White Paper

On

“Analysis of new verticals for the operations of

Cable&Wireless in India and product positioning for its
product portfolio”
EXECUTIVE SUMMARY analyzing the potential customers in the
shortlisted verticals the primary data
were collected from the strategic and
The objective of the project is to analyze potential accounts. The project covered
the new markets for Cable & Wireless various companies in the cities Mumbai,
and create a business proposition/ Bangalore.
product proposition to address the need in
Primary data
India. Cable and Wireless, which started
its operations in India in 1995, has been Relevant persons were contacted and data
catering mainly to the IT/ ITes and BFSI collected from them was through
sectors till date. With the fast growing personal interviews. The persons
and huge market in India, there are contacted were C&W UK employees and
immense opportunities in various other the IT Heads /Communication
verticals where the products of Cable & managers /network administrators of
Wireless can fit into and provide a value various organizations in order to get an
proposition to the customer. The project insight into various verticals to be
focuses on exploring and analyzing these targeted and the potential customers and
new verticals and positioning the product their current communication
accordingly. infrastructure, to understand their

The whole project comprehensively gives potentials and generate their

us an understanding on various new requirements.

verticals on which C&W can capitalize

RESEARCH
on and the unique business need for each
of these verticals. Project also gave us an METHODOLOGY
idea on how C&W can convert this
The research approach followed was
unique business needs into telecom need
Descriptive as the purpose of this
and move ahead in implementing its
approach was to provide the exact
expansion plans in India.
snapshot of existing market situation.
DATA SOURCE This approach was necessary to find
accurately, the kind of Communications
The data collected for short listing the
infrastructure used in organizations and
potential verticals was primary data
their future needs
collected from C&W UK employees. For

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The Research was divided into two The questionnaire consisted of majority
phases: of open-ended questions. Apart from the
questionnaire, during the personal
1. Vertical short listing: The
interviews additional questions were
potential verticals were short
asked from the respondents thus adding
listed analysing various identified
to the information collected. The
verticals. This was done by
questionnaire was fine tuned several
collecting primary data from the
times so as to get the most accurate
C&W UK employees and the
information out of it while keeping its
competitors in the Indian markets.
format simple.
Potential customer analysis and product
positioning: Potential customers from
ANALYSIS AND FINDINGS
each short listed vertical were analysed
A. Media and Animation:
by collecting primary data from the
potential customers. Features and important telecom needs
of media vertical:

1) Connectivity between the

RESEARCH sites as well as to customers
INSTRUMENT: and vendors

Research was conducted by preparing 2) Sending huge amount of

three questionnaires. First two streaming audio, video data

questionnaires were for phase one i.e. internationally.

vertical short listing and the third

3) VSAT connectivity to the
questionnaire was for analyzing the
mobile news Vans as well as
potential customers. All the questions
to the remote areas.
included in the first questionnaire were to
get the insights of various verticals and 4) Point to point connectivity

the questions included in the third to International data centers

questionnaire were for getting insight for example Yahoo! Etc.

into the communications infrastructure 5) Huge bandwidth

currently used in the organization and requirement for streaming
their potentials and future needs for media for example Youtube.
various telecom products.

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 Bharti has provided 1GB to
Yahoo.
6) Internet connectivity
7) Major shift from time
specific content to video on
demand.
8) Uplinking of TV signals.
9) Regulations such
international broadcasting
cannot be done directly from
India. For example,
Bharti has provided IPLC to
Star news.
Analysis and findings:
a) Internal Analysis: Number of
Respondents: 7
1) Most important feature is
the information or data
gathering and processing,
Media organization
requires high bandwith.
1) Major requirement for the
media companies is to have
connectivity for transferring
content from one location to
other. VPN and leased lines
are used for connectivity.
Audio/Video conferencing is
used for conducting seminars,
meetings etc.
as
2) Samples included the
companies having presence
outside India. Almost all the
companies were having
presence abroad except 1,
which is mainly into Indian
market
3) 80% of the companies were
using VPN/MPLS
connectivity for the national
sites. These companies used
leased lines for international
connectivity.

VPN/MPLSSites
2) Connectivity is the
Connectivity
important need of this
Intern
vertical followed by voice ational
and data services. ,1
National
3) Outsourcing the major
International
trend in this vertical.
Nation
b) External Market Analysis: al, 80
%
Fig. International/National Connectivity

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 4) Service provider mainly was use of telecommunications in this vertical
Bharti in the Indian market. make it attractive. In India, Tata, Bharti
5) 60% were using Annual are already targeting this vertical.
renewal contract scheme,
B. Transport:
where as 40% contracts were
renewed quarterly. None of Recent Trends: Use of IT enabled
the companies were using pay services in the Logistics industry is on
as per use model. rise. Following are some of them
6) Importance of Mass calling/ • Shipment Visibility: This allows
messaging was moderate and monitoring and managing
low as show below. None of shipments, on the move and in the
the companies have high warehouse.
importance with regard to the • Data connectivity: Connectivity
Mass calling / Mass throughout the supply chain -
messaging platform. from any vendor or location.
7) In case of Managed services, • Warehouse Management:
mainly Managed security and warehouse efficiency, cycle time
storage was in place. and order fulfillment.
8) Two companies were • Transportation/Freight:
managing the services Specialized technologies to
Inhouse whereas the other minimize rate freight costs and
service providers were Bharti ensure on-time delivery
and Reliance. Features and telecom needs of
9) Companies are having Tie ups Transport vertical:
or acquisitions abroad. 1. The major need for telecom
10) Major Trends observed in products is to connect different
this vertical sites
2. Telecom products to track
Inference: Media is the major sector parcels.
requiring high bandwidth and 3. Inbound and outbound calling.
international connectivity. C&W UK has 4. Current trends- companies are
the customer base in this vertical and cost cutting, reducing number of
generates substantial amount of revenues. suppliers.
Current trends such as digitization and Analysis and Findings:

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 a) Internal Analysis: • Connectivity between sites- Sites
1. Major Products in this vertical are connected through MPLS
are IPVPN, IPLC. • Bill payment and centralized
processing and data centre.
2. The important feature of this
• Inventory management
vertical is global customers
and vendors as identified • Mass communication

below: • Major Indian retail market is

domestic i.e. sites are located
3. Major Telecom need is for
within India.
connectivity for running
• Major retail players in India
various applications such as
Future group, Westside, shoppers
parcel tracking systems,
stop are the customers of Tata
Warehouse management etc.
communication.
4. Major trends are outsourcing, Analysis and Findings:
cost cutting and increased a) Internal Analysis:
telecom spendings.
1. Major products are as shown

Inference: Transport sector in India is below: IPVPN, IPLC, Voice

growing with number of international services.
players coming in. DHL, TNN, DTDC,
2. Retail enterprises have more
Gati, Blue dart are some of the
sites for connectivity and can
companies in Indian market that can be
be separated by long
targeted. This Vertical is short listed for
distances. Online Stores
further analysis.
requires online transactions.
C. Retail: 3. Major telecom need is

General Information: Retail enterprises connectivity for running

can be classified into Small stores, large various applications like

stores, E-stores (online stores). inventory management, CRM,

Digitization of media and interactive ERP etc

Television are some of the current trends Potential:

in the vertical.
1. Major customers of
Features and telecom needs of the Cable&Wireless in Retail are
Retail vertical: Tesco, Home retail group plc,

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 Morrison supermarkets. These 2. Telecom subsystems (for
companies have there presence in example, voice and data integration),
India as joint ventures.
3. Connectivity to the client side.
2. Indian retail market is in (Off shoring)
developing stage, most of the
Potential:
retailers are facing cost problems.
1. It can be observed that the major
3. Major Indian retail players are
products/services provided to
Future Group, Westside, and
these companies are connectivity,
shoppers stop. These players
hosting services, voice services
don’t have plans of going global
and are restricted to domestic 2. Presence of strong global SI
markets. companies in India for example
TCS, WIPRO, Infosys,
Inference: Retail sector in India is
Accenture, IBM, Siemens etc.
domestic in nature. Major retail players
are yet to go international. Though Indian 3. Accenture, IBM, Atos are already
Telecom players are leveraging on the customers of C&W.
domestic connectivity, it is better to wait
Inference: This vertical has a lot of
and watch for the trends.
potential and is already being targeted by
DD. System Integrators(SI):
the C&W India.
General information: System
integrators are the companies which E. Utilities
specialize in bringing together
General Information:
component subsystems, i.e. inputting,
• A major revenue contributor, this
processing, storing, security of data, into
vertical has accounts which are
a whole and ensures that those
mainly domestic in nature
subsystems functions together. Solution
(operating only in UK). The total
based on combination of hardware and
revenue generated by the account
software’s.
is approximately 40 million GBP
Major Telecom Needs: annually.
• The organisations that are a part
1. Connectivity and other services
of the vertical are mainly the
for themselves (SI’s)

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 water companies which provide • The upstream applications include
the water to the common masses operations by the oil and gas
as per the normal distribution companies in the remotely located
norms of the government. At the exploration sites and oil rigs.
same time these are also C&W offers advanced telecom
responsible for the water solutions that enable voice and
treatment plants and their data communications from the
maintenance. most remote platform or onshore
• The vertical also includes the location.
various electricity companies
P e rc e n ta g e o f R e ve n u e s
having their distribution
networks.
Indian context: Most of the services of
40%
this vertical are being provided by the
U p s tre a m A p p lic a tio n s
organisations that are Government D o w n s tre a m A p p lic a tio n s
controlled. The private participation is 60%
almost negligible. Also the telecom
requirements of these civic bodies are
different from the current product
Fig: Pie Chart showing the distribution of
portfolio of C&W in India. Again the revenues for both the applications in oil & gas
vertical
accounts if at all are catered to will be
domestic in nature. In a nutshell, the • The downstream applications
business model of C&W for this vertical mainly include operations which
just doesnot suits the requirements of are related to the refining and
Indian market. distribution of oil and gas. These
kind of operations mainly require
Inference: The vertical is not shortlisted
all three types of connectivity i.e.
because of the aforesaid reason.
video, voice and data.
F. Oil and gas
• The total number of employees
Important Features: The telecom needs stationed in UK that responded
of the companies are mainly divided into were six in number and their
two groups. One is the data services for designation were Client Director,
the upstream applications. Client executive and Client
Manager.

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 • One of the striking features of this Moreover the needs of the companies
vertical is outsourcing. The operating in these applications are mainly
companies are looking for domestic in nature. Even if the C&W and
companies who can cater to their BSNL partnership decides to cater to this
telecommunication and IT needs segment, then also it won’t be a fruitful
and cater to them end to end. The and buck yielding proposition for C&W.
Royal Dutch Shell Company has
Inference: Vertical This vertical has
outsourced its IT Help Desk to
been shortlisted for futher analysis .
Infosys in Malaysia.
G. Local government, public
• Besides this the other features are
cost cutting and increase in IT and sector & health
Telecom spending by the
Introduction:
organisation.
• This vertical primarily is again
Indian context: Most of the oil
domestic in nature. As far as the
exploration is being done by Public
revenue figures are concerned, this
Sector Undertakings like ONGC,
vertical is contributing nearly 30
Hindustan Petroleum, Indian Oil
million GBP annually.
Company, Bharat Petroleum and private
players like Reliance Industries Limited, • The actual potential of this vertical is
Cairn Energy (India) Ltd. and Royal nearly 270 million GBP annually.
Dutch Shell Company. The main regions Huge chunk of the market is captured
for oil exploration are Krishna Godavari by British Telecom. The main
Basin (Wherein multiple players are accounts that are being catered to are
stakeholders) and remote areas of Thar regional county councils, police
Desert in Rajasthan. stations, defence installations etc.
Health services are also being
Potential recognised: For upstream
provided with the telecom
applications the telecom requirements are
connectivity.
again domestic in nature and also the
products that these applications need Indian context: Since the Government
mainly are IPCCTV, VSAT (Skylink) sector accounts are mostly domestic. The
etc. VSAT in India can’t be catered by a accounts that are primarily important
foreign player and C&W happens to be because of security reasons are mostly
one. Also IPCCTV is yet to be launched. handled by domestic players. TATA

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communications is a pretty influential plans of organizations have been delayed.
player in these sector. Also the accounts Nevertheless, the auto biggies are going
are mostly domestic in nature. As a ahead with their plans. The role of C&W
result, this sector can’t be catered to. can be :

Inference: The vertical is not shortlisted • Providing bandwidth for the

because of the aforesaid reason. transferring of data from a R&D
centre (situated in a continent like
G. Automobile and Auto-
Europe) to a manufacturing
Ancillary Sector facility (may be in Pune) or vice

Understanding the Vertical: versa.

The vertical has accounts which are • Managed Services (Audio/Video

mainly domestic in nature (operating Conferencing) can be provided.

only in UK). Any automobile major

• C&W and BSNL deal can be
would be needing connectivity (dedicated
utilized in this vertical
bandwidth) from its R&D site to its
specifically. Government
manufacturing facility. Besides this, the
agencies would prefer to go with
organisation would also be needing
a public carrier. A centre like
connectivity between domestic dealers as
NATRIP or ICAT can have its
well.
domestic need fulfilled by BSNL
Indian context: The Indian automotive and for its global connectivity it
industry is represented by two industry can use C&W network.
associations- Society of Indian
Inference: The vertical is shortlisted
Automobile Manufacturers (SIAM)
because of the aforesaid reason. It may be
which represents the OEMs and the
inferred that the majority of the IT and
Automotive Components Manufacturers’
Telecom needs of automobile companies
Association (ACMA) which represents
are being outsourced to the telecom
the components industry. The industry is
service providers. This clearly gives an
contributing nearly 5-7 per cent to the
indication for the opportunities in this
country’s GDP.
vertical and hence it should be targeted.
Vertical Potential: The sector is already
H. Pharmaceutical Sector
buzzing with activities, but because of
global economic slowdown, expansion Important Features:

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 • All the accounts are domestic in • The sector is hampered by
nature. excessive red tape,
• Most of the pharmaceutical giants underdeveloped infrastructure,
like GSK Beecham, low per capita spending and
Johnson&Johnson etc. have their stringent pricing control.
decision making authorities in • Despite all these factors, India
US. continues to remain an attractive
• The account managers told that destination for global
C&W team should play a more pharmaceutical companies.
proactive role if it has to take a Vertical Potential:
share in the revenues generated • Providing bandwidth for the
out of this vertical. transferring of data from a R&D
• BT, Verizon and AT&T are big centre to a manufacturing facility.
players in the segment. • Managed Service can be
Indian context: provided.
• Lot of Indian companies looking • Hosted contact centre solutions
abroad to mergers and can be provided.
acquisitions. Inference: This vertical seems to be
attractive, lot of mergers and acquisitions
• Because of low cost especially in
are taking place creating lot of
India, China and Japan, more and opportunities for telecom space.
more MNCs are looking to these
countries for contract
manufacturing. CONCLUSION
• R&D centres located in different
1) The verticals that are shortlisted after
parts of the world of an
exhaustive research are given as
organisation needs connectivity
between themselves as well as under:
manufacturing sites.
1. Media
• Key draws of Indian Markets are:
2. Transport
sheer market size, strong annual
growth indicators, improving 3. Retail (Wait and watch)
economic as well as intellectual 4. Oil and Gas
property (IP).

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 5. Automobile and auto- India for its expansion plans

ancillary components

6. Pharmaceutical REFERENCES
2) More vertical specific products are 1. Cable and Wireless website:
www.cw.com
needed for verticals like media and
2. Cable and Wireless intranet
oil and gas.
3. www.google.com
1. Media – STORM

2. Oli and Gas- IPCCTV

3) Most of the organizations in verticals

like Oil and Gas, Pharmaceutical and

automobile are outsourcing their IT

and Telecom infrastructure, C&W

needs to capitalize on that.

4) Organizations in Verticals Like media

Transport are looking for innovation

in terms of services. Media vertical

has seen trends like digitization and

outsourcing.

5) Merger, Tie-ups and acquisitions are

taking place in verticals like

pharmaceutical, automobile and

Media.

6) The objectives stated in the beginning

are achieved at the end of project.

The shortlisted verticals can be

aggressively targeted by C&W in

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