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Career in Sales in Telecom domain

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Career in Sales in Telecom industry

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Career in Sales in Telecom domain

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

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