Panel Discussion Summary Report, 30th June12

Symbiosis Institute of Telecom Management, Pune

EXECUTIVE SUMMARY
Engagement and Innovation are the buzzwords that will help propel the Indian Telecom Industry to pinnacles of success. This was the essence of Consultare: CHANGING THE WAY TELCOS DO BUSINESS: EMBRACING THE OPPORTUNITIES THROUGH NEW & EMERGING GROWTH MODELS which was organized by the Placements Team11 on Saturday, 30th June 2012. Looking at the last year of events, this was a tremendous success in creating a broader platform of understanding among SITM faculty and student fraternity. Participants gave positive reviews about the panelists presentations. These discussions were spearheaded by highly respected stalwarts of the Industry and witnessed an impressive turnout. Issues of vital importance were discussed and it provided insights and viability of the industry and how best to tap on the enormous potential. This strong showing made clear the desire and need for a change.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

The gathering and participation of industry experts from different verticals provided a unique opportunity to hear about the current scenario and ways to improve business. The industry experts at the meeting included: Mr. Sivarama Krishnan, Partner, PWC; Mr. Indranil Das, VP, Solution Design and Delivery, Ericsson; Mr. Vijay Anand, Global CTO-M2M, Logica; Mr. Hemant Joshi, Partner, Deloitte; Mr. Ashwin Jaiswal, Head - IT Business Consulting & Practice, Reliance Communications, Mr. DD Mishra, Head - IT Governance & Outsourcing at Vodafone India Limited and Mr. Sriram Chidambaram, Head-Sales & Marketing, ConnectM. Panel speakers presented information relevant to current status of mobile data markets and its forecast, Key drivers and challenges for M2M market in India. Major discussions at the forum revolved around the role of CSPs and the new revenue streams ahead. The panel discussion was a packed event with candid and productive debates to ensure lively discussions and constructive deliberations. The expert panel remarked that there is a high priority need for changing the ways Telcos do business that addresses the high growth. The moderator concluded the discussion by reiterating that, the future from M2M applications and Internet of things, business value derived from enabling technology will be the next generation revenue streams for the Telcos. Panelist stated that Telcos have to take a cautious approach towards the business models that are going to develop over time.

PURPOSE OF THE EVENT:

The goal of hosting this event was to:

Key drivers, challenges, opportunities, solution for M2M Market in India.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Role of CSPs in providing key network capabilities and benefits in the delivery of M2M services.

How OTT Providers are disrupting the Operator Business Model? Should OTT Players Pay for their Data?

Avoiding loss of revenues by transforming the business model, Incentivizing OTT players to invest.

How CSPs and OTT players can cooperate on fair terms where each party is compensated for the costs it endures and receives revenue share according to the value it brings.

AUDIENCE ATTENDEES:

270 students and 10 faculty members attended the four-hour discussion.

DISCUSSION STRUCTURE AND FORMAT:

To fulfil the purposes outlined above, the panel discussion had the following elements: A welcome speech from Honourable Director Prof.Sunil Patil clarifying the purpose of the event. An Individual keynote session from Mr. Sivarama Krishnan, Partner-PWC A Six-member panel of a wide range of opinions with individual presentations, followed by question answer discussions. Closing remarks and Vote of Thanks from Asst. Prof. Prajakta

Kanegaonkar, Chairperson Placements.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

BIOGRAPHIES:

Mr. Sivarama Krishnan

Partner, PricewaterhouseCoopers

Siva is an Executive Director with PricewaterhouseCoopers in India. He advises Telecom organizations on enhancing their revenue and shareholder value by identifying, implementing and resolving strategic, technology and process issues. Over the last 17 years in PricewaterhouseCoopers, he has been involved in consulting assignments around Strategic Planning, Managing Revenue and profitability, Technology Planning, Business Automation, Strategic services like Feasibility Study, Market Study, New Service Initiation, Technology Research Services, Project Formulation and Project Management.

Mr. DD Mishra
Head - IT Governance & Outsourcing, Vodafone India Limited

He is a result oriented Senior IT Professional with approximately 17+ years of total IT experience with a range of experience in the Strategic Sourcing Management, Delivery Governance, IT Programme & Portfolio Management, IT Consulting and Pre

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Sales, Relationship & Team Management; Conceptualizing & Implementing competent business strategies with a view to escalate operational efficiency, revenue & P/L. He has experience in handling large teams and handling complex time critical deliveries involving multiple locations, improving operational efficiency, business and IT alignment.

Mr. Sriram Chidambaram

Head Sales, Connect M Technology solutions (P) Ltd.

He has 15 years experience in Technology Sales and Marketing. He has worked with large multi-nationals like Philips, Cadence, PTC and start-ups like Kals Info, ConnectM Technology. He has led large global account teams and campaigns to win business from translational customers and he has Good exposure to Corporate General Management driving corporate and operations strategy. His specialities include business & Strategic Sales Management, High Value B2B Sales Management, CXO level engagement, Driving Global teams and campaigns, Value-Selling.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mr. Ashwin Jaiswal

Head: IT Business Consulting & Telecom, Reliance Communications

Technology & Telecom have always been Ashwin's real passions which he pursued diligently for last 18 years, working with worlds best-known Telcos & IT-Software & Consulting Companies in different parts of the world. His depth of knowledge in IT & Telecom is a result of his hands-on Experience, diversified career progression, managing varied industry verticals & excellent networking. Having joined Reliance ADAG, India's largest Telecom & Media Conglomerate, he has personally designed, delivered & also managed BSS/OSS operations of several large scale Enterprisewide extremely complex system integration & transformational IT Telco Projects, Involving almost every aspect of eTOM.

Mr. Hemant Joshi

Partner, Deloitte Haskins & Sells

Hemant is a Partner in Deloitte Haskins and Sells India. He has more than 25 years of experience in Assurance and Accounting Services and includes international experience in the Middle East and the USA. Hemant has published several articles, thought papers on telecom in leading magazines and newsletters. Under his leadership, Deloitte has been strategic knowledge partner for several institutes in telecom domain. He has organized many seminars on Corporate Governance, Risk

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Management, and Accounting Standards partnering with the Institute of Chartered Accountants of India, The Institute of Internal Auditors and Information Systems Audit & Control Association.

Mr. Vijay Anand

Global CTO-M2M, Logica

He is a distinguished technologist and presently the Global CTO-M2M for Logica. He has more than 20 years of experience in the industry and he has worked in various capacities like Sr. Developer, Software architect, Product architect and Technical architect. He played an instrumental role in driving the organization technically and making it tech savvy. Vijay is experienced and knowledgeable architect in Telecoms Products business. His detailed knowledge of the product and hard work has meant that he has played a large part in many recent upgrade/deployment successes around the world.

Mr. Indranil Das

VP, Solution Design and Delivery, Ericsson

Indranil is Vice President, Solution Design & Delivery responsible for leading Ericssons business within Global Services Center India for global clients in

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Telecommunication, Media & Entertainment and Utilities. Indranil comes with very rich experience in Global Delivery, Communication and ICT services. Before joining Ericsson, Indranil worked for PricewaterhouseCoopers and IBM where he was instrumental in pioneering global delivery model. He is a member of the Ericssons Global Services Leadership team driving organization vision, long term strategic direction and innovation mission.

HIGHLIGHTS OF THE PRESENTATIONS:

Welcome Address (10.15 AM- 10.30 AM) Prof. Sunil Patil, Director, SITM

Prof. Sunil Patil in his opening speech welcomed all the participants and introduced the panelists. He provided the foundation for this conference by indicating the purpose of the event in his welcome remarks. He noted that, the sole purpose was to gain information and insights and facilitate the institutes growth into an even more splendid organization.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Keynote Address (10.30 AM- 11.15 AM)

Mr. Sivarama Krishnan Partner Pricewaterhouse Coopers

Mr. Sivas talk focussed on the challenges before Telcos today and the gaps which create a need to change the way they do business. He began by stating that one of the major hurdles they face today is the lack of knowledge to engage customers and to create demand. Telcos think too much on technology and moved away from engaging customers, he said. He emphasized that, the Telcos need to think from demand side and react proactively. He quoted a fabulous equation Innovation + Commercialization = Success which is the need of the hour. As far as telecom business is concerned, according to him, it is all about engaging people and continuous innovation like Facebook. The resource person further explained that, supply side innovation follows demand side innovation and convergence happens only in demand side. Siva underlined that, it is easy to understand technologies, but not easy to understand customer need s and expectations. He urged the students to think from a consumer side and analyse the unmet demands.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

As a conclusion, he proposed that, none can create a successful business model without identifying the consumer demand and it is the survival of the fittest for the Telcos to create agility in their approach and business models.

Panel Discussion: (11.30 AM- 1.30 PM)

Opening Plenary: Individual Sessions

Mr. Indranil Das Vice President Solution Design & Delivery Ericsson

Mr. Indranil spoke on the background perspective of current M2M market and its forecast. He explained through his presentation that, there is an immediate need to look for new ways of thinking and revenue streams as ARPU is drastically going down and profitability is declining. He pointed out through a recent Ericsson study estimate that, there will be 9 billion subscribers by 2017 out of which 5 billion will be mobile broadband subscribers. The study revealed the following facts:

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Data traffic volume & revenue will register CAGR of 25% between 2012- 2015.

Voice & SMS will have a flat or negatitve growth between 2012- 2015.

58% of subscribers prefers to use smartphones for commutting passes.

70 % would prefer to have loyalty cards to be stored in smart phones.

78 % would prefer smart phones as bar code scanner for price comparison.

49 % of US subscribers wants to connect their mobile in F-Commerce.

He concluded his presentation by saying that, the next generation revenue streams will be from Enterprise mobility, BYOD and addressing the security concerns.

Mr. DD Mishra Head IT Governance & Outsourcing Vodafone

He spoke on the theme of current status of mobile device markets, key drivers and challenges for M2M, role of CSPs and how OTT providers are disrupting business models. His discussions are summarized below.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mobile device market:

Device type E- Reader Smartphones Tablet Laptop Portable gaming console M2M 2010 0.5 5.5 405 1460 247 35 2011 0.73 150 517 2131 317 71 2016 208 2576 4223 6942 1056 266

Per device usage: MB per month

Gen X behaviour pattern can be leveraged for data growth:

100 90 80 70 60 50 40 30 20 10 0

% Regular usage % Downloads

Global number of LTE devices by type (1Q12)

0.4% 18% 12% 16% 9% 8% 0.6% 36% Routers Smartphones Notebook Tablet Modules Dongles Femtocells

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Global market shares of Roaming service revenues (2011 vs. 2016)

2011
5% 36% SMS DATA VOICE 53%

2016
4% 43% SMS DATA VOICE

59%

Drivers & Challenges for M2M market:

Drivers

NTP Retail & healthcare boom Banking & need for Financial Inclusion Internal Sercurity

Challenges

Lack of awareness & slow Decision making Lack of infrastructure Cost implications & price sensitivity

In his second part of his presentation, he highlighted that operators are just minority stakeholders in content and services space and he said that, operator share of VAS will go from 27 %( 2011) to 24% (2016) and to 13% in developed markets. He concluded by saying that biggest chance of retaining role in mobile content is through carrier billing.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mr. Vijay Anand Global CTO M2M Logica

He started his talk with a quote Technology is enabler. It is the means and not an end in itself . According to Vijay, the big thing that started acceptability of mobile phones was the reduction of prices and the initiative of per-second billing of Tata Docomo. He urged that, the only survival options to sustain Telco business is to increase volumes and to create a business value for end users. He continued by saying M2M is an enabling technology; Internet of things (IOT) is a business value which is derived from enabling these technologies. In conclusion, he said Every step has a different journey. Lets innovate. Lets create a different image for the industry.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mr. Hemant Joshi Partner Deloitte Haskins & Sells

His presentation was focussed on what Telcos have achieved so far and challenges in the diverse sectors like healthcare, education, banking, agriculture and he also talked about the opportunities in India . He emphasized on key facts that Indian telecom industry should address. The main themes of his presentation are summarized below.

Overview:
Telecom contributes 3.6% of GDP and is estimated to increase to 10% in few years. Lowest calling rates in the world Second largest Telco network 22 service areas 951 million subscribers as on Mar12 96.95% prepaid market Highly competitive with 14 wireless and 7 wire line service providers.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Journey achieved so far: Achieved

Making tariff structure more affordable Achieved telecom coverage of all villages

Not Achieved
Provide reliable media to all exchanges by 2012

Challenges in Healthcare:
70 % population in villages Poor doctor to patient ratio ( 1:2000 in 2011) 42% of births are supervised by health professionals

Challenges in Education:
30 % of Indians still unable to read or write Low literacy rate

Challenges in Banking:
60% unbanked

Challenges in Agriculture:
Food security and price volatility concerns 10,688 tonne lakhs of food grains were found damaged in FCI depots 2 lakh farmers suicide due to unpaid debts M-Agri gas potential to increase farming incomes in developing world by USD 140 billion by 2020

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Opportunities in India:
M-health M-education Mobile money M-commerce M-VAS M-governance M-advertising

Key learning for Indian Telecom Sector:

Cost optimization Efficient spectrum management Network management Telecom tower setup Green technologies Manage uncertainty

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mr. Sriram Chidambaram

Head
Sales ConnectM Technologies

He focussed his presentation on M2M applications and typical M2M solutions, overview of M2M market and the immediate opportunities ahead. He also addressed the key challenges of M2M in India and he presented some key facts which showed the potential of M2M in the future ahead. The main themes of his presentation are debriefed below.

50 billion machines could be addressed through smart phones.

Connected devices expected to grow 10X in the next 4 years.

CAGR of 32 % in cellular M2M market over the last 5 years.

Key Facts

20 % of newly produced electronic & mechanical devices will be cellular enabled.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Typical M2M solutions:

Enhance productivity

Minimum operational cost

Improve asset utilization

Maximum Availability

Optimal energy consumption

Overview of M2M market:

Number of countries who adopted M2M: 54 Leaders in M2M: USA, China, Japan & Western Europe CAGR: 32% , APAC leading the growth M2M market: $108 million ( Likely to increase to $400 million by 2014) Number of applications: > 60 applications in 13 sectors Global market size: Expected to grow 256 billion USD by 2014

Immediate opportunities (Uncaging the Tiger):

Telemetry
Remote asset monitoring & management

Telematics
Track & Trace

Healthcare

Fleet management

Energy management

Survelliance & security

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

M2M solutions: Key challenges in India:

Technology

Remote deployment Data handling, fidelity & robustness Lack of standardization, certification agencies

Mobile operator

Coverage and availability Operation technology

Cost Models

Appropriate technology at right ROI Capex- Opex bus models & access to funds

Glue for building ecosystem

Ecosystem maturity
Efficient utilization & monitoring

Technological & managerial resources

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Mr. Ashwin Jaiswal

Head
IT Business & Telecom Reliance Communications

He said that, there has to be a cautious approach towards the business models that are going to develop over time. He emphasized that Telcos do not need to worry about losing customers or about losing out on deserved revenue, as they have been there and done that: surely everything will work out to the satisfaction of all players in the value chain.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Panel Discussion and Q & A Round

Moderator: Indranil Das, Ericsson

Key Points: The presentations by the panelists were followed by participants discussion. With networks heavily congested, the cost of service provisioning has become disassociated from the CSPs revenue models resulting in stagnating revenues and increasing Opex & network expenses. CSPs are all facing the same questions: How can we manage costs? Where will future growth come from? What future in store for mobile communications? CSPs have a variety of growth options. Capabilities such as flexible charging, pricing and bundling and policy can accelerate profitability and differentiation through innovative pricing plans, bundled offers, and OTT monetization, which extract value from new services and business models such as M2M, cloud and data. The audience posed the following questions to the panel.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Arun Koshy Thomas, Systems & Finance, II year Question: M2M has traditionally relied on 2G technology and it has just started transition to 3G. Many players have a conservative approach on the adoption of 4G for M2M. What could be the future approach? Response: Most of the current M2M applications use 2G and to some extend 3G services. 4G is in nascent stage also 4G M2M based services may not be viable as the service is unavailable in the nook and corner of the country. Adoption of 4G for M2M will gain traction in time critical applications wherein services will require fast and reliable connectivity. Above all it is technologically neutral and it depends on the business value delivered to the end customer.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Abeer Verma, Systems & Finance, II year Question: If we look at the business model adopted by BLYK in UK, Netherlands (providing free calls & sms to the youth and the minutes being paid by the advertisers who push their ad content on to the customer's devices), do you think such a model can be brought/will work in India?

Response: Panel replied that, this model is there in some countries, and may work in India, but there may be some issues relating to personal information. They emphasized that security is being shared with the advertisers who would be pushing their ads to your devices. So, a regulatory framework to tackle this is needed.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Arunava Chatterjee, Systems & Finance, II year Question: There are multiple M2M platforms from different vendors: for example Ford Motors has its own M2M platform, as do other vendors. With time, do you see some standardization happening along the lines of what ITU has been for Telecom, or is it going to be more of an open source market for M2M platforms? Response: The general view of the panel was that integration and interoperability will be achieved between platforms, over time. That may not require standardization in the first place. Also, if open standards are adopted (that is, if platforms remain open source), that does not mean that there won't be standardization. Even open source platforms will have to conform to certain standards for achieving seamless interoperability.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

L.Kishan Chand, Systems & Finance, II year Question: Given the mismatch between data revenues and cost incurred to provision those services, should the Telcos start charging the signalling data as most of M2M applications transmit only a few Kbps of data? Response: The panel replied that, the Telcos will initially provide the M2M services at appropriate rates based on which stage the M2M market is in and also the geography. Once the market matures, there will be a strong case for signalling data to be charged.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

Vote of Thanks
Asst.Prof. Prajakta Kanegaonkar, Chairperson Placements, SITM a

She conveyed her gratitude to the invitee organizations for their broader representations to the Consultare event that took place in one of the intensive period of the year. She thanked all the individuals who were instrumental in initiating and organizing the panel discussions. She also addressed the importance of the panel discussion to the students and faculty of SITM. Lastly, she thanked all the participants for their involvement in what promised to be fruitful discussions.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

PARTICIPATING ORGANIZATIONS:

CONSULTARE ORGANIZING TEAM:

(Left-Right) Naveen, Keerat, Supratim, Tapan, Roshni, Sugandha, Prajakta Kanegaonkar (Chairperson-Placements), Rohit, Mihir, Harshal, Neha, Faraz, Saurabh, Jaymin

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas

This report captures the main points of scheduled presentations and highlights discussions among the panelists. This report is not a verbatim transcript of the meeting proceedings, nor does it embellish, interpret, or expand upon matters or agenda topics that were incomplete, unclear, or not addressed. Statements are the individual views of each panelist or meeting participant. The Contents of this report should in no way be considered to represent a statement of fact of the organizations represented.

(To be used by SITM faculty and students only) | Unauthorized circulation NOT PERMITTED | Arun Thomas