Post on 09-Mar-2015
SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL
BUSINESS
Business Partner Profiling for TCL SMB Business in Mumbai
SUBMITTED BY:Vishal Vijay ChavanMBA-3C (2010-2012)
Roll No. : A1808710018
INDUSTRY GUIDE FACULTY GUIDEVikas Mathur Ms Astha GuptaChannel Devlopment ManagerSMB DepartmentTata Communications, Mumbai
AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA
AMITY UNIVERSITY – UTTAR PRADESH
1
TO WHOM IT MAY CONCERN
This is to certify that Vishal Chavan, a student of Amity International Business School, Noida, undertook a project on “Business Partner Profiling for TCL SMB” at Tata Communications Ltd Mumbai from 9th May 2011to 8th
July 2011.
Mr. Vishal Vijay Chavan has successfully completed the project under the guidance of Mr. Vikas Mathur. He is a sincere and hard-working student with pleasant manners.
We wish all success in her/him future endeavours.
Signature with dateVikas MathurChannel Development ManagerTata Communications Ltd
2
CERTIFICATE OF ORIGIN
This is to certify that Mr. Vishal Vijay Chavan, a student of Post Graduate Degree in 3continent MBA, Amity International Business School, Noida has worked in the Tata Communication Limited, under the guidance and supervision of Mr. Vikas Mathur channel development manager of Tata Communication Ltd. The period for which he was on training was for 9 weeks, starting from 9 th May 2011to 8 th July 2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.
Signature Signature(Faculty Guide) (Student)
3
ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. Vikas Mathur channel development manager of Tata Communication Ltd, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.
I would also like to thank the entire team of Tata Comunication Ltd, for the constant support and help in the successful completion of my project.
Also, I am thankful to my faculty guide Prof./Mr./Ms. of my institute, for his/her continued guidance and invaluable encouragement.
Signature(Student)
4
TABLE OF CONTENTS
1. EXECUTIVE SUMMERY 6
2. RESEARCH METHODOLOGY 8
3. PRIMARY OBJECTIVES 8
4. SECONDARY OBJECTIVES 8
5. SCOPE OF THE STUDY 8
6. LIMITATIONS 10
7. TATA COMMUNICATION PROFILE 12
8. HISTORY OF TATA COMMUNICATIONS 14
9. SWOT ANALYSIS 23
10. INDIAN TELECOM SECTOR: AN OVERVIEW 24
11. MAJOR PLAYERS 33
12. SWOT ANALYSIS OF INDUSTRY 41
13. DATA 42
14. PRIMARY DATA 42
15. SECONDARY DATA 46
16. FINDINGS & ANALYSIS 47
17. RECOMMENDATIONS 47
18. BIBLIOGRAPHY 48
19. CASE STUDY 49
20. SYNOPSYS
5
Executive Summery
Tata Communications Ltd is one of the biggest company in the telecom sector worth USD 13
billion and one of the youngest company in India formed in 2008 by acquiring VSNL. This study
has helped to understand the market, product offered, channel partners and the customers and the
compititors in the communication sectors. As the name Tata communication we fill that it is the
tata indicom the teleservice provider or the tata photon the broadband service provider to end
consumers. Tata communication is not the teleservice provider or the broad band service
provider as the Tata Indicom or the Tata Photon it is the advance version of all, much bigger than
the both of them it is the indirect competitor of them. During the program it was impoetant to
understand that which channel partner is capable of handling the brand very well and who can
raise the business. It is to study in which services and the product the channel partner deal in to
also to learn how to get the information about the particular things how to convince the person to
talk to you and have the valuable information you required from him.
It helped to understand what is expected by us and to perform according to it. The Tata
communication is expecting a channel partners who has very high customer profile and has good
reputation in the market. Company is newly formed in 2008 so whenever we are approaching to
the channel partners for the collecting the information about their organization they use to
confuse with TTML and the TCL then we have to elaborate them about the company profile and
the different product offered by the organization. TTML is the Tata Telecom Maharashtra Ltd.
and the TCL is Tata communication Ltd. they are the part of Tata but they are the indirect
competitor of each other. then the other detail like the product offered, insta office, insta
compute, cloud computing, CDN, collocation, Data center management, PRI etc. there was so
much to learn like first time management, not being from the engineering back ground have to
learn the all engineering terms in minimum time and on the other hand have to collect the names
and addresses for profiling the channel partners. First step of profiling was just segment the
channel partners according to their location they were located. It helped to understand the
geographical location of Mumbai as well as the market distribution of the channel partners and
the EPBX and the broadband dealers throughout Mumbai. it was giving the brief knowledge and
helping to understand what actually is needed and what we are doing, it was not to satisfy the
industry guide but to give the output for the best result. In the second step we have to visit the
channel partners who are existing channel partners, who are prospective channel partners and
6
rest channel partners. We have to take an appointment and get the detailed information
mentioned. The financial turnover of the company, what are the products he deal into, for which
company he is channel partner. Whether is he interested into for working as channel partners
with tata and if yes then in which products he is interested and what Activities that you currently
undertake for your current set of products & services you deal. What is the total number of
workers they have what is the proportion they have for the sales team and the technical team.
How do they train their technical and sales staff.
7
RESEARCH METHODOLOGY
The research so conducted was done in order to determine the profiling (segmentation) of Tata
Communications in comparison to Bharti Airtel & Relience Communications and others. who
are the leading brands and organizations in the communitions segment in the industry till date. In
order to conduct this research the primary data has to be collected with the help of the
questionnaire which would then determine the fate of the research along with the secondary data
abstracted from the organization’s database which would help out in determining the sales
volume and the availability if the product in the market and its demand. The research was
pertained to the market of Mumbai where the headquarters of the company. The research
constituted the analysis of channel prtners, study of brand packs of all there organizations in the
segment as well as the merchandising of the products of Tata Communications were to be
studied. Methodology to be adopted:-
1) Visiting existing channel partners of Tata communications and non existing channel partners.
2) Taking help from the secondary data in order to study the distribution channel & channel
partner’s profile of Tata communications
3) Visit the market to collect the primary data for the research on the channel partner and their
availability in the market.
PRIMARY OBJECTIVES:-
1) To understand the distribution channel system at Tata Communications Ltd.
2) To study all product provided by Tata Communications Ltd.
3) To study the profile of the channel partners and submit to managers.
SECONDARY OBJECTIVES:-
1. To have a know-how about the Telecom industry.
2. To gain expertise in the Telecom industry.
3. To understand the distribution system and channel in a communication industry viz.
Beverages.
8
4. To provide the company with the relevant information regarding the response to their
product by the channel partners.
5. Providing data to the company regarding the research and survey on their product.
RESEARCH DESIGN:-
Once the problem is identified, the next step is to prepare a plan for getting the information
needed for the research. The present study will adopt Descriptive approach wherein we are to
study the characteristics of channel partners for Tata communications i.e. whether the channel
partner is interested o have partnership with Tata Communications and whether he is capable of
handling the Tata brand.
The project is based on the analysis of channel partners in Market who are non register and
register with Tata. Descriptive analysis states that the sampling technique used would be
probabilistic in its approach, pre-planned, structured or well thought and it maximizes reliability
so that are shouldn’t be any bias, so was designed in this project research. The method used in
the research project was questionnaire which is a primary data for the research work. The scaling
technique used in the research project was both quantitative as well as qualitative analysis type.
The primary data obtained was from the respondents with the help of the questionnaire and the
secondary data was abstracted from the organization which helped out in profiling the channel
partners for Tata Communication. Secondary data constituted of the various product and the
customers of the Tata communications Ltd.
SAMPLE DESIGN:-
Sampling method used in this research project was equal probability sampling wherein all the ch
had equal probability or chance of being selected and also it gives each item in the population
equal channel partners chance of being included in the sample. The population was a finite
population and the sample was being taken from the region of Mumbai and Navi Mumbai. The
sample design is a true representative of the population. The second method used to draw a
sample was systematic sampling which followed the equal probability sampling, the steps
involved in systematic sampling are as follows :-
9
a) Randomly select any channel partner from a group of number i.e. select randomly a
channel partner in a particular location of Mumbai.
b) Then get the information about various product he deal into and ask him whether he is
interested to be register partner with Tata communications. Get his financial turnover etc.
Sample Size
A survey of 50 EPABX dealers (channel parters) was conducted using a questionnaire.
Time Period
The period of time for which the research was to be conducted was two months. The scaling
technique is both quantitative as well as qualitative type.
SCOPE OF THE STUDY:-
This research was undertaken in order to gage knowledge in the working of Communication
sector as I had a particular interest in the Telecom industry. This project will help the company in
profiling the channel partners who are register and who are not register with Tata
Communications Ltd and to have them a new channel partners for the company. So they can
understand what amount of business is generating from which channel partners. It is to study in
which services and the product the channel partner deal in to also to learn how to get the
information about the particular things how to convince the person to talk to you and have the
valuable information you required from him. It helped to understand what is expected by us and
to perform according to it. The Tata communication is expecting a channel partners who has very
high customer profile and has good reputation in the market.
LIMITATIONS:-Despite the possible efforts in conducting the research, there were some unavoidable situations,
which limited the scope of the project.
10
Considering the population, the sample taken for present study seems fake (means some
of the address chosen for the collection of the data were fake ) and hence further new
channel partner has to be found out.
Some of the channel partners were non-cooperative in giving information.
Time available for research was very short so certain aspects have been overlooked.
Dealers were hesitant to provide the complete information due to fear of misuse of
information.
Respondents may sometimes misinterpret the questions, leading to a different answer.
11
Tata Communication
About Tata Communications
Tata Communications is a leading global provider of a new world of communications. With a
leadership position in emerging markets, Tata Communications leverages its advanced solutions
capabilities and domain expertise across its global and pan-India network to deliver managed
solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest submarine cable
networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs,
and nearly 1 million square feet of data center and colocation space worldwide.
Tata Communications' depth and breadth of reach in emerging markets includes leadership in
Indian enterprise data services, leadership in global international voice, and strategic investments
in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), and
Nepal (United Telecom Limited).
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock
Exchange of India and its ADRs are listed on the New York Stock Exchange.
Tata Communications Limited (formerly VSNL), is a leading global provider of long distance
communications. The Tata Global network includes one of the most advanced and largest
submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries
across 400 PoPs and nearly 1,000,000 square feet (93,000 m2) of data center and colocation
space worldwide. It is India's largest provider in data center services and also operates India's
largest data center in Pune. Tata Communications acquired Teleglobe, a company based in
Canada, and Dishnet, an Indian company, and is the largest shareholder in South African
operator Neotel. Tata Communications currently has a cable network of more than 232,000
kilometers.
Tata Companies Profile
Tata is a rapidly growing business group based in India with significant international operations.
Revenues in 2007-08 are estimated at $67.4 billion USD , of which 61 per cent is from business
outside India. The Group employs around 350,000 people worldwide. The Tata name has been
respected in India for 140 years for its adherence to strong values and business ethics.
12
The business operations of the Tata Companies currently encompass seven business sectors:
communications and information technology, engineering, materials, services, energy, consumer
products and chemicals. The Group's 27 publicly listed enterprises have a combined market
capitalisation of some $60 billion, among the highest among Indian business houses, and a
shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata
Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels
and Tata Communications.
The Group's major companies are beginning to be counted globally. Tata Steel became the sixth
largest steel maker in the world after it acquired Corus. Tata Motors is among the top five
commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land
Rover. TCS is a leading global software company, with delivery centres in the US, UK,
Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea
company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world's
second largest manufacturer of soda ash. Tata Communications is one of the world's largest
wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is also gaining
international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata
brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek
ranked the Group sixth amongst the "World's Most Innovative Companies" and the Reputation
Institute, USA, recently rated it as the "World's Sixth Most Reputed Firm."
Founded by Jamsetji Tata in 1868, the Tata Companies' early years were inspired by the spirit of
nationalism. The Group pioneered several industries of national importance in India: steel,
power, hospitality and airlines. In more recent times, the Tata Companies' pioneering spirit has
been showcased by companies like Tata Consultancy Services, India's first software company,
which pioneered the international delivery model, and Tata Motors, which made India's first
indigenously developed car, the Indica, in 1998 and recently unveiled the world's lowest-cost car,
the Tata Nano, for commercial launch by end of 2008.
The Tata Companies has always believed in returning wealth to the society it serves. Two-thirds
of the equity of Tata Sons, the Tata Companies' promoter company, is held by philanthropic
trusts which have created national institutions in science and technology, medical research, social
13
studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas
of education, healthcare and livelihoods. Tata companies also extend social welfare activities to
communities around their industrial units. The combined development-related expenditure of the
Trusts and the companies amounts to around 4 per cent of the Group's net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its business in
India and internationally. The Nano car is one example, as is the Eka supercomputer (developed
by another Tata company), which in 2008 is ranked the world's fourth fastest. The Group aims to
build a series of world class, world scale businesses in select sectors. Anchored in India and
wedded to its traditional values and strong ethics, the Group is building a multinational business
which will achieve growth through excellence and innovation, while balancing the interests of its
shareholders, its employees and wider society.
History of Tata Communications
1986
-Videsh Sanchar Nigam was incorporated on 19th March with the object of assuming
responsibilities for providing international telecommunication services, which were being
provided by the erstwhile OCS, Department of Telecommunications, and Ministry of
Communications.
- The main business of the Company is to provide basic international switched
telecommunication services - comprising telephone, telex and telegraph services.
- VSNL is now concentrating on telecom related services
1992
- The Company offers Intelsat Business Service - a dedicated satellite-based service that
provides high speed, high quality data circuits on a point-to-point basis through earth stations
strategically located near the customer's premises.
- The Company has entered the era of mobile communications by commissioning its own Land
Earth Station (LES) at Arvi near Pune.
14
1993
- The Company introduced Inmarsat-C service, which permits transmission of messages via
small portable terminals.
- The Company introduced a video conferencing service (both domestic and international)
through studios located at the Company’s international gateways at Mumbai, New Delhi,
Calcutta and Chennai.
1994
- The Company launched the Concert Packet Service (CPS) for Indian customers on 7 June, in
co-operation with British Telecom, UK.
1995
- In November, the Company introduced Inmarsat-B services for voice and data transmissions
and Inmarsat-M services for voice transmissions, both in digital format.
- The Company commenced providing Internet access services in August, and is the largest
commercial provider of access to the Internet in Mumbai, Chennai, New Delhi, Calcutta,
Bangalore and Pune and also a dominant commercial provider of access to the Internet in India,
with DoT providing access where the Company is unable to do so.
- The Company is one of the founding investors in ICO Global
Communications (Holdings) Limited which was formed by a consortium of international
telecommunications companies, governments and satellite and telephone equipment
manufacturers to establish and operate a satellite-based mobile telecommunication system.
1996
- VSNL have accorded approval to set up a subsidiary company to provide value added services
in India, with a share capital of upto Rs 80 crores.
15
- The Company is the exclusive provider of public international telecommunication services in
India, linking the domestic Indian telecommunications network to 236 territories worldwide.
1997
- The Company introduced managed data network services in January and now offers such
services through the global alliance networks of six global partners-BT, Cable & Wireless,
EQUANT, Global One, IBM Global Services and Tele Media International.
- In February, the Company and DoT agreed to the current revenue sharing arrangement, which
took effect on 1st April, and will remain effective until 31st March 2002.
- The Company has made an offering of 30000000 Global Depository Receipts (GDRs)
representing 15000000 No. of Equity Shares at an offer price of US .93 per GDR in March/April.
- Videsh Sanchar Nigam Ltd, the country's only Internet service provider, has suspended new
dial-up connections.
- Videsh Sanchar Nigam (VSNL, India's international telecom carrier) has obtained a AAA
rating from Credit Rating & Information Services of India (Crisil) for a Rs.100 crore bond issue.
This is the first time the VSNL has gone in for a credit rating.
- The company signed a five year revenue sharing agreement with the DoT assuring VSNL and
stead per minute revenue from international basic telephony traffic despite fall in accounting rate
and restructuring the License fee arrangement.
1998
- Videsh Sanchar Nigam Ltd (VSNL), the country's international telecom monopoly, has
decided to amend its memorandum of association to include domestic long distance telephony as
part of its service offerings.
- VSNL has qualified for being rated Excellent amongst MOU-signing Public Sector
Undertakings with GoI for the year based on achievements against targets set out in the MoU for
that year.
16
- Videsh Sanchar Nigam Limited has awarded a contract to Siemens Public Communication
Networks Limited for setting up a nationwide state-of-the-art data network, using digital cross-
connect.
- Videsh Sanchar Nigam Ltd (VSNL) introduced a new Internet dial-up service through high
speed ISDN (integrated services digital network) lines in Bangalore.
- Videsh Sanchar Nigam Ltd (VSNL) has introduced a flexihour accounts scheme for Internet
users, allowing its customers to upgrade form one slab to another.
1999
- The Videsh Sanchar Nigam (VSNL) has conducted a Vision 2004 study.
- The Company provides Home Country Direct services, which permit a caller to speak to an
operator in his home country directly and place a collect or charge call.
- The Company provides an international E-mail service - GEMS 400, which permits
subscribers to send E-mail both to other subscribers within India and to 242 public E-mail
systems in 75 countries.
- International telecommunications provider Videsh Sanchar Nigam Limited (VSNL) will enter
the national long distance telephony segment when it is opened up for competition in 2000.
- VSNL, which is the second largest shareholder in ICO Global, a consortium of telecom
operators, entered into a pre-launch agreement with ICO Global on Monday to pave the way for
the setting up of a joint venture company.
- Videsh Sanchar Nigam Ltd (VSNL) has set up an internal committee to look into its proposed
entry into domestic long-distance telephony (DLT).
- Videsh Sanchar Nigam Ltd (VSNL) has tied up with ICICI Bank to provide the latter's Net-
banking clients on-line registration and payment facility for taking Net connections.
- Videsh Sanchar Nigam Ltd (VSNL) and Hughes Escorts Communication Ltd
signed an agreement that would enable Hughes Escorts Communications to use the VSNL's
Internet infrastructure.
17
2000
- The company has also launched an e-mail service exclusively for the media called
mediapoint.enmail.com. this is to bring media professionals on one virtual platform, to hear their
views and help the common man to give single point access to the media.
- Videsh Sanchar Nigam Ltd (VSNL) is planning to set up an Internet consultancy division,
which will offer technical consultancy to start-up Internet Service Providers (ISPs).
- Videsh Sanchar Nigam Ltd (VSNL) and Haryana Electronics Development Corporation Ltd
(HARTRON) signed a memorandum of understanding (MoU) to set up a high speed data
communication facility with associated marketing services for data links, internet access and
other value added services of VSNL.
- The Company will acquire an additional internet bandwidth in the current fiscal, bringing its
total to 750 megabites from the present 315 megabites.
- The Department of Telecommunications has asked Videsh Sanchar Nigam Ltd to set up an
exclusive website showing requirement and status of applications from private players for
bandwidth.
- Videsh Sanchar Nigam Ltd's., `monsoon package' introduced from June, for a period of two
months has resulted in a spurt in internet connections in Calcutta.
- The Company has signed a memorandum of understanding with Yahoo! India to host the
latter's servers at its facilities in Mumbai.
- The Company has recommended a 1:1 bonus to its shareholders and proposed increasing the
authorised share capital to Rs 250 crore from the existing Rs 100 crore.
- The Company has become the first Indian Public Sector undertaking to list on the New York
Stock Exchange as it began trading its American depository receipts under the ticker symbol
VSL.
- The Company revised the ratio of bonus shares to 2:1 -- two new shares for each existing share
from the earlier recommended ratio of 1:1.
- VSNL and HDFC have jointly launched online renewal facility for Internet subscription in
Mumbai, New Delhi, Calcutta, Chennai, Pune and Bangalore.
18
2001
- The Company has commissioned Cisco's high-end gigabit switch routers to serve as important
internet exchange points in the country.
- The Company has issued Bonus Shares at the rate of 2:1.
- The race for the 25 per cent stake in Videsh Sanchar Nigam Ltd is hotting up with telecom
majors France Telecom, Essar and Singapore Telecom joining the likely-bidders list along with
Reliance and
Concert
- Joint venture between AT&T and British Telecom.
- The Company is all set to launch direct to home service throughout the country by the end of
this year.
2002
- Videsh Sanchar Nigam Ltd has informed that Shri Subodh Bharagava an independent part-
time-non-official Director has resigned from the post of Directorship from the Board of VSNL
and ceases to be Director with effect from January 17, 2002.
- Videsh Sanchar Nigam Ltd (VSNL) has informed BSE that Shri Ashok Wadhwa an
independent (parttime non-official) Director has resigned from the post of directorship from the
Board of VSNL and ceases to be Director with effect from January 23, 2002.
- Videsh Sanchar Nigam Ltd has informed that Shri Rakesh Kumar,\ Sr.Dy Director General
(ML), DoT has been appointed as Government Director on the Board of VSNL.
-Videsh Sanchar Nigam Ltd has informed BSE that the Chairman Mr R N Tata informed that
Mr S K Gupta the present Managing Director of the Company on his superannuation on
September 30, 2002 from VSNL will be appointed by Tatas as their senior executive for a period
of five years and will be deputed to VSNL for a period of upto two years as its Managing
Director.
19
2003
-Videsh Sanchar Nigam (VSNL) signs an interconnect agreement with Bharat Sanchar Nigam
(BSNL) and Mahanagar Telephone Nigam (MTNL)
-Increases dial-up net access tariffs by 5 to 13 pc
-Re-emerges as the country's largest consumer internet service provider (ISP) in terms of
subscriber numbers
-NSE terminates VSNL from Futures &Options list
-Signs interconnect pact with BSNL & MTNL
-Invests Rs 350 cr in Tata Teleservices Ltd.
-Introduces VRS to its employees
-Receives in-principle approval from Board of Investment as also the Telecom Regulatory
Authority of Sri Lanka for formation of a company in Sri Lanka for undertaking international
telecommunication activities
-VSNL Launches 'Tata Indicom Total Internet' - An Integrated Net
Solution
2004
-VSNL unveils prepaid international calling card
-BSNL inks pact with VSNL for sharing ILD infrastructure
-VSNL embarks on due diligence of DishnetDSL
-VSNL launches call card
-Videsh Sanchar Nigam Ltd has signed an agreement with DishnetDSL to acquire the Internet
businesses of the Sterling Infotech group company for Rs 270 crore.
-VSNL floats wholly owned subsidiary in Singapore, VSNL Singapore PTE Ltd, to facilitate the
landing of cable in that country
-VSNL America joins CompTel / ASCENT
-VSNL UK launches Wholesale Voice Service in Europe
-Ratan Tata quits as VSNL chief
-VSNL introduces 'Software Services on Demand'
20
-VSNL completes acquisition of Tyco Global Network a state-of-the-art under sea cable
network that spans 60,000 kms (37,280 miles) and the continents of North America, Europe and
Asia
-VSNL teams up with Bharti to share undersea cables
-VSNL slahes bandwidth prices to US, Singapore
-VSNL joins hands for fixed line telephony operator in SA
-VSNL - SNO receives PSTS license
2006
-VSNL signs agreement to acquire DIL, an Indian ISP
-VSNL- VSNL International Launches Next Generation Dedicated Global
Ethernet Service connecting North America, Europe, Asia &
-VSNL ties-up with Pizza Corner & Coffee World to offer Wi-Fi at 500 outlets
-VSNL to launch cyber cafes at railway stations
2007
-Videsh Sanchar Nigam Ltd (VSNL) has announced that leading international telecom service
providers, Etisalat, Saudi Telecom, Telecom Egypt, Telecom Italia Sparkle and the Company
have entered into a Memorandum of Understanding (MoU) to work jointly on the construction of
a new submarine cable (I-ME-WE) linking India, the Middle East and Western Europe.
-Videsh Sanchar Nigam Ltd (VSNL) has appointed Mr. N Srinath as the Managing Director of
the Company for a period of five years and the Chief Executive Officer of the VSNL Group of
Companies, with effect from February 02, 2007.
- Videsh Sanchar Nigam Ltd (VSNL) has informed that Mr. A K
Srivastava, DDG(AS), DoT, has been appointed as permanent (non-retiring) director on the
Board of the Company with effect from July 31, 2007.
- VSNL Launches Next Generation Dedicated Global Ethernet Service for The Australia
Market.
21
2008
-Videsh Sanchar Nigam Ltd (VSNL) was presented with the ATLANTIC-ACM Global
Wholesale Best-in-Class Data Price award at the 4th annual Global Wholesale Carrier
Excellence Awards on January 14, 2008.
-VSNL partners with iPass for international Wi-Fi roaming in India.
- Tata Communications Ltd has appointed Mr. Ashok Jhunjhunwala as Additional Director
liable to retire by rotation.
-Company name has been changed from Videsh Sanchar Nigam Ltd to Tata Communications
Ltd
2009
- Tata Communications Ltd has launched Application Performance Visibility Service; Global
Service Helps Customers Ensure Optimal IT Performance
-Tata Communications launches EASY INTERNET targeted at SMBs
-Tata Communications Launches secured Secure Franchisee Connect for the Businesses in India
-Tata Communications joins consortium for cable project in Africa
2010
- Tata Communications, a leading provider of the new world of communications, today
announced the launch of its IP Exchange (IPX) solution, which will enable mobile service
providers to seamlessly and efficiently route all communication traffic, including voles, IP and
signaling solutions, via one IP pipe while supporting end-to-end QoS, security, multilateral
connectivity, and cascading payments.
22
SWOT ANALYSIS
STRENGHTH
•
BRAND RECOGNITION
•
FINANCIAL SOUNDNESS
•
COST EFFECTIVE SERVICE
•
TECHNICAL EXPERTISE
•
HIGH CUSTOMER SATISFACTION
WEAKNESS
•
LOW ARPU
•
LIMITED VARIETY OF HANDSETS
•
UNABLE TO ATTRACT POST-PAID
USERS & CORPORATE CUSTOMERS
• LIMITED TARIFF PLANS
OPPORTUNITY
•
GOVT’S POLICY OF PROVIDING
UNIFIED LICENSE
•
INTRODUCTION OF 3G NETWORK
IN INDIA
•
CONTRIBUTION OF RURAL
SUBSCRIBER IS ONLY 24 % IN
TOTAL SUBSCRIBER BASE
•
INCREASING DEMAND OF
WIRELESS INTERNET
CONECTIVITY
THREAT
•
INCREASING NUMBER OF
COMPETITORS
•
REDUCING ARPU
•
COMPETITORS AGGRESSIVE
MARKETTING
•
COMPETITORS SUPERIORITY IN
BROAD BAND AND INTERNET
• CUSTOMERS SHIFT TOWARDS
GSM SERVICE PROVIDER’S
23
Indian Telecom Sector: An Overview
Role of Telecom Sector in Development Process
Telecommunications has been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for rapid
growth and modernization of various sectors of the economy. It has become especially important
in recent years because of enormous growth of information technology and its significant
potential for the impact on the rest of the economy. The Telecom Sector, which has the
multiplier effect on the economy, has a vital role to play in economy by way of contributing to
the increased efficiency. The available studies suggest that income of business entities and
households increases by the use of telecom services. Thus it contributes to the growth in GDP.
The Government of India recognizes that provision of world class telecommunications
infrastructure and information is key to rapid economic and social development of the Country.
Present Status of the Sector
Telecommunications is one of the few sectors in India, which has witnessed the most
fundamental structural and institutional reforms since 1991. In recent times, country has
emerged as one of the fastest growing telecom markets in the world, particularly by the
unprecedented growth in mobile telephony. This high growth rate has been achieved in major
part due to sharp fall in tariffs. The rapid growth in Indian telecom services has prompted major
global manufacturers of telecom equipment to consider investing in India, paving the way for
extensive provision of modern communication services in rural areas and also provide a strong
boost to government revenues. With the successfully concluded auctions of the 3G and BWA
spectrum, this growth is set to become even more pronounced.
Indian telecom network has 787.29 million connections as on 31st December 2010 with 752.20
million wireless connections, Indian telecom has become the second largest wireless network in
the world after China. The future progress of telecom in our country is very encouraging. The
addition of over 18 million connections per month puts the telecom sector on strong footing. The
target of 600 million telephones by the end of 11th five year plan has been achieved in February,
2010. With such a pace of expansion the Department is certain to achieve the 11th plan targets.
Present status of telecom sector is given in the following Box:
24
Growth of Telecom SectorThe opening of the sector has not only led to rapid growth but also helped a great deal towards
maximization of consumer benefits as tariff have been falling across the board as a result of
unrestricted competition. Telecom sector has witnessed a continuous rising trend in the total
number of telephone subscribers. From a meager 22.8 million telephone subscribers in 1999, it
has grown to 621.28 million at the end of March, 2010. The total number of telephones stands at
787.29 million as on 31st December 2010 showing addition of 166.01 million during the period
from March to December 2010. Wireless\ telephone connections have contributed to this growth
as the number of wireless connections rose from 35.61 million in 2004 to 584.32 million in
March, 2010 and 752.20 million as on 31st December 2010. The wire line started to decline
from 40.92 million in 2004 to 36.96 million in March, 2010 and 35.09 million in December,
2010, albeit it is stagnating now.
25
Indian Telecom market is one of the fastest growing markets in the world. With its 787.29 million Telephone connection as on 31st December 2010, it is the
second largest network in the world after China. It is second largest wireless network in the world. Over 18 million connections are being added every month. The target of 600 million telephones by the end of 11th five year plan has been
achieved in February'10 itself. Wireless telephones are increasing at faster rate. The share of wireless telephones as
on 31st December 2010 is 95.54% of the total phones. The share of private sector in total telephone is 84.60%. Overall tele-density has reached 66.17%. Urban tele-density is about 148%, whereas
rural tele-density is at 31.22% which is also steadily increasing. Broadband connections increased to 10.74 million by November, 2010.
Marc h ' 0 4
Marc h ' 0 5
Marc h ' 0 6
Marc h ' 0 7
Marc h '0 8
Marc h ' 0 9
Marc h ' 1 0
December ' 1 0
Wire line
40.92 41.42 40.23 40.77 39.41 37.97 36.96 35.09
Wireless 35.61 56.95 101.86 165.09 261.08 391.76 584.32 752.20Gross Total
76.53 98.37 142.09 205.87 300.49 429.73 621.28 787.29
Annual Growth %
40% 29% 44% 45% 46% 43% 45% 27%
Changes in structure of composition of Telecom Sector Wire line vs. Wireless
The growth of wireless services has been substantial, with wireless subscribers growing at a
compounded annual growth rate (CAGR) of 57.1% since 2004. Wireless has overtaken wire
lines. The share of wireless phones has increased from 46.54% in 2004 to 95.54% in December,
2010.
wireless47%Wire line
53%
Average share of wireline and wireless phone in march 2004
wire line4%
wireless96%
Average share of wireline and wireless phone in march 2010
Private vs. Public
The fruits of the liberalization efforts of the Government are evident in the growing share of the
private sector. The private sector is now playing an important role in the expansion of telecom
services. The share of private sector in total telephone connections is now 84.60% as per the
latest statistics available for December, 2010 as against a mere 5% in 1999.
26
2004 2005 2006 2007 2008 2009 2010 Dec. 2010
39.27%47.05%
57.01%65.32%
73.53%79.16% 82.96% 84.60%
Growing avg share of private networkGrowing avg share of private network
2004 2005 2006 2007 2008 2009 2010 Dec. 2010
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
20.79% 26.88%38.28%
48.10%66.39%
88.84%
122.00%
147.52%
7.02%8.95%
12.74%18.22%
26.22%
36.98%
53.46%
66.17%
1.55%1.73%
2.34%
5.89%
9.46%
15.11%
24.56%
31.22%
Teledensity (Number of telephones per 100 population)
Rural Tele-DensityUeban Tele-DensityTotal Tele-Density
27
The tele-density which was 7.02% in March 2004 increased to 53.46% in March, 2010
and 66.17% in December, 2010. Thus there has been continuous improvement in the
overall tele-density of the country.
The rural tele-density which was 1.55% in March 2004 has increased to 24.56% in
March, 2010 and 31.22% at the end of December 2010.
The urban tele-density has increased from 20.79% in March 2004 to 122% in March,
2010 and stands at 147.52% at the end of December, 2010.
For economic and social development of rural areas, rapid increase in rural tele-density is of
utmost importance. With the introduction of wireless phones in rural areas, there is increasing
trend in rural tele-density also. The Government is taking various measures under USOF for
expansion of mobile network in remote rural areas. As the urban areas have got saturated, private
service providers are also looking for further opportunities in rural areas. All these factors have
led to increasing trend in rural tele-density.
Potential for Further GrowthIndian telecom market has still a huge untapped potential to grow further. With a large
population yet to have access to telecommunication and tele-density still being 66.17% and rural
tele-density at 31.22%, there is significant growth opportunity for the sector, especially in rural
areas and 3G and BWA yet to make significant inroads. The rural market is expected to drive the
next round of growth for the voice based services while data services will create the much
needed churn with in maturing urban markets. The focus of the shareholder is now shifting to
these untapped rural areas for voice based services and urban areas for the data based services
which will provide engine for the second phase of the growth in Indian Telecom. Rural tele-
density target has been upgraded to 40% by 2014. There is talk about one billion telephones in
the country by 2015.
Broadband
It is necessary to increase the broadband connectivity for the knowledge-based society to grow
quickly and for reaping the consequent economic benefits. The auction of 3G/BWA Spectrum
has been successfully conducted. Newer Access technologies like BWA and 3G can significantly
transform the character of internet/broadband scenario in India. Several policies have been
announced and implemented to promote broadband in the country.
28
● As a result of these measures, the
broadband subscribers grew from
0.18 million in 2005 to 8.8 million
as on 31st March 2010 and 10.92
million, at the end of the
December, 2010.
● Broadband connectivity has been
provided in 4044 cities, 5431 block
headquarter s, 613 district
headquarters covering about
1,06,559 villages.
● Broadband coverage will get fillip with the setting up of 100,000 Common Service Centers
(CSCs) covering all the villages in the country. As on November 2010, 86521 CSCs have been
covered. They will provide internet access and benefit of e-governance to the common citizen.
Growth Dri vers
3G Telecom Services
The explosive growth of the telecom industry in India is being followed by the urge to move
towards better technology and the next level of service delivery. While the last 5 years have been
transformational for Indian telecom industry, the next few years look even more exciting. BWA
will overcome the key hindrance of ROW in India, while 3G has the potential to make the
29
2005 2006 2007 2008 2009 2010 405130
2
4
6
8
10
12
0.21.3
2.3
3.8
6.2
8.8
10.92
Broadband subscribers(in million)
● Scheme to provide 888832 wire line broadband connections to individual and
Government institutions by 2014.
●As on 30th November 2010, 232852 broadband connections and 670 kiosks provided.
● Institutional users such as Gram Panchayats Higher Secondary School and Public
Health Centres will be provided Broadband.
● Subsidy proposed for the wireless broadband active infrastructure such as BTS which
would provide broadband coverage to about 5 lakh villages.
● Initiative taken to strengthen OFC network in rural areas to provide sufficient back-
haul capacity to integrate voice and data traffic
mobile phone, a ubiquitous device for accessing the internet. The new opportunities opened
through new services such as 3G mobile, VAS,
Wi-MAX, M-Commerce, Mobile banking and Broadband wireless services will put emphasis on
deeper penetration into urban and rural areas.
Mobile Number Portability (MNP)
MNP allows any subscriber to change his service provider without changing his mobile phone
number. The much-awaited mobile number portability was launched on 25th November 2010 at
Haryana and on January 20, 2011 in entire country. With the rollout of MNP, mobile telecom
service providers will be forced to improve quality of their service to avoid loss of subscribers.
Foreign Direct Investment Policy
Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the telecom
manufacturing segment in 1991 - when India embarked on economic liberalisation. FDI is
defined as investment made by non-residents in the equity capital of a company. For the telecom
sector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas Corporate
Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American Depository
Receipts (ADRs)/Global Depository Receipts (GDRs) etc.
Present FDI Policy for the Telecom sector:
In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value Added
Services and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent
(under automatic route) subject to grant of license from the Department of Telecommunications
and adherence by the companies (who are investing and the companies in which investment is
being made) to the license conditions for foreign equity cap and lock-in period for transfer and
addition of equity and other license provisions.
Foreign Direct Investment up to 74 per cent permitted, subject to licensing and security
requirements for the following:
- Internet Service (with gateways)
- Infrastructure Providers (Category II)
- Radio Paging Service
FDI up to 100 per cent permitted in respect to the following telecom services:
30
- ISPs not providing gateways (Both for satellite and submarine cables)
- Infrastructure Providers providing dark fiber (IP Category I)
- Electronic Mail
- Voice Mail
The above is subject to the following conditions:
- FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26
per cent of their equity in favour of Indian public within 5 years, if these companies are listed in
other parts of the world.
- The above services would be subject to licensing and security requirements, wherever required.
- Proposals for FDI beyond 49 per cent shall be considered by Foreign
Investment Promotion Board (FIPB) on a case-to-case basis.
In the manufacturing sector 100 per cent FDI is permitted under the automatic route.
In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile Personal
Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject
to grant of license from Department of Telecommunications.
Foreign direct investment up to 74 per cent permitted, subject to licensing and security
requirements for the Internet Service (with gateways), Infrastructure Providers (category-II), and
Radio Paging Service
FDI up to 49 per cent is also permitted in an investment company, set up for making investment
in the telecom companies licensed to operate telecom services. Investment by these investment
companies in a telecom service company is treated as part of domestic equity and is not set of
against the foreign equity cap.
Manufacturing - 100 per cent FDI is permitted under automatic route.
FDI is subject to the following conditions
FDI up to 100 per cent is allowed subject to the conditions that such companies would divest 26
per cent of their equity in favour of Indian public in 5 years, if these companies are listed in other
parts of the world.
The above services would be subject to licensing and security requirements, Wherever required.
Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case basis.
31
Foreign Direct Investment
The liberalization in financial sector has beneficial results as that in telecom sector.
Liberalization with allowing entry to the private firms has resulted in unprecedented growth in
telecom sector. Today, telecom is the third major sector attracting FDI inflows after services and
computer software sector. At present 74% to 100% FDI is permitted for various telecom
services. This investment has helped telecom sector to grow. The total FDI equity inflows in
telecom sector have been US$ 1093 million during 2010-11 (April-November).
2000-2004 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(April to November)
0
2000
4000
6000
8000
10000
12000
14000
1325 1455 2079 2557 38186376
8930 10023
1326 129624 478
1251
2558
2554 1093
Cummulative FDI in Telecommunications Secto (million US$)FDI in Telecommunication Sector (million US$)
India Telecom 2010
The Department of Telecommunications with Federation of Indian Chambers of Commerce and
Industry
(FICCI) organized the 5th exhibition and conference "India Telecom 2010" in December 2010 at
New Delhi with the objective of promoting and showcasing the capabilities & opportunities in
Indian Telecom Sector. The theme for this year's event was "Broadband for all". The
conference brought the Government, policy makers, potential investors, operators,
manufacturers, infrastructure providers, content providers, academia and non-governmental
organization together at a common platform to discuss how telecommunications can lead to an
"all-inclusive growth" of the Indian economy in terms of GDP, growth, employment and
revenues, among others. Hon'ble Minister of Communications & Information Technology graced
the occasion by addressing the participants during the inaugural ceremony on 9th December,
32
2010. The exhibition received a huge response with 273 exhibitors from across 40 countries and
5 country pavilions.
Major Players
There are three types of players in telecom services:
• State owned companies (BSNL and MTNL)
• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications)
Bharat Sanchar Nigam Limited (BSNL)
Name Bharat Sanchar Nigam Limited (BSNL)
Year of Establishment 2000
Company Profile Bharat Sanchar Nigam Ltd. is World's 7th
largest Telecommunications Company
providing comprehensive range of telecom
services in India: Wireline, CDMA mobile,
GSM Mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP services, IN
Services etc. Within a span of five years it has
become one of the largest public sector unit in
India.
Global Presence/ Marketing
Network
It has a network of over 45 million lines
covering 5000 towns with over 35 million
telephone
connections.
Acquisitions / Strategic
Alliances
Future Prospect BSNL plans to expand its customer base from
present 47 million lines to 125 million lines
33
and infrastructure investment plan to the tune
of Rs. 733 crores (US$ 16.67 million) in the
next three years.
Name Mahanagar Telephone Nigam Limited
(MTNL)
Year of Establishment 1986
Company Profile MTNL was set up by the Government of India
to upgrade the quality of telecom services,
expand the telecom network, introduce new
Services and to raise revenue for Telecom
development needs of India’s key metros.
MTNL with a market share of about 13% of
the National telecom Network has a customer
base of 5.92 million. The Govt. of India
currently holds 56.25% stake in the company
Acquisitions / Strategic
Alliances
MTNL has formed a Joint Venture company in
Nepal by the name of United Telecom Ltd.
(UTL) in collaboration with Telecom
Consultants India Limited (TCIL) in 2001 for
Providing WLL based basic services in Nepal.
MTNL has set up its 100% subsidiary.
Mahanagar Telephone Mauritius Limited
(MTML) in Mauritius, for providing basic,
mobile and international long distance
34
Name
Videsh Sanchar Nigam Limited (VSNL)
Year of Establishment
1986
Company Profile The Videsh Sanchar Nigam Limited (VSNL) -
a
wholly Government owned corporation. The
company operates a network of earth stations,
switches, submarine cable systems, and value
added service nodes to provide a range of basic
and value added services and has a dedicated
work force of about 2000 employees. VSNL's
main gateway centers are located at Mumbai,
New Delhi, Kolkata and Chennai.
Global Presence/ Marketing
Network
The company has 52 subsidiaries in 21
countries
as well as operations across four continents.
Acquisitions / Strategic
Alliances
VSNL acquired Nasdaq-listed Teleglobe
International Holdings Ltd for $239 million in
2005 Videsh Sanchar Nigam Ltd acquired
Tyco
Global Network, submarine cable system, for
USD 130 million in 2005
Future Prospect The company plans to expand its wholesale
voices services across the EU, to effectively
enable enterprise customers and retail voice
carriers to connect to India. VSNL is adding its
capacity to meet the overwhelming demand for
connectivity to India in the wholesale voice
services domain. The company is also offering
flexible agreements and charging methods to
35
meet the growing demands of the wholesale
voice market
Name
Bharati
Year of Establishment
1985
Company Profile Bharti Tele-Ventures Limited was incorporated
on July 7, 1995 for promoting investments in
Telecommunications services. Its subsidiaries
operate telecom services across India. Bharti’s
operations are broadly handled by two
companies: the Mobility group and the Infotel
group.
Global Presence/ Marketing
Network
The mobile business provides mobile & fixed
wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia
Services business offers broadband &
telephone services in 94 cities.
Acquisitions / Strategic
Alliances
Bharti Telecom and British Telecom formed a
51%:49% joint venture, Bharti BT Internet for
providing Internet services, in 1998
Bharti Tele-Ventures acquired an effective
32.36% equity interest in Bharti Mobile
(formerly JT Mobiles), the cellular services
provider in Karnataka and Andhra Pradesh
circles in 1999 Bharti Telesonic entered into a
joint venture, Bharti Aquanet, With SingTel
36
for establishing a submarine cable landing
station at Chennai in 2001 A 50:50 joint
venture between Bharti and SingTel, to
undertake the largest infrastructure project
between Singapore and Indian companies in
2001
Future Prospect Bharti Airtel company is planning to set up
3000 more towers as part of enhancing their
rural coverage and will now focus on rural and
semi-urban areas.
Name
Reliance Communications
Year of Establishment 1999
Company Profile Reliance Telecom's cellular services are
available
in 340 towns within its eight-circle footprint.
Reliance Infocomm also offered for the first
time in India, mobile data services though its
RWorld mobile portal. This portal leverages
the
data capability of the CDMA 1X network.
Reliance Infocomm offers a complete range of
telecom services covering mobile and fixed
line
telephony including broadband, national and
international long distance services, data
services and a wide range of value added
services and applications aimed at enhancing
productivity of enterprises and individuals.
37
Global Presence/ Marketing
Network
Reliance Communications has IP-enabled
connectivity infrastructure comprising over
150,000 kilometers of fiber-optic cable systems
in India, the US, Europe, Middle East, and the
Asia Pacific region.
Acquisitions / Strategic
Alliances
International wholesale telecommunications
service provider, FLAG Telecom
amalgamates with Reliance Gateway, a wholly
owned subsidiary of Reliance Infocomm in
2004
Name
Vodafone
Year of Establishment Acquired majority stake in Hutch Essar in
India,
by buying out complete stake of Hutch in
2007, Essar is still minority stakeholder in
company
Company Profile Vodafone Essar in India is a subsidiary of
Vodafone Group Plc and commenced
operations in 1994 when its predecessor
Hutchison Telecom acquired the cellular
licence
for Mumbai. Vodafone Essar now has
operations in 16 circles covering 86% of
India's
mobile customer base, with over 45.78 million
customers. Vodafone Essar, under the Hutch
brand, has been named the 'Most Respected
38
Telecom Company', the 'Best Mobile Service
in
the country' and the 'Most Creative and Most
Effective Advertiser of the Year'.
Global Presence/ Marketing It has operations in 25 countries across 5
continents and 40 Network partner networks
with over 200 million customers worldwide.
Future Prospect Vodafone Essar is expecting to touch over 35
million customers across 400,000 shops and
thousand of hutch’s own employees along with
employees of its business associates.
Name
Idea
Year of Establishment 1995
Company Profile Idea Cellular is part of the Aditya Birla
Group, which is India's first truly multinational
corporation. Aditya Birla Nuvo Ltd. holds 35.7
per cent, Birla TMT Holdings Ltd. 44.9 per
cent, Grasim 7.5 per cent, and Hindalco 10.1
per cent in Idea.
Global Presence/ Marketing
Network
Has a customer base of over 17 million, IDEA
Cellular has operations in Delhi, Maharashtra,
Goa, Gujarat, Andhra Pradesh, Madhya
Pradesh, Chattisgarh, Uttaranchal, Haryana,
UPWest, Himachal Pradesh and Kerala.
Acquisitions / Strategic Merged with Tata Cellular Limited in 2001,
39
Alliances
thereby acquiring original license for the
Andhra
Pradesh Circle Acquired RPG Cellular Limited
and consequently the license for the Madhya
Pradesh (including Chattisgarh) Circlein 2001
In
2004 acquired Escotel, incumbent cellular
service provider in Haryana, UP(W) & Kerala
and new licensee in HP Acquired Escorts
Telecommunications Limited (subsequently
renamed as Idea Telecommunications Limited)
in 2006 Merger of seven subsidiaries with Idea
Cellular Limited in 2007
Future Prospect Idea also plans to enter rural and neglected
circles as a strategy to gain subscribers. Other
advancements in the telecom industry will help
it cut costs - use of e-mail to send bills to
customers; sharing cell sites; smaller base
transmission stations that will mean lesser
infrastructure requirements and expenses and
independent tower operators. Along with its
plan to go for a national long distance licence,
it
will also look at international long distance in
the near future.
CHALLENGES AND OPPORTUNITIES
Opportunities
40
The telecom sector has been one of the fastest growing sectors in the Indian economy in the past
4 years. This has been witnessed due to strong competition that has brought down tariffs as well
as simplification of policy environment that has promoted healthy competition among various
players..
The mobile sector alone has been growing rapidly and has emerged as the fastest growing market
in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA), this sector is
expected to reach a size of nearly 200 million subscribers by financial year 2008. The
government has eased the rules regarding inner circle and intra circle mergers. This has led to a
slew of mergers and acquisitions in the recent past. Also as the sector is moving closer to
maturity, further consolidation is a reality and this will lead to the survival of more profitable
players in this segment In order to further promote the use of Internet in the country the
government is taking proactive steps to develop this sector with the help of the various players in
this segment. For this purpose, the use of broadband technology is being mooted and this will go
a long way in improving the productivity of the Indian economy as well as turn out to be the next
big opportunity for telecom companies after the mobile communications segment Non-voice
services and VAS are the gold mines. The big takeoff is expected with the rollout of 3G services
in early 2007, once the spectrum issues are sorted out. Internet users base fast reaching near the
English speaking population base. Local language and content required for further growth
Infrastructure equipment cost is down to a fraction of what prevailed just a few years ago.
Operators can plan better expansion plan now increased viability for the operators to expand to
semi-urban and rural markets, hence, accelerate growth further it’s not without reason that India
is tipped to be the world’s third-largest economy by 2050! No wonder if it happen much earlier
Investors can look to capture the gains of the Indian telecom boom and diversify their operations
outside developed economies that are marked by saturated telecom markets and lower GDP
growth rates. At a time when global telecom majors are struggling to cope with their losses and
the rollout of 3G networks, which has been a non-starter for close to a year now; India, with its
telecom success story, represents an attractive and lucrative destination for investment.
DATA
41
COLLECTION OF DATA
Data collection is a term used to describe a process of preparing and collecting data - for
example as part of a process improvement or similar project. The purpose of data collection is to
obtain information to keep on record, to make decisions about important issues, to pass
information on to others. Primarily, data is collected to provide information regarding a specific
topic.
In this project I have collected the data related to the prospective channel partners has bin
collected with respect to the their financial turnover and other details.
PRIMARY DATA
The questionnaire constituted of 8 questions in total which were formed with the view of
obtaining the exact analysis of whether the Channel partners in the market for the new
prospective channel partners.
QUESTIONNAIRE
42
COMPANY NAME
Name of the Key contact
Designation of the key contact
CORRESPONDENCE ADDRESS
PINCODE
LANDLINE NUMBER (S)
MOBILE NUMBER
E.MAIL ID
URL /Webiste
Approx Last FY Turnover
Nature of Organization
Proprietorship Partnership Pvt Ltd Public Ltd /Listed Co
Number of People in the Organization
Sales Technical Admin/Support Tele-callers Total
Current Top 5 Business Partners
Vendor Name Approx Revenue
Panasonic Crystal Beetle Polycom Others TOTAL
Customer Profile (Segment)
Segments
Segment wise revenue Split (%)
Approx No of Customers in that Segment
43
Large Enterprise / Large Corporate (> 500 Employees Org)
SMB (1-499 Employees Org)
Government
Home Consumer
Resellers
Other (Specify) Customer Profile (Industry)
IT/Software/Web Development BPO's/KPO's Education Manufacturing Banking /Financial Services Media & Entertainment Companies Pharma Others (Pls specefiy) Total
Services
Currently Deal
(Yes / No )
Approx Annual
Revenue
Name of Service Provider
Network Services
Broadband
ILL
MPLS
IPL/NPL
CDN
Voice Solutions
Managed Voice over IP
International Private Line CC
IP Voice Connect
Voice VPN
Audio Conferencing
Data Center Solutions
Co-Location Services
Managed Hosting
Managed Storage
Virtualization
Cloud based Solutions
IaaS - InstaCompute
44
SaaS - InstaOffice
SaaS - Insta CRM
SaaS - HRMS
Security
Firewall
Virtual Unified Threat Management
Intrusion Detection Services / Intrusion Prevention Services
Managed Distributed Denial Of Service
Total
Secondary Data
The data provided by the company.
45
46
Findings & Analysis
Most of the channel partners are interested in the having the partnership with Tata
Communications. Most of them have very good market coverage as seen in the table, but very
few deserve for the same and very good market reputation.
They are as follow,
CREW Business System Ultrasonic system Speedo communication Excel Solutions Perfect Electronics Cosmos Pvt. Ltd
Recommendations
Very few are capable of handling the partnership of the Tata Communications as they are
mentioned above.
47
Bibliography
http://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf
http://business.mapsofindia.com
www.tatacommunications.com/
en.wikipedia.org
48
Synopsis
Topic Business Partner Profiling for TCL SMB Business in Mumbai
Project Objective Business development for the TCL SMB department and building the brand
image of TCL over TTML.
Methodology to be adopted
Market survey for getting information of the prospective business partners and existing business
partners of the TCL understanding there efforts taken by them for building the business.
Brief Summary of project
Understanding the product line offered by the TCL to the channel partners to distribute to the
consumers. meeting the existing channel partners and prospective channel partners of the TCL.
Scrutinizing their profile for the business development. if the particular partner is confused
between TTML and TCL then clearing him regarding that.
49