.

We’ll want to orient the employee, and teach the company’s goals,
and how they can be a part of achieving them. Involve key
leaders, even the CEO. Review what’s required of them in the job
description.
Go to in-house training
Training is not just for new employees. Continue to upgrade the

skills of current employees, which will help them adjust to changes
in their job requirements. Such training is best offered by a
supervisor. Research shows employees respond better to in-house
trainers because they’re familiar with the person and the
workplace. Periodic in-house training, done in a group setting, can
teach communication, customer service, team building, and
technical and safety skills. Doing this while employees are on the
job reinforces learning, which they can be applied right away to
their work.
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Move into mentoring
A specific kind of in-house training involves mentoring, where a

high-rated employee teaches skills to another employee. Your
mentor should be a keen and successful worker who will pass on
the best skills — not bad attitudes or sloppy work. This one-on-
one arrangement (which research shows as the most effective
form of training) pays dividends for both parties. It enhances trust
with the mentors because you’ve given responsibility to them, and
it improves team building among trainees who work closely with a
mentor. this type of training we provide some of the important
employees or high level employees
Step next to external training
We are also offer out-of-house training, by sending employees to

one-day seminars, college courses or workshops. Though they
seem costly, these training opportunities can see as an employee
perk, something to reward or inspire superb workers.
This kind of training provides new skills, stimulates creative ideas

and instills employee commitment, which is brought back to the
workplace. Our staff members will more likely show initiative, and
be motivated.
Reap your competitive reward
An ongoing training can set our company ahead of the pack.

Employees, particularly in younger generations, are eager to work
for places that offer more than just a pay cheque. They want to
learn new skills.
Investing in people shows your commitment to employees, which

in turn fosters commitment in them? Not training employees
creates the opposite of what you want — indifferent, unmotivated
workers.
Online training
We have online training courses on a wide range of subjects
related to specific aspects of the business or key skill sets. These
include:
• Communicating for impact – business writing, giving

presentations, managing meetings, negotiation skills
• Putting customers first
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• Delivering results – budgets, objectives, project

management
• Making a personal difference – self-development, mentoring
and time management
• Managing a changing environment – decision making and
problem solving
• Performing through our people – delegation, team building,
leadership, facilitation
• IT – how to use specific computer programmers.
We are integrating corporate responsibility into our training

programs and induction courses. Online courses include related
subjects such as anti-corruption and privacy training.
Promoting leadership
We use our Leadership Framework to help us recruit and promote
leaders within the company. We are evaluating our most senior
managers against the framework. Our senior leaders participated
in our workshops on Leading High Performing Teams. These are
designed to build their awareness of leadership style and working
culture. Our development initiatives emphasize the role of local
operating companies in tailoring development support to individual
needs.
For example, TeleTouch Spain "One Way" professional

development program for managers includes training on team
management and engagement, creating a culture of co-operation
and effectively executing strategic goals. In 2007/08, a
performance reporting tool was launched to keep individuals up to
date on their progress. One Way has contributed to improving
employee perceptions of the coaching and feedback they receive
from managers.
Inspire program
Inspire is a global program designed to identify and develop high
potential employees and accelerate their progression into
leadership roles. Participants take part in a three-month
international rotation and receive commercial training and
personalized leadership development through Imperial College,
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XLRI and FMS. They also gain from exposure to and learning from
members of our Executive Committee.
The program promotes cross-cultural understanding within

TeleTouch and encourages employees to take advantage of the
breadth of experience across the Group.
Provided five days training per employee
Organization In five days training we are given behavioral,

attitude, organizational cultural etc basic training that’s must have
to know employee for point of view
Technical Training Courses and Programs
1> Basic Course in Mobile Communication
2> Assembling OS, the Mobile Operating System
3> Binary Runtime Environment for Wireless
4> make expert in Mobile Communication
5> Diploma in Wireless Technologies
6> Foundation Course in Mobile Communication
7> Advanced Diploma in Mobile Communication and Software

Technology
8> Internet Protocol Multimedia Subsystem, IMS
9>Certificate Course in Mobile Communication
10> Voice Over IP
Provide all types of coerces and trained people in that area.
Mainly employee we are divide in two group first soft skill

employee and hard skill employee
We are provide both type of training hard training and soft

training hard training mainly for technical person and soft training
provided for soft skill person
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Ex=hard skill is required for engineer , computer professional,

guard etc
Soft skill training for customer care, sales person etc
But some times employees require both type of training. So we ha

have provide training on the basis of requirement but orientation
program we are must provided to employee for understand the
organization culture
In fact, trained employees need less supervision. That frees you

up to focus on building your business, growing your customer
base and improving your sales. All of which boosts your
competitive edge. Not a bad deal.
Work Shop
And we are providing work shop for top management label

employee and director about the cultural, norms and values Of
the South Africa for the better performance of the company. That
training for two days training of board of director and top
management they are join work shop and take benefit to that
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Some date wise training witch we give to our employees:
04-03-2010 Work shop for board of 2 Days

director
07-05-2010 employee orientation 2 Days
09-05-2010 Provided five days 5 Days

training per employee
18-05-2010 Inspire program 2 Days
21-05-2010 Promoting leadership 1 Day
23-05-2010 Intermediate Excel 2 Days

26-05-2010 Advanced Microsoft Excel 2 Days
01-06-2010 Technical Report Writing 1 Day
03-06-2010 Team Working: Belbin 2 Days
Team Role Accreditation
06-06-2010 Basic Presentation Skills 1 Day
08-06-2010 People Management 5 Days
Training Program
15-06-2010 Negotiations Skills 1 Day
TRAINING REQUIRED IN DIFFERENT DEPARTMRNT WISE

EMPLOYEES
After consulting each and every department head I Sumant Kumar

Singh decided deferent types of training required in different
department. The following departments are required trainings:-
OPERATION DEPARTMENT
Operation department will be recruited 90 employees so out of 90

employees 66 employees required technical training and 24
employees who are recruited on the post of territory manager who
are already experienced employees recruitment department give
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me report of those employees they have 2 years experience so

those employees will have to only orientation program and 5 days
training will be provided to each and every employees because
changes happen regularly in the market so that training beneficial
for new as well as working employees for updating them. I also
mention on the above.
SALES DEPARTMENT:
Recruitment department have given me data of sales department:
New recruitment=82 sales executives
Number of working employees=108
So we have to given the Negotiations Skills, People Management

Training Program, employee orientation, Inspire program, external
training, soft skill training is most important for the sales
executive, Advanced Microsoft Excel these training will provide to
new employees And for our working employees we also provide
inspire program. We have to given the training of 3G technology
for 190 sales executive. We provide them the technical training as
well as coaching training.
IN HOUSE ADVERTISEMENT:
Recruitment department have given me data of in house

advertisement department:
New recruitment=36
Number of working employees=36
The total new Recruitment 36 and those divided in four post 9

employees required for each post. These four are following
1) Assistant executive audio video.

2) Assistant executive print.
3) Assistant executive sponsorship.
4) Assistant executive outdoor event
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They require orientation program and they have to know about

the organization culture norms and value. We will also provide,
Advanced Microsoft Excel, Technical Report Writing etc.
MARKETING DEPARTMENT
Recruitment department have given me data of marketing

department:
Managers=9
Sales executive=190
V.P=2
Director=1
We will provide different types of training for different level

employees. We provide Promoting leadership, Inspire program,
Team Working training, work shop, and sales executive training I
written on the above sales executives are sales department
employees and for the V.P and director we provide special work
shop.
IT DEPARTMENT
We are providing special training to the employee of IT

department. This includes our Enterprise Resource Planning
training. We are also providing technical training as mentioned
above. We will provide online training to them. We will also
organize workshop for them. And the new recruitment done by the
recruitment head Mr Sushant Ambuj as mentioned in the report
we will organize new orientation program for those new
employees.
And for the prevailing employees we will conduct Refresher

training and in addition we will also provide MDPs. In these
programs we will give emphasis on the 3G spectrum technology
training.
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FINANCE DEPARTMENT
Since no new employee is needed in this department. So we will

give only Refresher training, MDPs and inspirational programme.
We will also give them training on report writing to improve their
report writing skill.
BOARD OF DIRECTORS
We have also requested the board of directors for the orientation

program for the awareness about the cultural norms and values
prevalent over there. And they have accepted our request. We will
organize two days orientation program in which we will call
cultural expert from South Africa who will make aware us about
the culture prevalent in South Africa.
STRATEGIC DEPARTMENT
There is also no need for employees in strategic department. So

we will provide workshop for vice president of strategic
department as we are providing to board of directors. And for
other employees of that particular department we will provide
inspirational and leadership program.
HR APPRAISAL
Our organization has a quarterly HR appraisal, which includes a

360 degrees evaluation for senior management. Besides, there are
regular appraisals for all employees, including executives and
those on the shop-floor.
We have a generous incentive program, which has helped us

increase our productivity as we have a plan to increase our market
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share from 5.5% to 11% by 2011. And we are also giving

emphasis on reducing wastage as this will ultimately increase the
profit of our company.
Incentives are offered to all genres of employees, and we have

seen that they have greatly helped in raising morale as well as
performance. We are giving a great concern on paying of
incentives and bonuses to the employee who are working well and
we also give warning to the underperformers. Because we follow
the policy that if our employees will be happy then their level of
production will be higher and this will ultimately be fruitful for our
organization.
Professionalism in our work environment and direct involvement of

management in ensuring employee welfare, are among the key
aspects that make us different from our competitors. Besides, the
investments that our organization has made for the future as well
as the technology that our employees work with make our
organization distinct from others.
Our objective is to help maintain our organization as a quality

organization, which not only recognizes and nurtures talent, but
also helps retain it. We also aim to endeavor to follow world class
HR practices, for our organization.
We are following certain methods of recruitment written as
follows:-
1. OUTSOURCING
the outsourcing helps the organization in the initial screening of
the candidates according to the needs of the organization and
creating a suitable pool of talent for the final selection by the
organization. In our Teletouch organization we are adopting this
practice
2. E- Recruitment. Our In-house department wants to adopt this

method as now this type of recruitment process is now very
popular among the telecom companies. E- recruitment is the
use of technology to assist the recruitment process. We
advertise job vacancies through worldwide web. The job
seekers send their applications or curriculum vitae i.e. CV
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through e mail using the Internet. Alternatively job seekers

place their CV’s in worldwide web, which can be drawn by
prospective employees depending upon their requirements.
WE ARE ADOPTING CERTAIN TRENDS TO ATTRACT

CAPABLE APPLICANTS THESE ARE AS FOLLOWS:-
1) Bigger paychecks: we are adopting to offer bigger salaries to

the highest qualified personals who have the capability to raise
the companies profit.
2) Flexible work arrangements are on the rise:- we are giving
breaks and lunch hours on regular interval to the employees so
that to maintain their working efficiency and their interest in
the work.
3) Video & audio Resume:- we have adopted a new way of
submission of resume of the applicants for the selection and
this will be preferred as is a way for job seekers to showcase
their abilities beyond the capabilities of a traditional paper
resume. The video resume allows us to see, hear and get a feel
for how the applicant presents themselves.
4) Recruiting diversity workers:- while recruitment in South
Africa we are giving same concern on bilingual recruitment so
as maintain a harmony in the work culture.
5) Freelance or contract hiring:- we are also adopting contract
hiring for the recruitment of employees in our organization as
for the 4th class work we are adopting this method as well we
are also employing 90 customer care executive for the
operation department by contract hiring.
6) Perks and benefits :- we are giving more attention to remain
competitive in attracting and keeping workers. In light of rising
healthcare costs we have planned to offer more comprehensive
or better health benefits to our employees. we have also
planned to enhance or add perks such as bonuses, discounts,
company cars, stock options, free childcare, educational
reimbursement, transit passes and wellness programs.
7) In addition we have also planned to give more promotions and
career advancement opportunities to our employees so as to
give them a better career and to reduce the chance of poaching
and attrition.
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HR CHALLENGES IN RECRUITMENT
In the last few years, the job market has undergone some
fundamental changes in terms of technologies, sources of
recruitment, competition in the market etc. In an already
saturated job market, where the practices like poaching and
raiding are gaining momentum. As HR professionals we are
constantly facing new challenges in recruitment.
The major challenges faced by us in recruitment are:
1. Adaptability to globalization – we are constantly facing the

changing times, i.e. the changes taking place across the globe.
So we are trying to maintain the timeliness of the process.
2. Process analysis – The immediacy and speed of the
recruitment process are the main concerns for us. The process
should be flexible, adaptive and responsive to the immediate
requirements. The recruitment process should also be cost
effective. So we are doing every thing to make it cost effective
and efficient.
3. Strategic prioritization – The emerging new systems are
both an opportunity as well as a challenge for us. Therefore,
reviewing staffing needs and prioritizing the tasks to meet the
changes in the market has become a challenge for us. And we
are taking major steps to cope with that.
4. Attracting highly talented ones - The number of highly
talented professionals is less. All the big MNC's are trying to
attract these people with high salaries, perks, incentives etc.
There is a tough competition among us and our competitors to
get these candidates on their roles.
These days, it’s not just salaries which will pull the
candidate in but various factors like brand, culture,
location ,job security, reputation of the company etc
play a major role in recruiting a talented professional.
Since our mission is to achieve a massive market share from 5.5%

to 11% in South Africa. So as directed by our chairman the
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different departments working in South Africa demanded list of

employees for recruitment in TeleTouch.
SALES DEPARTMENT
Since we are operating in nine provinces so 82 new sales
executives are wanted in sales department.
Post: - sales executive.
Vacancies: - 82.
Eligibility: - working experience of at least two years in sales
department in telecom industry.
Remuneration: - 6000 rand/month.
Interview date: - 11 April 2010
Interview timing: - 10:00 am to 04:00 pm.
NO TA DA WILL BE PAYED TO THE CANDIDATES.
ALL THE CANDIDATES ARE REQUIRED TO BE PRESENT WITH ALL
THE NECESSARY DOCUMENTS ON TIME.
INHOUSE ADVERTISING
In operation department one chief executive and four executives
are working such as Executive audio video, Executive print,
Executive sponsorship, and Executive outdoor event. And in all the
9 provinces 4 assistant executives of the respective departments
are contributing that is total 36 assistant executives are currently
working. But for increasing the market share they need 36 more
assistant executives that they want to double the strength of
employees.
Posts: - 1) Assistant executive audio video.
2) Assistant executive print.
3) Assistant executive sponsorship.
4) Assistant executive outdoor event.
Vacancies: - 36 (9 for each post).
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Eligibility: - 1) For the post of assistant executive the applying

candidate should have a degree in mass communication as well as
they should have at least two year work experience in audio video
advertisement.
2) For the post of assistant executive print the
applying candidate should have a degree in mass communication
with experience in print media for at least two years.
3) For the post of assistant executive sponsorship the
applying candidate should have a degree from a recognized
university. And also the candidate should have at least two years
work experience in the sponsorship field.
4) For the post of assistant executive outdoor event
the candidate should be graduate in mass communication from a
recognized university with at least two years work experience in
outdoor advertising.

FINANCE
Finance department does not need any more employees for its
operation.
MARKETING
Marketing department does not need any more employees for its
operation.
INFORMATION TECHNOLOGY
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For information technology department there is a heavy demand

for the employees.
1) Post: - Senior Manager.
Vacancies: - 15
Eligibility: - Having degree of M.B.A from recognized university
with one year executive degree from recognized university and
Atleast 10 years of work experience in telecom field.

2) Post: - Team manager.

Vacancies: - 10.
Eligibility: - Having M.B.A degree from recognized university along
with at least work experience for 5 years as a team leader.

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3) Post: - Supervisor.
Vacancies: - 10
Eligibility: - Having M.B.A degree from any recognized university
with B.TECH degree in information technology. The candidate
should have at least 5 year experience in the respective field.

4) Post: - Help desk team leader.

Vacancies: - 10.
Eligibility: - Having M.B.A degree from recognized university. With
at least 5 year work experience in sales field.

5) Post: - Service help desk executive.
Vacancies: - 20
Eligibility: - Having M.B.A degree from any recognized university.
Fresher can apply for this post.
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In addition IT department needs 185 call centers executives.

We will outsource them and they will be provided new orientation
program from training department.
STRATEGIC PLANNING
In strategic planning department there is no demand for new
recruitment.
OPERATION
In operation department following number of employees are
needed.
1) Post: - Territory manager.
Vacancies:-24.
Eligibility: - Having M.B.A degree with at least two year work
experience as territory manager.
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2) Post: - Working staff.

Vacancies: - 66
Eligibility: - Having a technical degree of telecom or having a
degree from polytechnic institute.

For the overall recruitment we have estimated a total budget of
0.4 million rand and we have demanded from the Finance
department about the same.
PROMOTION PROCEDURE
As we are new in South Africa and our mission is to achieve 11%
growth rate in 2011. So we are working hard to achieve that.
Now regarding promotion we adopt following process:-
1) We have the system of regular assessment of the
performance of the employees. That is we have a very
well system of performance appraisal. We generally adopt
360 degree appraisal system. In which the employee is
judged by his peers, his subordinates and his supervisors.
2) This system is very helpful in assessing the performance
of the employees without any biasness. And it also helps
in assessing how much the person is popular in the
organization.
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3) After the assessment we compare it with our standards. If

the employee is working properly and he is coming up to
our expectations then we give him the incentives and
bonuses. And if he is continuously showing improvement
in his work then we use to promote him.
4) We promote the capable employee to higher posts which
ultimately becomes a moral boost for that particular
employee as well as among his peer groups as well as
subordinates. That is work hard and gets promoted.
5) This promotional strategy is very popular in our
organization and it is heavily applauded by our Board of
Directors.
In TeleTouch department we do 360 degree appraisal system in

every six months. And we are also demanding the number of
employees who the respective department thinks that he is
working outstandingly. But till now we have not get any demand
from any of the departments about the promotion of the
employees. And the recent performance appraisal I would like to
say that the employees have not reached to the level that we are
expecting. However we are giving bonuses and incentives to the
employees to encourage the employees to perform better. And our
move is also becoming successful.
TRANSFER PROCEDURE
For the transfer of the employees to different department we have
certain policies as described.
1) We adopt job enlargement and job rotation policies to equip
the employees with different specialization.
2) We do job enlargement by giving them training to more
aspects of work.
3) We do job rotation by giving employees chance to work in
different designation.
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By adopting these method we not only equip the employee with

different specialization but at the same time we also maintain their
interest from their daily work.
And since they are specialized in different work they can be

transferred to different departments wherever there is shortage of
any sort of employees. And by this we can transfer the employees
to any part of the province where our operation is going on. We
also use to transfer those employees who are multiple specialized.
This supports our organization as we usually don’t need to
outsource people for special work. Since we are operating in 9
provinces only so our mode of operation is in these provinces. We
transfer employee according to the needs of different department
in different region.
301
TERMINATION
Termination of employment is the end of an employee's

duration with an employer. Depending on the case, the decision
may be made by the employee, the employer, or mutually agreed
upon by both.
There are following process of termination of the employees:
1 Voluntary termination
2 Involuntary terminations
o Dismissal
o Layoff
3 Termination by mutual agreement
o Changes of conditions
Voluntary termination
Voluntary termination is a decision made by the employee to

leave the job. Such a decision is commonly known as
"resignation", "quitting", "leaving", or "giving notice". Some
common reasons for voluntary termination include:
• Personal dissatisfaction with job, employer, hours, or

working conditions, or in more severe cases, burnout.
• Factors in employee's personal life not related to the job that
makes holding or performing the job impossible or more
difficult. These may include family obligations, education,
health, or moving to a new location.
• Hire at a new job. Reasons for wanting a different job may
be better working conditions, better hours, a shorter
distance to work, better pay, graduation, career progression
or preparation for entry into a new career, or a career
change.
• Feared or anticipated involuntary termination. The employee
may wish to take matters into his/her own hands in order to
leave more honorably. This is also known as mutual consent
in some parts.
• Retirement. This may be as a result of the employee's age
(which may vary, depending on job type and benefits
302
available following retirement) or else an injury, disability, or

other medical condition forcing early retirement.
Depending on the employee's reason, comfort with the employer,

and dedication to the job, voluntary termination may be sudden
and abrupt without warning to the employer, or with a certain
amount of notice given. Generally, employers prefer that a
departing employee provide at least some notice to the employer,
often at least two weeks. Those in compliance with this
requirement are more likely to be rehired by the same employer in
the future, to receive their full benefits from the employer, and to
get a better reference for future employers.
Involuntary termination
Involuntary termination is the employee's departure at the

hands of the employer. There are two basic types of involuntary
termination, known often as being "fired" and "laid off." To be
fired, as opposed to being laid off, is generally thought of to be
the employee's fault, and therefore is considered in most cases to
be dishonorable and a sign of failure. Often, it may hinder the now
job-seeker's chances of finding new employment, particularly if
he/she has been fired from earlier jobs. Job seekers will often not
mention jobs that they were fired from on their resumes;
accordingly, unexplained gaps in employment are often regarded
as a red flag.
Dismissal
Dismissal is the employer's choice to let go of the employee

generally for a reason that is the fault of the employee.
Layoff
A less severe form of involuntary termination is often referred to

as a layoff. A layoff is usually not strictly related to personal
performance but due to economic cycles or the company's need to
restructure itself, or a change in function of the employer. One
type of layoff is the aggressive layoff. Under such a situation the
employee is laid off for a just cause but is never replaced and the
job is eliminated.
However, employment termination can also result from a

probation period, in which the employee and the employer reaches
303
an agreement that he or she is allowed to lay off the employee if

the probation period is not satisfied.
Often, layoffs occur as a result of "downsizing", "reduction in

force", or "redundancy". These are not technically classified as
firings. A laid-off employee's job is terminated and not re-filled,
because the company wishes to reduce its size or operations, or
otherwise lacks the economic stability to retain the position. In
some cases, a laid-off employee may be offered re-hire by his/her
respective company, though by this time, s/he has often found a
new job.
Termination by mutual agreement
Some terminations occur as a result of mutual agreement between

the employer and employee. When this happens, it is sometimes
debatable if the termination was truly mutual. In many of these
cases, it was originally the employer's wish for the employee to
depart, but the employer offered the mutual termination
agreement in order to soften the firing. But there are also times
when a termination date is agreed upon before the employment
starts.
Some types of termination by mutual agreement include:
• The end of an employment contract for a specified period of

time.
• Mandatory retirement. Some occupations, such as
commercial airline pilots, face mandatory retirement at a
certain age.
• Forced resignation
Changes of conditions
Firms that wish for an employee to exit of his or her own accord,
but do not wish to pursue firing or forced resignation, may
degrade the employee's working conditions, hoping that he or she
will leave "voluntarily". The employee may be moved to a different
geographical location, assigned to an undesirable shift, given too
few hours if part time, demoted (or relegated to a menial task), or
assigned to work in uncomfortable conditions. Other forms of
manipulation may be used, such as being unfairly hostile to the
employee, and punishing him or her for things that are
deliberately overlooked with other employees.
304
Often, these tactics are done so that the employer won't have to
fill out termination papers in jurisdictions without at-will
employment. In addition, with a few exceptions, employee's who
voluntarily leave generally cannot collect unemployment.
Such tactics may amount to constructive dismissal, which is illegal

in some jurisdictions
305
GROUP-2B
TeleTouch Limited
Sales Department
Submitted By Bikram Kumar

Chandan Pandey
Deepak Pant
Deepika Singhal
Dheeraj Swami
306
Market share of Tele Touch was 5.5% in South Africa’s telecom

industry. Tele Touch’s chairman and board has decided to take it
to 11% in the next year. In order to do so, sales department has
decided to introduce new sales technique, new telecom plans,
recruit some more sales executive; explore new territory and a
heavy advertisement and promotional practices this year.
Total geographic area is divided into nine provinces,
We have divided total south African territory into nine provinces,

they are
1. Eastern Cape
2. Free State
3. Gauteng
4. KwaZulu-Natal
5. Limpopo
6.Mpumalanga
7.Northern Cape
8.North West
9. Western Cape
307
308
POPULATION ESTIMATES FOR ALL NINE PROVINCES ARE:
6. Eastern Cape - 6.9-million (14.4%)
7. Free State - 2.9-million (6.2%)
8. Gauteng - 9.6-million (20.2%)
9. KwaZulu-Natal - 10-million (20.9%)
10. Limpopo - 5.4-million (11.3%)
11. Mpumalanga - 3.5-million (7.4%)
12. Northern Cape - 1.1-million (2.3%)
13. North West - 3.4-million (7.1%)
14. Western Cape - 4.8-million (10.1%)
309
LAND AREA BY PROVINCE
This is the hierarchy of the sales department; here one general

manager is the hade of the department. There are four regional
manager come under the one general manager. Nine area
managers are working in nine provinces each for one province.
310
311
V I S E P RE S I DE N T
Reg i o n al m an ag er R eg i o n al m an ag er R eg io n al m an ag er Reg i o n al m an ag er
(S O UT H) (W E S T ) (E AS T ) (NO RT H)
Area m an ag er
Area m an ag er Area m an ag er (W E S T E R N Area m an ag er Area m an ag er Area m an ag er Area m an ag er
(E A S T E RN CA P E ) (NO R T HE RN C A P E ) CA P E ) (F RE E S T A T E ) (K W A Z U LA NA T A L) (LI M P O P O ) (G A UT E NG )
25 22
Area m an ag er
A rea m an ag er 29
(NO R T H W E S T )
(M P UM A LA NG A )
08 22 21
18 20 25
We divided nine provinces into four regions:-
312
1. East region.
2. West region.
3. North region.
4. South region.
Each region consists with province; this diversification is held on

the basis of population, area, and market. Eastern Cape is come
under south region. Northern Cape, Western Cape are come under
west region. Free State, KwaZulu-Natal and Mpumalanga are
come under east region. Limpopo, Gauteng and North West are
come under north region. Each region is managed by the one
regional manager, and every province is managed by the one area
manager.
South region: -
(Eastern Cape)
Total population of Eastern Cape is 6.9 million, which is 14.4% of

the total population. That is the big part of the total. And the total
area is 13.9% of the total. That’s why we choose only one area
manager for this region.
West region:-
(Northern Cape)
313
Total population of Northern Cape is 1.1 million, which is 2.3% of

the total population. That is the lowest one in whole province. And
the total area of Northern Cape is 29.7%; this is the biggest part
of whole province because of desert. That’s why we added one
another region.
(Western Cape)
Total population of Western Cape is 4.8 million, which is 10.1% of

the total population. And the total area of Western Cape is 10.6%,
both are the neighbor province that’s why we choose as a region.
In this region we capture the total 5.9 million

populations but if u sees the total area that is 40.3% of the total
area, that is bigger one but due to desert and low population they
make this region.
East region:-
(Free State)
Total population of Free State is 2.9 million, which is 6.2% of the

total population. And the total area of Free State is 10.6%.
(KwaZulu-Natal)
314
Total population of this region is 10 million, which is 20.9% of the

total population. And the total area of this region is 7.6%.
(Mpumalanga)
Total population of this region is 3.4 million, which is 7.4% of the

total population. And the total area of this region is 6.5%.
In this region we capture 16.3 million populations, and

total area captured by this region is 24.7% of the total area. This
region captured approx one fourth of population and approx one
fourth of the area that is the reason behind make this region.
North region:-
(Limpopo)
Total population of Limpopo is 5.4 million, which is 11.3% of the

total population. And the total area of Limpopo is 10.2%.
(Gauteng)
Total population of Gauteng is 9.6 million, which is 20.2% of the

total population. And the total area of Gauteng is 1.4%.
315
(North west)
Total population of North West is 3.4 million, which is 7.1% of the

total population. And the total area of North West is 1.4%.
In this region we capture 18.4 million populations, and total area

captured by this region is 21.1% of the total area.
Our employees are:-
Provinces employees 09-10 employees

10-11
Eastern Cape 15
25
Free State 12
18
Gauteng 12 29
KwaZulu-Natal 11 21
Limpopo 12 25
Mpumalanga 13
22
Northern Cape 08
08
316
North West 13
20
Western Cape 12
22
Here this chart shows in 09-10 employees on the basis of

province, when our target was 5.5% and in year 10-11
when our target is 11%.
Tele touch world
Tele touch world is our company’s service centre and retail store.
We have open 40 outlets all over South Africa, in order to make
317
our services available to end customer, on the basis of population

of the regions.
DIVISION OF 40 OUTLETS OF TELE TOUCH IN THEIR

PROVINCES:-
Eastern Cape – 6 outlets
Free State – 2 outlets
Gauteng -8 outlets
KwaZulu-Natal - 8 outlets
Limpopo – 5 outlets
Mpumalanga – 3 outlets
Northern Cape – 1 outlets
North West – 3 outlets
Western Cape – 4 outlets
318
With conjunction marketing department, we have decided

to launch these offers and sim’s plans
Tele Touch’s sim plan
SIM VALIDITY AIRTIME AIR TIME OFF ON

RATE(R) SPREAD (PER ANY CELL
(R ) MONTH) PHONE
300 6MONTH 390 65 -----
900 12 MONTH 1200 100 300
1350 18MONTH 1800 100 400
1750 24 MONTH 2400 100 600
Total sales from sim plan = 665689655.07 R
SIM RATE ® SALES IN % SALES IN (R)
300 32 213020689.6
900 28 186393103.4
1350 25 166422413.75
1750 15 99853448.25
Tele Touch recharge coupons
319
Control Contract Connectio Monthly fee Included

chat
Casual length
Contract n fee
Connection (R)
Monthly monthly
Included Included
(months) fee
length fee airtime
monthly SMS per
(R)
(months) minutes
(R ) month
50 12 OR 24 114 50 50
75 12 OR 24 114 75 85
SMS
100 112
, 12OR
OR24114114 115
100 --------
115 200 ANY
24 --- TIME
125 12 OR 24 114 125 145
100 1 , 12 OR 114 115 100 OFF -------------
150 12 OR 24 114 150 175
24 - PEAK
175 12 OR 24 114 175 205
ANY 1 , 12 OR 114 130 50 ANY -------------
TIME
200 24
12 OR 24 114 200 TIME235
225 12 OR 24 114 225 265
250 12 OR 24 114 250 295
300 12 OR 24 114 300 350
350 12 OR 24 114 350 410
400 12 OR 24 114 400 470
450 12 OR 24 114 450 530
500 12 OR 24 114 500 600
600 12 OR 24 114 600 725
700 12 OR 24 114 700 850
320
Active Contract Connection Monthly Included Included

chat length fee fee monthly SMS per
(months) minutes month
100 1 , 12 OR 114 250 100 ANY ----------

24 TIME -
220 1 , 12 OR 114 399 220 ANY

24 TIME
Contract Connection Included Included

length fee monthly SMS per
Business Monthly
(months) minutes month
chat fee
STANDARD 1 , 12 114 185 NONE -

OR 24
400 1 , 12 114 650 400 ANY -

OR 24 TIME
700 1 , 12 114 1100 700 ANY -

OR 24 TIME
1000 1 , 12 114 1500 1000 -

OR 24 ANY
TIME
321
REACHARGE COUPONS
TELE TOUCH ATM STANDARD

COST ( R ) RECHARGE BANK, AUTO
CARD BANK
5 YES YES YES
25 YES YES YES
35 YES YES YES
39 YES YES YES
50 YES YES YES
70 YES YES YES
150 YES YES YES
300 YES YES YES
500 YES YES YES
SALES OF TELE TOUCH ACCORDING TO THEIR PROVINCES:-
Provinces SALES IN ( R ) %SALES IN

PROVINCES
Eastern Cape 798827586.08 16.2
Free State 384620689.6 7.8
Gauteng 936896551.58 19
KwaZulu-Natal 971413792.95 19.7
Limpopo 463517241.31 9.4
Mpumalanga 448724137.86 9.1
Northern Cape 138068965.5 2.8
North West 315586206.86 6.4
322
Western Cape 473379310.26 9.6
TOTAL 4931034482 100
SALES OF TELE TOUCH ACCORDING TO THEIR REGIONS
REGION Provinces SALES IN %SALES IN SALES IN %SALE

PROVINCES(R) PROVINCES REGION ( R )
IN
REGION
SOUTH Eastern 798827586.08 16.2 798827586.08 16.2

Cape
WEST Northern 138068965.5 2.8 611448275.76 12.4

Cape
Western 473379310.26 9.6

Cape
EAST Free State 384620689.6 7.8 1804758620.16 36.6
KwaZulu- 971413792.95 19.7

Natal
Mpumalanga 448724137.86 9.1
NORTH Limpopo 463517241.31 9.4 1716000000 34.8
Gauteng 936896551.58 19
North West 315586206.86 6.4
TOTAL 4931034482 100 4931034482 100
323
TOTAL SALES DIVISION OF TELETOUCH :-
Total sales value % of sales
Talk time 1109482758.45 22.72%

Value added 443793103.38 9.10%
services
Scheme of plan of 665689655.07 13.37%
sim
Hard ware sets 665689600.09 13.35%
SERVICES(Voice 493103503.11 9.66%

mail2 SMS, Tele
touch
Live!,3.75G,4G)
TOTAL 4931034482 100%

spreadsheet so that the bottom-right cell shows the total sales or
gross margin, or profit, whatever you need to measure Left cell
shows the item and from which item we have got how much sales.
MONTHLY SALES OF TELE TOUCH
MONTHS TOTAL SALES SALES IN %
APRIL 310655172.366 6.30%
324
MAY 343693103.395 6.97%
JUNE 366375862.012 7.43%
JULY 380182758.562 7.71%
AUGUST 309668965.469 6.28%
SEPTEMBER 340241379.258 6.90%
OCTOBER 282548275.818 5.73%
NOVEMBER 297341379.264 6.03%
DECEMBER 616379310.25 12.50%
JANUARY 592710344.736 12.02%
FEBURARY 553755172.328 11.23%
MARCH 537482758.59 10.90%

TOTAL 4931034482 100%S

spreadsheet so that the bottom-right cell shows the total sales,
whatever you need to measure Left cell shows the month and
from which month we have got how much sales
As our financial year starts from 1 April, sales department have

been trying to achieve companies short term target right from the
initial months itself. Slowly and steadily we have generated
growth in sales with the help of our In house advertisement
department. In the festive month of December, where X-MAS and
NEW YEAR is at the corner we have achieved a sale of
R616379310.25. And in the last quarter near about 35% of sales
325
Motivational practices
Designatio Sales Target (in Benefits

n rends) (other than
salary)
General R 5,000,000,000 Bentley GT

manager
Regional R 1,417,672,000 BMW

manager Convertable
Area R 657,471,000 Mercedes

manager -Benz
Sales R 35,036,000 Yamaha ZW

executive
Sales budget
Total salaries R 1,74,36,000
Allowances R 8,71,800
Stastionary R 21,000
Discounts R 15,000
Transport Expenses R 6,48,000
TOTAL EXPENSES R 1,89,91,800
326
Products (features, versions and variants)
NOK-616 Sales price:-R1700
Network: CDMA 1x, 800 and 1,900MHz
• Main screen: 65K colors

• Resolution: 128 x 160 pixels
• Mini display: 4,096 colors
• Camera: VGA, 1.0MP, flash, 2.5 or 5x
digital zoom
• MMC card slot, up to 512MB
• SMS, E-mail and MMS functions
• Music player for MP3/ACC
• Bluetooth and infrared port
• Supports WAP 2.0 browser
• Supports Java
• Dimensions: 87.3 x 47.4 x 27mm
• Can refurbish the covers, the main
board is not changed and the same as
the original
• One year quality warranty
Accessories: battery, charger, manual

and color box
327
SAM-6015 Sales Price - R840
DMA/GSM Dual-mode Phone
• Network frequency: CDMA1X 800 and 1,900MHz and GSM

900, 1, 800 and 1,900MHz
• Can shift CDMA and GSM network by a key
• Main screen: 260K TFT colors
• Mini screen: OLED
• Camera: 1.3MP
• Resolution: 1,280 x 960 pixels
• Video resolution: 176 x 144 pixels
• Supports GPRS, Bluetooth and USB functions
• Supports MS office and PDF viewer
• Supports SOS message
• Supports MP3 player, WAP, Java and GPS
• Accessories: battery, charger and box (no manual)
• Dimensions: 52.4 x 99 x 17.6mm
Weight: 90g
328
NOK-2365 CDMA Phone Sales Price -880 R
SHAPE \* MERGEFORMAT
Key Specifications/Special Features:
• Network: CDMA 1x, 800/1900MHz

• Color:
o Main screen: 262K
o Resolution: 128 x 160 pixels
• Black and white: resolution: 96 x 65
pixels
• Memory: 12 MB internal dynamic
memory
• 40 polyphonic MIDI, MP3 and video
ring tones
• Messaging: SMS and MMS
• Supports Java MIDP 2.0
• Integrated FM radio
• Accessories: battery, charger, manual
and box
• Dimensions: 84.8 x 45.5 x 24.5 mm,
86cc
Weight: 110g
329
NOK-2355 CDMA Sales price – 530 R
• Network: CDMA 1X, 800MHz

• Screen: 65k colors
• Messaging: MMS and SMS
• Browser: WAP2.0
• Supports Java MIDP1.0
• Built-in flashlight
Dimensions: 81 x 43 x 22 mm, 74cc
330
NOK-3125 CDMA Phone Sales price -410 R
• With 4,096 colors

• Network: CDMA 2,000 1x, 800MHz
• Video player or messaging function
• MMS with images, audio and text
• Download additional games and personal applications via
over-the-air JavaTM technology
• WAP 2.0 browser for a richer surfing experience
• Preloaded wallpapers and animated screensavers
• Currency converter II, Xpress-on TM color covers
• 16-chord polyphonic ringing tones (midi)
• Pop port TM for enhanced connectivity
• Dimensions: 102 x 43 x 22mm, 74cc
Weight: 85g
331
NOK-2115 CDMA Phone Sales price – 395 R
• Screen: grey scale

• With white back-lighting
• Lanyard hole
• Messaging: SMS
• 16-chord/voice polyphonic MIDI ringtones
and color box
Dimensions: 102.4 x 42.2 x 21.5mm
332
NOK-3155 CDMA Phone
Sales price – 485 R
• Network: CDMA 1x, 800/1,900MHz

• Black and white resolution: 96 x 65
pixels
• Memory: 12MB internal dynamic
memory
• 40 polyphonic MIDI, MP3 and video
ringtones
• Messaging: SMS and MMS
• Supports Java MIDP 2.0
• Dimensions: 84.8 x 45.5 x 24.5mm
• Volume: 86cc
• Weight: 110g
Accessories: battery, charger, manual and box
333
334
NOK-6255 Refurbished CDMA Phone
SALES PRICE – 400 R
• Network: CDMA 1x, 800 and 1,900MHz

• Main display: 65K colors, 128 x 160
pixels
• Mini display: 4,096 colors, 96 x 65
pixels
• Camera: VGA, flash, 2.5x or 5x digital
zoom
• MMC card slot, up to 512MB
• SMS, E-mail and MMS
• WAP 2.0 browser
• Java
and color box
• We only refurbish the covers; the main
board is not changed and the same as the
original
335
NOK-2255 65K CDMA Phone
SALES PRICE - 440 R
Screen: 65K color
• Network: CDMA 800MHz

• Messaging: SMS
• Ringing tones: 24-chord/voice
polyphonic MIDI
• Spreadsheet function for simple
budgets
and box
• Dimensions: 80 x 42 x 22 mm, 72cc
Weight: 80g
336
NOK-6235
128 x 128 Pixels CDMA Phone
• Screen: 65K colors

• Network: CDMA1X, 800/1900MHz
• With backlighting
• Camera: 640 x 480 pixels
• Supports VGA and video
• Integrated lanyard slot
• Messaging: SMS, EMS and MMS
• Supports Java and infrared port
337
• 24-chord/voice polyphonic MIDI,

QCELP and MP3 ringing tones
and color box
Dimensions: 105.5 x 42.3 x 18mm
NOK-6265 Refurbished CDMA Phone
SALES PRICE - 1025 R
• Network: CDMA 1x, 800 and 1,900MHz

• Camera: 2.0MP, VGA, flash, 2.5 or 5x
digital zoom
• MMC card slot, up to 1GB
• SMS, E-mail and MMS functions
• Supports Java
• Can refurbish the covers, the
mainboard is not changed and the same as
the original
• One year quality warranty
Accessories: battery, charger, manual and color

box
338
NOK-2865 CDMA Phone
SALES PRICE - 600 R
• Screen: 262K colors CSTN

• Supports GPRS and HSCSD
• Bluetooth and infrared
• Supports USB
• Browser: WAP2.0
• Messaging: SMS
• Supports Java MIDP2.0
• Supports MP3, QCELP, AAC and eACC+
player Video ringtone
• Dimensions: 105.5 x 42.3 x 18 mm,
80cc
Weight: 94g
339
MOT-V3c CDMA Phone
Key Specifications/Special
Features:
• Network: CDMA
• Frequency: 800/1,900MHz
• Display type: 260K colors,
TFT, 176 x 220 pixels
• Integrated 1.3 megapixel camera with 4x zoom
• Video clip capture and playback with day and
night modes
• Bluetooth function
• MP3 player and 72 polyphonic sound engine
• WAP 2.0 browser
• Dimensions: 98 x 53 x 14.4mm (92g)
Accessories: battery, charger, Chinese manual and color box
340
MB-556 A Mobile phone
SALES PRICE 440 R
• Bands: GSM 900/1800 or 850/1900MHz

• TF card slot: yes
• LCD: color screen 1.5 inches
• Built-in games: yes
• FM: yes
• Torch: yes
• MP3/MP4: real MP3 and built-in MP4
• Battery type: 750mAh
• Standby time: 130-180 hours
• Talk time: 3-5 hours
• Accessories: one battery and charger
• Platform: Infineon
• SIM card slot: two
341
KN-K22+ CDMA
SALES PRICE 1600 R
• CDMA and GSM mobile phone

• Supports WAP/GPRS function
• Dual SIM cards standby
• Bluetooth and chipsets
• Dual input touch screen and numeric keypad
• MP3/MP4: set as ring tone
• Dual cameras: 2.0 mega pixels
• Supports T-Flash card
• Dual speakers
• LCD features: 2.4-inch 65K color touch screen
• Incoming call firewall
• Multiple games and PDA functions
• Excellent high-definition colored screen
• Standby time: 480 hours
• Talk time: 9hrs
• Battery: 1,600mAh li-ion
• Supports languages: English, Russia, Arabic, Thai,
French, Italian, Spanish, and Portuguese
342
MB-588 MOBILE PHONE CDMA Phone
SALES PRICE 560 R
• Bands: GSM 900/1800 or 850/1900MHz

• Camera: no
• LCD: color screen 1.5 inches
• Built-in games: yes
• FM: yes
• Built-in memory: 4MB
• MP3/MP4: built-in MP3 and MP4
• Battery type: 800mAh
• Standby time: 150-190 hours
• Talk time: 4-6 hours
• Accessories: one battery and charger
343
Sales promotion practices

1. Out Of Home Media: - OOH Media is India’s largest out-of-
home television company. We leverage our robust Business, In-
store and Leisure Network to display audio-visual
advertisements and engage urban consumers while they work,
shop and play.
Our medium combines the strengths of audio-visual

communication with the visibility of outdoor. The ability of this
new medium to ensure that advertisers get their message
across their most difficult to reach consumers with regularity,
across different day parts and in a seamless way, is what
differentiates this medium of communication from any other
medium.
We have already installed over 4900 screens in more than 22

cities across India and propose to set up as many as 30,000
screens in the next 18-24 months. This would make us India's
largest digital out-of-home television company
10. RBT :- It means Ring Back Tone.

What happens in it is that whenever a customer calls in our
network, he/she will hear a jingle of our company.
The jingle will be in different languages :-
In English :- “TeleTouch….feel the Touch”.
We will give this service free of cost to our customers with

new connections for the first six months.
11. Television :- We will also give advertisement in the

television also. Though television is a very good medium of
advertisement. And different types of programmes, news
even cricket matches are coming on the televisions.
344
Therefore we will give advertisements in between those

programmes, news, matches etc. And this will help a lot in
increasing our sales.
12. Radio/FM :- Since Radio and FM are the very good

source of advertisement, and also in different cities FM
Radios plays a very vital role among the youths. Therefore
our plan is to advertise very heavily with this medium.
13. Newspapers :- We will also advertise ourselves via

different newspapers also. These newspapers includes Daily
Son, The Star, Cape Times, The Herald, Pretoria News etc.
14. Magazines :- Our advertisements will also be placed

on different magazines like Black Business Quarterly,
Entrepreneur Magazine, Gateway, Fairlady, Cosmopolitan,
Marketing Mix etc.
15. Internet :- Since internet is the fastest medium of

everything. And now most of the people are using Internet
regularly for different-different types of work. Therefore, we
will also give advertisement of TeleTouch in the internet also.
16. Hoardings :- In different cities and towns, near traffics

and public places we will advertise ourselves through
hoardings.
17. Website :- We are also launching our website for

advertisement. The address will be www.teletouch.com , so
that the customer would get the whole the information about
our services very easily.
345
GROUP-3B
TeleTouch Limited
IT Department
Submitted By Girijesh Kumar

Govind Sharma
Isha Tewari
Kuldeep Sharma
Kumar Vikash
346
Business plan for TeleTouch limited
 REVIEW THE NEED OF MIS
 INFORMATION FORMATS
 CALL CENTRE SERVICE (OUTSOURCE)
 VALUE ADDITION
 COST ANALYSIS OF I.T DEPARTMENT
 SOFTWARE OF I.T DEPARTMENT
 HIERARCHY FOR I.T DEPARTMENT
347
CALL CENTER SERVICE (OUTSOURCE)
Q-Why do we need a Call Centre?

There are many reasons to consider establishing a Call Centre. As
they help the org. to keep their customer satisfied if they get any
problem in their product or service.
Some examples include:
 An increasing number of customer complaints, perhaps

increasing to ministerial complaints, are received.
 Poor publicity regarding the level of customer service.
 A departmental focus on reducing costs while increasing

service levels.
 Increasing customer contact and call volumes throughoutthe

agency, with a growing number of agency staff required to
take telephone calls.
 The development of agency initiatives, such as specific

hotlines and community campaigns, leading to expected and
unexpected increases in call volumes.
 Unpredictable crisis or emergency situations, such as

contamination of drinking water, oil spills and hailstorms.
 Agency business with a large number of customer

interactions.
 Higher level agency staff providing basic customer

information.
 Recognition that the role of the agency’s switchboard is more

than simply connecting customers to various sections in the
department and that existing facilities are not up to
standard.
348
A call center will enhance the company services. A call center can
provide a no. of important benefits. Just like-
Increase the focus on customer services is likely to lead to more
efficient methods in handling significant levels of customer
interactions. This, in turn, leads to a reduction in transaction costs
where the majority of simple customer interactions are handled by
dedicated, well-trained, frontline staff. The more senior and
experienced staff can then be assigned to more complex tasks.
Achieving further internal efficiencies may also allow the agency to
initiate contacts with clients and can make simpler the handling of
incoming calls to a central area, rather than being spread across
various sections throughout the agency
A variety of customer contact channels may also be utilized

technology-based services, such as Interactive Voice Response
(IVR) units and Web-based services via the Internet.
Checklist for Call Centre Establishment or outsourcing Costs
1. Capital expenditure:
 building - purchase or lease, fit out;

 telecommunications – telephone system, fax, ACD, IVR,
handsets, headsets;
 Information systems – hardware, software, systems
development, backup systems.
2. Other site expenditure:
Architect or facility planner; agents’ commission.
3. Recruitment and training
4. Other expenditure:
349
 Project management and consultancy.

 Legal fees.
 Redundancy (idleness) costs (if agency staff is displaced).
 Job search and retraining (if agency staff is displaced).
(a prestigious call center of South Africa) providing their services

since ……………..
We do our work on lease i.e. taking their services to serve our

customer in a best way by which they will satisfy. According to our
contract with Accenture, call centre will employ 185 telecallers for
our project. A basic telephone system for a Call Centre begins with
a key telephone System, where the telephones have multiple
buttons and allow the user to select lines for outgoing or incoming
calls directly. So we consider all the requirements what we need
to outsource the services of Accenture with all the hardware and
software requirements.
A PABX (Private Automatic Branch exchange) is specialized

equipment that acts as an extension of the public network. It
allows different telephones within an organization to have their
own number (or extension) where calls can be made or
transferred internally. Outside callers can dial a specific extension
to reach a person or section. PABXs are normally purchased or
leased from associated vendors.
Automatic Call Distribution (ACD) systems provide flexibility in

distributing and managing inbound calls by automatically keeping
callers on hold until the next Customer Service Officer is available.
An ACD can also make all them in a queue while another one is
online.
Automatic Call Distribution-Management Information

Systems (ACD-MIS) give comprehensive management
350
information in real-time, as well as historical information, for

effective call management analysis and reporting. It provides
reports on 15-minute and 30-minute call traffic patterns and
individual groups or CSOs. Overall Call Centre performance can be
reported and aggregated on a daily, weekly, monthly and year-to-
date basis.
Centrex is a sophisticated network service with advanced call-

handling capabilities that replaces the need for a PABX, as the
infrastructure is provided within the exchange. ACD capabilities
and MIS reporting are available, direct from the exchanges.
However, Centrex does not offer the functionality and full range of
reporting that a standard PABX / ACD system offers.
IVRs are increasingly being used by inbound Call Centers to

manage call volumes more efficiently. Calls are screened by
offering callers a choice of options that can be selected by
pressing a button on their telephone handset. The IVR then directs
the call to the CSO responsible for that area. This is commonly
known as skill-based routing.
VALUE ADDITION
Receiving call in one go:
We have gone through all the aspects related to call centre. We

have done our deal with accenture (call centre in South Africa)
and we have planned to give better services to our customers.
Most of the time customers complain that they don’t connected
with call centre executive for this we have negotiated with
Accenture and we paying extra money to Acceture for
351
implementing this and we have purposed Accenture to employ 185

telecallers for Teletouch project
Providing important information to customers through our

website
We have planned to update our customers time to time through

our website. We will send our customers to their bill and details
and information about some new exciting offers. We will provide
the facility of opening an email account with Teletouch.
Reminding and congratulating to customers about their

birthdays and festivals
Our main aim is to serve customers with delight. We need to take

care all the aspects related to our customers so we have planned
to congratulate and remind our customers about their birthdays
and festivals through our website.
Making customer aware about our product and its use
It is often seen that more the product is complex the more it

will be complex in use so we will make our customers aware
through our website, how can customer use our product
effectively and can take best from our product. We will update
our customers time to time.
352
Cost analysis of the IT department
We need 300 systems RS 12,00,000
Software for MIS that is RS 2,00,00,000

ERP
Server 15 +1 RS 45,00,000
LAN & WAN equipment RS 1,00,00,000
Maintenance equipments & RS 85,00,000

spare parts
Call center( outsourcing RS 6,50,00,000

for 2 years)
Web site development & RS 10,00,000

maintenance
Total RS 110200000
We need RAND = 44080000
353
SOFTWARE OF IT DEPARTMENT AND ITS FUNCTIONALITY
354
Accordingly, an entire ERP for IT approach and adequate solutions

touch various IT disciplines such as:
 Application Lifecycle Management (ALM)

 IT Governance
 IT Service Management (ITSM)
 Application Performance Management (APM)
 Business Activity Monitoring (BAM)
 Service-Oriented Architecture (SOA)
 IT Asset Management (ITAM)
 Information Security
 Knowledge Management
 Enterprise Content Management (ECM)
 Business Service Management (BSM)
355
Enterprise resource planning (ERP) is an enterprise-

wide information system designed to coordinate all the resources,
information, and activities needed to complete business processes
such as order fulfillment or billing. As we have taken our software
from SIEMENS SOFTWARE PVT. LTD .An ERP system supports
most of the business system that maintains - in a single database
- the data needed for a variety of business functions such as
manufacturing, supply chain management, financials, projects,
human resources and customer relationship management.
An ERP system is based on a common database and a modular

software design. The common database can allow every
department of a business to store and retrieve information in real-
time. The information should be reliable, accessible, and easily
shared. The modular software design should mean a business can
select the modules they need, mix and match modules from
different vendors, and add new modules of their own to improve
business performance.
Ideally, the data for the various business functions are integrated.
In practice the ERP system may comprise a set of discrete
applications, each maintaining a discrete data store within one
physical database.
Enterprise Resource Planning is the latest high end solution,

information technology has lent to business application. The ERP
solutions seek to streamline and integrate operation processes
and information flows in the company to synergies the resources
of an organization namely men, material, money and machine
through information. Initially implementation of an ERP package
356
was possible only for very large Multi National Companies and
Infrastructure Companies due to high cost involved.
HIERARCHY OF IT DEPARTMENT IN TELETOUCH
Vice
president Executi
(1) ve
Executiv
Executiv Executive Up
e
e Maintenan gradati
MIS
MIS external
ce on
internal (1)
(1) (1)
Supervisors
(8)
Employees
Under
Supervisors
For all sub
357
RECOMMENDATION
Board of directors recommend that for achieving marker

share of 11%in south Africa it is important that we focus on
the different opportunities and Increasing affordable access of
mobile services in the interest of social and economic
development.TeleTouch Always strive for excellence but for
excellence we have to focus on problems faces by people of
south Africa. We have to convert our weakness into strength
and threats into opportunity. Infrastructure development to
become a leader in telecom industry We have to focus on the
development of infrastructure like adoption of new
technology, spreading of network services, provide mobile
and other related service in cheaper cost.
1. High cost of mobile access charge
An official of the Bureau of Public Enterprises said the GSM

system “was not really aimed at the common man” so
TeleTouch have to make available mobile service in
reasonable charges to rural and socially deprived mass.So
GSM would be the most cost-effective technology for
providing low-cost telephony to low-income areas and would
require operating solely on a prepaid basis. TeleTouch would
have to enthusiastic about providing low-cost telephony in
rural areas and have to find ways to cope with the high prices
of mobile telephony.
2. Evidently lack of handsets
Evidently lack of handsets in Africa has not hindered people

from purchasing SIM cards, sharing phones and using
communal phones. Sharing sim cards is not uncommon in
358
Many parts of the south Africa. On the other hand, in the

rural areas sharing is mostly with those who havesim cards
but are too poor to afford a phone. One of them told me it is
better to have their own number rather than go all the way to
town In addition, it gives him a sense of identity despite his
social status. so avail the mobile to poor people is a
important strategy to increase the market share in low
penetrated mobile area. It would seem access to or use of
mobile phones would possible in south Africa to those at all
income levels.
3. In South Africa, there was evidence that mobile phones

were the only source of communication for a large number of
small businesses especially in the rural areas. Hypothetically,
this would be the finding in most parts of south Africa, if
businesses in the rural areas have one phone, it will be a
mobile phone. TeleTouch have to understand how rural
communities and small businesses use mobile telephones,
and what impacts they are having. it is common to find a lot
of information on the potential ofmobile phones for small
businesses.
4.Mobile banking
A program from South Africa is the Fundamo a system to

make payments from mobile phones. And is the favorite way
among upper and middle class to pay. the bills so this is the
opportunity for teletouch to give service and increase market
share The potential customer want to purchase the item and
confirms the sale with a PIN number. In South Africa, 31% of
unbanked people have a mobile phone, and a further 17%
have access to a mobile phone.
359
5.Mobiles phones have been used generally to search for jobs

and specifically in health and agriculture which are both
critical areas of concern in Africa’s development efforts
provide Health service
The use of SMS is also being popularized in the health sector

with some positive results.The Open Knowledge Network
(OKN) The main objective of this is to use SMS to send
messages on HIV/AIDS prevention and control; provide tips
to pregnant women; offer health management and nutritional
advice.Another example of innovative use of wireless
technologies for health is ,uses of mobile phones to improve
the treatment of Tuberculosis (TB) in its clinics. South Africa
has one of the most
alarming TB epidemics in the world. The most recommended

method for treating TB is the Directly Observed Therapy
System (DOTS), where health workers watch patients take
their medication each day; but this is difficult in a country
where TB is prevalent and where the health workers are
already overstretched. In this context, if patients miss an
intake, they have to start the whole process again.
Fortunately, the technology solution was provided by On Cue,
a small company offering a Compliance Service that sends
SMS to patients to remind them to take their medication at
pre-determined times. The criteria for selecting the patients
in the pilot study included ownership of mobile phones and
the identification of those likely to take medication without
supervision.from this way teletouch can generate money and
also fulfill the corporate social responsibility.
360
In agriculture sector
The agricultural sector is also significant in south African

states.
This is an excellent initiative in an economy that relies on

agriculture as farmers can make more money even without
increasing output
In education sector
In the education sector, there is an interesting pilot project

using Wi-Fi for education in the rural areas. This is the ‘Rural
Connectivity Project for the Global Education
6.2010 Fifa World Cup
The government has invested in the 2010 Fifa World Cup

because doing so will build a better life for all. In the 2007/08
Budget, the government allocated $1.3-billion for transport
and supporting infrastructure for the World Cup. A further
$1.25-billion will be used for stadiums.
Wider access to broadband, ADSL and 3G access has boosted

internet connectivity, with the number of South African
internet browsers increasing by 121%.soteletouch have a
opportunity to serve in the different aspects of
technology.like mobile TV.internet tv
7.Network quality
Teletouch should be commited to providing our subscribers

with a high quality grade of service and to availability of the
network 24 hours per day, 7 days per week.
361
8. spread mobile service in other parts of Africa like

neighbouring areas of south Africa LESOTHO,NAMBIA
BOTSWANA ANGOLA and others. because south Africa is the
gateway to enter in Africa.
According to finance department our debt –equity ratio is

0.603:1 so we can raise money from the market or from
bank to expand our business in other parts of Africa.
362
CONCLUSION
In the coming financial year TeleTouch will seek to continue
to make its strengths and remain the lowest cost operator in
the South African cellular industry. We will continue to
democratise telecommunications as we enable South Africans
to use mobile telephony to improve their lives economically
and socially. We believe the new strategic emphasis we have
outlined for increasing our market share to 11% will ensure
that the TeleTouch continues to deliver
growth and continued profits to our shareholders. In

particular, our strong strategy of providing electronic
communications infrastructure and services will differentiate

us in a market.
As the industry defines its future and grows its footprint in

the new era of cellular telecommunications, we are confident
TeleTouch is well positioned for continued success in the
years ahead.
Our success, however, is linked to the success of

individuals, entrepreneurs, businesses and countries who
have come to expect us to perform beyond their
expectations. We believe that TeleTouch creates an
environment and provides opportunities for staff to reach
their full potential, while ensuring depth of management and
expertise as well as visionary leadership in our core areas of
business.
363
BIBLIOGRAPHY
1.Britannica encyclopedia
2.www.google.com
3.south Africa telecommunication regulatory authority

website-www.satra.gov.za
4.http://www.cck.go.ke
Africa Fastest-Growing Market for Cell Phones’
5.[http://www.wins-
news.com/top_stories/2005/aug/082505-e.php]
http://www.fundamo.co.za/fundamo/index.html
http://www.bridges.org/
6. ‘Mobile Communication Technologies’, from

http://www.mobileafrica.net/technologies.php ]
7. ‘Mobile phone handset market in Africa’.

http://www.mobileafrica.net/technologies-mobile-phone-
marketin-africa.php]
8.Business in Africa (2004) ‘Telecom operators strike gold in

Africa’
http://www.businessinafrica.net/features/telecoms/349759.h
tm]
9.Chitamu P. and M. Naicker (2005) ‘Peer-to-Peer Wireless

Networking for Rural Telecommunications’
http://engineering.udw.ac.za/coe/Research/Zahira/rurcom.pd
f]
10.Engelbrecht, D. (2005) ‘Mobile, Wireless offer Innovative

Approach to Healthcare Delivery’
fromhttp://www.meridianhc.co.za/guestm&wde.html]
364
11.EduVision (2005) ‘Development Powered by Education:

The EduVision E-Learning System Pilot Project.’ from
http://www.eduvision.or.ke]
12.Garbus L. et.al. (2005) ‘Is the Internet Relevant to

Addressing HIV/AIDS in Poor
Countries?’ [Accessed 2 May 2005 from
http://ari.ucsf.edu/pdf/Posters/barcelona/garbus/pdf]
13.Geser, H. (2004) ‘Towards a Sociological Theory of the

Mobile Phone’. from http://socio.ch/mobile/t_geser1.pdf]
Green D. (2003) ‘South Africa: A Novel Approach to

Improving Adherence to TB Treatment’. Essential Drugs
Monitor, Iss. 33, pp. 8-9
14.Jensen, M. and D. Richardson (1999) ‘Wireless weaves to

lessen the gaps in rural telecommunication coverage in Africa’
http://www.fao.org/WAICENT/FAOINFO/SUSTDEV/CDdirect/C
Dre0025.htm]
15. ‘Visual Search on a Mobile Phone Display.’ Proceedings of

the
South African Institute of Computer Scientists
and Information Technologists

Conferencehttp://portal.acm.org/citation.cfm?
id=581548&dl=ACM&coll=portal]
365

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Business Plan For TeleTouch Ltd (2010-2011)

THE TELETOUCH WAY.............................................................................................................8

Sales Force Development..............................................................................16

FUND REQUIREMENT OF INDIVIDUAL DEPARTMENT......................................19

TELETOUCH COMMITMENT TO CSR...............................................................21

OCCUPATIONAL SAFETY AND THE ENVIRONMENT.........................................22

THE COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY ..........................23

Strategic Planning Department...................................................................................................24

Components of business Environment..........................................................25

Competition with privatization:-....................................................................46

ONE YEAR EXPANTION PLAN.........................................................................56

Customer service centre...............................................................................64

PROCUREMENT OF TECHNOLOGY, HARDWARE AND NETWORK....................70

TECHNOLOGY WHICH IS BEING PROVIDED BY TELETOUCH...........................70

PROCUREMENT OF WIRE LESS HARD WARES................................................72

SIM AND PHONE REQUIRENMENT..................................................................77

SUPPLY CHAIN MANAGEMENT.......................................................................82

We are procuring wireless hardware equipment from Cisco System, ..........83

COST DETAILS OF THE CDMA PHONES WHICH WILL BE PROCURE BY

Income tax.................................................................................................. 121

IDENTIFICATION OF THE TOTAL FUND REQUIREMENT, BROKEN UP INTO

BALANCE SHEET FOR THE YEAR ENDING 2010-2011..................................155

TeleTouch sim offer.....................................................................................177

TELE TOUCH SERVICES................................................................................189

Tele touch calling cost.................................................................................194

The cost of web design in South Africa.......................................................211

Out door event in South Africa....................................................................215

2. New Year's Day .............................................217

Friday, 25 December 2009..........................................................................218

Monday, 13 April 2009................................................................................218

Monday, 27 April 2009................................................................................218

Monday, 10 August 2009............................................................................218

8. Day of Goodwill ......................................................................................218

Saturday, 26 December 2009.....................................................................218

Value Chain Analysis :- ...............................................................................237

Legal rule and regulation for the advertising in South Africa......................239

PERFORMANCE APPRAISAL PRACTICE.........................................................272

Training Need arises at three levels............................................................277

Training Courses and Programs.................................................................281

TRAINING REQUIRED IN DIFFERENT DEPARTMRNT WISE EMPLOYEES.........287

Termination by mutual agreement..............................................................304

LAND AREA BY PROVINCE............................................................................310

Our employees are:-...................................................................................316

Tele touch world..........................................................................................317

Tele Touch’s sim plan..................................................................................319

MONTHLY SALES OF TELE TOUCH...............................................................324

Products (features, versions and variants)..................................................327

Sales promotion practices...........................................................................344

Business plan for TeleTouch limited............................................................347

CALL CENTER SERVICE (OUTSOURCE).........................................................348

Cost analysis of the IT department..............................................................353

We need RAND = 44080000......................................................................353

SOFTWARE OF IT DEPARTMENT AND ITS FUNCTIONALITY...........................354

HIERARCHY OF IT DEPARTMENT IN TELETOUCH..........................................357

We are sincerely thankful to Institute of

We are also thankful to the librarian, computer lab

Submitted by Tapan Ray

Institute of productivity & management

TeleTouch’s success is strengthening by strong business principles

THE TELETOUCH WAY

Driving the future of communication

TeleTouch will be one of Africa's most admired Companies and the

TeleTouch a winning company Where everyone is imbued with a

TeleTouch is a respected company And professionalism are the