Mega Trends 2020-

25
(End Users Perspective)
Chat applications are
becoming a mainstream
trend and our preferred
way of interacting with
colleagues, friends and
family.
From the early days of simple
Voice or SMS to the favourite
FB, Instagram, Whatapp,
Snapchat like real-time online
conversations are everywhere
and here to stay
Bots and AI will drive a
second wave of
fragmentation and
disruption
User can live with poor voice
quality but even 5 sec Internet
Black out is Not Acceptable.
Always want to be connected
If so, will Two Decades old
Traditional Service Delivery
Contracts based on Vanilla
Outsourcing meet these
changing requirements ?
 Mega Trends 2020-25
(Operator’s Perspective)

Organisations will have to shift

Service Delivery Models towards
Business Proposition rooted with
Outcomes & Individual Customer
Happiness Index, rather than
Transactions and Inputs
 This shift can bring
significant difference to the
way we approach
Outsourcing delivery
Model
Key Focus Areas :

Customer’s Customer Requirements

Voice Maintenance to Data Maintenance
Content Maintenance Services : Netflix /Amazon
Prime
Faster & Innovative Personalized Offering
TAT should be in Minutes rather than in days
Cloud Computing & Smart metering Services (M2M)
as a part of total service offerings
Current Outsourcing Model ??
Vendor Need to REHAUL : Mindset, Skills & Capabilities
Network (BTS) KPI & SLAs to Customer Experience Model
Next Gen Technology : All IP-Cloud-GB Optic Fibre NW
Operators would more rely on M2M –ML & AI than Man
Service Analytics based rather just SLA
Smart Contracts-Real time Outcomes Based Objectives
Strong OEM (ICT) Alliances for Service to Solution Delivery
Innovation would be only MANTRA for sustenance
More empowered CTOs and their teams
Network Design, Network Planning already slipped to CTO
Continuous investment in capability building-To be in game
 Will this Service Deliver Model Work ?
Major Shift: Voice O&M to Data O&M ++++ services
Now not simple BTS voice machines-Now all IP Servers

“RUN”
Operations & Maintenance

“PLAN” “BUILD” 4
Planning, Installation 1 Network
2 Network
3 Network Inventory
Design & & Operations Maintenance Administration Management
Engineering Integration

5 6 7
Site Site Site
Operations Maintenanc Administration
e
 CxO Interviews- Experiences & Views
 Mr. H.L. Gupta : Sr. V.P, Jio & Ex. V.P Airtel
“At Jio, we strongly feel in creating differentiation. It can be user experience, can
be innovative products or pricing and this endeavour can be achieved better by
continuously building in-house capabilities“
 Mr. N.L.Garg : Chief Commercial Officer, Aircel
“Long back, we started with strategic outsourcing model but now with maturity
of operations and with great learning, we strongly feel that cost leadership via
OS model was a myth”
 Mr. Mangesh Badri, Ex Sr. V.P, Operations, Idea Cellular
“ Who can better understand than us that outsourcing operations to MNC
vendors is not a cheaper option. It was a pure strategic call, decades ago, by
selective telecom operators in a mad race of foot print & volume enhancement”
“ After seeing big jolt on their P&L in a current market situations, they have
already started consolidating core skills back under CTO domain. It’s a matter of
time, when they will start looking back to basics”
GlobalSource: Statistica 2017
Global ICT outsourcing grew to a
$105bn market in 2014, more
than doubling from 2004 when
it was $45bn and growing is very
different with global outsourcing
declining almost 30% ($77bn)
Source: PA Consulting UK IT
Outsourcing:
The pace is slowing and deal scope is shrinking
UK outsourcing is slowing in 2016 as 31% would outsource
more; in 2015, it was 40%.
More smaller deals, more focussed scope, RFS replacing
RFP in >85%, the end of the mega deal (Source: ISG So)
Big B4 Surveys-EY…..

•All IP network, Heavy shift towards Data Networks- 4G/5G/MIMO

•Increased emphasis on Customer Experiences & Retention and ARPU
• Greater focus on brand building & Products Differentiation
Deloitte Survey…. Key Drivers
“ABC Network Ltd, Operation In sourcing”
Case study: Analyzing Outsourcing w.r.t COST SAVING…………..

Company Confidential 19
India Landscape
Operator Presence Position
Reliance Jio Pan India In sourcing
BSNL Pan India In sourcing
IDEA+Vodafon Pan India In sourcing+
e Out sourcing
Airtel Pan India In sourcing
+Out sourcing
Aircel Pan India In sourcing
+Outsourcing
Factors : In-Source or Outsource
Factor Favors Favors
Insourcing Outsourcing

Org Core Competencies High Low

Cost of operations Manpower High Low (3rd Party)
Total cost of operations Low High (Scope Creep/Re-work)
End User Experience High Low
Environmental uncertainty Low High
Product innovation & Technology High Low
Control over operations High Low
Management Approval (09/01/2017)
1. In House Operations w.e.f 01/01/2018
• Nine (9) Ericsson MS circles (NE, AS, BH, OR, JK,
HP, MH, AP, KA)
• Subscriber base of 05 crores
• Two (2) ZTE CS Core circles (Delhi and Chennai)
• Huawei DWDM and PTN
2. Tools, Test Equipment, Training and other
Supporting Infrastructure from OEMs
3. Manpower Transfer & New recruitment
4. Drive Test Services excluded & will continue via
3rd party
Critical Enablers Budget Approval
(Rs 1244.8 Mn INR)
CAPEX (Mn Rs)
Detail Base Value GST Total
Tools and Equipment 243.0 43.7 286.7
IT tools and software 35.4 6.4 41.8
*
Training 11.0 2.0 13.0
Recruitment 10.0  0.0 10.0
Sub Total 299.4 52.09 351.5
OPEX(Mn)
Detail Base Value GST Total
In house Operation 893.3   893.3
cost
Total 1192.7 52.1 1244.8
 Critical Requirements
Go-Live mandate 1st Jan 2018

1. 76% on-roll Critical Manpower Hiring & On-Boarding

by 15th Nov 17 & Balance 24% by 15th Dec 17
2. Tools & Test Equipment availability by 7th Nov 17
3. Trainings of new staff 15th Nov to 25th Dec 17
4. Office space readiness by 7th Nov 17
5. IT Support for additional manpower by 30th Nov 17

24
Project timelines and
status

Legend

On critical path and may de-rail overall

plan.
Progressing but slightly deviated.

Aligned as per schedule.

Critical Assumptions
• Insourcing plan is prepared based on KO/WB
success model.
• Circles are divided into Metro, Non-Metro and
Difficult Circles.
• AMC Cost will continue and will be over and above
in-house cost.
• Shadow operations to start by 1st Dec’17.
• KPI may get degraded during first three months of
in house operation.
• Limited performance reports in first few months
• IT Tools & Software OPEX amortization in 3 years
Manpower Dimensioning Rule Non-
Dificult
  Function Metro Circle (AS, NE
Metro
JK & HP)
Network Head Circle Network Head (CNH) 1 1 1 1
NOC 24*7 (per shift, Total 5 Shifts) 5 5 5 5
BSS / Microwave / LL (sites/person) 140 120 80 80
Core / MPBN / OSS (sites/person) 400 400 400 400
Operations: In office
Optimization (sites/person) 400 300 250 200
MIS (sites/person) 1500 1500 1500 1500
SME (sites/person) 600 600 600 500
MSC Infra Operations 24x7 Infra Operations & SME (4xMSC Locations) + 1
Transport Operations:
Field Transport Network Operations 5
Field Manpower (Engr, Tech, Riggers)
Operations: Field
(sites/person) 60 45 40 35
Planning:        
Core SME – CS (sites/person) 1000 1000 1000 1000
Core SME – PS (sites/person)        
RF (sites/person) 800 800 800 500
Operational Planning & Transmission (sites/person) 1500 1500 1500 1500
Project MIS (sites/person) 1500 1500 1500 1500
SA & Regulatory (xTERM Cells)
(sites/person) 1000 1000 1000 1000
Project:        
Sites / Expansion (sites/person) 500 500 500 500
Core (sites/person) 1000 1000 1000 1000
Manpower to Hire Circle wise
CH*
Manpower AS NE JK BH OR HP MH AP KA DL*CH* ALL
*
Current Manpower -
67 64 40 44 29 13 19 30 26 1     333
Total
On-Roll 30 27 16 18 14 7 12 14 15 1     154
Off-Roll 37 37 24 26 15 6 7 16 11       179

Required Manpower 148

226 179 183 206 158 76 114 134 159 7 10 28
- Total 0
On-Roll 63 49 51 57 47 22 34 41 46 3 6 15 434
104
Off-Roll 163 130 132 149 111 54 80 93 113 4 4 13
6

Addn. Manpower to 114

159 115 143 162 129 63 95 104 133 6 10 28
be hired - Total 7
On-Roll 33 22 35 39 33 15 22 27 31 2 6 15 280
Off-Roll 126 93 108 123 96 48 73 77 102 4 4 13 867

* Required for ZTE CS Core

MS Insource
** Required for PTN 28
Grade-wise Manpower details for recruitment
On-Roll
Circles Total Sub Off Roll
G1 G2 G3 G4 G5 G6 G7 G8
Total
AS 159 33 2 4 12 4 9 0 2 0 126
NE 115 22 2 0 7 6 5 1 1 0 93
JK 143 35 5 6 10 8 5 1 0 0 108
BH 162 39 4 6 12 7 9 0 1 0 123
OR 129 33 4 3 10 6 8 0 1 1 96
HP 63 15 1 2 3 3 4 0 1 1 48
MH 95 22 2 3 9 2 5 0 0 1 73
AP 104 27 3 6 10 2 5 0 0 1 77
KA 133 31 3 6 7 6 7 0 1 1 102
DL* 6 2 0 0 1 1 0 0 0 0 4
CH* 10 6 0 2 3 1 0 0 0 0 4
CH** 28 15 5 5 4 1 0 0 0 0 13
Total 1147 280 31 43 88 47 57 2 7 5 867

Manpower to be hired - * Required for ZTE CS Core MS

•On-Roll: 280 Insource
** Required for PTN
•Off-Roll: 867 Insource

29
P1 - Critical 76% On-Roll Manpower Requirement

grade wise critical

manpower requirement

76%
(213)

1. On-Roll manpower hiring has not yet started and is critical to success of in-house operations.
2. Critical 213 (76%) out of total 280 manpower required by 15 th
th Nov. Balance 24% manpower

is required by 15th
th Dec-17.

Company Confidential 30
Insourcing cost per site
Heads Details UoM AS NE JK BH OR HP MH AP KA ALL

2G # 2871 1772 2335 3051 2296 730 1886 1861 2488 19290
3G Colo # 942 637 778 1166 895 0 0 1462 1792 7672
Sites
Total BTS
# 3813 2409 3113 4217 3191 730 1886 3323 4280 26962
(All Tech.)

                         

Manpower   INR mil 7.7 6.0 6.3 7.1 6.2 2.8 5.1 6.2 7.5 0 54.9

- On roll   INR mil 5.0 4.1 4.0 4.6 4.2 2.0 3.2 3.9 4.5 35.4

- Off roll   INR mil 2.4 1.8 2.1 2.3 1.9 0.7 1.8 2.1 2.8 17.9
- Insurance   INR mil 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2 1.3

- Re-hiring   INR mil 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3
Vehicle running cost   INR mil 0.66 0.5 0.6 0.8 0.5 0.2 0.5 0.5 0.6 4.8

Administration cost   INR mil 2.14 1.9 1.2 1.8 1.3 0.5 0.8 1.2 1.2 11.9
- Rent cost   INR mil 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1 0.1 0.5

- Travelling & Conveyance   INR mil 1.0 1.0 0.4 0.5 0.4 0.2 0.3 0.4 0.4 4.5

- Other staff welfare   INR mil 0.9 0.6 0.6 1.0 0.6 0.2 0.3 0.6 0.7 5.4

-LT/DT Amortisation cost   INR mil 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 1.3

-Other IT cost   INR mil 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1

AMC for Tools   INR mil 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0

Total Cost   INR mil 10.6 8.5 8.2 9.8 8.1 3.6 6.4 7.9 9.5 72.5

Per site MS insource cost

with circle based OSS   INR 3688 4819 3501 3201 3539 4875 3417 4230 3808 3761
Monitoring / NOC

• Drive Test services are taken from 3rd party as it is excluded from the current
MSP’s scope. It will continue as is basis.
31
MS Outsourcing cost (Ref OEM invoicing )

Per site MS outsourcing cost

Outsourcing cost   INR 4487
Governance Cost per Site   INR 1,055

Total Current MS Cost: Erricsson + Gov.   INR 5542

Cost Comparison with Existing Insource Circles

Per site Monthly MS Insource Costing Proposed MS Insourcing Existing MS Insourcing

Summary Projection Actual
Heads Details UoM AS NE JK BH OR HP MH AP KA ALL KO WB TN CH Total
287 177 233 305 229 188 186 248 1929 321 207 1485
2G #
1 2 5 1 6 730 6 1 8 0 2391 2 7181 1 5
116 146 179 168
3G Colo #
Sites 942 637 778 6 895 0 0 2 2 7672 1864 774 3181 1 7500
Total
381 240 311 421 319 188 332 428 2696 398 1036 375 2235
BTS (All # 730 4255
3 9 3 7 1 6 3 0 2 6 2 2 5
Tech.)
                                   
Manpower   INR mil
7.7 6.0 6.3 7.1 6.2 2.8 5.1 6.2 7.5 54.9 7.3 5.9 15.8 4.7 33.8
- On roll   INR mil
5.0 4.1 4.0 4.6 4.2 2.0 3.2 3.9 4.5 35.4 5.1 3.9 13.3 3.7 26.0
- Off roll   INR mil
2.4 1.8 2.1 2.3 1.9 0.7 1.8 2.1 2.8 17.9 2.2 2.0 2.5 1.0 7.7
- Insurance   INR mil 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2 1.3          
- Re-hiring   INR mil 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3          
Vehicle running cost   INR mil 0.2 0.5 0.5 0.6 4.8
0.66 0.5 0.6 0.8 0.5 0.8 1.6 3.6 1.0 7.0
Administration cost   INR mil
2.14 1.9 1.2 1.8 1.3 0.5 0.8 1.2 1.2 11.9 2.1 2.3 4.8 2.9 12.2
- Rent cost   INR mil 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1 0.1 0.5          
- Travelling &
  INR mil
Conveyance 1.0 1.0 0.4 0.5 0.4 0.2 0.3 0.4 0.4 4.5          
- Other staff welfare   INR mil 0.9 0.6 0.6 1.0 0.6 0.2 0.3 0.6 0.7 5.4          
-LT/DT Amortisation
  INR mil
cost 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 1.3          
-Other IT cost   INR mil 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1          
AMC for Tools   INR mil 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0          
Total Cost   INR mil 10.6 8.5 8.2 9.8 8.1 3.6 6.4 7.9 9.5 72.5 10.2 9.8 24.2 8.7 52.9

MS insourcing list
Circle wise Savings – 31% Working Sheet

Sites AS NE JK BH OR HP MH AP KA
2G 19290 Nos 2871 1772 2335 3051 2296 730 1886 1861 2488
3G 7672 Nos 942 637 778 1166 895 0 0 1462 1792

Current MS Cost
MS Cost / Site 4572 INR 4487 4545 4530 4559 4582 4140 4140 4965 4896
Governance Cost 912 INR 1055 1485 926 814 867 903 686 808 665
Total Per Site 5484 INR 5542 6030 5456 5372 5449 5043 4826 5773 5561
Per Month 105.6 Mn INR 15.9 10.7 12.7 16.4 12.5 3.7 9.1 10.7 13.8
Per Year 1267.2 Mn INR 190.9 128.2 152.9 196.7 150.1 44.2 109.2 128.9 166.0

Insource Cost
Per Site 3761 INR 3688 4819 3501 3201 3539 4875 3417 4230 3808
Per Month 72.5 Mn INR 10.6 8.5 8.2 9.8 8.1 3.6 6.4 7.9 9.5
Per Year 870.6 MN INR 127.1 102.5 98.1 117.2 97.5 42.7 77.3 94.5 113.7

Savings
Per Site 1723 INR 1854 1211 1954 2171 1910 167 1409 1543 1753
Per Month 33.1 Mn INR 5.3 2.1 4.6 6.6 4.4 0.1 2.7 2.9 4.4
Per Year 396.6 Mn INR 63.9 25.8 54.8 79.5 52.6 1.5 31.9 34.4 52.3
% 31% 33% 20% 36% 40% 35% 3% 29% 27% 32%

34
Business case motivation-31% savings
Current MS Insource
Cost & Savings Summary Savings
Cost Cost
Per Month 105.6 72.5 33.1
MS of 9 Circles
Per Year 1267.2 870.4 396.8
   
Per Month 1.14 0.56 0.58
ZTE CS Core
Per Year 13.7 6.72 6.98
   
Per Month 1.63 1.33 0.30
PTN
Per Year 19.6 16.0 3.6
   
Per Month 108 74 34
Grand Total
Per Year 1300 893 407
Thanks