Career in Sales in Telecom domain
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Transcript of Career in Sales in Telecom domain
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Sales Profiles In The Telecom Sector
- Vivek Jain
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Telecom Infrastructure Industry
SuppliersSuppliers
End UserEnd User
IntermediariesIntermediaries
CompetitorsCompetitors Marketer- UTSIMarketer- UTSI
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Suppliers
Manufacturing
Raw Materials come from China for products like Broadband Equipment, IPTV, Optical InfrastructureThese include transistors, PCBs, racks, cables
For CDMA handsets, chipsets, ICs and phone grade plastics are also supplied from China
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Suppliers
Providing turn-key solutions. Complete solutions for the clients for the
case of Optical Cables. Mainly come from Birla-Ericsson, Fibcom
LAN Switches from Juniper, ATRICA, Tellabs, Huawei (though it is the biggest competitor)
Servers – Wipro, IBM, Accel Frontline, Houston Technologies
Testing Equipment – Acterna, Trend Communications, Tirumala, AIMIL
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Key Players
Huawei – Biggest player internationally with a vast product line
ZTE – Major player globally and in the Indian Market
Siemens – Has technologically superior products but loses out on its pricing
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Tejas NetworksStrong player for Optical transmission products
D-LinkManufacturer of a wide variety of modems
NortelManufacture of high end switches
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Other Players
Lucent-Alcatel Ericsson Nokia (GSM) Fibcom C-Dot Sterlite ITI
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End User/ Market These players are not into retail and sell solutions only
to service providers like Bharti, BSNL, MTNL, Reliance
End users of UTS equipment are Broadband, VoIP, IPTV, CDMA handset users.
Market Scope – Looking at the growing demand for broadband and mobile phones, UT is planning to expand its Indian operations and offer high end services which are currently available only in Japan and USA.
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To summarize
Suppliers (FIBCOM, IBM, Wipro etc)Suppliers (FIBCOM, IBM, Wipro etc)
End User (Bharti, BSNL, MTNL, Reliance) End User (Bharti, BSNL, MTNL, Reliance)
Intermediaries (Aksh, ICOMM etc)Intermediaries (Aksh, ICOMM etc)
Competitors (Huawei, ZTE, Siemens etc) Competitors (Huawei, ZTE, Siemens etc) Marketer (UTS)Marketer (UTS)
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Modes of Sale 1. Trial Demo/Pilot Projects
Shortlist 3-5 vendors for trial demos on products Performance based decision on which vendor to select on
the basis of these trials
2. Tenders Vendors evaluated on technical specifications and
shortlisted Price list of all vendors compared for the lowest price Price negotiation meetings-finally award of Purchase Order
3. Request for Proposal (RFP) Vendors to submit complete proposal including network
diagrams and prices Vendor with best balance of efficiency and price is selected
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Telecom Sales - Profiles
Key Account Management Pre-Sales Bid Management Post-Sales
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Key Account Manager
In-charge of all Sales-related activities in key accounts
Forms an interface between the Pre-Sales team and the customer
Does strategy formulation for each RFP
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Pre-Sales
Attend Vendor Conferences In-charge of a particular product
line Understands customers’
requirements Is in constant touch with the global
Business Unit (BU) to customize product
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Bid Management Customer comes out with tender/RFP Detailed documentation to be provided
Technical Product compliance to company specifications (TEC) Product test reports
Commercial Eligibility conditions – Company turnover, past record,
deployments, indigenous production base Compliance to General conditions of the contract
Price Bid Micro-level pricing detailing cost of every
component(both H/W and S/W) Highly confidential
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Post-Sales
Bookings – 40% of variable
Collections - 40% of variable
Revenue Recognition- 20% of variable
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16
UTStarcom-Company Profile UTStarcom is a global leader in IP-based, end-to-end networking
solutions and in providing telecom equipment and infrastructure It enables its customers to rapidly deploy revenue-generating
access services using their existing infrastructure, while providing a migration path to cost-efficient end-to-end IP networks
Renowned for its wireline, wireless, optical and switching solutions It is a Fortune 1000 company formed in 1991 and has its head
quarters in Alameda, California UTStarcom was formed by the merger of two companies - UniTech
and Starcom Huge global presence, started operations in India 5 years back,
attracted by the exponentially rising demand for voice, broadband services here.
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Sales strategies and intermediaries
UTS interacts directly with customers when providing end to end solutions to eliminate commissions and maximize gross margins.
Reliance – CDMA handsets sold to Reliance and TATA Indicom directly
Bharti – Trial for IPTV equipment and services negotiated directly
In some cases, front end partners who have strong links with the customers are employed
MTNL – to provide IPTV solution to MTNL, Aksh Broadband was used as a front partner which had strong relations with MTNL to understand MTNL’s network requirements
BSNL – UTS used ICOMM as a partner for the BSNL account to help eliminate delay of testing and validation as ICOMM has been providing equipment to BSNL for a long time and is therefore trusted
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Annual Turnover - Global and Indian
Year
0
500
1000
1500
2000
2500
3000
3500
2002 2003 2004 2005 2006
An
nu
al G
lob
al T
urn
ove
r (m
illio
n
$US
)
0
20
40
60
80
100
120
140
160
180
200
An
nu
al In
dia
n T
urn
ove
r (m
illio
n
$US
)
Source: Annual Reports of UTS Inc. and UTS India
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What does it provide
End to End Broadband Solutions IPTV Solution Optical Transmission Infrastructure CDMA Handsets
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Thank you