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INDUSTRY OVERVIEW


It is well known that the Indian Telecommunications Industry is the third largest in the world
and second largest in Asia. The sector is growing at a speed of 45% during the recent years.
The growth rate of India Telecommunication Sector is 36.22%. The growth rate of
subscribers in rural areas during 2011 was higher at 40.64% compared to 34.41% in urban
areas.


This rapid growth has been possible due to various decisions made by the Government and
also due to the contributions of both the public and the private sectors. The liberal policies of
the Government provide easy market access for telecom equipment. A fair regulatory
framework followed by the Government offers telecom services to the Indian consumers at
affordable prices.
Indian Telecommunication Services can be broadly classified into:
         Basic
         Mobile
         Internet



Basic services are further divided into two:
         Fixed wire line
         Wireless



In those days, fixed wire lines were used in majority but these days, mobile phones
subscribers have outnumbered the landline subscribers. In fact, it was recently stated by the
Rural Development Minister Jairam that, the number of mobiles phones in India are more
than the number of toilets. Decades back, food, clothing and shelter were the only three basic
needs. But in the current scenario, mobile phones are the fourth basic need.
In the year 2012, the internet subscribers have increased to 19.67 million and the numbers of
broadband connections have increased to 11.89 million.
The three new and important policies of the National Telecom Policy unveiled by the
Government are as given below:
       Telecom users will be able to avail free roaming
       Telecom users can keep their phone numbers even if they switch service providers
       anywhere in the country
       The distinction between local and STD calls would vanish, as the policy aims at a
       'one-nation-one-licence' regime.

Telecom tower industry consumes around 2 bn litres of diesel in a year which is almost equal
to the consumption of diesel by the Indian railways. Thus, companies need to shell out huge
money on energy. As a result, the idea of solarisation of towers is being considered which
would help in the conservation of energy. It is not an easy task to solarize all towers but the
idea might be implemented sometime in the near future. Telecommunication is the
transmission of information over significant distances to communicate.


2.1.1. Snapshot cpmparison of various players in the Indian telecom industry


   Service        Subscribers      Subscriber     Net Additions    Share of net      Change in
   provider          (mn)         market share    (mn) Apr-12     additions Apr-    market share
                    Apr-12          Apr-12                              12            (M-o-M
    Bharti          183.29          27.33%             2.01          30.98%             0.04%
  Vodafone          151.28          22.56%             0.82          12.62%            -0.10%
    Rcom             0.00            0.00%             0.00            0.00%            0.00%
     Idea           114.21          17.03%             1.49          22.91%             0.06%
     Tata            0.00            0.00%             0.00            0.00%            0.00%
    BSNL             94.68          14.12%             0.00            0.00%           -0.14%
    Aircel           63.59           9.48%             1.01          15.62%             0.06%
    Loop             3.26            0.49%            -0.01           -0.13%           -0.01%
   Etisalat          1.69            0.25%             0.00            0.00%            0.00%
    HFCL             0.00            0.00%             0.00            0.00%            0.00%
   MTNL              5.49            0.82%            -0.11           -1.67%           -0.02%
   Sistema           0.00            0.00%             0.00            0.00%            0.00%
     Stel            3.43            0.51%             0.00            0.00%            0.00%
   Unitech           43.55           6.49%             1.12          17.25%             0.11%
  Videocon           6.11            0.91%             0.16            2.41%            0.01%
    Total           670.57          100.00%            6.49          100.00%
Source: COAI, FQ Research,
http://www.moneycontrol.com/news_html_files/news_attachment/2012/Telecom_FinQuest_
310512.pdf

                      Subscriber market share Apr-12
                                   6.49%                                           Bharti
                          0.49%
                                                                                   Vodafone
                                                                                   Rcom
                             9.48%           27.33%
                                                                                   Idea

                          14.12%                                                   Tata
                                                                                   BSNL
                                            22.56%                                 Aircel
                               17.03%
                                                                                   Loop
                                                                                   Etisalat


Various classes in the Telecom sector


There are various classes in which operators are sub-divided. Claas A, consists of operators
that provide connectinity to the entire country-pan India. Class B, consists of operators that
provide connectinity to an entire state, and Class C, consists of operators that provide
connectinity to a city.
These are based on licenses, accquired by shelling out money, selling equipment etc., to show
that the companies are serious and intend to continue and grow.
2.COMPANY OVERVIEW


Aircel




The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and
Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy
family of Apollo Hospitals Group of India, with Maxis Communications holding a majority
stake of 74%. Aircel commenced operations in 1999 and is today the leading mobile operator
in Tamil Nadu, Assam, North-East and Chennai.


In October 2010, Aircel completed its Pan India footprint, presence in all 23 telecom
circles(can be a state or combination of cities and states eg. Delhi-NCR), with the launch of
GSM mobile services in Rajasthan, hence becomming a Class A operator. After winning the
3G and BWA spectrum, required for high speed data and multimedia services, in 13 and 8
circles respectively, Aircel became the largest operator in India with spectrum secured for
next generation wireless technologies.


Aircel has also been recognized for its consistent and reliable efforts. Voice and Data gave
Aircel the highest rating for overall customer satisfaction and network quality in 2006 and
Aircel received the same award by IDC in 2007. Aircel is ranked 5th in GSM mobile
operators. It needs licence + network to operate, due to govt. Restrictions for network and
bandwidth


It has the market lead in Tamil Nadu, Chennai, Assam and North East. It is dedicated to save
tigers as it‘s CSR activity. It has won the 2009 NASCOM award. It is into both GSM (Global
System for Mobile communication), and CDMA (Code Division Multiple Access).
Aircel Business Solutions




Aircel as a company was started in 1995, in Chennai, as a GSM operator. In 1999, it became
a mobility GSM operator, operating two wings, Cellular and Business Solutions. It obtained
it‘s licence to operate from the Dept. Of Telecommunications, which assigned bands to it.
Aircel is a brand, actually formed by the coming together of two companies, Maxis
communication group, bought 74 % of Aircel‘s market share, which was the highest FDI as
per govt. Limits in 2005 (Maxis is the no.1 telco in Malasiya, with various other alliance with
various stakes in other operators around the world), and Appollo Hospitals having 26 %
stake.


Aircel Business Solutions (ABS) (the Business Unit of Dishnet Wireless Limited) is the
enterprise division of Aircel, which addresses the telecom requirements of International and
Indian markets with an array of industry-leading products and services. As an integrated
telecom service provider, ABS leverages its rich pedigree of best-in-class solutions,
partnerships and domain expertise to address service providers, enterprises, PSUs, and
consumers. Its range of services includes networking, data centers, managed services,
collaboration services, SaaS (Software-as-a-Service) and mobility solutions.


ABS is the pioneer of data connectivity solutions and it has demonstrated the same by being
the first operator in India to launch WiMAX technology. ABS is also a registered member of
WiMAX forum – both in the Indian and International Chapters.
With a pan India rollout of over dual core optical fiber backbone, over 400 IP MPLS PoPs
and leveraging integrated wireline and wireless data solutions, ABS is ideally suited to
provide high speed, secure, and reliable managed networking solutions across India.


The carrier to carrier business is served by Aircel wholesale and carrier Business team.the
enterprise team addresses the B2B segment from all industry verticals ( Telecom,IT,Banking,
Retail and Manufacturing). The SME team caters to the telecom requirements of Small and
Medium Enterprises.
Aircel Business solutions provides connectivity solutions on licensed spectrum to enterprise
customers, with a major focus on the data segment. It has around 6.5 Crore or 65 million
subscribers currently, accounting to about10 % of the market. It‘s network is powered by
CISCO.


The connectivity business runs on media, which can be wireless or wired. Voice (basic call)
and data (SMS, social media, mails, B2B, etc.) are two products of this business. Voice
frequency ranges from 20-20,000 Hz (Humans). Resolution changes requirements of people,
hence resulting in various offerings.


2.2.3. Objectives of Aircel


       To grow the business 3 fold
       To increase indirect manpower by 3 times
       To increase channel partners by 3 times
       To grow mobility post paid business 10 times and dongle business 20 times and
       Internet Lease Line business 3 times
       To retain all executives
       To know every company recruiting > than 10 people
       To find out prospective candidates
       To know which industry vertical will require Leased Line
       All IT managers should BE AWARE OF Aircel, and when they have a requirement,
       they should call them.
       To know channel partners of competitors
       To know new venture capitalists and pvt. Equity ventures
       Market share and opportunities in tech. Parks
VISION AND MISSION
Vision
Become the Service Provider of Choice for the Enterprise Segment
Mission
    Entry into top 1,000 corporates as the most agile service provider
    Create well differentiated value offerings for ready adoption by large, medium and
         small enterprises
    Own service offerings, platform and delivery mechanism that keep us ahead of
         competition now and during technology shifts


Some important concepts of telecommunications being dealt with by Aircel                Business
Solutions


         2G- Specifically for voice
         3G- Voive + Data, no pan India licence
         Aircel has 13, one of the largest no. of 3G licenses, along with Airtel having 13
         3G is still a limitation
         4G or BWA(Broadband Wireless Access) helps to give very high speed data
         connectivity on mobile in 8 telecom circles
         Aircel has 43 total licenses, the largest by any telco
         Aircel is a unified telecom player, having voice traffic + data traffic in the same
         network, hence giving equal importance to both which is called NGN (next generation
         network), the first company in India
         Optical fibres used to transmit voice and data
         International P-O-P (Points of Presence) are at Canada, New York, Singapore, Los
         Angeles, Kuala Lumpur and Hong Kong
         A call is made wirelessly, which gets captured by an antenna or reciever, sound
         signals get converted into electric signals, which then passes through cables, till it
         reaches the nearest transmitter of the reciepent, where it gets trasmitted wirelessly to
         the reciepent‘s device
         NNI- Network to Network Interface is a tie up between domestic and foreign players
         to expand globally
Two landing stations, Chennai and Mumbai, also called the Dual-Core architecture of
       Aircel provide connectivity through submarine cables
       The idea behind the dual core architecture is that, if one core fails, all traffic can be
       diverted to the second core, hence decreasing downtime, maintenance and losses
       associated with it, and increasing uptime and credibility.
       It is an ISP (internet service provider)-class A, ITSP (internet telephony service
       provider), NLD (national long distance), IP1 & IP2 (infrastructure sharing).
       WiMAX- fixed secured wireless for data connectivity.
       Operating spectrum ranges from 3.3 GHz to 5.7 GHz.
       Bandwidth is the thickness of availability of data flow.


Network Architecture


The capacity of the network gives connectivity to companies, which do not have the
capability, experience, time or resources required. Today Aircel has all licenses required to
give data connectivity to anyone, anywhere. It‘s backbone is it‘s main network, provoding
maximum capacity, i.e. maximum bandwidth.


It consists of wired and wireless. Wired is older, made of copper, but Aircel only deals with
fibre optics. Wireless consists of Wi-Max, which is secured and is 2Mbps max. Radio
frequency is unsecured, having high capacity and range.


Wired is better than wireless, with Wi-Max upto 4-5 km, and Radio Frequency upto 10-15
km. But wired can have physical damages, therefore, backup can be a good option. It is also
called last mile connectivity, through wired and wireless. Next, we will discuss various
products and solutions in data in ABS.
Connectivity solutions or Products in Data


       Leased Line – Dedicated circuit, potent to pass optical fibre only, no interference,
       bought in Mbps, speed constant and as stated, have SLA‘s
       Broadband – Non dedicated – retail product – no SLA (Service Level Agreements),
       less speed, no dedicated customer care or NOC, limited ti 2 mbps, cheap.
Internet Leased Line – Dedicated customer care and NOC, highly scallable, costly,
       any company spending around Rs. 7,000-8,000 pm on internet, can be migrated to
       ILL. Wired- > 6 Mbps, wireless- 2-4 Mbps.
       Multi protocol label switching – Based on bandwidth and location.
       VOIP – Through internet, we can make voice calls. Voice over internet protocol.
       POP – Point of presence – 434 + in the country, 190 + across globe
       BTS – Base trans reciever station.
       BSL – Base solutions control.
       MSC – Main switching center.
       Prepaid services for minutes, locations etc. No incoming, only outgoing.


PRODUCT AND SERVICES

       National Private Leased Circuit (NPLC)
        International Private Leased Circuit (IPLC)
       Global MPLS Virtual Private Network (Global MPLS VPN)


Aircel offers a suite of world-class Internet Services to enterprises strongly backed by highly
redundant, carrier grade mesh network. ILL services are offered over various last mile
options viz. Wi-MAX, Fiber and P2P radio to ensure cost effective solutions meeting your
expectations of high uptimes and redundancies in network connectivity with minimum
latencies. ABS further ensures high speed interconnected backbones with round the clock
proactive monitoring through centralized NOC.
Aircel offers cutting edge connectivity services powered by our State of the Art &
extensively Robust Multi Carrier Meshed Backbone. Our customers get the Fastest &
Shortest Data Transit Paths around the world, with our Domestic and International IP Transit
on Trans-atlantic & Trans-pacific Networks.
ABS offers following flavours of Internet Services:


Dedicated Internet Services: Platinum 1:1
Our Flagship Product ensures customers' enjoy dedicated and symmetric Internet
connectivity on Dedicated Access Mediums & Bandwidths.
Shared Internet Services: Gold 1:2 and Silver 1:4
Gold & Silver Shared Internet bandwidth is specially designed for SMBs to offer cost
effective solution on Shared Access Mediums without compromising performance.
IDC Internet
Tailor made bandwidth solution crafted to cater the customers needing asymmetric
bandwidths delivering 100% Upload and 25% download of the subscribed port.


AREA OF OPERATION
Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM
cellular phone coverage throughout Kerala, Tamil Nadu (including Chennai), Andhra
Pradesh, Assam, North East India, Orissa, West Bengal (including Kolkata), Jammu and
Kashmir, Bihar , Himachal Pradesh & Mumbai


OWNERSHIP PATTERN

Maxis, in its quarterly report for the period ended March 31, 2006, has declared to the Bursa
Malaysia Stock Exchange that it has 99.3 per cent investment in Aircel.

According to the affidavit, Maxis paid $1,072.29 million (99.29 per cent of Aircel) and
Chennai-based Apollo group‘s Reddy family $7.71 million (0.71 per cent) to buy a 100 per
cent stake in a deal valued at $1,080 million.

However, technically, Maxis owns 73.9999 per cent equity shares of Aircel, while the Reddy
family holds 26.0001 per cent shares.

The FIPB had approved Aircel‘s proposal to increase its holding to 74 per cent from 49 per
cent on March 14, 2006. Current telecom norms permit up to 74 per cent FDI in a mobile
operator.
―To get the 26 per cent equity shares, the Reddy family was required to pay $280.80 million
but it paid only $7.71 million. The rest was paid from the funds created by Maxis through
preferential shares,‖ the affidavit alleged.

In return for the funds made available by Maxis to the Reddy family, the joint venture
company shareholder agreement disclosed by Maxis on January 20, 2006, states, ―The
preferential shareholders will be entitled to receive a fixed dividend at the rate of 0.1 per cent
per annum and shall have a right to participate in the remaining profit of the joint venture
company (JVC-Deccan) in proportion to their financial contribution.‖

Analysts said, ―This arrangement is not a case of a normal loan but calls for a proportionate
share in the profits, which is nothing but returns on foreign investment made.‖

The Reddys own 26 per cent in Aircel through Deccan Digital Networks — a joint venture of
Global Communications Services Holdings (GCSH) and itself.

GCSH is a 100 per cent subsidiary of Maxis, which holds 64 per cent in Aircel directly.
GCSH owns 25 per cent in Deccan, with the Reddys holding 75 per cent. Deccan holds 35
per cent in Aircel.

The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and
Sindya Securities & Investments Private Limited. The former has a majority stake of 74
percent.
COMPETITORS INFORMATION



AIRTEL
Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest cellular
service provider with more than 92 million subscribers as of February 2009. It also offers
fixed line services and broadband services. It offers its TELECOM services under the Airtel
brand and is headed by Sunil Bharti Mittal. The company also provides telephone services
and Internet access over DSL in 14 circles. It also acts as a carrier for national and
international long distance communication services. The company has a submarine cable
landing station at Chennai, which connects the submarine cable connecting Chennai and
Singapore.


The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU‘s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. 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 95 cities and has recently launched India's best Direct-to-Home (DTH) service,
Airtel digital TV. The company provides end-to-end data and enterprise services to the
corporate customers through its nationwide fiber optic backbone, last mile connectivity in
fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the
gateways and landing station.


Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base,
behind China Mobile and China Unicom. In India, the company has a 24.6% share of the
wireless services market, followed by 17.7% for Reliance Communications and 17.4% for
Vodafone Essar.
VODAFONE
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23
telecom circles in India. Despite the official name being Vodafone Essar, its products are
simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage
throughout India with good presence in the metros.


Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 license areas. It is
among the top three GSM mobile operators of India.


Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals,
15%. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held
by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. [2] . The transaction closed on
May 8, 2007.

                                                   IDEA
Idea Cellular is a wireless telephony company operating in various state in India. It initially
started in1995 as a joint venture among the Tata‘s, Aditya Birla Group and AT&T by
merging ―Wings Cellular‖ operating in Madhya Pradhesh, Uttar Pradesh(UP) West,
Rajasthan and Tata Cellular as well as Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004
gave Idea a truely pan-India presence covering Maharashtra, Goa, Gujarat, Andra Pradesh,
Madhya Pradesh, Chattisgarh, Uttar Pradesh(East and West), Haryana, Kerala, Rajasthan and
Delhi(inclusive of NCR).
Initially the Birla‘s the Tata‘s and AT&T Wireless each held one-third equally in the
company. But following AT&T Wireless mergerwith Cingular Wireless in 2004, Cingular
decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas
at16.45% each.
Tata‘s foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based
mobile provider, cropped differences between the Tatas and Birlas This dual holding by Tatas
also became a major reason for the delay in Idea being granted a license to operate in
Mumbai. This was because as per Department of Telecom (DOT) license norms, one
promoter could not have more than 10% stake in two companies operating in the same circle
and Tata Indicom was already operating in Mumbai when Idea feild for its license.
The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by
saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya
Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs.40.51 a
share amounting to Rs.44.06 billion. While 15% of the 48.14% stake was acquired Aditya
Birla Nuvo, a company in-charge of the Birlas new business initiatives, the remaining stake
was acquired by Birla TMT holdings Private Ltd., an AV Birla family owned company.
Currently, Birla Group holds 49.1% of the total shares of the company.



Bharat Sanchar Nigam Limited
BSNL is a public sector telecommunication company in India. It is India's largest
telecommunication company with 24% market share as on March 31, 2008. Its headquarters
are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the
status of Mini Ratna, a status assigned to reputed public sector companies in India.


BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a
customer base of 90 million as of June 2008.[1] It has footprints throughout India except for
the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on
March 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million
CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial
Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR
78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The
company is planning an IPO with in 6 months to offload 10% to public in the Rs 300-400
range valuing the company at over $100 billion.


BSNL provides almost every telecom service in India. Following are the main telecom
services provided by BSNL:
Reliance Communications (formerly Reliance Infocomm)
Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures
(RCoVL). It is an Indian telecommunications company. According to National Stock
Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which
accounts for more than 1.36 billion shares.[3] It is the flagship company of the Reliance-Anil
Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services
(Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x
technology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology for
its existing/newly launched GSM services.


RelCom is also into Wireline Business throughout India and has the largest optical fiber
communication (OFC) backbone architecture [roughly 110,000 km] in the country.


Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big
TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have
presence across all B2C communications channel in one of the fastest growing markets in the
world.


On July 2007, the company announced it is buying US-based managed ethernet and
application delivery services company Yipes Enterprise Services for a cash amount of Rs.
1200 crore rupees (equivalent of USD 300 million).


ACHIEVEMENT/AWARD
    Aircel got the highest rating for overall customer satisfaction and network quality in
         2006 by Voice and Data.
    Aircel was rated as the top mid-size utility company in Business World‘s ‗List of Best
         Mid-Size Companies‘ in 2007.
    Aircel was recognized for the award by IDC in 2007 for being successful in fulfilling
         our promises to our customers.
    Aircel has been selected as the best regional operator in 2008 by Tele.net. Aircel is
         headed by shahid mustafa who was asked to leave Hutchinson Essar Ltd - Mumbai.
 Aircel are one of the sponsors of the Indian Premier League Cricket Team Chennai
       Super Kings captained by Mahendra Singh Dhoni.It is also the sponsor for
       Professional Golf Tour of India from 2009 onwards
Honoured by CMAI INFOCOM for excellence in marketing of new telecom service in 2009.


FUTURE GROWTH AND PROSPECTS

    Aircel Ltd is likely to launch its 4G service in about six months, according to
       K. Sankara Narayanan, Regional Business Head, Aircel Ltd, Chennai.

       Sankara Narayanan said that 4G is ―definitely a step forward in technology‖ giving
       the customers a ―fantastic choice‖. It would also give customers ―incredible speed that
       does not exist in the market today‖

    The company has identified data services as the future growth engine, even though
       voice services continue to account for the largest share of the revenue of the telecom
       industry.

Being the largest operator in India with spectrum secured for next generation wireless
technologies (3G and BWA)`1, over 100 IP MPLS PoPs, Pan India dual core optical fiber
backbone and WiMAX presence in over 53 cities, Aircel Business Solutions is ideally suited
to provide world class, high speed, end-to-end voice & data solutions
SWOT ANALYSIS

Strength

1.Fifth largest GSM mobile service provider with subscriber base over 27mn
2.13% market share

Weakness

1.Profitability is an issue
2.Lack of advertising
3.Low brand visibility

Opportunity

1.Fast expanding cellular market
2.Latest and low cost technology
3.Untapped rural market
4.Value added services

Threats

1.Competitors low price offering
2. Saturation point in Basic telephony service
3.Mobile Number Portability
PART-B




   PROJECT PROFILE
OBJECTIVES OF THE STUDY


    To find out recruitment trends of small and medium IT companies in South India,
    based on www.naukri.com.
    I am only focussing on online recruitment and other sources have not been considered
    and have not focussed on consultancies.
    This would help make a study about the IT sector and it‘s requirements, hence helping
    the company, the logic being that if they are hiring, they would require secure, high
    speed connectivity solutions, which is where Aircel Business Solutions can pitch in
    it‘s offering.

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Indian Telecom Industry Overview: Growth, Segments, Key Players and Trends

  • 1. INDUSTRY OVERVIEW It is well known that the Indian Telecommunications Industry is the third largest in the world and second largest in Asia. The sector is growing at a speed of 45% during the recent years. The growth rate of India Telecommunication Sector is 36.22%. The growth rate of subscribers in rural areas during 2011 was higher at 40.64% compared to 34.41% in urban areas. This rapid growth has been possible due to various decisions made by the Government and also due to the contributions of both the public and the private sectors. The liberal policies of the Government provide easy market access for telecom equipment. A fair regulatory framework followed by the Government offers telecom services to the Indian consumers at affordable prices. Indian Telecommunication Services can be broadly classified into: Basic Mobile Internet Basic services are further divided into two: Fixed wire line Wireless In those days, fixed wire lines were used in majority but these days, mobile phones subscribers have outnumbered the landline subscribers. In fact, it was recently stated by the Rural Development Minister Jairam that, the number of mobiles phones in India are more than the number of toilets. Decades back, food, clothing and shelter were the only three basic needs. But in the current scenario, mobile phones are the fourth basic need. In the year 2012, the internet subscribers have increased to 19.67 million and the numbers of broadband connections have increased to 11.89 million. The three new and important policies of the National Telecom Policy unveiled by the
  • 2. Government are as given below: Telecom users will be able to avail free roaming Telecom users can keep their phone numbers even if they switch service providers anywhere in the country The distinction between local and STD calls would vanish, as the policy aims at a 'one-nation-one-licence' regime. Telecom tower industry consumes around 2 bn litres of diesel in a year which is almost equal to the consumption of diesel by the Indian railways. Thus, companies need to shell out huge money on energy. As a result, the idea of solarisation of towers is being considered which would help in the conservation of energy. It is not an easy task to solarize all towers but the idea might be implemented sometime in the near future. Telecommunication is the transmission of information over significant distances to communicate. 2.1.1. Snapshot cpmparison of various players in the Indian telecom industry Service Subscribers Subscriber Net Additions Share of net Change in provider (mn) market share (mn) Apr-12 additions Apr- market share Apr-12 Apr-12 12 (M-o-M Bharti 183.29 27.33% 2.01 30.98% 0.04% Vodafone 151.28 22.56% 0.82 12.62% -0.10% Rcom 0.00 0.00% 0.00 0.00% 0.00% Idea 114.21 17.03% 1.49 22.91% 0.06% Tata 0.00 0.00% 0.00 0.00% 0.00% BSNL 94.68 14.12% 0.00 0.00% -0.14% Aircel 63.59 9.48% 1.01 15.62% 0.06% Loop 3.26 0.49% -0.01 -0.13% -0.01% Etisalat 1.69 0.25% 0.00 0.00% 0.00% HFCL 0.00 0.00% 0.00 0.00% 0.00% MTNL 5.49 0.82% -0.11 -1.67% -0.02% Sistema 0.00 0.00% 0.00 0.00% 0.00% Stel 3.43 0.51% 0.00 0.00% 0.00% Unitech 43.55 6.49% 1.12 17.25% 0.11% Videocon 6.11 0.91% 0.16 2.41% 0.01% Total 670.57 100.00% 6.49 100.00%
  • 3. Source: COAI, FQ Research, http://www.moneycontrol.com/news_html_files/news_attachment/2012/Telecom_FinQuest_ 310512.pdf Subscriber market share Apr-12 6.49% Bharti 0.49% Vodafone Rcom 9.48% 27.33% Idea 14.12% Tata BSNL 22.56% Aircel 17.03% Loop Etisalat Various classes in the Telecom sector There are various classes in which operators are sub-divided. Claas A, consists of operators that provide connectinity to the entire country-pan India. Class B, consists of operators that provide connectinity to an entire state, and Class C, consists of operators that provide connectinity to a city. These are based on licenses, accquired by shelling out money, selling equipment etc., to show that the companies are serious and intend to continue and grow.
  • 4. 2.COMPANY OVERVIEW Aircel The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and is today the leading mobile operator in Tamil Nadu, Assam, North-East and Chennai. In October 2010, Aircel completed its Pan India footprint, presence in all 23 telecom circles(can be a state or combination of cities and states eg. Delhi-NCR), with the launch of GSM mobile services in Rajasthan, hence becomming a Class A operator. After winning the 3G and BWA spectrum, required for high speed data and multimedia services, in 13 and 8 circles respectively, Aircel became the largest operator in India with spectrum secured for next generation wireless technologies. Aircel has also been recognized for its consistent and reliable efforts. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006 and Aircel received the same award by IDC in 2007. Aircel is ranked 5th in GSM mobile operators. It needs licence + network to operate, due to govt. Restrictions for network and bandwidth It has the market lead in Tamil Nadu, Chennai, Assam and North East. It is dedicated to save tigers as it‘s CSR activity. It has won the 2009 NASCOM award. It is into both GSM (Global System for Mobile communication), and CDMA (Code Division Multiple Access).
  • 5. Aircel Business Solutions Aircel as a company was started in 1995, in Chennai, as a GSM operator. In 1999, it became a mobility GSM operator, operating two wings, Cellular and Business Solutions. It obtained it‘s licence to operate from the Dept. Of Telecommunications, which assigned bands to it. Aircel is a brand, actually formed by the coming together of two companies, Maxis communication group, bought 74 % of Aircel‘s market share, which was the highest FDI as per govt. Limits in 2005 (Maxis is the no.1 telco in Malasiya, with various other alliance with various stakes in other operators around the world), and Appollo Hospitals having 26 % stake. Aircel Business Solutions (ABS) (the Business Unit of Dishnet Wireless Limited) is the enterprise division of Aircel, which addresses the telecom requirements of International and Indian markets with an array of industry-leading products and services. As an integrated telecom service provider, ABS leverages its rich pedigree of best-in-class solutions, partnerships and domain expertise to address service providers, enterprises, PSUs, and consumers. Its range of services includes networking, data centers, managed services, collaboration services, SaaS (Software-as-a-Service) and mobility solutions. ABS is the pioneer of data connectivity solutions and it has demonstrated the same by being the first operator in India to launch WiMAX technology. ABS is also a registered member of WiMAX forum – both in the Indian and International Chapters. With a pan India rollout of over dual core optical fiber backbone, over 400 IP MPLS PoPs and leveraging integrated wireline and wireless data solutions, ABS is ideally suited to provide high speed, secure, and reliable managed networking solutions across India. The carrier to carrier business is served by Aircel wholesale and carrier Business team.the enterprise team addresses the B2B segment from all industry verticals ( Telecom,IT,Banking,
  • 6. Retail and Manufacturing). The SME team caters to the telecom requirements of Small and Medium Enterprises. Aircel Business solutions provides connectivity solutions on licensed spectrum to enterprise customers, with a major focus on the data segment. It has around 6.5 Crore or 65 million subscribers currently, accounting to about10 % of the market. It‘s network is powered by CISCO. The connectivity business runs on media, which can be wireless or wired. Voice (basic call) and data (SMS, social media, mails, B2B, etc.) are two products of this business. Voice frequency ranges from 20-20,000 Hz (Humans). Resolution changes requirements of people, hence resulting in various offerings. 2.2.3. Objectives of Aircel To grow the business 3 fold To increase indirect manpower by 3 times To increase channel partners by 3 times To grow mobility post paid business 10 times and dongle business 20 times and Internet Lease Line business 3 times To retain all executives To know every company recruiting > than 10 people To find out prospective candidates To know which industry vertical will require Leased Line All IT managers should BE AWARE OF Aircel, and when they have a requirement, they should call them. To know channel partners of competitors To know new venture capitalists and pvt. Equity ventures Market share and opportunities in tech. Parks
  • 7. VISION AND MISSION Vision Become the Service Provider of Choice for the Enterprise Segment Mission  Entry into top 1,000 corporates as the most agile service provider  Create well differentiated value offerings for ready adoption by large, medium and small enterprises  Own service offerings, platform and delivery mechanism that keep us ahead of competition now and during technology shifts Some important concepts of telecommunications being dealt with by Aircel Business Solutions 2G- Specifically for voice 3G- Voive + Data, no pan India licence Aircel has 13, one of the largest no. of 3G licenses, along with Airtel having 13 3G is still a limitation 4G or BWA(Broadband Wireless Access) helps to give very high speed data connectivity on mobile in 8 telecom circles Aircel has 43 total licenses, the largest by any telco Aircel is a unified telecom player, having voice traffic + data traffic in the same network, hence giving equal importance to both which is called NGN (next generation network), the first company in India Optical fibres used to transmit voice and data International P-O-P (Points of Presence) are at Canada, New York, Singapore, Los Angeles, Kuala Lumpur and Hong Kong A call is made wirelessly, which gets captured by an antenna or reciever, sound signals get converted into electric signals, which then passes through cables, till it reaches the nearest transmitter of the reciepent, where it gets trasmitted wirelessly to the reciepent‘s device NNI- Network to Network Interface is a tie up between domestic and foreign players to expand globally
  • 8. Two landing stations, Chennai and Mumbai, also called the Dual-Core architecture of Aircel provide connectivity through submarine cables The idea behind the dual core architecture is that, if one core fails, all traffic can be diverted to the second core, hence decreasing downtime, maintenance and losses associated with it, and increasing uptime and credibility. It is an ISP (internet service provider)-class A, ITSP (internet telephony service provider), NLD (national long distance), IP1 & IP2 (infrastructure sharing). WiMAX- fixed secured wireless for data connectivity. Operating spectrum ranges from 3.3 GHz to 5.7 GHz. Bandwidth is the thickness of availability of data flow. Network Architecture The capacity of the network gives connectivity to companies, which do not have the capability, experience, time or resources required. Today Aircel has all licenses required to give data connectivity to anyone, anywhere. It‘s backbone is it‘s main network, provoding maximum capacity, i.e. maximum bandwidth. It consists of wired and wireless. Wired is older, made of copper, but Aircel only deals with fibre optics. Wireless consists of Wi-Max, which is secured and is 2Mbps max. Radio frequency is unsecured, having high capacity and range. Wired is better than wireless, with Wi-Max upto 4-5 km, and Radio Frequency upto 10-15 km. But wired can have physical damages, therefore, backup can be a good option. It is also called last mile connectivity, through wired and wireless. Next, we will discuss various products and solutions in data in ABS. Connectivity solutions or Products in Data Leased Line – Dedicated circuit, potent to pass optical fibre only, no interference, bought in Mbps, speed constant and as stated, have SLA‘s Broadband – Non dedicated – retail product – no SLA (Service Level Agreements), less speed, no dedicated customer care or NOC, limited ti 2 mbps, cheap.
  • 9. Internet Leased Line – Dedicated customer care and NOC, highly scallable, costly, any company spending around Rs. 7,000-8,000 pm on internet, can be migrated to ILL. Wired- > 6 Mbps, wireless- 2-4 Mbps. Multi protocol label switching – Based on bandwidth and location. VOIP – Through internet, we can make voice calls. Voice over internet protocol. POP – Point of presence – 434 + in the country, 190 + across globe BTS – Base trans reciever station. BSL – Base solutions control. MSC – Main switching center. Prepaid services for minutes, locations etc. No incoming, only outgoing. PRODUCT AND SERVICES National Private Leased Circuit (NPLC) International Private Leased Circuit (IPLC) Global MPLS Virtual Private Network (Global MPLS VPN) Aircel offers a suite of world-class Internet Services to enterprises strongly backed by highly redundant, carrier grade mesh network. ILL services are offered over various last mile options viz. Wi-MAX, Fiber and P2P radio to ensure cost effective solutions meeting your expectations of high uptimes and redundancies in network connectivity with minimum latencies. ABS further ensures high speed interconnected backbones with round the clock proactive monitoring through centralized NOC. Aircel offers cutting edge connectivity services powered by our State of the Art & extensively Robust Multi Carrier Meshed Backbone. Our customers get the Fastest & Shortest Data Transit Paths around the world, with our Domestic and International IP Transit on Trans-atlantic & Trans-pacific Networks.
  • 10. ABS offers following flavours of Internet Services: Dedicated Internet Services: Platinum 1:1 Our Flagship Product ensures customers' enjoy dedicated and symmetric Internet connectivity on Dedicated Access Mediums & Bandwidths. Shared Internet Services: Gold 1:2 and Silver 1:4 Gold & Silver Shared Internet bandwidth is specially designed for SMBs to offer cost effective solution on Shared Access Mediums without compromising performance. IDC Internet Tailor made bandwidth solution crafted to cater the customers needing asymmetric bandwidths delivering 100% Upload and 25% download of the subscribed port. AREA OF OPERATION Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular phone coverage throughout Kerala, Tamil Nadu (including Chennai), Andhra Pradesh, Assam, North East India, Orissa, West Bengal (including Kolkata), Jammu and Kashmir, Bihar , Himachal Pradesh & Mumbai OWNERSHIP PATTERN Maxis, in its quarterly report for the period ended March 31, 2006, has declared to the Bursa Malaysia Stock Exchange that it has 99.3 per cent investment in Aircel. According to the affidavit, Maxis paid $1,072.29 million (99.29 per cent of Aircel) and Chennai-based Apollo group‘s Reddy family $7.71 million (0.71 per cent) to buy a 100 per cent stake in a deal valued at $1,080 million. However, technically, Maxis owns 73.9999 per cent equity shares of Aircel, while the Reddy family holds 26.0001 per cent shares. The FIPB had approved Aircel‘s proposal to increase its holding to 74 per cent from 49 per cent on March 14, 2006. Current telecom norms permit up to 74 per cent FDI in a mobile operator.
  • 11. ―To get the 26 per cent equity shares, the Reddy family was required to pay $280.80 million but it paid only $7.71 million. The rest was paid from the funds created by Maxis through preferential shares,‖ the affidavit alleged. In return for the funds made available by Maxis to the Reddy family, the joint venture company shareholder agreement disclosed by Maxis on January 20, 2006, states, ―The preferential shareholders will be entitled to receive a fixed dividend at the rate of 0.1 per cent per annum and shall have a right to participate in the remaining profit of the joint venture company (JVC-Deccan) in proportion to their financial contribution.‖ Analysts said, ―This arrangement is not a case of a normal loan but calls for a proportionate share in the profits, which is nothing but returns on foreign investment made.‖ The Reddys own 26 per cent in Aircel through Deccan Digital Networks — a joint venture of Global Communications Services Holdings (GCSH) and itself. GCSH is a 100 per cent subsidiary of Maxis, which holds 64 per cent in Aircel directly. GCSH owns 25 per cent in Deccan, with the Reddys holding 75 per cent. Deccan holds 35 per cent in Aircel. The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited. The former has a majority stake of 74 percent.
  • 12. COMPETITORS INFORMATION AIRTEL Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest cellular service provider with more than 92 million subscribers as of February 2009. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU‘s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. 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 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar.
  • 13. VODAFONE Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 license areas. It is among the top three GSM mobile operators of India. Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. [2] . The transaction closed on May 8, 2007. IDEA Idea Cellular is a wireless telephony company operating in various state in India. It initially started in1995 as a joint venture among the Tata‘s, Aditya Birla Group and AT&T by merging ―Wings Cellular‖ operating in Madhya Pradhesh, Uttar Pradesh(UP) West, Rajasthan and Tata Cellular as well as Birla AT&T Communications. Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truely pan-India presence covering Maharashtra, Goa, Gujarat, Andra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh(East and West), Haryana, Kerala, Rajasthan and Delhi(inclusive of NCR). Initially the Birla‘s the Tata‘s and AT&T Wireless each held one-third equally in the company. But following AT&T Wireless mergerwith Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at16.45% each. Tata‘s foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped differences between the Tatas and Birlas This dual holding by Tatas
  • 14. also became a major reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter could not have more than 10% stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai when Idea feild for its license. The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs.40.51 a share amounting to Rs.44.06 billion. While 15% of the 48.14% stake was acquired Aditya Birla Nuvo, a company in-charge of the Birlas new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family owned company. Currently, Birla Group holds 49.1% of the total shares of the company. Bharat Sanchar Nigam Limited BSNL is a public sector telecommunication company in India. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 90 million as of June 2008.[1] It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over $100 billion. BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:
  • 15. Reliance Communications (formerly Reliance Infocomm) Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). It is an Indian telecommunications company. According to National Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which accounts for more than 1.36 billion shares.[3] It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x technology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology for its existing/newly launched GSM services. RelCom is also into Wireline Business throughout India and has the largest optical fiber communication (OFC) backbone architecture [roughly 110,000 km] in the country. Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets in the world. On July 2007, the company announced it is buying US-based managed ethernet and application delivery services company Yipes Enterprise Services for a cash amount of Rs. 1200 crore rupees (equivalent of USD 300 million). ACHIEVEMENT/AWARD  Aircel got the highest rating for overall customer satisfaction and network quality in 2006 by Voice and Data.  Aircel was rated as the top mid-size utility company in Business World‘s ‗List of Best Mid-Size Companies‘ in 2007.  Aircel was recognized for the award by IDC in 2007 for being successful in fulfilling our promises to our customers.  Aircel has been selected as the best regional operator in 2008 by Tele.net. Aircel is headed by shahid mustafa who was asked to leave Hutchinson Essar Ltd - Mumbai.
  • 16.  Aircel are one of the sponsors of the Indian Premier League Cricket Team Chennai Super Kings captained by Mahendra Singh Dhoni.It is also the sponsor for Professional Golf Tour of India from 2009 onwards Honoured by CMAI INFOCOM for excellence in marketing of new telecom service in 2009. FUTURE GROWTH AND PROSPECTS  Aircel Ltd is likely to launch its 4G service in about six months, according to K. Sankara Narayanan, Regional Business Head, Aircel Ltd, Chennai. Sankara Narayanan said that 4G is ―definitely a step forward in technology‖ giving the customers a ―fantastic choice‖. It would also give customers ―incredible speed that does not exist in the market today‖  The company has identified data services as the future growth engine, even though voice services continue to account for the largest share of the revenue of the telecom industry. Being the largest operator in India with spectrum secured for next generation wireless technologies (3G and BWA)`1, over 100 IP MPLS PoPs, Pan India dual core optical fiber backbone and WiMAX presence in over 53 cities, Aircel Business Solutions is ideally suited to provide world class, high speed, end-to-end voice & data solutions
  • 17. SWOT ANALYSIS Strength 1.Fifth largest GSM mobile service provider with subscriber base over 27mn 2.13% market share Weakness 1.Profitability is an issue 2.Lack of advertising 3.Low brand visibility Opportunity 1.Fast expanding cellular market 2.Latest and low cost technology 3.Untapped rural market 4.Value added services Threats 1.Competitors low price offering 2. Saturation point in Basic telephony service 3.Mobile Number Portability
  • 18. PART-B PROJECT PROFILE
  • 19. OBJECTIVES OF THE STUDY To find out recruitment trends of small and medium IT companies in South India, based on www.naukri.com. I am only focussing on online recruitment and other sources have not been considered and have not focussed on consultancies. This would help make a study about the IT sector and it‘s requirements, hence helping the company, the logic being that if they are hiring, they would require secure, high speed connectivity solutions, which is where Aircel Business Solutions can pitch in it‘s offering.