INDUSTRY OVERVIEWIt is well known that the Indian Telecommunications Industry is the third largest in the worldand 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 ofsubscribers in rural areas during 2011 was higher at 40.64% compared to 34.41% in urbanareas.This rapid growth has been possible due to various decisions made by the Government andalso due to the contributions of both the public and the private sectors. The liberal policies ofthe Government provide easy market access for telecom equipment. A fair regulatoryframework followed by the Government offers telecom services to the Indian consumers ataffordable prices.Indian Telecommunication Services can be broadly classified into: Basic Mobile InternetBasic services are further divided into two: Fixed wire line WirelessIn those days, fixed wire lines were used in majority but these days, mobile phonessubscribers have outnumbered the landline subscribers. In fact, it was recently stated by theRural Development Minister Jairam that, the number of mobiles phones in India are morethan the number of toilets. Decades back, food, clothing and shelter were the only three basicneeds. 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 ofbroadband 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 equalto the consumption of diesel by the Indian railways. Thus, companies need to shell out hugemoney on energy. As a result, the idea of solarisation of towers is being considered whichwould help in the conservation of energy. It is not an easy task to solarize all towers but theidea might be implemented sometime in the near future. Telecommunication is thetransmission 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 EtisalatVarious classes in the Telecom sectorThere are various classes in which operators are sub-divided. Claas A, consists of operatorsthat provide connectinity to the entire country-pan India. Class B, consists of operators thatprovide connectinity to an entire state, and Class C, consists of operators that provideconnectinity to a city.These are based on licenses, accquired by shelling out money, selling equipment etc., to showthat the companies are serious and intend to continue and grow.
2.COMPANY OVERVIEWAircelThe Aircel group is a joint venture between Maxis Communications Berhad of Malaysia andSindya Securities & Investments Private Limited, whose current shareholders are the Reddyfamily of Apollo Hospitals Group of India, with Maxis Communications holding a majoritystake of 74%. Aircel commenced operations in 1999 and is today the leading mobile operatorin Tamil Nadu, Assam, North-East and Chennai.In October 2010, Aircel completed its Pan India footprint, presence in all 23 telecomcircles(can be a state or combination of cities and states eg. Delhi-NCR), with the launch ofGSM mobile services in Rajasthan, hence becomming a Class A operator. After winning the3G and BWA spectrum, required for high speed data and multimedia services, in 13 and 8circles respectively, Aircel became the largest operator in India with spectrum secured fornext generation wireless technologies.Aircel has also been recognized for its consistent and reliable efforts. Voice and Data gaveAircel the highest rating for overall customer satisfaction and network quality in 2006 andAircel received the same award by IDC in 2007. Aircel is ranked 5th in GSM mobileoperators. It needs licence + network to operate, due to govt. Restrictions for network andbandwidthIt has the market lead in Tamil Nadu, Chennai, Assam and North East. It is dedicated to savetigers as it‘s CSR activity. It has won the 2009 NASCOM award. It is into both GSM (GlobalSystem for Mobile communication), and CDMA (Code Division Multiple Access).
Aircel Business SolutionsAircel as a company was started in 1995, in Chennai, as a GSM operator. In 1999, it becamea mobility GSM operator, operating two wings, Cellular and Business Solutions. It obtainedit‘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, Maxiscommunication group, bought 74 % of Aircel‘s market share, which was the highest FDI asper govt. Limits in 2005 (Maxis is the no.1 telco in Malasiya, with various other alliance withvarious 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 theenterprise division of Aircel, which addresses the telecom requirements of International andIndian markets with an array of industry-leading products and services. As an integratedtelecom service provider, ABS leverages its rich pedigree of best-in-class solutions,partnerships and domain expertise to address service providers, enterprises, PSUs, andconsumers. 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 beingthe first operator in India to launch WiMAX technology. ABS is also a registered member ofWiMAX forum – both in the Indian and International Chapters.With a pan India rollout of over dual core optical fiber backbone, over 400 IP MPLS PoPsand leveraging integrated wireline and wireless data solutions, ABS is ideally suited toprovide high speed, secure, and reliable managed networking solutions across India.The carrier to carrier business is served by Aircel wholesale and carrier Business team.theenterprise 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 andMedium Enterprises.Aircel Business solutions provides connectivity solutions on licensed spectrum to enterprisecustomers, with a major focus on the data segment. It has around 6.5 Crore or 65 millionsubscribers currently, accounting to about10 % of the market. It‘s network is powered byCISCO.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. Voicefrequency 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 MISSIONVisionBecome the Service Provider of Choice for the Enterprise SegmentMission 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 shiftsSome important concepts of telecommunications being dealt with by Aircel BusinessSolutions 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 ArchitectureThe capacity of the network gives connectivity to companies, which do not have thecapability, experience, time or resources required. Today Aircel has all licenses required togive data connectivity to anyone, anywhere. It‘s backbone is it‘s main network, provodingmaximum capacity, i.e. maximum bandwidth.It consists of wired and wireless. Wired is older, made of copper, but Aircel only deals withfibre optics. Wireless consists of Wi-Max, which is secured and is 2Mbps max. Radiofrequency is unsecured, having high capacity and range.Wired is better than wireless, with Wi-Max upto 4-5 km, and Radio Frequency upto 10-15km. But wired can have physical damages, therefore, backup can be a good option. It is alsocalled last mile connectivity, through wired and wireless. Next, we will discuss variousproducts 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 highlyredundant, carrier grade mesh network. ILL services are offered over various last mileoptions viz. Wi-MAX, Fiber and P2P radio to ensure cost effective solutions meeting yourexpectations of high uptimes and redundancies in network connectivity with minimumlatencies. ABS further ensures high speed interconnected backbones with round the clockproactive 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 Transiton Trans-atlantic & Trans-pacific Networks.
ABS offers following flavours of Internet Services:Dedicated Internet Services: Platinum 1:1Our Flagship Product ensures customers enjoy dedicated and symmetric Internetconnectivity on Dedicated Access Mediums & Bandwidths.Shared Internet Services: Gold 1:2 and Silver 1:4Gold & Silver Shared Internet bandwidth is specially designed for SMBs to offer costeffective solution on Shared Access Mediums without compromising performance.IDC InternetTailor made bandwidth solution crafted to cater the customers needing asymmetricbandwidths delivering 100% Upload and 25% download of the subscribed port.AREA OF OPERATIONAircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSMcellular phone coverage throughout Kerala, Tamil Nadu (including Chennai), AndhraPradesh, Assam, North East India, Orissa, West Bengal (including Kolkata), Jammu andKashmir, Bihar , Himachal Pradesh & MumbaiOWNERSHIP PATTERNMaxis, in its quarterly report for the period ended March 31, 2006, has declared to the BursaMalaysia 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) andChennai-based Apollo group‘s Reddy family $7.71 million (0.71 per cent) to buy a 100 percent stake in a deal valued at $1,080 million.However, technically, Maxis owns 73.9999 per cent equity shares of Aircel, while the Reddyfamily holds 26.0001 per cent shares.The FIPB had approved Aircel‘s proposal to increase its holding to 74 per cent from 49 percent on March 14, 2006. Current telecom norms permit up to 74 per cent FDI in a mobileoperator.
―To get the 26 per cent equity shares, the Reddy family was required to pay $280.80 millionbut it paid only $7.71 million. The rest was paid from the funds created by Maxis throughpreferential shares,‖ the affidavit alleged.In return for the funds made available by Maxis to the Reddy family, the joint venturecompany shareholder agreement disclosed by Maxis on January 20, 2006, states, ―Thepreferential shareholders will be entitled to receive a fixed dividend at the rate of 0.1 per centper annum and shall have a right to participate in the remaining profit of the joint venturecompany (JVC-Deccan) in proportion to their financial contribution.‖Analysts said, ―This arrangement is not a case of a normal loan but calls for a proportionateshare 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 ofGlobal 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 35per cent in Aircel.The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia andSindya Securities & Investments Private Limited. The former has a majority stake of 74percent.
COMPETITORS INFORMATIONAIRTELBharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is Indias largest cellularservice provider with more than 92 million subscribers as of February 2009. It also offersfixed line services and broadband services. It offers its TELECOM services under the Airtelbrand and is headed by Sunil Bharti Mittal. The company also provides telephone servicesand Internet access over DSL in 14 circles. It also acts as a carrier for national andinternational long distance communication services. The company has a submarine cablelanding station at Chennai, which connects the submarine cable connecting Chennai andSingapore.The businesses at Bharti Airtel have been structured into three individual strategic businessunits (SBU‘s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. Themobile business provides mobile & fixed wireless services using GSM technology across 23telecom circles while the Airtel Telemedia Services business offers broadband & telephoneservices in 95 cities and has recently launched Indias best Direct-to-Home (DTH) service,Airtel digital TV. The company provides end-to-end data and enterprise services to thecorporate customers through its nationwide fiber optic backbone, last mile connectivity infixed-line and mobile circles, VSATs, ISP and international bandwidth access through thegateways 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 thewireless services market, followed by 17.7% for Reliance Communications and 17.4% forVodafone Essar.
VODAFONEVodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23telecom circles in India. Despite the official name being Vodafone Essar, its products aresimply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coveragethroughout India with good presence in the metros.Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 23 of the countrys 23 license areas. It isamong 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% heldby Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping RelianceCommunications, Hinduja Group, and Essar Group, which is the owner of the remaining33%. The whole company was valued at USD 18.8 billion.  . The transaction closed onMay 8, 2007. IDEAIdea Cellular is a wireless telephony company operating in various state in India. It initiallystarted in1995 as a joint venture among the Tata‘s, Aditya Birla Group and AT&T bymerging ―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 2004gave Idea a truely pan-India presence covering Maharashtra, Goa, Gujarat, Andra Pradesh,Madhya Pradesh, Chattisgarh, Uttar Pradesh(East and West), Haryana, Kerala, Rajasthan andDelhi(inclusive of NCR).Initially the Birla‘s the Tata‘s and AT&T Wireless each held one-third equally in thecompany. But following AT&T Wireless mergerwith Cingular Wireless in 2004, Cingulardecided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlasat16.45% each.Tata‘s foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-basedmobile 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 inMumbai. This was because as per Department of Telecom (DOT) license norms, onepromoter could not have more than 10% stake in two companies operating in the same circleand 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 bysaying that they would exit Idea but only for a good price. On April 10, 2006, the AdityaBirla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs.40.51 ashare amounting to Rs.44.06 billion. While 15% of the 48.14% stake was acquired AdityaBirla Nuvo, a company in-charge of the Birlas new business initiatives, the remaining stakewas 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 LimitedBSNL is a public sector telecommunication company in India. It is Indias largesttelecommunication company with 24% market share as on March 31, 2008. Its headquartersare at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has thestatus of Mini Ratna, a status assigned to reputed public sector companies in India.BSNL is Indias oldest and largest Communication Service Provider (CSP). Currently has acustomer base of 90 million as of June 2008. It has footprints throughout India except forthe metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As onMarch 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 millionCDMA-WLL and 54.21 million GSM Mobile subscribers. BSNLs earnings for the FinancialYear ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. Thecompany is planning an IPO with in 6 months to offload 10% to public in the Rs 300-400range valuing the company at over $100 billion.BSNL provides almost every telecom service in India. Following are the main telecomservices 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 StockExchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, whichaccounts for more than 1.36 billion shares. It is the flagship company of the Reliance-AnilDhirubhai Ambani Group, comprising of power (Reliance Energy), financial services(Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1xtechnology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology forits existing/newly launched GSM services.RelCom is also into Wireline Business throughout India and has the largest optical fibercommunication (OFC) backbone architecture [roughly 110,000 km] in the country.Reliance Communications has interests in Direct To Home (DTH) TV also, known as "BigTV". It plans to launch its DTH business by July 2008. Once launched, RelCom will havepresence across all B2C communications channel in one of the fastest growing markets in theworld.On July 2007, the company announced it is buying US-based managed ethernet andapplication 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 onwardsHonoured 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 wirelesstechnologies (3G and BWA)`1, over 100 IP MPLS PoPs, Pan India dual core optical fiberbackbone and WiMAX presence in over 53 cities, Aircel Business Solutions is ideally suitedto provide world class, high speed, end-to-end voice & data solutions
SWOT ANALYSISStrength1.Fifth largest GSM mobile service provider with subscriber base over 27mn2.13% market shareWeakness1.Profitability is an issue2.Lack of advertising3.Low brand visibilityOpportunity1.Fast expanding cellular market2.Latest and low cost technology3.Untapped rural market4.Value added servicesThreats1.Competitors low price offering2. Saturation point in Basic telephony service3.Mobile Number Portability
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.