BASIC SERVICES: A Pick-n-choose Parade

Service Options



Basic service providers in India have been offering a host of services to

corporate customers. These include ISDN, leased line, Internet services, centrex,

VPN, and value added services like voice mail, premium rate service, universal

access number, and others. Another innovative service which service providers

are talking about is the mobile office using the Gtran card. Corporates can

choose a combination of these services, depending on the kind of application.

The services can differ from one geographical region to another, depending on

the voice and data needs of corporates.

n ISDN: Corporates

opting for ISDN get two channels that can be used for voice or data. They can

use these channels for high-speed Internet access and video-conferencing. ISDN

is available in two variants– basic rate interface (BRI) and primary rate

interface (PRI). Basic rate ISDN divides the telephone line into three digital

channels–two B channels and one D channel. The two B channels are used for

voice, data or video at rates of 64 kbps while the D channel is used for

signaling.

The main advantage of ISDN is that one can access the Internet on one channel

and make or receive voice calls on the other. PRI divides telephone lines into

30 B channels and one D channel, which can be used simultaneously.

n Leased Line:

Leased line provides corporates a clear channel bandwidth of 64 kbps and its

multiples. These circuits can be used for point-to-point leased line,

interoffice connectivity, wide area connectivity, and local loop access to ISPs.

E1 link is ideal for large corporates, which require a large number of

telephone lines. This is a 2 Mbps link that can carry voice or data channels.

n Centrex: Centrex–central

office exchange service–is a flexible communication tool designed for all

types of corporates. It offers the benefits of an EPABX without the corporate

investing in it. Since this facility is being provided by the main switch, there

is no need for the user to worry about its maintenance, upgradation or

obsolescence. Corporates opting for this facility can use it by using

interactive voice response (IVR). It supports value-added services like call

transfer, call pick-up, auto call back, and direct inward dialing (DID). Centrex

includes DID facility on each line and can be optionally integrated with the

existing EPABX systems.

n DSL: Digital

subscriber line (DSL) uses the existing telephone line without requiring an

additional line. It is a technology that brings high-bandwidth applications like

video-conferencing and video-on-demand to small businesses over ordinary

telephone lines. Connection speeds in DSL typically range from 512 kbps to 1.544

Mbps downstream and around 128 kbps upstream.

Asymmetric digital subscriber line (ADSL) is the most popular form of DSL

technology and is distance-sensitive. It allows simultaneous voice and

high-speed data transmission. High bit-rate digital subscriber line (HDSL) acts

as a substitute for T1/E1.

n WLL (M) or

Mobile Office: In order to reduce communication cost corporates can opt for

mobile services based on CDMA technology. WLL (M) provides mobility services

within a SDCA (short distance charging area) in comparison to cellular where it

is not limited. Since, the call charges are lower in WLL (M). With bandwidth not

acting as a constraint, the service providers are focusing on services like

mobile office whereby one can work anywhere according to his convenience without

wasting time in travel.

n Other

services: Virtual private network (VPN) allow corporates to utilize the

service provider’s infrastructure rather than going for their own leased

lines.

Internet services offered by service providers include Internet access,

followed by co-location, data center, Web hosting and others.

Buying Tips

Buying Tips



Basic service providers can be differentiated on the basis of area of

coverage and service provisioning. Depending on the area under use, one can

categorize the service provider in terms of regional or an all-India player.

BSNL and Reliance fall under the all-India service provider category, whereas

companies Shyam Telelink, and HFCL Infotel are operating in just one circle

each. Tata and Bharti are midway as far as the scales of operation are

concerned. In terms of service provisioning, we have an integrated player who

provides all types of services–basic, cellular, Internet, DLD, ILD, and

broadband. Companies like BSNL, Reliance, Bharti, and Tata fall under this

category, while Shyam, and HFCL, provide some portions of the above services.

Since a reliable telecom infrastructure is a must for any corporate for its

smooth functioning, one has to be very careful in choosing the best service

provider, considering the above service differentials, such that voice and data

needs of corporates can be addressed in the best possible way. It is not easy to

switch from one service provider to another in the long run, as one has to

write-off installation and maintenance costs. Therefore, it becomes all the more

important to choose the best service provider.

Even BSNL, the incumbent operator, is moving towards one-point solution for

enterprise customers and so is the Tata Group.

n Suite

of Services: At present, in most of the state circles, corporates do not

have many options but have to be satisfied with whatever little that is

available, either through an incumbent or through private service provider, in

the state. But with the coming of Reliance and Tata one will have a lot of

option to choose in terms of service. Integrated telecom players have an

advantage as they can cater to a complete range of voice and data needs of

corporates. Since their infrastructure is available throughout the country, they

can provide an end-to-end connectivity.

Service providers are currently offering services like ISDN, leased line,

Internet leased ports, DSL, VPN, data center, and co-location facility.

Currently, all operators are either offering or are planning to offer the above

suite of services. Bharti, Reliance, and Tata do have an advantage in comparison

to other service providers–they can provide leased line facility as they are

also DLD players.

n Degree of

Management: Enterprise customers should focus on those service providers who

can provide end to end solutions rather than piecemeal solutions whether it is

services or bandwidth. Not all companies are providing solution. In most of the

cases, the service provider can put the blame on BSNL network as it is a good

excuse for the service provider.

However that may not be the case always.

n Coverage

Area: If a service provider has an all-India infrastructure, corporates have

an advantage, as they have only one point of contact for all their communication

needs. And if corporates desire to expand their office in a particular city,

they have to just make a call and the connection is provided. The other

advantage is that the service provider can optimize the network in the best

possible way, so that communications cost can be minimized and the network

reliability can be increased. Even installation and AMC costs can be reduced.

Service providers can improve quality-of-service (QoS) because they can provide

an end-to-end solution and thus provide QoS on end-to-end circuit rather than

only on those circuits where they have a network presence. Small regional

players, in order to compete with all-India players, should also start giving

end-to-end QoS and for this, they have to enter into collateral arrangement with

other regional and all-India service providers. In the case of regional players

it becomes difficult to provide the same SLA (service level agreement) as they

have to ride on different service provider for different region.

On the QoS front, corporates should look forward for error-free,

crystal-clear voice without noise and connection drops. On voice and data

fronts, one has to look for error-free and synchronized transfer of data.

n Provisioning

Time: For leased line as well as normal telephone connections service

providers are taking a lot of time. The service provider that can reduce this

time has a clear edge over others.

n Pre-sales/commissioning/after-sales

Support: Those service providers who can outscore on pre-sales,

commissioning and after sales support will definitely have an edge over others.

The most crucial factor is the after sales support because most of the service

providers focus more on the first two parameters. They have to focus on customer

support because if the link goes down it has to be activated at the earliest and

they should have a 24*7 help desk service that helps in proactive network

monitoring and support.

n Network

Uptime: Today, service providers provide SLA up to 95—98 percent, but

still they have to go a long way before they can achieve a reliability of 99

percent and above. Corporates have to see whether the network is fully redundant

and provides an alternate path when the network is down. Corporates are

interested in signing a single SLA with the service provider rather than signing

many SLAs, as in the past, with different service providers. This simplifies the

matter for corporates as now they have to contact only one agency for all their

communication needs. In case of a failure, the service provider can be bound by

stiff penalty clauses, and thus can be asked to deliver what was promised so

accountability can be fixed.

n Quality-of-Service:

The only differentiating factor between service providers is

quality-of-service. The important parameters are mean time to repair, single

toll-free number, network optimization through the network monitoring center, a

similar QoS in all centers, end-to-end QoS by opting for collateral arrangement

with different service providers.

n Value-added

Services: With corporates having varying needs, many service providers help

corporates go for a cost-effective network, one that is robust and reliable, by

providing free consultancy. With intelligent (IN) switches coming in, service

providers can provide a number of value-added features that come through the

switch, and other features or services that can be integrated, once there is a

demand for those services in the market.

n Pricing: In

basic services, the prices are presently regulated by the regulator so not much

can be done on this front.. But the enterprise customer should focus more on the

hidden costs and discount schemes available with different service providers.

The corporate must consider the minimum hidden costs, such as interest free

registration, activation charges, deposit for services, administrative costs,

and add-on-service.

Market Information

FY 2001-02 was a boon for basic service operators in the country as the

government allowed mobility to its subscribers with wireless access systems

within the local area i.e. short distance charging area (SDCA). Companies have

taken 25 new licenses in basic telephony taking the overall tally to 33 which

includes the incumbent operator, MTNL and BSNL. Big corporate Groups like Tata

and Reliance have increased their coverage area in basic telephony. Reliance is

operational in all the telecom circles except Jammu & Kashmir, Andaman &

Nicobar and North East. The company has launched its service but is planning to

go commercial by April. Tata, the service provider in Andhra Pradesh has gone

for additional licenses in Delhi, Gujarat, Karnataka, and Tamil Nadu. The

company has already commenced its operations in all the circles. In the newly

acquired Maharashtra circle the company is planning to operate WLL (M) service

by May-June.

In terms of number of subscribers, the basic telephony market in India is

estimated at around 38.5 million in FY 2001-02. In terms of subscriber base

there has been a growth of around 18 percent. The incumbents still dominate with

a market share of 98.55 whereas the private operators contribute a meagre 1.45.

In terms of revenues, the basic telephony market in India is estimated at Rs

30,247.49 crore an increase of 3.8 percent. The incumbent operators together

contribute around 98 percent of the total revenue. The total cumulative of

private operators is still small and is Rs 600 crore.

The coming of new operators has changed the basic telephony scenario in the

country and the service providers are now focussing more on providing a good

quality service backed up with an excellent quality of service. There has been a

considerable improvement in fault rates, correct billing, and prompt service. On

the feature side, the service provider has been providing dial-up Internet,

parallel ringing, and multiple subscriber numbers.

All the three major players in basic telephony are basing their business

model differently. Bharti is focussing more on corporate customers through their

wireline route whereas Tata and Reliance has a mix of both wireline and wireless

with wireline focussing on home users and in wireless the focus is mainly on

corporate users.

The WLL–Poised for Fast-track Growth



The WLL (M) service in India is being offered through the basic service

license. By default, service providers have been using the CDMA technology to

offer limited mobility services. According to Voice&Data estimates, the

number of CDMA lines in the country is around 1.15 million of which around

440,000 are WLL (M) and rest are fixed wireless terminals (FWT). On the CDMA

front, things are moving at a fast pace.

Taking the overall performance of all the service providers in the country,

Voice&Data estimates that India will have around 2.4 million subscribers by

March 2003 and 8.7 million subscribers by March 2004. In volume terms, CDMA is

forecasted to achieve a growth of 552 percent in 2003-03. In 2003-04, the growth

is forecasted at around 253 percent. This sudden surge in growth as well as

volume is due to the launch of new circles by Tata Teleservices and all-India

launch of Reliance IndiaMobile by Reliance Infocomm. This, coupled with the

aggressive approach of the incumbent operator will help in achieving those

numbers.

EXPERTS PANEL Rajiv Kataria, COO (Delhi), Tata Teleservices