REPORT FOR FACULTY VISIT

(Project Semester January-July 2012)

Work Internship with AP TMT Research Team

&
Study - Overview of the India Telecom Fact Pack

Submitted by

Akshit Bansal

Student ID: 09105004

Under the Guidance of

Dr. Nellu Jain SVN Arvind

Associate Professor, ENEC Department Knowledge Specialist
PEC University of Technology AP TMT Sector

Department Of Electronics and Electrical Communications

PEC University of Technology, Chandigarh

2nd January to 29h March, 2012

TABLE OF CONTENTS
INTRODUCTION....................................................................................3

MCKINSEY & COMPANY.........................................................................3

MCKINSEY KNOWLEDGE CENTER...........................................................3

Hi- Tech :......................................................................................3

Media:..........................................................................................3

Telecom:.......................................................................................3

WORK DESCRIPTION..........................................................................4

WORK INTERNSHIP DETAILS.................................................................4

Basic Work Flow Process....................................................................4

Primary Research - Mobile Money.....................................................5

Requests Worked On............................................................................5

Key Learnings.....................................................................................9

PROJECT ON STUDY - OVERVIEW OF THE INDIA TELECOM FACT

PACK...................................................................................................10

Introduction
McKinsey & Company
McKinsey & Company, Inc. is a global management consulting firm that focuses on
solving issues of concern to senior management. McKinsey serves as an adviser to
many businesses, governments, and institutions. It is recognized as one of the most
prestigious consulting firms in the world.
McKinsey Knowledge Center

2
Knowledge Professionals for industry specific insights

Knowledge Centre is the knowledge hub of McKinsey and Company. In McKC, there
are different teams and practice research groups. TMT is one of the practice research
group and it supports studies in the TMT (Technology, Media, Telecom) sector. The
sector broadly covers
Hi- Tech : Includes Consumer Electronics, Enterprise Hardware, Handsets, High
Tech services, Online Services, Personal Computers, Servers, Software.
Media: Includes Ad Agencies, Cable and Satellite, Consumer Internet, Filmed
entertainment, Mobile Media, Printing and Publishing, Professional Sports, Radio,
Recorded Music, Television.
Telecom: Includes Mobile Telecom, Mobile Data, Fixed Networks, Next
Generation Network Infrastructure, Mobile Broadband.
Work Description
I am currently involved in two things
Work Internship with AP TMT Research Team Generalist
Project on Study - Overview of the India Telecom Fact Pack
Work Internship details
Basic Work Flow Process

The work is distributed in a channelized manner. The lead starts from the client
approaching the firm or vice-versa. The client is assigned a consulting team. The
consultant works with the client as per the needs and requirements. The consultant
sends a request through a request tracking system which is assigned to the Analyst at
McKC. The Analyst does the request handling and stays in constant touch with the
consultant.
The request-handling procedure follows:
Scoping of the request
Structuring the request
Searching for the required data using the web and authorized company sources
Synthesizing the data
In the end, the required information is sent back to the concerned person via an email.

3
In most cases, research is done on secondary sources like Annual reports, Company
reports and by using the authorized tools, databases and sources available at McKC.

Primary Research - Mobile Money

In addition, I also worked on a smaller assignment which deals with Mobile Money. It
involved a primary research where I had to approach various retail stores and talked to
a lot of concerned people. The scope was to understand the business model and
customer segmentation for the mobile money service in India.
Requests Worked On
Week 1 India Market Information on PC's / laptop

Video surveillance player profile

Cost of Sales benchmarks for Hi-tech players in Asia - Searching

Net Revenue, Marketing Cost etc for key players
Mobile Subscribers - Searching Mobile Subscribers, PSTN lines
from 2007-2011(Australia ,China ,US ,Spain ,France)
Wireless Market Revenue Trend - Make a Graph showing Revenue
Split by Voice & Data for US

Week 2 Data for Tablets and Smartphone

Tablet specifications

Mobile Virtual Network Operators

Big data Analytics players

Data centre Players(DCs) - Making profiles for Colt ,Tulip

,Savvis ,Equinix ,Digital Realty Trust(Going through Annual
Reports/SEC filings ,calculating EBITDA Margin etc)
Advertisements for US telcos - Making a PowePT for Centurylink
and Verizon(Advertisement).Finding advertisements of the
companies promoting internet or bundling services

Week 3 BroadBand Penetration - Finding out Broadband Penetration

specifically for Malaysia and other Asian countries
Profiling Indian IT Service players (TCS) - Searching for revenue
splits, EBITDA, EBIT, Revenue, Income, Utilization, Attrition rate
etc (for years 2007-2010 and putting the figures in the ppt including
100% charts and others)

4
 Profiling Indian IT Service players(Cognizant)

Nokia Mobile Money and Nokia Money (Primary Search) -

Went to Sikandarpur area and had looked for Nokia authorized
agents facilitating services Nokia Mobile Money and Nokia Money.
Did a basic survey for a certain set of questions as demanded by the
client and then forming a Memo and sending it to the client
Handsets margin in Philippines - Looking for handsets
(Smartphones) margin from retailers, wholesalers, manufacturers
perspective
Potential of Domestic IT Market split by vertical industry -
Searching articles on the know portal, intranet talking about growth
or predicting the IT market split by vertical
Profiling Indian IT Service players(Tech Mahindra)

Profiling Indian IT Service players( Hexaware Technologies)

Week 4 Sony Ericsson-Mobile Device consolidation and outsourcing

Profiling Indian IT Service players( Patni Computer Technologies)

Profiling Indian IT Service players(3i Infotech)

Airtel Magiq tablet - Finding out the price clubbed with bundling
services or other plans, subsidized rates etc
Oracle product portfolio

Comparison of Software Companies in Pakistan - Profiling the

companies according to details(metrics such as services, CEO
,URL, FTE number etc ) required to be filled in the excel sheet
Enterprise usage of tablets - Research to find out latest case
examples of how big companies are using tablets, both in customer-
facing functions (e.g., sales) and internally (e.g., management
analytics, workflows) and making a PPT and profiling the case
study examples found during the research
Analyst Presentations for major network infrastructure OEMs and
carriers(Nokia Siemens, Alcatel Lucent, Ericsson, Huwai).The
major carrier players to consider are: Verizon, AT&T, Vodafone,
Orange, T-mobile, Bharati, Telia)

Week 5 Handset Discounts and Vodafone - Airtel Stores (Primary Research)

- Finding out the discounted prices of handsets from Nokia, Spice
HotSpot, Samsung Store and also doing a survey for Airtel and

5
 Vodafone Stores regarding the kind of services they are offering
Vodafone-Airtel Stores - Making a PPT for both the Vodafone and
Airtel Store and simulating the data collected by primary Research
into ppt
Profiling Handset Data Players-PPT: Apple, RIM, HTC, Nokia -
Searching for the various metrics like Revenue (2007-
2011),Operating Margin %,Revenue Split by Geography and
segment, Converting figures and other basic metrics like HQ,
Listed on which Stock Exchange, FTE etc and analyzing the Firm
as a whole
Profiling Handset Data Players-PPT: (Huawei, Sony, ZTE, LG,
Samsung)
Mobile based value-added services

Click to Call Players - Searching for enterprises/businesses or

companies using the feature Click to Call and profiling them into a
PPT
PartnershipOpportunity-Online Portals

Week 6 Network Opex Breakdown

Revenue split by various verticals for domestic and global players

(2010)
Subscriber evolution trend for Mobile operators in India

Data Demand Evolution - Searching information on evolution of

data usage-over fixed and mobile-historical and forecasts
Primary research on Mimobitv app and Nokia DRM free service

Week 7 Company Profiles Turkey

Churn Rates

Amazon and Facebook (Payment Mode)

Week 8 Tablet, Smartphone and VoIP data - Searching for metrics like
Smartphone, tablet penetration, VoIP lines and their respective
ARPUs
Primary Research on Tablet - Inquiring about tablet price , % of
MRP(cut) normal vendors are getting etc (Samsung tablets +

6
 others if possible)
Consumer security products - Searching for products offered by a
few companies in the consumer segment domain (Lookout, Check
Point, Websense, CISCO, IBM, Juniper Networks, Microsoft)
Global Benchmarking Churn rates - Pulling out the Blended,
Postpaid, Prepaid monthly churn rates for the latest last 4 quarters
for the entire globe(All regions)
Mobile Devices Launched in 2012 - Searching press articles on
Factiva and web for the latest mobile devices with different
OS(Android, Windows, Symbian, Blackberry and others) and
making an excel sheet for all of them

Week 9 Mobile subscribers in some countries and regions

Internet and Mobile Users Penetration

ARPU and Smartphone Penetration

Sungard Details - Did an extensive search of the market report

sources available which contains relevant data like financials,
overview of the company
Middle Eastern Telcom financials update

Week 10 Orange operations

Airtel, Idea, Tata Docomo - Searching for 2010 and 2011 figures
for the following metrics (ARPU, ARPM, Revenue Market Share,
Net Adds etc)
Average SAC/SRC

Subscriber evolution trend for Mobile operators in India

Info on Ice Cream Sandwich OS

Gartner IT Spend benchmark data

Capex/Revenue Ratio

Money payments - Profiling bKash(Bangladesh) and

Omni(Pakistan) into a PPT
Press search for UK telecom market

Week 11 Ultrabooks

7
 Bangladesh Opportunity slide - Searching for metrics like
subscribers, population (2005-2014) and profiling them into a PPT
UK telecom player - BT Group SWOT analysis and strategy

Benchmarking - Finding Revenue, CAPEX breakdown, Opex,

EBITDA, CAPEX/Revenue Ratio for (2008-2011)
Kolkata Knight Riders - Searching for revenue, operating profit and
league position for 2010 and 2009 and other performance
parameters as a whole and profile it in a PPT
App Scenario in India - Searching for top apps preferred in India by
platform, most visited app store etc and profiling the data from the
reports into a PPT
E-Commerce players - Profiling the E- Commerce players into a
PPT ( Flipkart, RedBus, YepMe, Bookmyshow, IRCTC, Policy
Bazaar)

Week 12 Internet penetration and Internet users

Switzerland Overview - Searching for metrics (Switzerland -

MVO subscribers, MVNO Subscribers, Prepaid and Postpaid
ARPS, Total Mobile Revenue , Handsets) (2009-2013)
Data required on internet and mobile usage

8
Key Learnings so far
Understanding of the TMT Industry in terms of segments, size, players, tech
trends.
Understanding of research process and Tools & Databases used at McKinsey
Knowledge Center.
Working with client teams and managing expectations in terms of quality &
time.
Working in a Global Environment.

9
 Project on Study - Overview of the India Telecom Fact Pack

McKinsey & Company works with telecom clients. The telecom market is highly
dynamic and there is a constant need to have a comprehensive & updated view of the
market. I was assigned a project to do a small study of the Indian Telecom Industry &
prepare a Fact Pack.

Objective: A comprehensive study of the key trends in the Indian Telecom

Industry covering all the aspects of technology and market.

Industry Value Chain

Operators
Infrastructure Vendors
Component Suppliers (Wireline and Wireless) Handsets Retailers Customers

Focus of the project

It is a collaborative and focused study of the Indian Mobile Handset Industry and
Indian Mobile Tower Infrastructure Industry in India. It will broadly cover the
following areas

Industry Understanding the Indian Telecom Industry

Mobile Handset Sources
Market
1. Market size 1. Knowledge
Nuggets/Market
2. Market shares Reports
Mobile Tower
Infrastructure 3. Key Trends in the 2. Press/Web
Market Market
3. Consultants/Experts
4. Technology

10