Employment Demand Forecast Report 2014 - National ...nqr.gov.in/sites/default/files/Skill Gap Report - JUXT_15...4 Employment Demand Forecast Report Table of Content 3.3 Talent Scenario

2014

TSSC-JUXT Report

Employment DemandForecast Report

2 Employment Demand Forecast Report

Table of Content

Table of Content

OvERviEw OF ThE TElECOm SECTOR1.

1.1 A Brief Overview of Indian Telecom

1.2 The Structure of Indian Telecom Market ....................................................................................................7 1.2.1 Subscriber Base FY 2012-13 ..........................................................................................................8 1.2.1 Defining Telecom Sub-sectors from a skill standpoint .................................................................9 1.2.1.1 Interrelationship Within Subsectors .................................................................................9 1.2.1.2 Telecom Equipment Industry (FY 2010-11) ....................................................................10 1.2.1.3 Telecom Equipment Industry (FY 2011-12) .....................................................................11 1.2.1.4 Telecom Equipment Industry (FY2012-13) ......................................................................12 1.3 Emerging Trends in Telecom .....................................................................................................................13 1.3.1 Newer Geographies: Rural Market Expansion ............................................................................13 1.3.2 Newer Revenue Streams: Data and Content Services ................................................................13 1.4 Direct and Indirect Employment in Telecom Industry ...............................................................................14 1.4.1 Total People Employed in Indian Telecom ..................................................................................14 1.4.2 Employment in Telecom Industry in FY 2012-13 ........................................................................14 1.4.3 Operator Wise Employee Breakup in FY 2012-13 .......................................................................15 1.4.4 Operators Employee Base in FY 2012-13 ....................................................................................15 1.4.5 Equipment Wise Employee Breakup in FY 2012-13 ....................................................................16 1.4.6 Equipment Player Employee Base in FY 2012-13........................................................................16 1.5 Implications of Emerging Trends for Telecom Labor Market.....................................................................17 1.6 Need for Training, Retraining & Certification ............................................................................................17 1.7 Need, Opportunities & Challenges of Creating an LMIS for Telecom........................................................18 1.7.1 Employment in India’s Services Sector .......................................................................................18 1.7.2 The Need for a Labour Market Information System (LMIS) in Telecom ......................................19 1.7.3 What Should a Good LMIS Have? ...............................................................................................20 1.8 Research Requirements ............................................................................................................................21 1.8.1 Availability of Information ..........................................................................................................22 1.8.2 Research Requirements for Organized Sub-Sectors ...................................................................22 1.8.3 Research Requirements for Unorganized Sub-Sectors ...............................................................22 1.9 Introduction to the Pilot Study .................................................................................................................24 1.9.1 Identified Positions by TSSC ........................................................................................................25

TElECOm TOwER Sub SECTOR2.

2.1 Brief Overview of the Telecom Tower Sector and Market Dynamics ........................................................27 2.1.1 Tower Industry Growth & Information on Tower Deployment ...................................................28 2.1.1.1 Telecom Tower Growth over the years ...........................................................................28 2.1.1.2 Deployment (New/Cumulative) in past four years (player wise) ....................................28 2.2 Profiles of Major Tower Players ................................................................................................................30 2.2.1 Bharti Infratel..............................................................................................................................30 2.2.2 VIOM Networks ..........................................................................................................................30 2.2.3 GIL ...............................................................................................................................................30 2.2.4 Indus Towers ...............................................................................................................................31 2.2.5 Tower Vision ...............................................................................................................................31 2.2.6 American Towers ........................................................................................................................31 2.2.7 Reliance Infratel ..........................................................................................................................32 2.2.8 BSNL............................................................................................................................................33 2.2.9 MTNL ..........................................................................................................................................33

Employment Demand Forecast Report 3

2.2.10 Vodafone ..................................................................................................................................34 2.2.11 Idea Cellular ..............................................................................................................................34 2.2.12 Aircel .........................................................................................................................................34 2.2.13 Sistema Shyam TeleServices .....................................................................................................35 2.3 Talent Scenario & Skill Gap Analysis..........................................................................................................35 2.3.1 Typical Structure of a Tower Company .......................................................................................35 2.3.1.1 Organizational Structure of Telecom Tower Company ....................................................35 2.3.1.2 Career Profression (based on qualification, experience and industry growth) ..............36 2.3.1.2.1 Overall break-up of major workforce spread in telecom tower sector ............36 2.3.2 Profiles of Various Positions .......................................................................................................36 2.3.3 Skill Gap among Existing Workforce ...........................................................................................38 2.3.4 Information on Employment of Selected Positions ....................................................................39 2.3.4.1 Past Three Years Telecom Tower Manpower Data for Selected Postions ........................39 2.3.5 Factors Affecting Future Demand of Selected Positions .............................................................39 2.3.5.1 Existing Norms ................................................................................................................39 2.3.5.2 Likely Changes & Trends..................................................................................................39 2.3.5.3 Statewise Breakup of Telecom Towers ............................................................................40 2.3.5.4 Future Tower Technician Requirement ...........................................................................41 2.3.5.5 Future Tower Technician Requirement (With Attrition) ..................................................41 2.3.5.6 Forecast of Employment numbers in Tower Technician .................................................42 2.3.5.7 Future Cluster Manager Requirement ............................................................................43 2.3.5.8 Future Cluster Manager Requirement (With Attrition) ...................................................43 2.3.5.9 Forecast of Employment numbers in Cluster Manager ..................................................44 2.3.5.10 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head ...... 45 2.3.6 Factors affecting Future Demand of Selected positions .............................................................46 2.3.7 Supply Situation ..........................................................................................................................46 2.3.8 Possible Sub-sectoral Inputs and Outputs for an LMIS ...............................................................46 2.3.8.1 Information to be made available ...................................................................................47

TElECOm OFC DEmanD PROjECTiOn FOR SElECTED POSiTiOnS3.

3.1 Brief Overview of the Telecom OFC Sector ...............................................................................................47 3.1.1 Indian OFC: A Long Journey ........................................................................................................48 3.1.2 Current Base ...............................................................................................................................48 3.1.2.1 Optical Fiber Cable (OFC) laid in India (Overall) ..............................................................48 3.1.2.2 Distribution of OFC Ownership among Players ...............................................................49 3.1.2.3 RailTel OFC Network .......................................................................................................49 3.1.2.4 PowerGrid OFC Network .................................................................................................50 3.1.2.5 Operator-wise Ownership of OFC Cables in India ...........................................................51 3.2.1.6 OFC Owned by Telecom Operators in India (End of FY 13) .............................................51 3.2 Profile of Selected Companies ..................................................................................................................52 3.2.1 BSNL............................................................................................................................................52 3.2.2 MTNL ..........................................................................................................................................52 3.2.3 Bharti Airtel ................................................................................................................................52 3.2.4 Reliance Communications ..........................................................................................................53 3.2.5 Reliance Jio .................................................................................................................................53 3.2.6 RailTel .........................................................................................................................................53 3.2.7 PowerGrid (PowerTel) .................................................................................................................53 3.2.8 GAIL TEL ......................................................................................................................................54 3.2.9 BBNL ...........................................................................................................................................54


Table of Content

3.3 Talent Scenario & Skill Gap Analysis..........................................................................................................54 3.3.1 Typical Structure of an OFC Company ........................................................................................55 3.3.1.1 Organization Chart of a Typical Infrastructure Player (OFC) ...........................................55 3.3.2 Brief Profiles of Selected Positions .............................................................................................56 3.3.2.1 Optical Fiber Technician ..................................................................................................56 3.3.2.2 Optical Fiber Splicer ........................................................................................................56 3.3.3 Skill Gap among Existing Workforce ...........................................................................................57 3.3.4 Industry Level Information on Employment of Selected Positions .............................................57 3.3.4.1 Growth in Employment for OFC Technicians and Splicers ..............................................57 3.3.5 Factors Affecting Future Demand ...............................................................................................58 3.3.5.1 Future Demand for OFC ..................................................................................................59 3.3.5.1.1 NOFN ................................................................................................................59 3.3.5.1.1.1 State-wise Plans for Covering Gram Panchayats (NOFN) ......................61 3.3.5.1.1.2 State-wise Estimation of OFC to be Deployed in First Phase (NOFN) ....62 3.3.5.1.2 Defence OFC Networks ....................................................................................63 3.3.5.1.3 Cable Service Providers ....................................................................................63 3.3.5.1.4 Telecom Carriers ..............................................................................................63 3.3.5.1.5 Total Installed Base of OFC by Telecom Companies (Projection) .....................66 3.3.5.2 Norms for Calculating Manpower ...................................................................................66 3.3.6 Forecast of Requirement of Selected Positions ..........................................................................67 3.3.6.1 Forecast of Employment numbers in Selected Positions (FY 14 to FY 18) ......................67 3.3.6.2 Forecast of Employment numbers in Selected Positions(FY 14 to FY 18) (Operator-wise) .... 68 3.3.6.3 Forecast of Employment numbers in OFC Technicians ...................................................69 3.3.6.4 Forecast of Employment numbers in OFC Splicers .........................................................70 3.3.6.5 Forecast of Employment numbers in OFC Technicians ...................................................71 3.3.6.6 Forecast of Employment numbers in OFC Splicers .........................................................72 3.3.7 Supply Situation ..........................................................................................................................73 3.3.8 Possible Sub-sectoral Inputs and Outputs for an LMIS ...............................................................73 3.3.8.1 Information to be made available ...................................................................................74 3.3.8.2 Stakeholder Use Cases ....................................................................................................74 3.3.8.3 Comments & Suggestions ...............................................................................................75

COnCluDing REmaRkS & RECOmmEnDaTiOnS4.

4.1 Summary of Information ...........................................................................................................................78 4.1.1 Statewise Breakup of Telecom Towers........................................................................................78 4.1.2 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head .............79 4.1.3 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head (with Attrition) .....................................................................................................................................79 4.1.4 Forecast of Employment numbers in Tower Technician .............................................................80 4.1.5 Forecast of Employment numbers in Cluster Manager ..............................................................81 4.1.6 Forecast of Employment numbers in Selected Positions (FY 14 to FY 18) ..................................81 4.1.7 Forecast of Employment numbers in OFC Technicians ...............................................................82 4.1.8 Forecast of Employment numbers in OFC Splicers .....................................................................83 4.2 Salient Findings: Qualitative .....................................................................................................................84 4.3 Recommendation for Further Research ....................................................................................................85 4.4 Steps for LMIS: Actionable Points .............................................................................................................87 4.4.1 Tower Subsector .........................................................................................................................87 4.4.2 OFC Subsector ............................................................................................................................87 4.5 Final Conclusion ........................................................................................................................................87


ChapTER 1

Overview of Indian Telecom

Telecom services is key to socio-economic development of any nation and India is no different. The more developed a nation, the better is its telecom infrastructure be it mobile services, fixed services, long distance services and broadband services.

India’s process of liberalization started with the New Economic Policy in July 1991. Telecom equipment manufacturing was de-licensed in 1991 and value added services were opened to the private sector in 1992, following which radio paging, cellular mobile and other value added services were gradually opened to the private sector.

All this resulted in large number of manufacturing units been set up in the country. As a result most of the equipment used in telecom is being manufactured within the country. And with each passing year, we have seen increased manufacturing set ups both on carrier equipment and mobile handset.

India has undergone a major transformation with the coming up of new telecom policies. The process of liberalization in Indian telecom started in 1994 and has continued with the coming up of New Telecom Policy 1994 (NTP-94), New Telecom Policy 1999 (NTP-99) and New Telecom Policy 2012 (NTP 2012). All this has helped Indian telecom sector to achieve phenomenal growth on mobile subscriptions. NTP-94 objectives include: availability of telephone on demand; provision of world class services at reasonable prices; improving India’s competitiveness in global market and promoting exports; attractive FDI and stimulating domestic investment; ensuring India’s emergence as major manufacturing/export base of telecom equipment; and universal availability of basic telecom services to all villages.

The entry of private service providers brought with it the inevitable need for independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested by the central government.

1.1


Chapter 1: Overview of Indian Telecom

One of the main objectives of TRAI is to provide a fair and transparent policy environment which promotes level playing field and facilitates fair competition. To achieve objectives, TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues. TRAI’s directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection, quality of service, licensing, future technology roadmap for the telecom sector.

The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI.

With the passage of time, the government launched NTP-99. The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms, contemplating the opening up of all the segments of the telecom sector for private sector participation.

NTP-99 objectives include: National long distance services opened to private operators; International Long Distance Services opened to private sectors; Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee; Resolution of problems of existing operators envisaged; Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted; Department of Telecommunication Services (DTS) corporatised in 2000; and Spectrum Management made transparent and more efficient.

The government announced Broadband Policy 2004 where the emphasis was to create infrastructure that can contribute to the growth of broadband services. With a view to encourage broadband connectivity, both outdoor and indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has been de-licensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875 GHz bands has also been delicensed. The SACFA/WPC clearance has been simplified.

The setting up of National Internet Exchange of India (NIXI) enabled bringing down the international bandwidth cost substantially, thus making the broadband connectivity more affordable. Target has been set for 20 million broadband connections by 2010 and providing broadband connectivity to all secondary and higher secondary schools, public health institutions and panchayats by 2010.

NTP 2012 focuses on Broadband on Demand and envisages leveraging telecom infrastructure to enable all citizens and businesses, both in rural and urban areas, to participate in the Internet and web economy thereby ensuring equitable and inclusive development across the nation. It provides the enabling framework for enhancing India’s competitiveness in all spheres of the economy. NTP 2012 envisages support to platform neutral services in e-governance and m-governance in key social sectors such as health, education and agriculture that are at present limited to a few organizations in isolated pockets.


NTP 2012 objectives include:1. Increase rural teledensity from the current level of around 39 to 70 by

the year 2017 and 100 by the year 2020.2. Provide affordable and reliable broadband-on-demand by the year 2015

and to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020 at minimum 2 Mbps download speed and making available higher speeds of at least 100 Mbps on demand.

3. Enable citizens to participate in and contribute to e-governance in key sectors like health, education, skill development, employment, governance, banking etc. to ensure equitable and inclusive growth.

4. Provide high speed and high quality broadband access to all village panchayats through a combination of technologies by the year 2014 and progressively to all villages and habitations by 2020.

5. Promote the ecosystem for design, Research and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand to the extent of 60% and 80% with a minimum value addition of 45% and 65% by the year 2017 and 2020 respectively.

6. Achieve One Nation - Full Mobile Number Portability and work towards One Nation - Free Roaming.

7. Optimize delivery of services to consumers irrespective of their devices or locations by Fixed-Mobile Convergence thus making available valuable spectrum for other wireless services.

8. Ensure adequate availability of spectrum and its allocation in a transparent manner through market related processes. Make available additional 300 MHz spectrum for IMT services by the year 2017 and another 200 MHz by 2020.

9. Strengthen the institutional framework to enhance the pace of human capital formation and capacity building by assessing and addressing educational and training needs of the sector.

1.2 The Structure of Indian Telecom MarketTill recently, the telecom services were classified as per access services say fixed services, mobile services, VSAT services, national long distance services, international long distance services, broadband services, IP-1 services and IP-2 services. But with the introduction of NTP 2012, we are moving towards Unified License regime to exploit the benefits of convergence, spectrum liberalisation and facilitate de-linking of the licensing of Networks from the delivery of Services to the end users in order to enable operators to optimally and efficiently utilise their networks and spectrum by sharing active and passive infrastructure. This will enhance the quality of service, optimize investments and help address the issue of the digital divide. This new licensing regime will address the requirements of level playing field, rollout obligations, policy on merger & acquisition, non-discriminatory interconnection including interconnection at IP level etc. while ensuring adequate competition.

As of March 2013, India had 898.02 million subscribers. The overall tele-density in India slightly is 73.32 as on 31st March, 2013. Subscription in urban areas reached 548.80 million and urban tele-density has reached 146.96 whereas rural subscription has reached 349.22 million. Rural tele-density is at around 41.02. Share of subscription in Rural areas out of total subscription increased to 38.89 percent at the end of March 2013.

1.2



The total wireless (GSM+CDMA) subscriber base has reached 867.80 million at the end of March 2013. Wireless tele-density stands at 70.85. Wireline subscriber base is at 30.22 million and wireline tele-density stands at 2.47. Number of subscribers who accessed internet through mobile is 143.20 million. Internet subscribers reached 21.61 million. Number of Broadband subscribers reached 15.05 million at the end of Mar-13, registering a quarterly growth of 0.45% and Y-O-Y growth of 8.98%. Number of narrowband subscribers is at 6.56 million at the end of March 2013.

Monthly Average Revenue Per User (ARPU) for GSM service increased is `105. On an all India average, the overall MoU (minutes of usage) per subscriber per month for GSM service is 383 minutes whereas postpaid is at 946.

All telecom services have shown exceptional growth in FY 2012-13. On fixed services, BSNL leads the table with 67.67 market share (as per subscriber), followed by MTNL and Bharti Airtel. The mobile services industry has grown by 12 percent to reach `150,895 Crore. Bharti leads the table with 30.32 percent, followed by Vodafone and Idea Cellular following closely with 22.51 percent and 14.96 percent respectively. Broadband services saw a growth of 15.6 percent to reach `8,122 crore. BSNL leads the table followed by Bharti Airtel. NLD services has grown by 15.49 percent to reach 31,674 crore. Airtel leads the table with 29.06 market share followed by BSNL and Vodafone at 17.02 and 16.43 respectively. ILD services grew 16.2 percent to reach `12,207 crore. Bharti Airtel is the number one player followed by Tata Communications and BSNL with 12.21 and 11.07 percent respectively.

1.2.1 Subscriber Base FY 2012-13

Fixed + Wireless Subscriber 898.02 mn

Wireless (GSM + CDMA) Subscriber 867.8 mn

Wireline Subscriber 30.22 mn

Overall Tele-density 73.32

Urban Tele-density 146.96

Rural Tele-density 41.02

Wireless Tele-density 70.85

Wireline Tele-density 2.47

Broadband Subscriber 15.05 mn

Source: TRAI


1.2.1 Defining Telecom Sub-sectors from a skill standpoint From a skill stand point, TSSC has identified four verticals- Wireless Equipment, Service Provider, Handset and Telecom Tower. Wireless equipment takes care of many segments such as wireless equipment, transmission and managed services. Handset takes care of tablet, smartphone, dongle and customer premise equipment (CPE). Service provider segment focuses on all kinds of services be it mobile services, fixed services, broadband services, Internet services and VSAT services. Telecom Tower takes care of all kinds of towers deployed by service providers for 2G, 3G and 4G services.

1.2.1.1 Interrelationship within subsectorsWith respect to telecom skill, we can divide into two parts- Equipment and service provider segment.

Equipment market focuses on carrier equipment and handset. Carrier equipment takes care of passive infrastructure segment (telecom tower) and network management (which includes wireless equipment, managed services and transmission). Passive infrastructure will take care of tower management functions. On the other hand network management focuses on installation and commissioning of equipments and also doing managed services of carrier equipment.

Handset segment takes care of both sales as well as after sales service of smartphone, tablet, dongle and customer premise equipment. All this helps in increased revenue as well as increased brand pull for handset companies.

Service provider segment takes care of all services be it mobile services, fixed services, long distance services, broadband services and Internet services. And the focus is on different functions within service provider segment catering to customer care and sales & marketing job roles.

Telecom Skill

Equipment Service Provider

Carrier Equipment Handset

Passive Infrastructure Network Management

1.2.1.1 Interrelationship Within Subsectors



1.2.1.2 Telecom Equipment Industry (FY 2010-11)

Product Categories Revenue (in `crore)

Enterprise Equipment

FY’ 2009-10 FY’ 2010-11 Growth (%)

Voice Solution 2,020 2,375 17.57

Network Intergration 9,200 7,479 -18.71

Router 3,134 3,405 8.65

Switch 4,549 5,118 12.51

Structured Cabling 1,108 1,382 24.73

Audio Video Conferencing 237 337 42.19

WLAN 338 435 28.7

Network Storage 1,453 1,587 9.22

Modem 344 378 9.88

Others 1,432 1,527 6.63

Total 23,815 24,023 0.87

Carrier Equipment

Broadband 2,190 944 -56.89

Transmission 5,994 4,896 -18.32

Test & Measurement 781 861 10.24

Telecom Turnkey 6,189 5,280 -14.69

Telecom Cable 1,587 1,181 -25.58

Power Management 500 610 22

Telecom Software 22,442 23,533 4.86

Wireless Infrastructure 24,440 18,629 -23.78

Others 1,735 2,100 21.04

Total 66,332 58,294 -12.12

User Device

Mobile Handset 28,897 33,171 14.79

Fixed Phone 318 228 -28.3

Data Card 707 1077 52.33

Tablet 246

Total 29,922 34,722 16.04

Telecom Services Industry (FY 2010-11)

(%) Revenue (in `crore)Change (%)

FY ‘10-11 FY ’09-10

Cellular 102,230 87,680 16.6

nlD 22,812 17,118 33.3

ilD 22,607 20,530 10.1

Fixed Line 11,206 13,276 -15.6

broadband 6,846 5,591 22.4

vSaT 467 405 15.3

Total 166,168 144,600 14.9

Source: Voice&Data


1.2.1.3 Telecom Equipment Industry (FY 2011-12)

Product Categories Revenue (in `crore)

Enterprise Equipment FY11-12 FY10-11 Growth

Voice Solutions 2,637 2,290 15.15

Network Integration 5,962 5,873 1.52

Router 2,970 3,251 -8.64

Switch 4,559 4,318 5.58

Structured Cabling 1,577 1,311 20.29

Audio Video Conferencing 391 337 16.02

WLAN 510 419 21.72

Network Storage 1,645 1,587 3.65

Modem 332 378 -12.17

Others 2,600 1,527 70.27

Total 23,183 21,291 8.89

Others include: NIC, Radio, VSAT and RAS

Carrier Equipment

Broadband 1,367 899 52.06

Transmission 3,825 4,896 -21.88

Test & Measurement 941 831 13.24

Managed Services 5,626

Telecom Turnkey 1,862 5,362 -65.27

Telecom Cable 1,422 1,299 9.47

Power Management 698 670 4.18

Telecom Software 25,443 23,854 6.66

Wireless Infrastructure 10,930 18,374 -40.51

Others 3,219 2,100 53.29

Total 55,333 58,285 -5.06

Others Include: Telecom Tower, Wireline Switch, Submarine Switch, WiMax and OSS/BSS

User Device

Handsets 31,215 33,031 -5.5

Fixed Phone 235 218 7.8

Tablet 1,962 231 749.35

Data Card 1,260 1,077 16.99

Total 34,672 34,557 0.33

Telecom Services Industry (FY2011-12)

Segment Revenue (in `crore)Change (%)

FY11-12 FY10-11

Cellular 118,537 101,434 16.86

Fixed 12,148 14,946 -18.72

NLD 18,598 21,856 -14.91

ILD 25,705 25,637 0.27

Broadband 6,971 7,003 -0.46

VSAT 500 471 6.16

Total 182,459 171,347 6.49

Source: Voice&Data



1.2.1.4 Telecom Equipment Industry (FY2012-13)

Enterprise EquipmentProduct Categories Revenue (In `Crore)

Change (in %)FY11-12 FY12-13

Voice Solution 2,637 3,171 20.25Router/Switch 7,569 6,893 -8.9Structure Cabling 1,577 1,570 -0.4Storage 1,645 1,632 -0.8Others 9,795 8,316 -15.09

Total 23,223 21,582 -7.07

Others Include: Network Integration, AV conferencing, security, WLAN, modem, Radio, VSAT and RASCarrier Equipment

Wireline Broadband 1,367 1,156 -15.4

Transmission 3,825 4,156 8.7Managed Services 5,626 4,534 -19.4Test & Measurement 941 896 -4.8Telecom Cable 1,376 1,827 32.8Telecom Software 25,592 29,405 14.9Wireless Infrastructure 10,930 10,166 -7Others 5,779 4,189 -27.05Total 55,436 56,329 1.61Others Include: Telecom tower, telecom turnkey, wireline switch, OSS/BSS and submarine switchUser DeviceMobile Phone 31,330 35,946 14.7Tablet 2,013 4,098 103.58Data Card 1,267 1,407 11.05Others 235 191 -18.7Total 34,845 41,642 19.51Others Include: Fixed phonesgrand Total 113,504 119,553 5.33

Source: Voice&Datatelecom Services Industry (FY2012-13)

Telecom Service Industry is `213,546 Crore

Revenue (in `crore)

150,89510,148

31,674

12,2078,122

500

Cellular Fixed NLD ILD Broadband VSAT

Source: TRAI and TeleAnalysis


1.3 Emerging Trends in TelecomOn the service provider front, the technology is shifting from 2G to 3G and 4G. With 3G and 4G coming in a big way and increased penetration of smartphones and tablets in the country, the focus is shifting from voice to broadband services. And when operators talk about broadband services, the focus is also on providing customer experience management. We are also seeing new technologies like 4G, small cell and Wi-Fi gaining ground and employees need to be trained on these new technologies.

1.3.1 Newer Geographies: Rural Market ExpansionWith high urban penetration and low rural penetration, the operators are focusing on increasing rural penetration for increasing voice subscribers in these regions. Having done well on consumer front, the operators are now focusing on enterprise customers in a big way. So, all these will need a different mindset to service different set of customers be it for data or rural.

The equipment vendors are moving towards providing differentiated service and more outsourced services to service providers. Focus will be also on smaller equipments to provide high speed broadband services to all sets of users.

On mobile handset vendors, the trends are changing. With multitude of handsets and tablets, the focus is on experienced in-house store manager who can explain smartphones and tablets features to prospective buyers. With smartphone and tablets base increasing in the country, the focus is also on after sales service. So, one can see lot of job requirement for after sales service.

On telecom tower front, the industry would see some expansion in rural sector and increase in tenancy from urban areas. With operators laying lot of emphasis on broadband infrastructure, focus is on small towers which can be deployed at the top of the buildings. Focus is also on making use of Wi-Fi wherever there is a possibility. For making broadband infrastructure, the focus is on fiberization both in the long distance as well as metro network.

1.3.2 Newer Revenue Streams: Data and Content ServicesHaving done well on voice front, the Indian telecom industry is now moving towards data. With broadband numbers at 15 million, there is a lot of scope for broadband in the country both in terms of increased reach as well as depth of coverage. According to telecom experts, the next big opportunity will be led by broadband and data services.

Indian operators are stitching their data plans as this is in sync with their 3G and 4G strategy. With 3G and 4G spectrum at a premium, operators have to rely on Wi-Fi to provide ubiquitous coverage and also to make mobile broadband affordable in the country. Indian operators are planning to increase data revenue by providing a ubiquitous data network through seamless coverage of 2G, 3G, 4G and Wi-Fi.

The wireless broadband eco-system is improving with smartphone prices coming down, operators have also reduced data prices to make it look more attractive and content players are coming up with innovative content to make attract consumers towards these services. All this is good for the telecom industry.

The 25 job roles picked up by Telecom Sector Skill Council (TSSC) broadly comes from four verticals - Service Providers, Equipment Vendors, Mobile Handset players and telecom tower companies. In all the sectors, one can see a paradigm shift as there is a shift in technology in all these verticals.

1.3



1.4 Direct and Indirect Employment in Telecom IndustryIndian telecom is a huge industry and provides employment to lot many people. According to TeleAnalysis, the total employee in the service provider industry is 401,896 employees which is inclusive of employees of top operators and also service providers from mobile services, fixed services, national long distance services , international long distance services, Internet service providers, VSAT service providers and broadband service providers.

The total number of employees in equipment industry include top 10 companies employee number and employees from carrier equipment and enterprise equipment. Segments taken include: enterprise equipment, network integration, transmission, telecom cables, T&M, wireless infrastructure, managed services, mobile phone, tablet, data card, CPE devices, telecom turnkey, telecom tower and others. The total employees base for Indian telecom equipment industry is 206,909.

So, in toto direct employment in Indian telecom industry is 608,815 employees. Indirectly, this industry employs almost 1.5 times that of direct employee i.e. indirect employee is in the range of 913,222. So, the total employee recruited by telecom industry is around 1,522,037 employees.

1.4.1 Total People Employed in Indian Telecom

Direct Employment 608,815Indirect Employment 913,222Total Employment 1,522,037

Source: TeleAnalysis

1.4.2 employment in telecom Industry in FY 2012-13

66%

34%

Operator Equipment

Total Number of Employees in Operator industry is 401,896Total Number of Employees in Equipment industry is 206,909


1.4


1.4.3 Operator Wise employee Breakup in FY 2012-13

67.210.0

6.6

3.0

2.5 2.22.1

1.61.6

3.2BSNL

MTNL

Bhar� Airtel

Vodafone

RCOM

Idea Cellular

Tata Teleservices

Aircel

Tata Communica�ons

Others

Total Number of Employees in Operator industry is 401,896

Others include: Uninor, MTS, Videocon, ISP, VSAT Operators, Source: TeleAnalysisILD Operators, NLD Operators and others

1.4.4 Operators employee Base in FY 2012-13

270,000

40,000

26,596

12,000 10,000 9,000 8,500 6,500 6,40012,900

0

50,000

100,000

150,000

200,000

250,000

300,000

No of Employees

Others include: Uninor, MTS, Videocon, ISP, VSAT Operators, Source: TeleAnalysisILD Operators, NLD Operators and others



1.4.5 equipment Wise employee Breakup in FY 2012-13

Total Number of Employees in Equipment industry is 206,909

10.1

7.2

5.7

4.8

4.8

0.7

2.219.3

45.0

Ericsson

NSN

Cisco

Nokia

Samsung

ZTE

Huawei

Telecom S/W

Others

Telecom Software companies include: Wipro, Tech M and TCS Source: TeleAnalysisOthers include: enterprise equipment, network integration, transmission, telecom cables, T&M, wireless infrastructure, managed services, mobile phone, tablet, data card, CPE devices, telecom turnkey, telecom tower, OSS/BSS and others

1.4.6 equipment player employee Base in FY 2012-13

21,000

15,00011,800 10,000 10,000

1,5004,500

40000

93,109

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Ericsson NSN Cisco Nokia Samsung ZTE Huawei Telecom S/W

Others

No of Employees

Telecom Software companies include: Wipro, Tech M and TCS Source: TeleAnalysisOthers include: enterprise equipment, network integration, transmission, telecom cables, T&M, wireless infrastructure, managed services, mobile phone, tablet, data card, CPE devices, telecom turnkey, telecom tower, OSS/BSS and others


1.5 Implications of Emerging Trends for Telecom Labor MarketThe telecom industry is majorly focusing on three things. First, overall mobile tele-density is more than 70 so the focus has shifted from consumer to enterprise as service providers are looking at new market to expand their services. Second, urban tele-density is at 146.96 so the focus is on rural area expansion as rural tele-density is at 41.02 and there is lot of scope to grow. Third, India has reached saturation on voice front but data field is wide open as broadband numbers are only 15 million. So, operators are focusing on broadband and data services. Here, operators are focusing on broadband technologies like 3G and 4G on wireless side and FTTH (fiber to the home), IBS (In Building Solutions) and Wi-Fi from wireline side.

All these trends are very important from telecom labor market point of view as selling in urban areas will be different vis-a-vis rural areas. Focus, should be more on simplification of technology and knowledge of vernacular technology. Getting skilled workforce in rural areas will not be easy so the focus should be on training the existing workforce and using it for the telecom industry by training them with the right skillsets. Second, to sell data is not easy, so the focus should be on how different applications can be integrated be it education, health and governance which is useful for both urban and rural user and can be sold as a bouquet. Even data users have to be treated with a different mindset vis-a-vis voice users as here the focus is more on customer experience management. As broadband technologies like 4G is very new, getting trainers would not be easy and one needs to have regular training for employees or skill based training to prospective employees so that they can more skillsets to help people move from voice to data services. Third, service providers are moving from consumer to enterprise users and also SME (small, medium enterprise) where one has to show what is the value that enterprises are getting if they deploy a particular technology. One should also be aware about different technologies and its relevance.

1.6 Need for Training, Retraining & CertificationLike all sectors—especially hi-tech sectors—telecom too needs a lot of training before one enters this area. But unlike many other sectors—most specifically IT—it requires workers with varying level of skills—right from marginally skilled workers in maintenance and construction to very highly qualified and skilled workers in R&D establishments.

NSDC and TSSC have already identified various positions which require skill enhancement and has created National Occupational Standards for such positions.

This research found that the challenge before the industry is not so much to mobilize people—or finding people—as opposed to many other industries, which struggle to attract people. On the other hand, the challenge is to get them productive in the shortest possible time, and expect certain standard levels. This research—and it must be mentioned that it just studied two sub sectors, one semi-organized and one unorganized—finds that major expectation from the industry is to have retraining, reskilling, certification and thus attain better productivity, rather than bank on TSSC to mobilize people.

Beyond this research too, an analysis of the telecom trends too indicate that the industry is not really growing. The challenge before the industry—in contrast to 5-6 years back—is not so much to expand as to be more efficient and productive. So, while the research restricted it to two sub sectors, the trend could well be observed in the entire industry.

Within the broad area of basic training, retraining and certification—the latter two are clearly the priority for the industry which is trying to become leaner.

1.5

1.6



1.7 Need, Opportunities & Challenges of Creating an LMIS for TelecomUnlike most economies which move from agriculture to manufacturing before turning to services, India has somehow skipped this path and has leapfrogged from an agriculture economy to a services economy straight away. With close to 60% of its GDP coming from services (other than construction), India is well ahead of other Asian emerging economies such as China and South Korea in this aspect and compares well with developed economies.

While India’s employment in manufacturing as a percentage is one of the lowest among emerging countries, the employment in services has shown a steady rise. More than one-fourth of India’s labor force today works in services (other than construction). That is comparable to any emerging economy.

1.7.1 employment in India’s Services Sector

0

100

200

300

400

500

600

700

Services

396.76

457.46 460.22

All figures in millions Source: Planning Commission

24% 25% 25%

But very often, India’s services sector employment story gets restricted to IT industry. That is primarily because of four reasons. One, no other emerging country has such a high percentage of IT workers. Two, being an offshore destination, India’s IT story is well publicized globally. Three, being an industry with an almost linear relationship between revenue and employment levels, labor market information is far more critical to this industry than most others. And finally, the industry—thanks to early pioneers like Infosys and Wipro—is far more transparent on information than any other industry. A proactive industry body like NASSCOM—one of the best industry associations in any industry anywhere in the world when it comes to market development—just adds to the cause of this high visibility.

Yet, for all its achievements, the jobs generated by IT industry are for a select few—those who are highly skilled and highly educated. This is in sharp contrast to say, construction, where a very large percentage of jobs are for uneducated, unskilled labor.

1.7


Telecom, on the other hand, generates employment for the entire spectrum of workers—from unskilled to semi-skilled right up to highly-skilled workers. Yet, unlike its cousin in the ICT sector, IT services industry; the availability of information on labor is abysmal. That is partially because of its structure, where a large labor force, especially semi-skilled and unskilled, is employed by sub sectors that are highly unorganized. Two examples include the mobile phone repair industry and OFC turnkey industry. The latter, dealt in some details in this report, employs skilled engineers, semi-skilled splicers, as well as a large number of unskilled workers. Further, it outsources digging work to subcontractors who employ a large number of unskilled workers. Because of this peculiar structure, the story of telecom as an employment generator is far less sung and celebrated.

Visibility among the public apart, the availability of integrated information is of extreme importance to all stakeholders—employers, employees, skill training providers, state government and civic agencies alike, not to talk of an army of researchers, who are increasingly contributing to development, as the success in some areas of open data has shown.

As is the global practice, by and large, the role of collating, assimilating, integrating and disseminating that information is expected to be done by a nodal government body. The Telecom Sector Skill Council (TSSC) is entrusted with creating Labour Market Information System (LMIS).

The analysis in the subsequent sub section (1.7.2) relies significantly on the information drawn from the work already done by TSSC, NSDC, and other such organizations in other sectors in India, other government and non-government bodies globally as well as international agencies such as ILO. The analysis and resulting conclusion do not necessarily come from these agencies, unless specifically mentioned.

1.7.2 The Need for a Labour Market Information System (LMIS) in TelecomThe International Labour Organization (ILO) defines Labour Market Information as “any information concerning the size and composition of the labour market or any part of the labour market, the way it or any part of it functions, its problems, the opportunities which may be available to it, and the employment-related intentions or aspirations of those who are part of it.”

Globally, most of the LMIS have been initiated, managed and owned by government agencies or departments, often by single nodal agencies. India has taken a sectoral approach even as the nodal agency National Skill Development Council (NSDC) creates frameworks and guidelines, monitors, and coordinates all such efforts.

Typically, the stakeholders in LMIS include• Employers• Employees/potential employees• Government (Central and State)• Educational Institutions/Universities• Skill Imparting Agencies• Industry Associations/Research Fraternity

A concept paper on LMIS published jointly by NSDC and UNDP India in 2011 illustrated the types of data that would be included in an optimal LMI system



• Labour market conditions data provide information on the overall structure and condition of the labour market, including its demographic composition, trends in employment and unemployment, labour turnover information, and information on labour force dynamics—the movement of people into and out of the labour force

• Industry data organize employment, wages, and other information by the type of production processes used. Industry data also include information on job creation and destruction and the life cycle of business establishments

• Occupational data organize employment, wages, and other information by the type of work performed and identifies the skill requirements and other occupational characteristics of workers and jobs

• Labour market projections examine labour force, industry, and occupational trends and provide a picture of future employment and job openings based on assumptions about economic growth

• Business establishment lists provide information about individual business establishments, such as name and address, industry, employment, and payroll. These lists also provide the sampling universe for business surveys

• Labour market dynamics information examines the flows of workers into and out of employment, and the creation, expansion, contraction, and disappearance of businesses, and factors related to these dynamic changes

• Current job vacancies information identifies job openings for which employers are actively seeking workers

• Data on employment and unemployment include information on the employment, earnings, and other items for individual workers, information on individual job seekers contained in resume or applicant files, as well as program information on individuals in workforce training or other programs

• Education and training resources information identifies education and training institutions, programs and courses, information on access to and the quality of these training sources, and information on financial assistance.

Based on stakeholder analysis, its key recommendation for an LMIS included the following:• Single window for all labour market information• Frequently updating labour market statistics• Ensure the reliability of information• Comprehensive information• Partnership between educational & training institutions, employers and the

government

In addition to the comprehensiveness/accuracy/frequency/organization, which are all about information quality, an LMIS should be user-friendly, flexible, modular, and easily upgradable in terms of technology.

1.7.3 What Should a Good LMIS Have?A good LMIS should have some desirable qualities. Here are some traits of a good LMIS, based on what these systems are in other countries.• Usability of information: The information must be usable by stakeholders.

One thing that should be specifically kept in mind is what is considered usable information for each stakeholder. While on paper, multiple stakeholders are listed in most countries, in many cases, the actual LMIS often is heavily influenced mostly by employer needs, because this segment is an organized and coherent unit, unlike say employees and local governments. In India too, employers have already started talking of things like distinction between “need to have” and “nice to have”. But often, what is “need to have” for one stakeholder is “nice to have” for another and vice versa. This should be kept in mind to create a more sustainable LMIS that can be beyond a skill matching platform.


• User Friendly: The LMIS should not just be a repository of information. Even most of the government data sites provide a lot of information. Finding them is the challenge. An MIS, on the other hand, should have ability to handle queries, generate reports, and preferably should have ability to present information visually, if it has to have a contemporary look and feel

• Standardized, Machine Readable: One of the most common gaps in government information providers (there are honorable exceptions like RBI) are that they are not often standardized. A non-standardized information is difficult to use for any decision making. Also, in addition to the visual presentations, downloadable machine readable data can also be provided to make it more useful for stakeholders to run their own analyses.

• Standardized/automated for input info by users: Once created, the portal can also be used for information collection from various stakeholders such as employers, research agencies, and other government agencies. This facility can go a long way in enhancing productivity and improving currency of information.

• Capturing usage trends: A good system should have some capability of self-learning ultimately. But to begin with, at least, the system should have ability to record and analyze user queries not being satisfied and report them in a meaningful manner to prompt action.

Apart from the stated objective of a Labor Market Information System such as being able to help the needs of all stakeholders—employers, employees, labor departments of government(s), skill imparting institutions—a good LMIS would be a single point information source that will be able to provide reliable, accurate information needed for planning, policy decisions, and estimating the value generated by this segment correctly. While most stakeholders, especially employers and employees, may focus on the immediate needs, a good LMIS design must take into account this long-term need from a national perspective as well.

1.8 Research RequirementsThere has been extensive work done by NSDC on the kind of information that should be included in the LMIS. Based on a workshop organized by NSDC in July 2012, these are some of the research-related recommendation from the nodal body to serve as a point of reference for sectoral skill councils.• The entire research activity (from issuances of RFP to publishing of findings)

should not take more than 6 months – of which not more than 3 months should be devoted to data collection.

• Maximum use to be made of secondary data sources and existing research. Please refer to NSDCs Skill Gap Studies, ILOs study on Sources of Skills Data and the NSS. Focus should be on collection of data that is either not readily available or available but not verifiable.

• Data should be presented as much as possible in the form of tables, charts and graphs for easy assimilation.

• Apart from mapping the Demand and Supply side data, the study should also carry a set of recommendations and possible solutions to address the Demand/Supply gap.

While the above are very good broad guidelines to go by, sectors have their own challenges because of the way they are organized, availability of employment related information and various other factors such as level of regulation and globalization. As pointed earlier in this report, telecom industry has a lot of sub sectors which are unorganized or semi-organized. One of the sub sectors this pilot study researched—OFC turnkey industry—is unorganized, with only a handful of large players operating.

1.8



1.8.1 Availability of InformationUnlike in other industries like IT and banking, even general availability of information is low in telecom. In IT, for example, since manpower is directly proportional to revenue for major part of the industry, labor information at granular levels is closely monitored, analyzed, and trends noticed. In fact, the most important figures in a quarterly revenue announcement, after revenue and net profit are net addition of people and attrition rate. In banking, it is because of a proactive regulatory body, which has been collating information, even though granularity of information is nowhere comparable to IT. That is because the collation of manpower info is because of regulatory reasons and not really strategic reasons, as in the IT industry, where it is closely tracked by analysts.

So, the NSDC recommendation that secondary information must be used as much as possible is extremely valid and applicable to this segment. There is plenty of information that is available from existing sources.

In telecom, while researching for basic information that will go as inputs to create an LMIS, it is probably apt to look at the entire industry from the point of view of not just logical sub-sectors but also from whether a particular sector is organized or unorganized.

1.8.2 Research Requirements for Organized Sub-SectorsFor organized sub-sectors, the research efforts should be optimized to the following• Stakeholder participation

o Quantitative research through administering questionnaire (requirement/information)

o Qualitative inputs to be collected through workshops and forums both offline and online

• Secondary Research & Data Analysiso Analysis of existing data from companies and TRAIo Environmental/macro-economic factor analysis

• Primary Research where absolutely neededo Qualitative information through sample B2B primary research (either

internally or through a small outsourced research assignment)o Quantitative online surveys wherever required (No offline survey

needed)

1.8.3 Research Requirements for Unorganized Sub-SectorsFor unorganized sub-sectors, some primary research and long-term efforts are needed to get the requisite information.• Formal Market Research (Primary)

o For segments such as mobile phone repair as well as OFC turnkey industry, primary research is a must. It should be done with those agencies with no conflicting interest (such as skill imparting firms, telecom consultants etc)

• Trend Forecasting Using Secondary Macro-economic indicatorso This should be undertaken internally or with firms specializing in macro

economic analysis and sectoral understanding• Engaging with NSSO to create more specific rounds/include more sector

specific questions


LMIS Output Data Points is based on work done by TSSC earlier.

LMIS Output Data pointsThe output of the LMIS should include at the minimum the data points listed below. Keep in mind the telecom industry in particular and thus all the data gathered is to be segregated under the 22 telecom circles.• Socio- demographic data for total working population

o Location/Gender/Age distributiono Employment Status

• Educational Data for total working populationo Educational levels by gender and ageo Educational Qualificationso Regional variations of above

• Job seekers profile for identified job roleso Age, Locationo Employment Status and detailso Educational Qualificationso Existing Skill Setso Professional background and previous employment informationo Training Attendedo Certificationso Membership of Professional Institutions and Societies

• Employment Data for the total working populationo Employment/Unemployment Rate by region/gender/sub-sector/

job roleso Size of the labour force and its projected growth overall and by job

roles/sub-sectors/regionso Labour market dynamics w.r.t flow of workers in and out of

employmento Economic trends showing growth of various sub-sectors in the

Telecom Industryo Trends in creation and expansion of job opportunities and

businesses.o Current job vacancies by job roles identifiedo Government Programs for the unemployedo Trends in Wages identified region/gender/job role/educational

qualificationo Projected growth rate of the job roles in terms of people employed

& job vacancieso Identify direct or indirect employment of this labour. Collate data

on labour that is used by outsourcing vendors.• Skill Data for the total working population

o Existing Skill Setso Skill level of workers by job roles/sub-sectorso Trends in future demands for skills and knowledge by job roles/sub-

sector• Training Data for the identified job roles/total working population

o Existing Training Programs and Providers by region/sub-sector/job roles identified

o Identification of training needs as reported by job roleso Details of staffing at training institutions: qualifications, staff/

trainee ratios, staff turnovero Subject distribution and balance of practical and theory elements



o Contribution of government agencies, employers, labour organizations, and training institutes in curriculum development

o Processes for curriculum review, evaluation, and reformo Quality of instructional methods, facilities, and equipmento Effectiveness of testing and certification; Apprenticeships: duration

and numberso Financial Assistance to participate in training programso Accreditation Ratings

• Labour Market Policy Datao Remuneration and social benefits policies in the public and private

sectoro Policies relating to technological development and their effect on

employmento Unemployment subsidies provided

• Content Availabilityo Content Source Pointso Eligibility of the content

• Jobso Job Vacancieso Resume Uploadso Job Searcho Career Counsellingo Job Interview Techniques

• Reportingo Ability to generate reports on various parameters

Source: TSSC

1.9 Introduction to the Pilot StudyTSSC as the sectoral skill council for telecom is mandated to help create world class skilled manpower in telecom. One of the prime objectives of the council is to set up a Labor Market Information System (as discussed in section 1.7 of this chapter).

In order to understand the needs for creating the LMIS, NSDC at nodal level and TSSC at sectoral level have been undertaking/planning to undertake certain activities such as industry consultations and workshops, study of international labor market information systems and research.

As part of the research initiative, TSSC wanted to understand the information availability, what kind of research should be undertaken for what sub sectors and so on. To that effect, it wanted to undertake a small but representative study that will not just understand a few sub sectors and requirements of certain positions within the industry, but will also act as a test case for understanding what are the challenges of information collection, analysis and what could be the formats in which data could be collected for various sub sectors, though it is understood and appreciated that while some learning could be carried out to other sub sectors, each sub sector has certain peculiarities and that has to be kept in mind.

To that effect, TSSC selected five positions in two sub sectors from within 25 positions identified from five sub sectors (See table) to do the pilot study on. These positions are• Tower Technician (Tower Sub sector)• Cluster In-charge (Tower Sub sector)• Cluster Manager (Tower Sub sector)• Optical Fiber Technician (Network Management Sub sector)• Optical Fiber Splicer (Network Management Sub sector)

1.9


1.9.1 Identified Positions by TSSC

Sub-sector Positions

Network Management BSS Engineer

Core Engineer

Field Maintenance Engineer

Infra Engineer

Transmission Engineer

Optical Fiber Technician (OFT)

Fault Management Engineer (FME)

Optical Fiber Splicer (OFS)

Product Specialist Engineer (PSE)

Installation Eng - SDH, DWDM

Installation Eng - L2 & L3

Network Management Eng

Service Providers Field Sales Executive (FSE)

Customer Care Executive (Call Center)

Customer Care Executive (Relationship Centre)

Sales Executive (Broadband)

Territory Sales Manager (Broadband)

Territory Sales Manager (Prepaid)

handset CCE (Repair Center)

Distributor Sales Representative

In-store Promotor

Handset Repair Engineer (Level II)

Passive Infra Segment Tower Technician

Cluster In-charge

Cluster ManagerSource: TSSC

It appointed Juxt, a research firm already having considerable experience in doing research in telecom, to do the study. The research was formally commissioned in December 2013. The research firm was mandated to primarily forecast demand for these five positions, while clearly indicating the norms used for doing that and the basis for arriving those norms.

In keeping with the limited time available, TSSC mandated the firm to do a secondary research/data analysis based study. The scope of the study was defined keeping that in mind. The actual research involved some primary B2B interviews, needed to forecast demand and issues affecting employment and skills.

The findings are presented sub-sector wise in the next two chapters. Apart from forecasting the demand for these positions and the norms used to arrive at those figures, the finding throw light on the nature of the sub sectors and how information could be procured from those segments in the future. It also throws important findings which could be useful while studying other sub sectors. Most importantly, it presents a broad framework for research on other similar sub sectors within telecom.

Further, this research raises a few questions/points about lack of information in this industry, vis-à-vis other segments of ICT industry, most importantly IT services. This is for all the stakeholders to consider.




ChapTER 2

Telecom Tower Demand projection for Selected positions

Telecom tower is a critical infrastructure for telecom operations in the country and cannot be neglected. Presently, the sharing is limited to passive infrastructure but very soon we will see active sharing depending upon government regulation.

The total number of towers in FY 13 stood at 371,510 compared to 376,187 in FY 12. The number of towers decreased by 1.2 percent and the industry saw a reduction of 4,677 towers which is not a good sign for tower industry. The decline in numbers can be attributed to economic slowdown, decrease in profitability of operators due to low spending by consumer and policy uncertainty.

In FY 13, some of the key trends witnessed were: increased focus on clean and green energy, increasing rural coverage, capex optimization through modular build outs and opex optimization through renegotiation of rates and deployment of IBS (in building solutions) and small cells for increased coverage.

In couple of years, the tower industry has witnessed flat or negative growth due to uncertain policy and regulatory environment, cancellation of 2G licenses and reduction in capex investment by operators.

In future, the focus is on building low cost sites and also towards single tenant site. There would be flat or small growth in telecom towers in future and this will come from rural expansion and urban infills for providing better 3G and 4G coverage. We are also seeing increased deployment of small cells for better broadband coverage and this trend will continue in urban areas. Also focus is more on in-building solutions through DAS (distributed antenna systems) for augmenting coverage in stadiums, hospitals, airports, malls, large enterprises and corporates. Increased fiberization is also putting lot of pressure on tower industry.

The existing tenancy of tower players will increase as it is difficult to get site clearance in cities from regulatory authorities. In urban areas also there are not too many sites left for setting up tower infrastructure and also interference is a big problem.

2.1

Chapter 2: Telecom Tower Demand projection for Selected positions


Operators are moving from voice centric network to data centric network so the focus is on Ipfication and OFC deployment both on the long distance as well as metro network so that there is no choking either on the long distance, metro or access part. Fiberization will definitely have an impact on telecom tower deployment in the country and in future the industry will witness flat or minimal growth.

2.1.1 Tower Industry Growth & Information on Tower DeploymentIf we see the past data, FY 11 has shown a good growth of 20 percent on telecom tower front. In FY 11, operators were focusing on expanding its 2G network in rural areas and 3G network in urban areas. Things have slowed down since then and the growth has been 6 percent and -1.2 percent respectively in 2011-12 and 2012-13 respectively.

2.1.1.1 telecom tower Growth over the years

0

50000

100000

150000

200000

250000

300000

350000

400000

FY 10 FY 11 FY 12 FY 13

Tower Growth over the years

Tower Growth over the years

296,565

353,813376,187 371,510

Source: Voice&Data

2.1.1.2 Deployment (New/Cumulative) in past four years (player wise)Players Towers (in Number) Tenancy

RatioFY 10 FY 11 FY 12 FY 13

Indus 102,938 109,073 109,114 111,819 1.99

BSNL 37,000 45,000 61,340 61,622 1

Reliance Infratel 50,000 58,000 50,000 50,000 1.7

Viom Networks 23,500 40,000 42,000 42,000 2.4

Bharti Infratel 30,568 33,042 33,326 35,119 1.8

GTL Infra 28,809 33,681 42,007 29,500 1.5

American Towers 3,200 8,000 9,000 11,500 1.8

Tower Vision NA NA 8,500 8,400 1.6

Ascend Telecom NA NA 4,000 4,100 1.7

MTNL 1,550 2017 3,800 4,000 1

Others 19,000 25000 13,100 13,450 1

Total 296,565 353,813 376,187 371,510

Others include: Vodafone, Idea, Aircel, MTS and others Source: Voice&Data

NA stands for Not Available

Indus Towers leads with 30 percent followed by BSNL at 16.6 percent, Reliance Infratel at 13.5 percent, VIOM at 11.31 percent and Bharti Infratel at 9.5 percent. Others contribute 3.6 percent. In terms of tenancy, VIOM leads the table with 2.4 followed by Indus at 1.99 and Bharti Infratel and American Towers at 1.8 each.


2.1.1.3 top telecom tower Companies BasePlayers Towers (FY 13)

Indus 111,819

bSnl 61,622

Reliance Infratel 50,000

Viom Networks 42,000

Bharti Infratel 35,119

gTl infra 29,500

American Towers 11,500

Tower Vision 8,400

ascend Telecom 4,100

mTnl 4,000

Others 13,450

Total 371,510

Others include: Vodafone, Idea, Aircel, MTS and others Source: TeleAnalysis NA stands for Not Available

2.1.1.4 top telecom tower Companies Market Share

30.1

16.6

13.5

11.3

9.5

7.9

3.1

2.3 1.11.1

3.6 Indus

BSNL

Reliance Infratel

Viom Networks

Bhar� Infratel

GTL Infra

American Towers

Tower Vision

Ascend Telecom

MTNL

Others

Others include: Vodafone, Idea, Aircel, MTS and others Source: TeleAnalysis NA stands for Not Available



2.2 Profiles of Major Tower PlayersIn India, we have two kinds of players, one is the independent tower companies or pure play tower companies like VIOM, GTL Infra and American Towers. The second category is operators who have hived off the tower part into a separate company and these are: Indus, Bharti Infratel and Reliance Infratel.

2.2.1 Bharti InfratelBharti Infratel is one of the pioneers of shared tower telecom infrastructure services and has helped telecom operators maximize their reach in a short period of time – by providing compelling capex saving opportunities, as a result, making them focus their investment in reaching out to more and more communities across the country, and contributing in offering highly affordable telecom services which helps integrate more subscribers into the mainstream, and connect them to the rest of the world.

In India, Infratel has over 35,000+ towers, across 18 states, and 11 telecom circles, and it is still growing. Bharti Infratel also has a 42 percent stake in Indus Towers which was created as a joint venture between Bharti Infratel, Vodafone and Aditya Birla Telecom to hive off towers business in 15 telecom circles.

2.2.2 VIOM NetworksViom Networks, a Tata Teleservices and SREI Infrastructure joint venture - is India’s largest independent telecommunications infrastructure company. The company enjoys strategic relationships with all leading telecom operators in India – Tata Teleservices, Bharti Airtel, Aircel, MTS, Vodafone, Idea, Uninor and BSNL among others.

Quietly behind the scenes, with 42,000 towers spread across India, our telecom towers support communication networks that unite millions. The company pioneered the concept of shared telecom infrastructure in the country.

VIOM claims to have highest tenancy ratio of about 2.3x and over 90,000 tenancies, VIOM has a pan-India presence with significant footprint across all telecom circles with 1,500 strong highly experienced and professional workforce

It is industry’s first - ISO 14001 & OHSAS 18001 certified organization and is engaged in deployment and commissioning of telecommunication towers across India to telecom service providers. Over the years, Viom Networks has distinguished itself through an extensive pan-Indian presence, robust technology, multi-tenancy, high uptime and operational excellence.

The company enjoys strong equity support from Macquarie SBI Infrastructure funded consortium, GIC Investments Pte Ltd Singapore, IDFC Private Equity and Funderburk Mauritius Ltd (Oman Investment Fund).

2.2.3 gilGTL Infrastructure Limited (GTL Infra), a Global Group enterprise, is in the business of shared passive telecom infrastructure in India. The company has a portfolio of 29,500 towers located across India that will help bringing in connectivity at affordable prices to the poorest of poor, creating a positive impact on Indian economy.

GTL Infra is a publicly listed company and has emerged as the world’s largest independent tower company in India. It is registered with the department of telecommunications as an infrastructure provider in category I (IP-I).

2.2


GTL Infra has a portfolio of towers serving all the major cellular operators and is associated with prestigious projects being promoted by DoT and COAI such as USO (Universal Services Obligation Fund) for rural telecom infrastructure and MOST (Mobile Operator Shared Tower).

GTL Infra’s model of infrastructure sharing is based on building, owning, operating and maintaining passive telecom infrastructure sites capable of hosting multiple service providers. The model enables the operator to convert their capital expenditure to a fixed and predictable operational expenditure allowing them to divert precious capital towards core activities.

2.2.4 Indus TowersIndus Towers, as the world’s largest telecom tower company is enabling communications revolution into a significant new phase. With 111,819 towers in 15 circles across the country.

Indus Towers is an independently managed company offering passive infrastructure services to all telecom operators and other wireless services providers such as broadband service providers.

Incorporated in November 2007, Indus Towers has been promoted under a joint venture between entities of Bharti Group including Bharti Infratel (rendering telecom and tower infrastructure services in India under the brand name Airtel and Bharti Infratel respectively), Vodafone India (rendering telecom services under the brand name Vodafone) and Aditya Birla Telecom (rendering telecom services under the brand name Idea), to render passive infrastructure services to telecom service providers.

Indus Towers was incorporated with an objective to provide shared telecom infrastructure to telecom operators on a non-discriminatory basis. Indus’ commitment to innovation enhances operational efficiencies and results in substantial cost savings for its customers.

2.2.5 Tower VisionTower Vision is a tower management company specializing in the provision of passive infrastructure to the wireless telecommunications industry, which is then shared among multiple operators. Tower Vision combines high expertise in roll out, operation and maintenance of telecom infrastructure.

The company engages in the ownership, management and operation of wireless communication towers of all types and locations including greenfield towers, rooftops and in-building distributed antenna systems.

The company has around 8,400 towers with a tenancy ratio of 1.6.

2.2.6 American TowersAmerican Towers India owns or operates over 11,500 tower sites throughout the country with a tenancy ratio of 1.8. The company has established relationships with major wireless service providers in India and now have a presence in all telecom circles in India. In the near future, the company is looking to provide customized collocation solutions through Distributed Antenna Systems (DAS), which support seamless in-building and outdoor wireless coverage.



Globally, American Tower is a leading passive infrastructure provider in the Americas. With over 10 years of experience in the global tower industry and a portfolio of more than 62,000 communications sites, American Tower has built its premier position by supplying wireless service providers with high quality, multi-tenant towers that meet their requirements.

The company has developed a host of sophisticated processes and systems that help our customers get on air with ease and speed. These processes and systems are designed to maximize collocation opportunities on our sites―helping service providers expand their networks while saving money.

2.2.7 Reliance InfratelReliance Infratel Limited (RITL), a subsidiary of Reliance Communications Limited, was incorporated in 2001 as a private limited company. Reliance Communications Limited had filed a Scheme of Arrangement with the High Court of Judicature at Bombay on December 5, 2006 for the separation of its wireless towers assets owned by RCOM and its wholly owned subsidiary Reliance Telecom Limited (RTL). The High Court’s approval was received on March 16, 2007 and the scheme was effected on April 10, 2007.

RITL now operates as an independent wireless towers company pursuing its business plan to invest in its wireless towers portfolio and to acquire additional tenants on its towers. RITL functions as a third-party infrastructure provider, offering passive infrastructure-sharing to multiple wireless operators and data and entertainment providers within the industry.

RITL holds an IP 1 license issued by the Department of Telecommunications and is an independent wireless telecommunications infrastructure company, engaged in the business of building, owning and operating communications towers, optic fiber cable and other related assets at designated sites and to make available this passive infrastructure on a shared basis to wireless and other communications service providers under long-term contracts. It provides pan-India integrated (wireless and wireline), convergent (voice, data and video) digital network and its coverage area includes 24,000 towns and 600,000 villages.

RITL is the only tower portfolio in India built greenfield and not through mergers and acquisitions, thereby resulting in no overlapping towers. It also has one of the youngest portfolios in the market, with an average age of approximately 4 years.

As on February, 2011, RITL’s wireless towers portfolio comprised of 50,000 towers which has a presence in all 23 telecom ‘circles’ in the country making it the largest pan-India tower player. RITL’s tower portfolio is uniformly distributed with approximately equal number of towers in all the 4 regions. Most of the towers, especially the ones located in the urban areas, are connected to RCOM’s state of the art fibre network. RITL’s tower portfolio is suitable for CDMA, GSM 900, GSM 1800, 3G and BWA networks. RITL has always followed, and will continue to do so in future, a conservative policy of building new towers, on a case to case basis, and that too only for meeting the contractual demand from long term tenants.

Almost all the existing towers of RITL have a capacity to co-locate 4 tenants, and with provision for increasing capacity to up to 7 tenants with relatively minimal capital expenditure. RITL is committed to maintaining high standards of services and lays emphasis on superior quality of construction.


RITL has entered into master services agreements with RCOM and RTL, and all other existing and new operators for providing passive infrastructure. RCOM and RTL have nominated RITL as their exclusive provider of passive telecom infrastructure. Most of these agreements are of long term around 10 to 15 years. These agreements will result in incremental growth in the tenancy rates for RTIL and thus, provide significant operating leverage.

2.2.8 bSnlBharat Sanchar Nigam Ltd. was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile central government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October‘ 2000 on going concern basis. It is one of the largest and leading public sector units providing comprehensive range of telecom services in India.

BSNL has installed quality telecom network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and winning customer’s confidence. Today, it has about 61,622 towers. The company is in the process of leasing its towers to private towers.

BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc.

2.2.9 mTnlMTNL was setup on 1st April, 1986 by government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of India’s key metro cities of Delhi & Mumbai. MTNL is the principal provider of fixed-line telecommunication service in the two metropolitan cities of Delhi and Mumbai. It offers mobile services in the city of Delhi including four peripheral towns Noida, Gurgaon, Faridabad and Ghaziabad and Mumbai city along with the areas falling under the Mumbai Municipal Corporation, New Mumbai Corporation and Thane Municipal Corporation.

In more than two decades of its operations, there has been all-round development & growth and improved operational efficiency. Presently, MTNL is providing a host of telecom services that include fixed telephone service, GSM (including 3G services) & CDMA based Mobile service, Internet, Broadband, ISDN and Leased Line services., MTNL has been in the forefront of offering state of the art technology based telecommunications services to its customers at most affordable prices. MTNL has been the first to launch some of the latest telecom technologies in the country like ADSL2+ & VDSL2 in broadband, IPTV on MPEG4 technology, VOIP and 3G Mobile service.

MTNL is providing telecommunications beyond boundaries through its Joint Ventures and Subsidiaries. MTNL is present in Nepal through its Joint Venture United Telecom Limited (UTL) and in Mauritius through its 100 percent subsidiary Mahanagar Telephone Mauritius Limited (MTML).

MTNL has around 4,000 towers in Delhi and Mumbai.



2.2.10 vodafoneVodafone India is a member of the Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 150 million customers. Vodafone India has firmly established a strong position within the Vodafone Group too, making it the largest subscriber base globally. This journey is a strong testimony of Vodafone’s success in a highly competitive and price sensitive market.

Serving the needs of an enterprise, Vodafone Business Solutions is a total communications offering that caters to all their voice and data, wireless and Fixed-line requirements. With the advantage of global expertise and experience and the knowledge of local markets, the business is run through the following verticals – Vodafone Global Enterprise, SME division, National corporate and key accounts. Since its inception, Vodafone Business Solutions has garnered over 3 million corporate customers in India and currently provides services to over 6000 global and national accounts equipped with a robust and superior network infrastructure and a 24x7 NOC.

2.2.11 Idea CellularIdea Cellular is an Aditya Birla Group Company, India’s first truly multinational corporation. Idea is a pan-India integrated GSM operator offering 2G and 3G services, and has its own NLD and ILD operations, and ISP license. Idea is India’s 3rd largest mobile operator and ranks among the Top 10 country operators in the world with a traffic of over 1.5 billion minutes a day.

Idea’s robust pan-India coverage is built on a network of over 100,000 2G and 3G cell sites, spread across over 55,000 towns in India.

Using the latest in technology, Idea provides world-class service delivery through the most extensive network of customer touch points, comprising of nearly 4,500 exclusive Idea outlets, and over 7,000 call center seats. Idea’s customer service delivery platform is ISO 9001:2008 certified, making it the only operator in the country to have this standard certification for all 22 service areas and the corporate office.

2.2.12 AircelAircel is India’s fifth largest and fastest growing GSM mobile service provider with a subscriber base of 65.1 million. Aircel is a pan India operator with a presence across 23 circles. The company offers voice and data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband Wireless Access (BWA), Long Term Evolution (LTE) to Value-Added-Services (VAS). In addition to providing premium internet access solutions to facilitate data intensive live streaming applications, the company has also paved the way to be amongst the first to offer 3G and 4G LTE services to customers.

Aircel successfully bid for 3G licenses/ spectrum in 13 states, (Andhra Pradesh, Karnataka, Tamil Nadu, Kolkata, Kerala, Punjab, Uttar Pradesh (East), West Bengal, Jammu & Kashmir, Bihar, Orissa, Assam and North East), with BWA licenses/ spectrum also obtained in 8 of these states. Aircel’s 3G rollout has been the fastest roll out ever in the Indian telecom. Aircel Is optimistic about the data bundling in its key markets. Tamil Nadu, being the strongest circle with spectrum in 900MHz, 3G and BWA and in incumbent circles where the company is strong in voice, will now start adding data bundles.

In 2006, Aircel was acquired by Malaysia’s biggest integrated communications service provider Maxis (Maxis Communication Berhard) and is a joint venture with Sindya Securities & Investments Pvt Ltd - Maxis holds 74% equity in the company.


2.2.13 Sistema Shyam TeleServicesSistema Shyam TeleServices Ltd (SSTL) is a venture, involving equity participation by Sistema Joint Stock Financial Corporation of Russia (“SISTEMA JSFC”), the Russian Federation and the Shyam Group of India. Sistema JSFC is the majority shareholder in the Company. Approximately 2.5% equity stake is held by public.

With a strong focus on its “Data Centric; Voice Enabled” strategy, SSTL is one of the fastest growing telecom companies in the Indian telecom market and is one of the top three data service providers in the country. The company provides telecom services under the brand MTS to over 10 million wireless subscribers including more than 1million high speed mobile broadband customers in over 450 towns across the country. MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions.

Headquartered in Gurgaon, the company has already invested over $3.6 billion in expanding its telecom network across the country.

2.3 Talent Scenario & Skill Gap AnalysisBelow is the corporate organization structure of a typical tower company where the focus is on top level people and bottom level people is mostly outsourced.

2.3.1 Typical Structure of a Tower CompanyWhile we have depicted here the organization chart of a typical tower company, this is not of significant relevance to the immediate objective of the research: to assess the demand for tower technicians and cluster managers as these positions are almost always with the outsourced contractors. These contractors have fairly flat structures. To a certain extent this chart is useful for assessing the demand for circle head.

2.3.1.1 Organizational Structure of telecom tower Company

Source: TeleAnalysis (based on inputs from tower companies)

2.3



In telecom tower companies, the bottom three levels are being outsourced be it security guard, tower technician and cluster manager. Some tower companies do keep cluster manger and above under its rolls.

2.3.1.2 Career Profression (based on qualification, experience and industry growth)

2.3.1.2.1 Overall break-up of major workforce spread in telecom tower sector

1 1st Level

Security Guard8th Pass OnwardsAlways available at Site

`5,000

2 2nd Level

Tower TechnicianDiploma with 2-5 Years Work Experience 50 Sites Average with Two Tower Technicians working 12 Hours a day. Rest of the time available on Call.

`7,000

3 3rd Level

Cluster Manager(Also called Projector Manager/Maintenance Engineer/Zonal Head)B Tech 5-7 Year Work Experience80 Pair of Tower Technicians under each Cluster Manager

`30,000

4 4th Level

Circle Head (Also called State Head/Asset Manager)B Tech 10-15 Year Work Experience7 to 10 Cluster Manager under Each Circle Head

`75,000 +

5 5th Level

Country HeadB Tech/MBA/CA 10-15 Years Experience `300,000+

Source: TSSC

The attrition rate is at a low level and is in the range of 3-4 percent for Level 1 to Level 4 as salary jump in the new company is not considerably high. Employees remain in the same company and try to make more money through other means say diesel theft, repairs and damages and other charges. With automation, companies are trying to reduce these thefts.

2.3.2 Profiles of Various PositionsIn this report, we are focusing on three job roles- Tower Technician, Cluster In-charge and Cluster Manager.

Tower TechnicianTower Technician in the telecom industry is also known as a Site Engineer/Tower Engineer/Site Technician

Brief Job Description: Individual in this role is responsible to maintain site live 24x7, maintain and repair level-1 faults/issues at telecom tower site, level-1 preventive and corrective maintenance and report faults to the supervisor in time. Individual also needs to travel inter-state and work during odd hours, when required.

Personal Attributes: This job requires the individual to be technically qualified; self-disciplined; assertive; team player; action-orientated; possess analytical skills & problem solving ability; effective communication skills and ability to work under pressure.

Qualification: 10+2 and/or ITI Diploma in Electrical/Mechanical Graduate


To be competent, the user/individual on the job must be able to:• Maintain site hygiene of AC, DG, PIU, SMPS and battery bank, as per

organization’s norms• Check leakage, rattles and shakes at the tower site• Check if installation of fire safety instruments is in place• Control fire accident incidents• Check the site as per electrical safety norms• Check proper floor markings, shadow board display and labels• Check diesel consumption and highlight excessive consumption to

supervisor• Conduct work area audit as per company checklists• Maintain checklist of standards laid by the company

Cluster In-ChargeCluster In-Charge (CI) in the telecom industry is also known as a Supervisor/Cluster Supervisor/Cluster Engineer

Brief Job Description: Individual at this job needs to ensure increase in site up-time and reduce energy cost; monitor preventive maintenance, corrective maintenance and on-site repair, through regular site visits and audits; maintain hygiene of the tower site; train site technicians; develop healthy relationship with landlords & vendors; handle all types of issues/fault on site and control other operational expenses.

Personal Attributes: This job requires the individual to be technically qualified; self-disciplined; action-orientated; people management skills; possess analytical skills; problem solving ability; effective communication skills and ability to work under pressure.

Qualification: ITI/Diploma in Electricals/Mechanical or BTech. or B.Sc in Electricals/Mechanical. 3-5 years for B Tech/BE 10 years for ITI/Diploma

To be competent, the user/individual on the job must be able to:• Maintain excellent level of site quality like proper cable laying, correct

temperature, correct settings, site in auto mode etc.• Provide for safety of assets and the team• Periodic audit by visiting sites to assure that civil, tower, electrical and

other infrastructure are in the best state• Conduct periodic compliance audit of technicians, vendors, spares

including any ethical issues incorrect billing calculations, diesel or energy cost etc.

• Check for maintenance of site cleanliness and hygiene of AC, DG, PIU, SMPS, battery bank and shelter, as per organization’s norms

• Maintain work standards despite movement of manpower• Check and resolve site lock issues with landlord, legal etc.

Cluster ManagerCluster Manager is known as Asset Manager/Project Manager/Zonal Operations Manager/Infra Manager

Brief Job Description: Individual at this job is responsible for providing uninterrupted infra services to operators in cluster; ensure optimum utilization of resources; efficiency in reducing energy and other operational costs; delight customer by ensuring high up-time per mobile tower is maintained; adherence to compliance/performance parameters; technical and safety training of team and a holistic technical approach towards the entire infrastructure present at cell sites/mobile towers.

Personal Attributes: This job role requires the individual to be effective



at analytical and managerial skills; must be a good planner and organizer with strong written and verbal communication; effective negotiation skills; team management skills; acumen for business; customer focused; must be assertive; must be self-motivated and alert; willing to work under pressure for long hours.

Qualification: ITI/Diploma in technical degree or B Tech/BE in Electrical/Electronics/Telecommunication/Energy/Mechanical. 4-7 years for B Tech/BE 12 years for ITI / Diploma

To be competent, the user/individual on the job must be able to:• Obtain monthly repair/maintenance budget per site from regional

office• Obtain vendor and technician preventive maintenance report• Validate monthly preventive maintenance report of vendor and

technician• Regulate maintenance cost (diesel consumption, DG running hours) and

expenses (electricity bill) per site as per monthly budget• Obtain report requesting site infrastructure repair• Evaluate actual cost for repair vis-à-vis allocated monthly budget• Seek approval for extra budget per site, if required• Validate and approve repair cost per site• Devise methods to reduce the repair and maintenance cost per mobile

tower• Co-ordinate with central team for driving penalty reduction plans on

hub sites

Source: TSSC

2.3.3 Skill Gap among Existing WorkforceThe industry that actually employs the Tower Technicians is not too concerned about the supply of raw manpower, as the entry level qualification is low. But there is a general feeling that some training is required.

This industry—the turnkey providers—are not very organized and fairly fragmented, despite the presence of some large players. We recommend a slightly in-depth primary research among them to be able to ascertain the exact skill gaps.

But based on initial discussions, some of the points raised are as follows:Some training before joining the organization would be helpful. This is • primarily from the point of view of time to get the workforce ready. Many, surprisingly, expected that the workforce improved on their soft • skills, though there was no major definite reason forthcoming. It was a surprise finding.

But based on our secondary research and understanding gained from various conversations, one thing is clear—since most of the people are recruited directly and are trained on the job, some grounding on theoretical aspects would surely help.

For Cluster Manager preference for ITI or Diploma with some managerial experience. Here, tower companies need to provide traning on management skills as well as technology so that he/she can be groomed for future roles.


2.3.4 Information on Employment of Selected Positions

2.3.4.1 past three Years telecom tower Manpower Data for Selected postions

Year No of Towers Tower Technician

Cluster Manager Circle Head

FY 10 296,565 12,337 1,928 241

FY 11 353,813 14,719 2,300 287

FY 12 376,187 15,649 2,445 306

FY 13 371,510 15,455 2,415 302


2.3.5 Factors Affecting Future Demand of Selected PositionsFuture demand of selected positions will depend on increase in number of towers in rural areas and increased coverage in urban areas. This can lead to increase in tenancy or increase in number of towers in rural areas and installation of large number single teanant broadband towers by 4G LTE operators in the country.

The number of towers can only increase if NOFN deployment gets delayed and lot of new requirement comes from rural sector for mobile customers. If IBS increases and Wi-Fi hot spot picks up in in India, rerquirment of additional tower will reduce in the country.

With equipment vendor focusing on small cell and Wi-Fi technology together there is a possibility that tower requirement will remain flat or show single digit growth.

2.3.5.1 Existing NormsFor calculating tower technician, we have taken three norms. First, two tower technicians will service 50 sites. The second norm, is one cluster manager will be required for 80 pair of tower technicians. The third norm, one circle head for 8 cluster manager. We have takem attrition level at 4 percent as this is the industry benchmark for all job roles. We don’t see high attrition for all the tower related jobs.

2.3.5.2 Likely Changes & TrendsIn future, we expect tower technician and cluister manager to also manage small cell installations, In Building Solutions (IBS) and Wi-Fi instalations as they will have to manage a mix of all the portfolios: towers, small cells and Wi-Fi. and in this case, both cluster head and tower technician will be provided training on new technoloigies. and since the devices are small one need to be trained with skillsets related to installation and commisioning only.



2.3.5.3 Statewise Breakup of telecom towers

City/Circle FY 13 FY 14 FY 15 FY 16 FY 17

Delhi 15,836 15,798 15,886 15,966 16,064

Mumbai 11,376 11,349 11,412 11,470 11,541

Chennai 6,343 6,328 6,363 6,396 6,435

Kolkata 7,550 7,532 7,574 7,612 7,659

all metros 41,106 41,008 41,236 41,445 41,699

A Circle Maharashtra 30,138 30,065 30,233 30,386 30,572

Gujarat 23,295 23,239 23,369 23,487 23,631

Andhra Pradesh 28,369 28,301 28,458 28,602 28,778

Karnatka 21,190 21,139 21,257 21,364 21,496

Tamil Nadu 26,577 26,513 26,660 26,795 26,960

Total A Circle 129,569 129,257 129,976 130,635 131,437

B Circle Kerala 13,986 13,953 14,030 14,101 14,188

Punjab 12,734 12,703 12,774 12,838 12,917

Haryana 8,186 8,166 8,212 8,253 8,304

Uttar Pradesh (W) 20,910 20,860 20,976 21,082 21,211

Uttar Pradesh (E) 32,973 32,894 33,077 33,244 33,449

Rajasthan 21,125 21,075 21,192 21,299 21,430

Madhya Pradesh 19,927 19,879 19,989 20,091 20,214

WB & A&N 16,910 16,869 16,963 17,049 17,154

Total B Circle 146,751 146,399 147,212 147,958 148,867

C Circle Himachal Pradesh 3,045 3,038 3,055 3,070 3,089

Bihar 26,438 26,374 26,521 26,655 26,819

Orissa 10,307 10,283 10,340 10,392 10,456

Assam 6,378 6,363 6,399 6,431 6,470

North East 4,469 4,458 4,483 4,505 4,533

J & K 3,447 3,439 3,458 3,475 3,496

Total C Circle 54,084 53,954 54,254 54,529 54,864

All India 371,510 370,618 372,678 374,567 376,867Source: TeleAnalysis


2.3.5.4 Future tower technician requirement


FY 10 296,565 11,863

FY 11 353,813 14,153

FY 12 376,187 15,047

FY 13 371,510 14,860

FY 14 370,618 14,825

FY 15 372,678 14,907

FY 16 374,567 14,983

FY 17 376,867 15,075Two Tower Technicians Will Service 50 sites Source: TeleAnalysis

2.3.5.5 Future tower technician requirement (With Attrition)

Year No of Towers Tower Technician Tower Technician (Attrition)

FY 10 296,565 11,863 12,337

FY 11 353,813 14,153 14,719

FY 12 376,187 15,047 15,649

FY 13 371,510 14,860 15,455

FY 14 370,618 14,825 15,418

FY 15 372,678 14,907 15,503

FY 16 374,567 14,983 15,582

FY 17 376,867 15,075 15,678Two Tower Technicians Will Service 50 sites Source: TeleAnalysisAttrition @ 4 Percent



2.3.5.6 Forecast of employment numbers in tower technician(FY 14 to FY 17) (State-wise) (Overall)

City/Circle FY 14 FY 15 FY 16 FY 17

Delhi 657 661 664 668

Mumbai 472 475 477 480

Chennai 263 265 266 268

Kolkata 313 315 317 319

all metros 1,706 1,715 1,724 1,735

A’ Circle Maharashtra 1,251 1,258 1,264 1,272

Gujarat 967 972 977 983

Andhra Pradesh 1,177 1,184 1,190 1,197

Karnataka 879 884 889 894

Tamil Nadu 1,103 1,109 1,115 1,122

Total A’ Circle 5,377 5,407 5,434 5,468

B’ Circle Kerala 580 584 587 590

Punjab 528 531 534 537

Haryana 340 342 343 345

Uttar Pradesh (W) 868 873 877 882

Uttar Pradesh (E) 1,368 1,376 1,383 1,391

Rajasthan 877 882 886 891

Madhya Pradesh 827 832 836 841

WB & A&N 702 706 709 714

Total B’ Circle 6,090 6,124 6,155 6,193

C’ Circle Himachal Pradesh 126 127 128 129

Bihar 1,097 1,103 1,109 1,116

Orissa 428 430 432 435

Assam 265 266 268 269

North East 185 186 187 189

Jammu & Kashmir 143 144 145 145

Total C’ Circle 2,245 2,257 2,268 2,282

All India 15,418 15,503 15,582 15,678Source: TeleAnalysis


2.3.5.7 Future Cluster Manager requirement

Year No of Towers Tower Technician Cluster Manager

FY 10 296,565 11,863 1,854

FY 11 353,813 14,153 2,211

FY 12 376,187 15,047 2,351

FY 13 371,510 14,860 2,322

FY 14 370,618 14,825 2,316

FY 15 372,678 14,907 2,329

FY 16 374,567 14,983 2,341

FY 17 376,867 15,075 2,355Two Tower Technicians Will Service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower Technicians

2.3.5.8 Future Cluster Manager requirement (With Attrition)


Cluster Manager

Cluster Manager (Attrition)

FY 10 296,565 11,863 1,854 1,928

FY 11 353,813 14,153 2,211 2,300

FY 12 376,187 15,047 2,351 2,445

FY 13 371,510 14,860 2,322 2,415

FY 14 370,618 14,825 2,316 2,409

FY 15 372,678 14,907 2,329 2,422

FY 16 374,567 14,983 2,341 2,435

FY 17 376,867 15,075 2,355 2,450Two Tower Technicians Will Service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower TechniciansAttrition @ 4 Percent



2.3.5.9 Forecast of employment numbers in Cluster Manager(FY 14 to FY 17) (State-wise) (Overall)


Delhi 103 103 104 104

Mumbai 74 74 75 75

Chennai 41 41 42 42

Kolkata 49 49 49 50

all metros 267 268 269 271

A’ Circle Maharashtra 195 197 198 199

Gujarat 151 152 153 154

Andhra Pradesh 184 185 186 187

Karnataka 137 138 139 140

Tamil Nadu 172 173 174 175

Total A’ Circle 840 845 849 854


Punjab 83 83 83 84

Haryana 53 53 54 54

Uttar Pradesh (W) 136 136 137 138

Uttar Pradesh (E) 214 215 216 217

Rajasthan 137 138 138 139


WB & A&N 110 110 111 112

Total B’ Circle 952 957 962 968


Bihar 171 172 173 174

Orissa 67 67 68 68

Assam 41 42 42 42

North East 29 29 29 29

Jammu & Kashmir 22 22 23 23

Total C’ Circle 351 353 354 357



2.3.5.10 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head



FY 10 296,565 11,863 1,854 232

FY 11 353,813 14,153 2,211 276

FY 12 376,187 15,047 2,351 294

FY 13 371,510 14,860 2,322 290

FY 14 370,618 14,825 2,316 290

FY 15 372,678 14,907 2,329 291

FY 16 374,567 14,983 2,341 293

FY 17 376,867 15,075 2,355 294

Two Tower Technicians will service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower TechniciansOne Circle Head for 8 Cluster Manager

2.3.5.11 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head (with Attrition)



FY 10 296,565 12,337 1,928 241

FY 11 353,813 14,719 2,300 287

FY 12 376,187 15,649 2,445 306

FY 13 371,510 15,455 2,415 302

FY 14 370,618 15,418 2,409 301

FY 15 372,678 15,503 2,422 303

FY 16 374,567 15,582 2,435 304

FY 17 376,867 15,678 2,450 306Two Tower Technicians will service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower TechniciansAttrition @ 4 Percent

2.3.6 Factors affecting Future Demand of Selected positionsIn the three job roles, we expect changes in respective KRAs as we move forward. And this is good for industry professionals as the work will not be monotonous and the employees can learn new technologies.

The advent of new technologies will lead to flat growth in towers as focus would be on small cell and DAS systems. So, tower companies will deploy technologies to minimize diesel pilferage and automate lot of system so that it can be monitored remotely. And the extra manpower will then be deployed for small cell and DAS deployment. Apart from this, the same employees will be also used for maintenance.

There is also a possibility of tower tenancy to increase as 4G operators like Reliance Jio, Bharti Airtel, Aircel, Tikona, BSNL and MTNL will launch their services in FY 15. And 4G operators will like to ride on the existing infrastructure or deploy small cell technologies.



So tower technician and cluster manager will be given additional training on small cells and DAS systems as they will become part of their job roles.

There is also a strong possibility that with the deployment of NOFN project, Bharat Broadband Network Limited (BBNL) will deploy Wi-Fi outdoor units and so both the tower technician and cluster manager should also be given training for its deployment and maintenance part.

We do not expect attrition levels to dramatically shift from average 4 percent so there is no possibility of any change in numbers for the all the three job roles on the tower side.

2.3.7 Supply SituationSince the entry qualification is low, there is no definite way to measure supply of the manpower for positions of tower technicians. No surprise, the stakeholders do not seem to be particularly worried about finding people for filling up these positions.

However, the need for trained manpower is being felt across the industry. While everyone wishes to have ready manpower, some small turnkey providers and others knowledgeable about the business are a little apprehensive about certification, thinking it will push up the cost of manpower. This research, which is meant to find out the possible issues/challenges and not really provide a conclusive answer to the questions, may not be able to ascertain if this is the opinion of a significant section or not.

2.3.8 Possible Sub-sectoral Inputs and Outputs for an LMISThe so-called Passive Infra (telecom tower) sub-sector is typical in characteristics from the point of view of employment and skill. Most of them outsource the maintenance of these networks. So, the challenge is to get people employed for these job roles with proper skill development,

However, it is not that they do not recognize the need for good training and trained manpower. But there is little challenge that they face in finding and mobilizing non-trained, raw manpower. So, unlike in many other segments, just finding enough people to match the demand is clearly not an issue. It is imperative that the LMIS takes this reality into account as far this subsector goes.

2.3.8.1 Information to be made availableSome of the information heads that can be made available are

Total Employment (National, State, Employer Levels)• Total Employment by No of Years of Experience (National, State, Employer • Levels)Total Employment by Qualification (National, State, Employer Levels)• Total Employment by Wage Ranges (National, State, Employer Levels)• Total Employment by Training/Certification (National, State, Employer • Levels)Total Intake by the Industry/Total Churn•

However, it is our considered opinion (and not a research finding) that for any such system to be successfully, the ultimate generators of those employment (in this case, the carriers who own the network) should find some value in it. It would be even better if they are proactively shown the value.


ChapTER 3

Telecom OFC Demand projection for Selected positions

3.1 Brief Overview of the Telecom OFC SectorIt is close two decades since Nicholas Negroponte first talked about the definitive shift happening from a world characterized by the “movement of atoms” to one shaped by “movement of bits”, in his bestseller, Being Digital.

Since then, several studies have tried to measure the multiplier effect of seamless access to digital connectivity—broadband—on today’s economy and some have come with definitive findings. A finding published in 2009 by The World Bank found that a 10 percent increase in broadband penetration yields an addition 1.38 percent growth in GDP for low and medium economy countries and an additional 1.21 percent growth in GDP for high income countries.

Governments around the world are coming to accept this reality. Every nation worth its name is building some kind of broadband plan or other for itself. According to the latest annual report (September 2013) of UNESCO-appointed Broadband Commission (based on information from the 191 out of 193 member states of the United Nations), as many as 133 countries already have a national broadband plan in place; another 12 are in various stages of planning to create such plans.

That big all encompassing, democratized network called the Internet, coupled with increasingly cheaper wireless access technologies, has not just created an increased level of access, it has catalyzed a huge surge in usage—across all walks of civilized life—government services to fashion purchase; banking services to entertainment; education to medical advice; electioneering to collaborative design of products.

This surge in data traffic has created the need for high speed networks that can handle this huge information explosion. The Optical Fiber Cable (OFC) networks that are being built all around the world—between distant locations in a country, across continents, within cities, and now, to homes—are the answers to that need.

In short, OFC networks have become to today’s economy, what roads and railways were to the economy of the 20th century.

3.1

Chapter 3: Telecom OFC Demand projection for Selected positions


1,513,472

1,326,1281,774,348

1,883,988

FY10 FY11 FY12 FY13

Others Telecom

3.1.1 Indian OFC: A Long JourneyIndia, already one of the top telecom markets in the world, is not new to the potential of optical fiber cables. The optical fiber cable (OFC) installation in India started in the late 70s (1979), when the Department of Telecommunications (which was also providing telecom service at that time), commissioned an optical fiber system in Pune, much before Internet came to India or much of today’s data communication technology was invented.

The country has come a long way since then. With opening up of the basic telecom services for private participation and subsequent continual liberalization of the sector has seen a large number of private players providing fixed telephony and broadband services, mobile services, Internet services, business data connectivity services, infrastructure services, national long distance services, and international telephony services. Most of these service providers have turned to OFC cables for carrying their traffic.

The OFC cable market in India in FY 12-13 was worth `1,827 crore, and registered a growth of over 32 percent, according to industry publication, Voice & Data. With government’s big, ambitious National Optical Fiber Network (NOFN) project, which aims to connect 250,000 gram panchayats as well as the OFC rollout planned by new broadband operator, Reliance Jio, the demand is going to shoot up steeply in the coming 2-3 years.

3.1.2 Current BaseUnlike the subscriber base and revenue, which is carefully tracked by many analysts/researchers, post the listing of many private telecom operators; few track network statistics at an industry level.

It is surprising to find that media (and in turn many researchers/consulting firms), keep quoting a that the total OFC laid in India is 10 lakh route kilometers. Our research shows that it is a gross underestimate of the actual base. According to Juxt estimates, just the telecom players together owned close to 15 lakh (14.83 lakh to be precise) route kilometers of OFC by the end of FY12-13—that is almost one and a half time of what is commonly believed to be the base. This is based mostly on actual data available from these companies.

From this base, traditional telecom players accounted for the lion’s share of 14 lakh route kilometers, while new utility OFC players (like RailTel, PGCIL and GAILTel) together owned about 80,000 route kilometers. This does not take into account whatever OFC had been put in place by Reliance Jio by that time.

3.1.2.1 Optical Fiber Cable (OFC) laid in India (Overall)

Source: JuxtAll figures in route kilometers. Others include cable operators and large enterprise/institutional users


3.1.2.2 Distribution of OFC Ownership among players

74%

4%

11%

11%

Tradi�onal Telecom Players

U�lity Telecom Players

Cable Service Providers

Other Ins�tu�onal Users

Total: 1,884,888 route kilometers (FY 12 -13)

3.1.2.3 railtel OFC Network

Source: Juxt

Source: Railtel



3.1.2.4 powerGrid OFC Network

Among the traditional telecom players, Bharat Sanchar Nigam Ltd (BSNL) accounted for more than half (7.2 lakh route kilometers) while Bharti had the second largest base of installed OFC at 1.7 lakh route kilometers. Among the utility telecom providers, RailTel, with a network of more than 40,000 route kilometers, is the largest.

The entire telecom industry (including the new utility infrastructure providers), together own about 14.84 lakh route kilometers of OFC.

There are at least two other distinct segments which have laid a lot of OFC cable: the cable service providers and the large industrial corporations and institutions who have their private OFC networks in their campuses. According to Juxt estimates, the total OFC laid by all the users in India is 18.84 lakh route kilometers (See pie). Unlike the telecom industry figures, this is only a rough estimate.

Source: PowerGrid


3.1.2.5 Operator-wise Ownership of OFC Cables in IndiaOperator FY10 FY11 FY12 FY13bSnl 6,46,695 6,83,155 6,98,428 7,19,935RCom 1,60,000* 1,90,000 1,90,000 1,90,000Bharti Airtel 1,26,357 1,34,026 1,57,886 1,71,610RailTel 38,000* 41,022 42,099 42,099PowerGrid 14,000* 20,600 25,000 25,000mTnl 14,420 15,325 15,935 16,344gail TEl 13,000 13,000 13,000 13,000Others 2,01,000 2,29,000 2,62,000 3,06,000all Operators 12,13,472 13,26,128 14,04,348 14,83,988

*Estimated figures. All figures in route kilometers. Source: JuxtOthers include Vodafone, Idea, Tata Communications and smaller operators

3.2.1.6 OFC Owned by telecom Operators in India (end of FY 13)

48%

1%11%

13%

5%

8%

3%3%2%1% 5%

BSNL

MTNL

Bhar� Airtel

Rcom

Idea

Vodafone

Tatacom

RailTel

PowerGrid

GAILTEL

Others

Total: 14.83 route km

The first—which by traditional definition is outside the telecom industry, but is, of late, getting converged with it—is the cable TV industry. The story of this segment is extremely fascinating. While the cable manufacturers hardly talk about this segment—as they do not really directly sell into this segment—estimates by Juxt suggests that the cable operators nationwide have deployed somewhere around 200,000 route kilometers of OFC, mostly in their backbone in cities and towns. This segment is extremely important from the point of view of skill development as this industry employs a significant number of half-skilled workforce, which with incremental training and certification, can emerge as a quality workforce of OFC technicians and splicers. Doing a detailed analysis of OFC network status and workforce of a fragmented industry, that has traditionally been distinct from the telecom sector, is beyond the scope of this study.

The second segment that has laid a significant amount of OFC consists of the campuses and internal networks of many large public sector units and educational institutions. A rough estimate puts the total OFC cable laid by this segment as not less than 200,000 route kilometers but it could be much more. But since most of these OFC cables have been in private areas and are maintained by captive staff, which is outside the telecom industry, this segment can be ignored from the point of view of the immediate objective of skill development.

Source: Juxt



3.2 Profile of Selected CompaniesWhile almost all telecom operators today own some optical fiber network, we profile here a few selected companies for whom ownership of OFC is of strategic importance.

3.2.1 bSnlBharat Sanchar Nigam Ltd (BSNL) is the state-owned telecom operator in the country. Earlier operating as a government department, it was corporatized in 2000. It is the largest landline service provider and owns the largest telecom network in India. It recorded revenue of `27,128 crore in FY 2012-13

With a broadband subscriber base of over 8 million, BSNL today owns the lion’s share of all the OFC cables laid in the country. It owns 48.5 percent of the total OFC cables owned by telecom operators and 38 percent of the total OFC in the country. It has also got the largest share of the ambitious NOFN project of Government of India funded by Universal Services Obligation Fund. It has also got the Assam part of USOF-funded fiber project in the North East. Its other new project in OFC includes a close to 60,000 route kilometer project for Indian Army.

BSNL has its regional telecom training centers, which impart training on various telecom related skills. Today, the only standard certification for OFC technicians, BCOFT (BSNL Certified OF Technician), is available through some of its training centers.

3.2.2 mTnlMahanagar Telephone Nigam Ltd is the public sector telecom services company that provides landline and mobile services in the cities of Delhi and Mumbai. The first corporatized local telecom service provider in the country, MTNL was formed in 1986. Today, it is a listed entity (in India and NYSE) with revenues of `3,429 crore in FY 12-13. It also provides services in Mauritius, Africa. MTNL is also one of the top four largest Internet Service Providers in the country, in terms of number of subscribers.

Despite being city-centric service providers, MTNL owns a fair bit of fiber—about 16,000 route kilometers. It launched Fiber to the home (FTTH) services with core network speed up to 10 Gbps in Delhi, two years back, with several services like IPTV, HDTV, 3DTV, video on demand etc on it. It has close to 1200 FTTH connections in Delhi and 300 connections in Mumbai. Its expansion of OFC network has slowed down in recent years.

3.2.3 Bharti AirtelBharti Airtel is the largest telecom operator in India, with licenses to provide mobile, fixed-line, Internet and long distance services, with revenue of `80,311 crore in FY 13 and a customer base of about 200 million. It is a publicly listed company.

Bharti Airtel has an OFC network of 175,400 route kilometer at the end of September 2013. This is mostly for its NLD and city networks. It also leases capacity from other infrastructure providers.

Bharti Airtel has 1.4 million DSL broadband subscribers with a healthy ARPU of `1000 per month. It has 7.5 million of its DTH-based digital TV subscribers. Yet, it is yet to roll out any major FTTH/FTTC networks.

3.2


3.2.4 Reliance CommunicationsReliance Communications is one of the largest operators in India with revenues of `21,780 crore in FY 12-13. It owns the second largest OFC cable base in India (190,000 route kilometers) but has not added much to its network in recent times. It is also a major player in providing enterprise connectivity services and owns large data center space. Reliance earns 20 percent of its revenues from international operations.

Like Bharti Airtel, it provides DTH-based digital TV services, with a customer base close to 4.7 million. Though RCom has connected many buildings using its broadband network, it is yet to have a major FTTH/FTTC plan.

3.2.5 Reliance JioReliance Jio, owned by Reliance Industries Ltd, is the licensee to provide 4G LTE-based services through India. The company has ambitious plans to provide broadband services in India and many expect it to be a game changer.

Though it has plans to provide services in many parts of India, it has taken a mix-n-match approach of leasing and building when it comes to its network strategy. It has already entered into tie-ups with Reliance Communications and Bharti Airtel, two private operators who have largest spread of optical fiber networks in India. Yet, it is building a lot of network of its own at a fast pace. Though it does not share the details, according to estimates based on discus-sions with turnkey and cable suppliers, the company may well have anywhere between 75,000 to 1,00,000 route kilometers of OFC by the end of March 2014. Considering that it started this year, the speed of rollout is unprecedented.

Since it is going for high speed broadband, Reliance Jio’s focus are top cities. It is building a lot of network in selected cities. Delhi, Bangalore, Kolkata, Mumbai and its base Jamnagar are the cities that are top priorities for the company. It has already built OFC network of close to 7000 route kilometers in Bangalore, close to 4000 route kilometers in Delhi and about 700 route kilometers in Kolkata, according to sources.

3.2.6 RailTelThe most proactive among the utility-turned telecom service providers, RailTel has been incorporated as a full-fledged enterprise under Indian Railways. It is a Miniratna Category I enterprise.

Started in the year 2000 with an inherited network of 4,500 route kilometers of OFC owned by Indian Railways, RailTel has added 40,000 route kilometers since then to have a network of close to 45,000 route kilometers as of now. The network includes DWDM network over 10,000 route kilometers, which could provide 400 Gbps speed. The company is planning to convert its entire backbone to DWDM.

RailTel has bagged the USOF-funded North East Fiber project, to connect six North Eastern states for creating inter/intra district networks. It is also one of the three players who have been chosen to build OFC network for the NOFN project. It also partners NIC in the National Knowledge Network (NKN) project.

3.2.7 PowerGrid (PowerTel)PowerGrid Corporation is a public sector (Navaratna) enterprise in India that owns more than 4-5th of India’s power transmission lines. It got into telecom infrastructure business a few years back and now owns a national long distance (NLD) and Internet Service provider (ISP) licences. It has a network of close



to 30,000 route kilometer of OFC. It is adding close to another 30,000 route kilometers.

It is the only OFC owner which has a majority of OFC laid using Optical Ground Wire (OPGW) technology; i.e about 20,000 route kilometers of the OFC cable is laid overhead on its towers. PowerGrid is one of the few telecom players to reach J&K and North East with its fiber. It is also connecting India to neighboring countries such as Nepal, Bhutan, and Bangladesh using OPGW. It is one of the three players who are rolling out NOFN project. It is also a partner to NIC in its National Knowledge Network project.

3.2.8 gail TElThe telecom network of Gas Authority of India Ltd (GAIL) is not just the smallest among all the three utility telecom providers, it is not being expanded either. It has a reach of 13,000 route kilometers of OFC along its ipelines (5,681 Km) and state/national highway routes (7346 Km), connecting 150 towns/cities, says the company website.

Unlike the other two PSU telecom infrastructure providers, RailTel and PowerGrid, GAILTel is not actively seeking business now, either with the government or in the private sector. It is the only utility telecom provider which has not got a slice of any of any of the large government network projects such as NOFN, NKN or North East connectivity.

3.2.9 bbnlBharat Broadband Network Ltd is the Special Purpose Vehicle (SPV), set up by the Government of India for the creating, managing and operating the National Optical Fiber Network (NOFN) that would connect 2,50,000 Gram Panchayats in India through broadband fiber connectivity. The project is being funded by the USO Fund and the opex will be funded by ministry of rural development.

BBNL has got a national long distance (NLD) license. BBNL has awarded three PSUs, BSNL, PGCIL and RailTel to build the network. As of November 2013, only 60 Gram Panchayats have been connected and tendering process for OFC cables has been completed, even though orders are yet to be placed.

3.3 Talent Scenario & Skill Gap AnalysisThe criticality of optical fiber cables notwithstanding, the construction and maintenance of physical network of all carriers are almost always outsourced to third party contractors. The only exception seems to be intra-city networks in case of certain telecom companies, where the maintenance is sometimes done in-house or through contracted employees provided by manpower suppliers but is directly managed by companies. But that too is more of an exception than a rule. And the construction (roll-out), even in such cases is completely outsourced.

The roll out of OFC networks in India—whether it is long distance or intra-city—is outsourced to third party turnkey providers, both large and small. While there are many large turnkey providers such as HFCL, Aster, Birla, A2Z and the like, there are many smaller turnkey providers that are contracted out typically 1000-2000 route kilometers for build out, usually in long-distance networks. In some cases, the large turnkey providers are also involved during the planning stage of the section of the network that they are supposed to build.

3.3


3.3.1 Typical Structure of an OFC CompanyIn the case of traditional telecom service providers, there are various models but typically networks are managed and maintained under the service providing divisions. Hence, since typically national long distance, international long distance and local services are separately managed, so are their networks. This is true for almost all traditional telecom operators. So, there is nothing called an OFC division per se. The network—typically the active components—are monitored by a central NOC, while the physical cables networks are under maintenance teams, which are in charge of maintenance engineers and managers, typically employees of organizations but the rest of the work is contracted out.

Typical structures of an OFC/infrastructure company such as RailTel and PowerTel are not very different from any major engineering companies, except that the assets of these companies are spread over comparatively larger geographic areas. So, typically, the organizational hierarchy below a certain level is based on areas, rather than function. To that extent, they have commonality with the traditional telecom companies but unlike traditional telecom companies, they are more project/engineering companies. Network O&M is often a critical differentiator unlike in case of a operating services company where it is a hygiene factor.

3.3.1.1 Organization Chart of a Typical Infrastructure Player (OFC)

While we have depicted here the organization chart of a typical infrastructure provider, this is not of significant relevance to the immediate objective of the research: to assess the demand for OFC technicians and splicers as these positions are almost always with the outsourced contractors. These contractors have fairly flat structures.

Source: Juxt (based on inputs from multiple companies)



3.3.2 Brief Profiles of Selected Positions3.3.2.1 Optical Fiber TechnicianJob DescriptionOptical fiber technician is responsible for maintaining uptime and quality of the network segment (both optical media & equipment) assigned to him by undertaking periodic preventive maintenance activities and ensuring effective fault management in case of fault occurrence. He is also required to coordinate activities for installation and commissioning of Optical Fibre Cable (OFC) as per the route plan

QualificationMinimum Educational Qualifications: Class VIII• Maximum Educational Qualifications: ITI/ Diploma/ Bachelor in Technology • (Any field)

TrainingTraining on Soft Skills (mandatory for Class VIII to XII)• Technical trainings on interpreting OTDR, power and light meter test results; • Project management trainings(mandatory for all)

ExperienceIn case educational qualification Class VIII to XII- Worked as optical fiber • splicer for minimum 4-5 yearsIn case educational qualification ITI/ Diploma/ Bachelor in Technology- • Worked as optical fiber splicer for 1-2 years

More Detailed DescriptionFor more details, see Qualifications Pack for Optical Fiber Technicians (TEL /Q 0608)http://www.nsdcindia.org/pdf/dpq-optical-fiber-technician.pdf

3.3.2.2 Optical Fiber SplicerJob DescriptionOptical fibre splicer is responsible for ensuring efficient splicing of the optical fibre cables and supports in optical fibre installation and in carrying out fibre testing using OTDR and power meter.

QualificationMinimum Educational Qualifications: Class VIII• Maximum Educational Qualifications: ITI/ Diploma/ Bachelor in Technology • (any field)

TrainingTraining on Soft Skills (mandatory for Class VIII to XII)• Technical training on standard splicing process for both underground • and overhead cables, Interpreting the color coding to avoid cross fiber (mandatory for all)Training on fibre testing using OTDR meter and power testing( mandatory • for all)

ExperienceNA

More DetailsFor more details, see Qualifications Pack for Optical Fiber Technicians (TEL /Q 0609)http://www.nsdcindia.org/pdf/dpq-optical-splicer.pdf


13,477

14,622

15,320

13,477

14,622

15,320

12500

13000

13500

14000

14500

15000

15500

31YF21YF11YF

OFC Technicians OF Splicers

3.3.3 Skill Gap among Existing WorkforceThe industry that actually employs the OFC technicians and OFC splicers is not too concerned about the supply of raw manpower, as the entry level qualification is low. But there is a general feeling that some training is required.

This industry—the turnkey providers—are not very organized and fairly fragmented, despite the presence of some large players. We recommend a slightly in-depth primary research among them to be able to ascertain the exact skill gaps.

But based on initial discussions, some of the points raised are as follows:Some training before joining the organization would be helpful. This is • primarily from the point of view of time to get the workforce ready. While many referred to BSNL’s certification course, the overall feeling is that there is no major training available.Many, surprisingly, expected that the workforce improved on their soft • skills, though there was no major definite reason forthcoming. It was a surprise finding.

But based on our secondary research and understanding gained from various conversations, one thing is clear—since most of the people are recruited directly and are trained on the job, some grounding on theoretical aspects would surely help.

So far, there is not too much of a career path. Once the construction phase gets over and the maintenance work gets commoditized, the younger lot of the workforce would like to have some career progression. Today, that may not be an overwhelming condition but when that happens, there would be some need for retraining.

3.3.4 Industry Level Information on Employment of Selected PositionsHere is a look at the industry level employment of OFC technicians and OF splicers. The operator-wise employment is employment directly or indirectly generated by the operator even though the actual employers may be the third party contractors.

3.3.4.1 Growth in Employment for OFC Technicians and Splicers (FY 11 to FY 13)

Source: Juxt



3.3.4.2 Growth of Employment in Selected Positions (FY 11 – FY 13) (Operator-wise)

OFC Technicians OF Splicers

FY11 FY12 FY13 FY11 FY12 FY13

bSnl 6,953 7,035 7,486 6,953 7,035 7,486

Bharti Airtel 1,366 1,658 1,762 1,366 1,658 1,762

Rcom 1,840 2,218 1,900 1,840 2,218 1,900

RailTel 420 425 421 417 425 421

Others 2,898 3,286 3,751 2,898 3,286 3,751Source: Juxt

The employment numbers against operators are the numbers that helped indirectly generate, even though most of the actual workforce were employed by third party contractors.

3.3.5 Factors Affecting Future DemandBroadly, two factors will determine the demand for OFC Technicians and Splicers in India: the amount of OFC cables being laid in the country and the requirement of manpower for construction and maintenance of those cables based on the nature of those cables, technology being deployed to lay cables as well as the efficiency and productivity of workforce.

Here, we get into both these in some detail. First, we will try to project the amount of OFC that will be laid, based on the plans for the next three years obtained through our research and discussions with many players and stakeholders and for the subsequent two years based on the trends with an explicit assumption that there will be no major change in regulatory stance. This is necessary, as for most of the players it is not possible to get any planned deployment beyond 2016. While in our discussion, we will provide a fair idea of the planning part, the actual numbers will be given in the table. We would like to clarify that in case of any (even slightest) variations between approximate indicated numbers given in the text and actual forecast given in the table, the latter should be taken to be correct. The idea behind the discussion is to lead the reader towards the actual numbers and give him/her an understanding about where the numbers come from.

Secondly, we will look at the norms on which the calculation for the manpower is based, i.e the correlation of the amount of cable being laid and maintained to the number of people needed to achieve those tasks. These norms have been obtained by both TSSC and Juxt separately through discussions with stakeholders. Since these norms are valid for today, we also have obtained slightly separate norms for calculating the demand in the later years of the projection period.

Also, we must clarify here that though we have given an indication of the amount of cable that will be laid by the cable TV operators and defense, we have refrained from projecting manpower demand for those, as the norms may be different and the present research has not covered those segments. We, however, repeat what we have pointed out in the first section of this chapter: that cable TV remains an important sub-sector from the point of view of skill development and needs to be researched in a more focused manner.


3.3.5.1 Future Demand for OFCFor the purpose of demand estimation for OFC cable laying in India in the next 5 years (including the current year), the market can be divided into four segments, based on where the demand will come from.

Further, the telecom segment, which is fairly heterogeneous with multiple players pursuing multiple business models and are in different stages of evolution, the opportunities can be further classified into four distinct application areas.

This is what the overall mapping looks likeNational Optical Fiber Network (NOFN) project• Defence forces• Cable service providers• Telecom Carriers•

Regular expansion of network by existing carriers (including USOF-o backed NE rollout)Network rollout of Greenfield operatorso Rollout of Fiber to the Home projects in some cities by existing/new o carriers

The segmentation approach has three distinct advantagesEstimating total demand by adding the individual segment demands is • generally considered a more accurate methodThese segments are in different phases of their evolution. Segment-wise • approach to demand estimation, in future, will help the user of this report to make a better assessment of the prevailing situation, by looking at the actual ground realities in each segmentSince the natures of these segments are very different from each other, • the rollout and maintenance parameters such as time, cost, manpower requirement and skill requirement for each of these could be different from the other. Looking at them at segment levels would provide a more accurate way of deriving norms for skill requirement, which is the ultimate objective.We go into each segment separately.•

3.3.5.1.1 nOFnThe Twelfth Plan has a target of achieving 175 million broadband (2MBps to 100 Mbps) connections by 2017. Further, the National Telecom Policy 2012 talked of 600 million such connections by 2020 while envisaging that broadband would be treated as a basic necessity like education and healthcare.

National Optical Fiber Network (NOFN) is an ambitious `20,00-crore project initiated by Government of India to provide broadband connectivity to all the 2,50,000 Gram Panchayats (GPs) in India. The project, funded by Universal Services Obligation Fund, was approved by Indian cabinet in October 2011, with a completion deadline of two years from that date, though the deadline was later revised to a somewhat more realistic March 2016.

Though the government talked about access to government and non-government services by the citizens as being the primary driver behind building such a network, the provision of those services, per se, is not part of the project and hence is not included in the cost. This has been clarified by the spokespersons, including the minister for communications, several times. However, the government has clarified that all the telecom service providers, ISPs and cable service providers will be given non-discriminatory access to NOFN for launching various services.



As the name indicates, NOFN is primarily a huge optical fiber network that will provide connectivity to all the Gram Panchayats. The project—according to the special purpose vehicle, Bharat Broadband Network Limited (BBNL) created in February 2012 to establish, manage and operate it—uses existing OFC cables in the backbone and extend them to Gram Panchayats. Three telecom PSUs—BSNL, PowerGrid Corporation and RailTel—have been assigned the rollout of the project. Free RoW has been secured for the project through tripartite MoUs signed among BBNL, Union Government and the state governments. BBNL was given an National Long Distance (NLD) license in April 2013.

Based on a rough 2 route kilometer per village thumb rule, it was estimated that roughly about 500,000 route kilometers of new OFC needed to be laid. The National Informatics Centre ( NIC) was assigned the task of GIS mapping of the existing OFC network for the purpose of calculating the exact incremental length of the cable required for connecting all the 2.5 lakh GPs with OFC.

In April this year, BBNL invited a tender for supplying a total of 404,995 route kilometers of 24-fibre OFC, which gives an exact estimation of the OFC to be laid for NOFN. BBNL has divided the entire country into six zones, for the purpose. Demand for each of these zones, called a package, was outlined by the company in the tender as follows.

Package A (71,257 rkm): supply in North Western India comprising of J&K, Haryana, Himachal Pradesh, Punjab, Chandigarh, Rajasthan and Uttrakhand

Package B (73,471 rk): supply in Northern India comprising of Western and • parts of Eastern Uttar PradeshPackage C (66,713 rkm): supply in Central India comprising of Chhattisgarh, • Madhya Pradesh and parts of Eastern Uttar PradeshPackage D (69,441 rkm): supply in Western India comprising of Gujarat, • Maharashtra and Dadra & Nagar Haveli, Daman & DiuPackage E (67,873 rkm): supply in Southern India comprising of Karnataka, • Andhra Pradesh, Tamil Nadu & Kerala, Lakshadweep and PuducherryPackage F (56,240 rkm): supply in Eastern & North Eastern India comprising • of Bihar Jharkhand, Odisha, West Bengal, Sikkim, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Andaman & Nicobar

For the year-wise estimation of OFC cable laying for NOFN, it is imperative to look at the actual progress on the ground, rather than projected plan. As of now, beyond the pilot trials, the work has not yet begun. By November 2013, only 60 Gram Panchayats out of 2,50,000 Gram Panchayats were connected with broadband, based on existing cables. In fact, the orders for OFC cables are yet to be officially placed. It is virtually clear that the work will not begin by the end of this calendar year.

Going by earlier DoT projections, 10,000 GPs should be connected by December this year (2013), which seems clearly not feasible. Even now, BBNL says that 1,00,000 Gram Panchayats should be connected by March 2014, which seems highly unlikely. The BBNL plan is to complete it by December 2015.

Going by past trends, and the current situation of the project, an optimistic projection would be to have 100,000 – 120,000 route kilometers of OFC by March 2015. A more realistic projection, assuming that it would be done at a faster pace than normal BSNL projects, would be to have 70,000 – 80,000 route kilometers laid by the end of FY 14-15 (March 2015).


3.3.5.1.1.1 State-wise Plans for Covering Gram Panchayats (NOFN)

States Carrier GPs/RLs to Covered

Andhra Pradesh PGCL 21,852

Arunachal Pradesh Railtel 1,756

Assam BSNL 2,205

Bihar BSNL 8,474

Chhattisgarh BSNL 10,041

Goa NA

Gujarat Railtel 14,141

Haryana BSNL 6,279

Himachal Pradesh PGCL 3,241

Jammu & Kashmir BSNL 4,146

Jharkhand PGCL 4,464

Karnataka BSNL 5,631

Kerala BSNL 977

Madhya Pradesh BSNL 23,028

Maharashtra BSNL 27,971

Manipur Railtel 3,011

Meghalaya Railtel 1,463

Mizoram Railtel 776

Nagaland Railtel 1,123

Odisha PGCL 6,234

Punjab BSNL 12,800

Rajasthan BSNL 9,200

Sikkim BSNL 163

Tamil Nadu Railtel 12,617

Tripura Railtel 1,038

Uttar Pradesh BSNL 51,994

Uttarakhand BSNL 7,555

West Bengal BSNL 3,352

uTs

A&N BSNL 67

Chandigarh BSNL 17

D&N Haveli RailTel 10

Daman and Diu RailTel 14

Delhi NA

Lakshadweep BSNL 10

Puducherry RailTel 98

Total 245,748Source: BBNL



3.3.5.1.1.2 State-wise estimation of OFC to be Deployed in First phase (NOFN)

States Carrier Estimated Fiber Km

Andhra Pradesh PGCL 36,013

Arunachal Pradesh Railtel 2,894

Assam BSNL 3,634

Bihar BSNL 13,965

Chhattisgarh BSNL 16,548

Gujarat Railtel 23,305

Haryana BSNL 10,348

Himachal Pradesh PGCL 5,341

Jammu & Kashmir BSNL 6,833

Jharkhand PGCL 7,357

Karnataka BSNL 9,280

Kerala BSNL 1,610

Madhya Pradesh BSNL 37,951

Maharashtra BSNL 46,097

Manipur Railtel 4,962

Meghalaya Railtel 2,411

Mizoram Railtel 1,279

Nagaland Railtel 1,851

Odisha PGCL 10,274

Punjab BSNL 21,095

Rajasthan BSNL 15,162

Sikkim BSNL 269

Tamil Nadu Railtel 20,793

Tripura Railtel 1,711

Uttar Pradesh BSNL 85,688

Uttarakhand BSNL 12,451

West Bengal BSNL 5,524

UTs

A&N BSNL 110

Chandigarh BSNL 28

D&N Haveli RailTel 16

Daman and Diu RailTel 23

Lakshadweep BSNL 16

Puducherry RailTel 162

Total 405,000

Goa and Delhi are not covered by NOFN Source: BBNL, Juxt estimates

It may be noted that BBNL is revising the plans and it may have to lay anywhere between 6,00,000 to 6,75,000 route kilometers of OFC cable to cover the same number of Gram Panchayats. If that happens, all the projections will have to be revised upwards.


3.3.5.1.2 Defence OFC NetworksA defence network to be owned and operated by the Project Implementation Core Group under the Ministry of Defence has contracted BSNL to jointly roll out an OFC-based backbone of 414 defence sites across the country, as well as access networks for 219 army sites. Post roll out, the network would be transferred to PICG for subsequent operations and maintenance. BSNL is completing the tendering process for procuring OFC.

The 57,015 kilometer network, to be laid out on the entire country divided into seven regions, may be almost completed by the end of next financial year (2014-15).

The Indian Navy is also constructing a separate 3000 route km OFC network, for which it has started the tendering process.

Typically, in the defence projects, the network rollout, augmentation, upgrada-tion etc is outsourced while regular maintenance is done by defence itself.

3.3.5.1.3 Cable Service ProvidersCable service providers could be the dark horse in the Indian OFC scene. Because of the fragmented and unorganized nature of the industry, this industry has not been on the radar of analysts and market watchers. Further, these players operate very differently from the telecom carriers when it comes to OFC laying.

One, except for a few MSOs, most of them do not plan in advance, unlike telecom operators. Two, because of the smaller quantities involved, they do not buy directly from the manufacturers—as telecom carriers do—but buy from dealers and distributors. It is estimated that in Delhi and Mumbai alone, there are close to 100 such dealers of OFC cable who exist.

Three, most of them do not take help of turnkey providers to lay the cables, though few do outsource the work when there is digging required. The OFC technicians and even splicers are homegrown cable industry technicians or hired on individual, per project basis from those who work for telecom turnkey providers but have spare time. But in most cases, the cable operators try to bring that expertise in-house.

Based on estimates by manufacturers and distributors, there are not less than 200,000 route kilometers of OFC that has been laid so far by the cable industry. Most of large MSOs today have OFC in their backbone. Even regional players in smaller locations have started using OFC.

However, the demand has become a little static with the advent of satellite TV in the large cities. Yet, the industry estimates put the total demand of this industry to be not less than 25,000 route kilometers per year over the next two years.

3.3.5.1.4 Telecom CarriersRegular expansion of network by existing carriers: The regular networks of existing telecom operators in long-distance routes have by and large been built. While most operators would surely augment their networks, it is unlikely that there will be a lot of OFC will be laid by them.

Take the biggest of them all, BSNL, which actually owns more than half of the current installed base of OFC. Going by its past records—it built 21,507 route kilometers in FY 12-13 and 15,273 route kilometers in FY11-12, failing to meet



its own targets in both the years—it is difficult to believe that it will build more than 30,000 route kilometers of OFC network this year, its target. But that too seems highly unlikely considering it had managed to build just about 1,500 route kilometers of additional network in the first quarter. A more realistic estimate would be to finish the current financial year with another 15,000 – 20,000 route kilometers of OFC. BSNL, not taking into account the NOFN project, could add another 20, 000 - 25,000 route kilometers in FY 14-15.

Bharti has added about 3795 route kilometers of OFC in the first six months of the current financial year. It had added 13,724 route kilometers last year. Going by its internal plans, it is expected to add another 5,000 route kilometers by the end of this year. The growth may slow down significantly, not taking into account any FTTH investments, as that is treated separately here. Most other mobile operators have saturated OFC backbones. Rcom’s exact plans were not available. Going by this, traditional telecom operators together are likely to add, on an average, another 30,000 route kilometers per year in the next two years (FY 13-14 and FY 14-15).

The utility players are also keeping their pace. RailTel, in the first seven months of this year—that is till October 2013—has added about 4,100 route kilometers of OFC. It is likely to end the year 2013-14 with about 6,200 route kilometer being added. In the next year, it sees 4,200 kilometers of sanctioned route to be completed, along with a possible 1,500 route kilometers more, making it 5,700 route kilometers.

PowerGid’s PowerTel which did not add much to its OFC network last year has already added close to 4,300 route kilometer this year and is expected to end the year with adding some 3,500 route kilometers more. It already has plans to add a further 25,000 route kilometers based on Optical Ground Wire (OPGW) technology using its towers.

GAILTel, the telecom arm of Gas Authority of India Ltd has apparently not added anything in the last three years and is not a strategic focus for the company. Unless some change in direction happens, not much expansion is expected from GAILTel.

In short, the utility players turned telecom carriers would add close to 18,000 – 20,0000 route kilometers per year for next two years, without taking into account the USOF-funded NFON project.

To summarize, all the existing telecom operators will add close to 50,000 route kilometers per year in the next two years (FY 13-14 and FY 14-15) in their backbone and long-distance network, not taking into account NOFN.

Network rollout of Greenfield operators: The sole new operator who is building new OFC networks is Reliance Jio. While exact status is not known, by the end of this current year, it is expected to complete rollout of about 85,000 route kilometers. It is the only operator that will add significantly accelerate the build up the next year. Going by its plans, it could add close to 1,00,00 (approx) network in the next year FY 2014-15.

FTTH/FTTC projects in some cities by existing/new carriers: Of course, the big explosion in OFC deployment will happen when the Fiber to the Home (FTTH) or Fiber to the Premises takes off in a big way. While MTNL does provide FTTH services in Delhi and Mumbai and had about 1,500 connections by the end of March, almost 1200 of them in Delhi, that is not an indicator of demand. A serious player will change the game completely.


The 12th Plan targets 175 million broadband connections by 2017. Presently, the number is hardly 16 million. Even if 10 percent of the new connections would be using FTTH, that is still a huge number. And that is extremely realistic because, in many places, the quality of copper is not suitable to carry broadband and hence many operators will have to roll out new networks. The new rollouts are less likely to be copper. At least one of the operators, Reliance Industries, has a huge OFC plan.

While there are no plans available from any operator on their exact city networks and fiber to the premise strategy, here is an attempt to do a rough estimate, based on a triangulation using three different ways

Going by the data available from some US cities. While this can be an i. indicator, the socio-economic factors are so different that it could be highly misleading too. However, it gives a good geographic correlation and a good theoretical baseBased on the input provided by turnkey providers while discussions. While ii. these were provided by people who understand OFC laying as well as India and its demographics, even they have very little actual experience of doing FTTH/FTTC work within a city. So, this is also an estimate, not a factTaking into account size of cable TV networks. This could have been ideal iii. had it been an organized industry. But it is not. As a result, there are critical differences. One, the penetration is much more. Two, cables are mostly connected overhead to the houses. Three, since most access providers are local players, often, there is no right of way involved and the pace of connecting is quite fast.In short, the figures arrived are at best a very broad estimate. Further, a lot iv. depends on the actual plan/business model of the players who get into the game. An operator in a large city like Delhi may decide to just create a city backbone; go for a mix of backbone and FTTC with selected FTTH; lay the cable first in a concentric region; or choose a few pockets, not necessarily contiguous; or just go as build on demand like Google Fiber is doing in selected US cities. In each of these cases, the size of network and the OFC to be laid will be different.

This estimate is based on a few assumptions.The rollouts will start around early 2015.i. Only a few cities (Delhi-NCR, Bangalore, Mumbai) or parts of those cities ii. will be targeted in first 2-3 yearsMost operators will go for testing the model/piloting before they go all out iii. for this.It will be business-as-usual as far as regulatory and market conditions goiv.

Going by all these, a city like Delhi, if about 30 percent of its area (about 420 square kilometers) would be targeted to be wired up, assuming an average of 80 route kilometers of OFC per square kilometers, 33,600 route kilometer of OFC will have to be laid initially, with some network sharing assumed. If that looks too high, in Chicago, the average is more than double of that. As a thumb rule, the denser the population, the lesser the incremental build up after the initial network is laid.

With right of way and other issues resolved, if the rollout beings in mid 2015, this will take about two and a half years to get this network—at a much slower pace than the long distance network. Almost all agreed on this point that the rollout of city networks takes far more time than the rollout of long distance network.



3.3.5.1.5 total Installed Base of OFC by telecom Companies (projection)

3.3.5.2 Norms for Calculating ManpowerFor calculating the required manpower in selected positions, we decided to create some norms based on inputs from the stakeholders. TSSC also obtained these norms from stakeholders.

There are two areas where this manpower is deployed: construction and maintenance. Typically, almost all construction of OFC networks in India is outsourced to third party contractors. There are a few large third party contractors such as HFCL, Birla, Aster and A2Z. In addition, there are smaller contractors who are given out to build smaller portions—1000 to 2000 route kilometers of network. In some cases, they are made to work with each other but that is less prevalent

While our norms are based on mostly detailed input from large players, we have used some correction factor to ensure that the norms are not skewed. In any case, for the construction of OFC networks, the difference between norms for manpower in case of large and small turnkey providers is not really significant.

During construction, it is typically, a 6-7 member team that manages the cable blowing work at a segment of the network. These teams have 2 OFC technicians and the rest are non-skilled workers. These teams manage, in a typical long distance network, about 4-5 kilometers per day. This means about 100-120 route kilometers a month.

This kind of laying means about 2 joints a day, in rare occasions going upto 3. That means the splicing team that is usually separate from the blowing team. Typically, it travels in a vehicle to the jointing locations. One such team consists of one engineer and two splicers each, and sometimes a helper who is a unskilled worker. Each team typically does 50-60 jobs a month.

Within the cities, the speed of laying is a little slower or around 50-60 kilometers a month by one such team.

1,483,988

1,661,988

1,977,988

2,204,9882,405,988 2,505,988

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

OFC in Route Km

OFC in Route Km

Source: Juxt


Maintenance, on the other hand, requires a little lesser staff, especially in the long-distance networks, but considering the nature of the assets (spread over a long distance), the staff has to be provisioned for the work. The intra-city networks and the access networks, wherever they are, require a little more proactive maintenance and hence requires slightly more manpower. However, these networks are still insignificant in India. But we expect these networks to be significantly picking up towards 2016-17.

Based on these inputs and various corrections—for example, networks like that of PowerGrid which uses OPGW (overhead) cables require far less maintenance—here is what we have arrived at, as far as norms for calculating manpower is concerned.

For Roll-out(Between FY 14 – FY 18)For every 150 route kilometers of OFC being laid>> 2 OFC technicians>> 2 Splicers

For Maintenance(Between FY 14 – FY 16)For every 200 route kilometers of OFC being laid>> 2 OFC technicians>> 2 Splicers(Between FY 17 – FY 18)For every 200 route kilometers of OFC being laid>> 2.3 OFC technicians>> 2 Splicers

This, of course, is based on the assumption that there will be considerable OFC in the access networks with FTTC/FTTH becoming far more prevalent.

3.3.6 Forecast of Requirement of Selected Positions

3.3.6.1 Forecast of employment numbers in Selected positions (FY 14 to FY 18)

17,213

20,83322,807

24,730

29,002

17,213

20,83322,807

24,730 25,393

0

5000

10000

15000

20000

25000

30000

35000

FY 14 FY 15 FY 16 FY 17 FY 18

Total OFC Technicians Total Splicers

Source: Juxt



3.3.6.2 Forecast of employment numbers in Selected positions (FY 14 to FY 18) (Operator-wise)

Operator/Positions FY 14 FY 15 FY 16 FY 17 FY 18

bSnl

OFC Technicians 7,493 7,713 7,879 8,059 9,439

OF Splicers 7,493 7,713 7,879 8,059 8,239

Bharti Airtel

OFC Technicians 1,863 1,999 2,196 2,283 2,730

OF Splicers 1,863 1,999 2,196 2,283 2,393

Reliance Jio

OFC Technicians 1,200 2,500 2,500 2,733 3,354

OF Splicers 1,200 2,500 2,500 2,733 2,917

Rcom

OFC Technicians 1,980 2,027 2,077 2,127 2,493

OF Splicers 1,980 2,027 2,077 2,127 2,177

RailTel

OFC Technicians 501 614 714 761 919

OF Splicers 501 614 714 761 808

PgCil

OFC Technicians 357 477 587 630 782

OF Splicers 357 477 587 630 690

bbnl nOFn

OFC Technicians 267 1,800 3,000 4,200 4,703

OF Splicers 267 1,800 3,000 4,200 4,133

Others

OFC Technicians 3,553 3,703 3,853 3,937 4,622

OF Splicers 3,553 3,703 3,853 3,937 4,037Source: Juxt


3.3.6.3 Forecast of employment numbers in OFC technicians(FY 14 to FY 18) (State-wise) (NOFN Only)

States FY 14 FY 15 FY 16 FY 17 FY 18

andhra Pradesh 24 162 270 378 417

Arunachal Pradesh 2 13 22 30 34

assam 2 16 27 38 42

Bihar 9 63 105 147 162

Chhattisgarh 11 74 124 174 192

Gujarat 16 105 175 245 270

haryana 7 47 78 109 120

Himachal Pradesh 4 24 40 56 62

Jammu & Kashmir 5 31 51 72 79

Jharkhand 5 33 55 77 85

Karnataka 6 42 70 97 108

kerala 1 7 12 17 19

madhya Pradesh 25 171 285 398 440

maharashtra 31 207 346 484 534

Manipur 3 22 37 52 58

Meghalaya 2 11 18 25 28

Mizoram 1 6 10 13 15

Nagaland 1 8 14 19 21

Odisha 7 46 77 108 119

Punjab 14 95 158 221 245

Rajasthan 10 68 114 159 176

Sikkim 0 1 2 3 3

Tamil Nadu 14 94 156 218 241

Tripura 1 8 13 18 20

Uttar Pradesh 57 386 643 900 993

Uttarakhand 8 56 93 131 144

West Bengal 4 25 41 58 64

0 0 0 0 0

uTS 0 0 0 0 0

a&n 0 0 1 1 1

Chandigarh 0 0 0 0 0

D&N Haveli 0 0 0 0 0

Daman and Diu 0 0 0 0 0

Lakshadweep 0 0 0 0 0

Puducherry 0 1 1 2 2

Total 270 1,823 3,038 4,253 4,695Source: Juxt



3.3.6.4 Forecast of employment numbers in OFC Splicers(FY 14 to FY 18) (State-wise) (NOFN Only)

States FY 14 FY 15 FY 16 FY 17 FY 18

andhra Pradesh 24 162 270 378 366


assam 2 16 27 38 37

Bihar 9 63 105 147 142

Chhattisgarh 11 74 124 174 168

Gujarat 16 105 175 245 237

haryana 7 47 78 109 105


Jammu & Kashmir 5 31 51 72 69

Jharkhand 5 33 55 77 75

Karnataka 6 42 70 97 94

kerala 1 7 12 17 16

madhya Pradesh 25 171 285 398 386

maharashtra 31 207 346 484 469

Manipur 3 22 37 52 50

Meghalaya 2 11 18 25 25

Mizoram 1 6 10 13 13

Nagaland 1 8 14 19 19

Odisha 7 46 77 108 104

Punjab 14 95 158 221 214

Rajasthan 10 68 114 159 154

Sikkim 0 1 2 3 3

Tamil Nadu 14 94 156 218 211

Tripura 1 8 13 18 17

Uttar Pradesh 57 386 643 900 871

Uttarakhand 8 56 93 131 127

West Bengal 4 25 41 58 56

uTS 0 0 0 0 0

a&n 0 0 1 1 1


D&N Haveli 0 0 0 0 0

Daman and Diu 0 0 0 0 0


Puducherry 0 1 1 2 2

Total 270 1,823 3,038 4,253 4,118Source: Juxt


3.3.6.5 Forecast of employment numbers in OFC technicians(FY 14 to FY 18) (State-wise) (Overall)

States FY14 FY15 FY16 FY17 FY18

andhra Pradesh 1,210 1,493 1,654 1,812 2,119


assam 595 682 719 755 893

Bihar 856 1,013 1,093 1,170 1,377

Chhattisgarh 604 740 816 890 1,043

goa 339 380 395 410 486

Gujarat 609 770 867 961 1,121

haryana 515 617 671 723 849


Jammu & Kashmir 55 88 111 133 152

Jharkhand 361 432 470 507 596

Karnataka 1,192 1,373 1,453 1,531 1,809

kerala 594 673 704 734 869

madhya Pradesh 1,211 1,502 1,668 1,832 2,141

maharashtra 1,725 2,109 2,323 2,532 2,965

Manipur 88 117 136 154 179

Meghalaya 86 106 117 128 149

Mizoram 86 101 108 116 136

Nagaland 86 103 113 122 143

Odisha 261 331 374 415 484

Punjab 692 855 949 1,041 1,217

Rajasthan 857 1,019 1,102 1,183 1,391

Sikkim 85 96 101 105 125

Tamil Nadu 1,200 1,424 1,540 1,652 1,943

Tripura 103 122 131 141 166

Uttar Pradesh 1,345 1,830 2,145 2,456 2,841

Uttarakhand 364 455 509 561 655

West Bengal 681 785 832 877 1,036

uTs

a&n 17 20 21 22 26


D&N Haveli 17 19 20 21 24

Daman and Diu 17 19 20 21 25

Delhi 847 951 988 1,024 1,215


Puducherry 170 191 199 206 245

Total 17,213 20,834 22,807 24,730 29,003Source: Juxt



3.3.6.6 Forecast of employment numbers in OFC Splicers(FY 14 to FY 18) (State-wise) (Overall)

States FY14 FY15 FY16 FY17 FY18

andhra Pradesh 1,210 1,493 1,654 1,812 1,855


assam 595 682 719 755 782

Bihar 856 1,013 1,093 1,170 1,206

Chhattisgarh 604 740 816 890 913

goa 339 380 395 410 426

Gujarat 609 770 867 961 982

haryana 515 617 671 723 743


Jammu & Kashmir 55 88 111 133 133

Jharkhand 361 432 470 507 522

Karnataka 1,192 1,373 1,453 1,531 1,584

kerala 594 673 704 734 761

madhya Pradesh 1,211 1,502 1,668 1,832 1,875

maharashtra 1,725 2,109 2,323 2,532 2,596

Manipur 88 117 136 154 157

Meghalaya 86 106 117 128 131

Mizoram 86 101 108 116 119

Nagaland 86 103 113 122 125

Odisha 261 331 374 415 424

Punjab 692 855 949 1,041 1,066

Rajasthan 857 1019 1,102 1,183 1,218

Sikkim 85 96 101 105 109

Tamil Nadu 1,200 1,424 1,540 1,652 1,701

Tripura 103 122 131 141 145

Uttar Pradesh 1,345 1,830 2,145 2,456 2,488

Uttarakhand 364 455 509 561 573

West Bengal 681 785 832 877 907

uTs

a&n 17 20 21 22 22


D&N Haveli 17 19 20 21 21

Daman and Diu 17 19 20 21 22

Delhi 847 951 988 1,024 1,064


Puducherry 170 191 199 206 214



3.3.7 Supply SituationSince the entry qualification is low, there is no definite way to measure supply of the manpower for positions of OFC technicians and OF splicers. No surprise, the stakeholders do not seem to be particularly worried about finding people for filling up these positions.

However, the need for trained manpower is being felt across the industry. While everyone wishes to have ready manpower, some small turnkey providers and others knowledgeable about the business are a little apprehensive about certification, thinking it will push up the cost of manpower. This research, which is meant to find out the possible issues/challenges and not really provide a conclusive answer to the questions, may not be able to ascertain if this is the opinion of a significant section or not.

As far as training is considered, some of BSNL’s Regional Telecom Training Centres provide a 4-week certification course, called BSNL Cerified Optical Fiber Technician (BCOFT). The course provides hands on training in splicing of fiber optic cables and maintenance of fiber optic networks, as well as some theoreti-cal concepts along with an introduction to some current industry standards. While the industry has a good opinion about the course, by and large, few take it seriously, as a viable training alternative, as the numbers are too small.

The course consists of three weeks theory and practical classes teaching all aspects of OFC maintenance, splicing etc in labs and classrooms. In the final week, the trainees are given field exposure, working with BSNL technical teams and engineers.

Another potential source of manpower is the cable TV industry, which has already taken to the OFC in a big way. The industry has many OFC technicians, trained on the job. With some training on theoretical aspects, that manpower can be used by the industry. But if the wages and working conditions in the telecom industry is better than cable industry in the eyes of these workers, is something that needs to be verified.

In short, at present, the concern of the industry is not so much the availability of people as it is of training and retraining those people that is already available. Mobilization of workforce, which seems to be a challenge in many industries and for many skilled jobs is not much of an issue in this industry—that is what an initial research like this indicates.

To summarize, there is not too much of a demand-supply gap. The gap, if at all, is in skill level—many even want their technicians to pick up some soft skills.

3.3.8 Possible Sub-sectoral Inputs and Outputs for an LMISThe so-called telecom OFC sub-sector is typical in characteristics from the point of view of employment and skill.

First of all, it is not a sub-sector per se, in the classification and nomenclature of telecom industry. The typical classification in Indian telecom is based on what they sell—equipment, telecom services or other services and software. Among the telecom services providers, the classification is based on the kind of services they offer. Going by that definition, the optical fiber cable networks are owned by a variety of service providers—mobile service providers, fixed line local access providers, long-distance service providers, Internet access providers and even non-telecom service providers such as those providing cable TV services.



Secondly, most of these operators who own the network are not the ones who actually build those networks. They almost always outsource the construction of these networks. This trend, though, is not really unique to India.

Third and the most challenging aspect—from the point of view of employment and skill development—is the nature of the industry that constructs these networks. Unlike in many parts of the world, this industry is not just disorganized, it is highly fragmented. Except for a few big players, most are local players. Most owners of the OFC networks engage with them fairly tactically.

Many of them have no proper employment practice. In the wake of this, it will be an additional challenge for marketing the idea of labor management information systems (LMIS) to them.

However, it is not that they do not recognize the need for good training and trained manpower. But there is little challenge that they face in finding and mobilizing non-trained, raw manpower. So, unlike in many other segments, just finding enough people to match the demand is clearly not an issue. It is imperative that the LMIS takes this reality into account as far this subsector goes.

3.3.8.1 Information to be made availableSome of the information heads that can be made available are

Total Employment (National, State, Employer Levels)• Total Employment by No of Years of Experience (National, State, • Employer Levels)Total Employment by Qualification (National, State, Employer Levels)• Total Employment by Wage Ranges (National, State, Employer Levels)• Total Employment by Training/Certification (National, State, Employer • Levels)Total Intake by the Industry/Total Chrun• Information of input and output of various training institutes (such as • RTTCs of BSNL)

However, it is our considered opinion (and not a research finding) that for any such system to be successfully, the ultimate generators of those employment (in this case, the carriers who own the network) should find some value in it. It would be even better if they are proactively shown the value.

3.3.8.2 Stakeholder Use CasesJust number of people employed as OFC technicians or what their skill levels are may be to tactical questions for the large network operators. But what if they can use the aggregate information, combine with other MIS data and take decisions that could save them significant amount of money?

In short, they should be able to pose some what-if questions based on the data available from LMIS as well as data available from their MIS/any other source to look at the rollout/asset ownership etc in a fundamentally different way.


Illustration 1What if- a service provider could find out if redeployment of workforce in a wider geography (with possible just in time rollout before service delivery in a region) could be far more cost-effective?

Illustration 2What if - an operator could find out if doing it on-demand (like Google Fiber) is a better idea from the cost and viability point of view, based on data available on LMIS as well as from other sources?

3.3.8.3 Comments & SuggestionsThere are many variables that could impact the employment, employment conditions and skill required in the OFC sub-sector.

Some of the obvious ones, in relation to time, are of course how the government plans move. The National Optical Fiber Network (NOFN) is already delayed and it is learn that there is some revision in the network rollout plan. Sources say that the initial estimates of 2 km of additional OFC per village could be revised upwards. That will, of course, affect the employment.

But over a medium to long term, there are certain technological, economic and environmental factors that could affect the employment. OFC gets laid when there is a demand for more data and multimedia content. How that demand will be affected depends a lot on macro-economic factors.

But some of the important and more definite questions that have a bearing on how the industry moves are

If a lot of intra-city networks would be built? (A lot of intra-city and • fiber access networks means far more maintenance. Even a technician/splicer needs to visit a premise. That will not just impact the level of employment but how the profiles of these position changes. Soft skills will be the differentiator even as hard skills will be a filter.)How do the cable TV networks and telecom networks converge?• Will the service providers transfer the ownership of networks? Will • networks get aggregated?Will some of the larger footprint services—namely health, education • and entertainment—use electronic means to reach the mass of the country, especially in rural areas.How do 3G and 4G services roll out in the length and breadth of this • country? How soon?

For a Labour Management Information Systems, in addition to the overall OFC being laid, how the industry emerges is also important. If turnkey providers are the real stakeholders, then a primary research to determine their expectation may be desirable.




ChapTER 4

Conclusion

The primary objective of the pilot study was to forecast demand for five selected positions in two of the five subsectors as identified by the Telecom Sector Skill Council.

These positions are• Tower Technician (Tower Sub sector)• Cluster In-charge (Tower Sub sector)• Cluster Manager (Tower Sub sector)• Optical Fiber Technician (Network Management Sub sector)• Optical Fiber Splicer (Network Management Sub sector)

The summary of forecast numbers for the next five years is presented in the next sub section (4.1). The subsequent sub section lists qualitative findings that have an implications for the labor market and thus for design of a good LMIS system.

Chapter 4: Conclusion


4.1 Summary of InformationThe forecast numbers for all five positions are given here, sub-sector wise at both a national level and a state level.

4.1.1 Statewise Breakup of telecom towers

City/Circle FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17

Delhi 15,836 15,798 15,886 15,966 16,064

Mumbai 11,376 11,349 11,412 11,470 11,541

Chennai 6,343 6,328 6,363 6,396 6,435

Kolkata 7,550 7,532 7,574 7,612 7,659

all metros 41,106 41,008 41,236 41,445 41,699

A Circle Maharashtra 30,138 30,065 30,233 30,386 30,572

Gujarat 23,295 23,239 23,369 23,487 23,631

Andhra Pradesh 28,369 28,301 28,458 28,602 28,778

Karnataka 21,190 21,139 21,257 21,364 21,496

Tamil Nadu 26,577 26,513 26,660 26,795 26,960

Total A Circle 129,569 129,257 129,976 130,635 131,437

B Circle Kerala 13,986 13,953 14,030 14,101 14,188

Punjab 12,734 12,703 12,774 12,838 12,917

Haryana 8,186 8,166 8,212 8,253 8,304

Uttar Pradesh (W) 20,910 20,860 20,976 21,082 21,211

Uttar Pradesh (E) 32,973 32,894 33,077 33,244 33,449

Rajasthan 21,125 21,075 21,192 21,299 21,430

Madhya Pradesh 19,927 19,879 19,989 20,091 20,214

WB & A&N 16,910 16,869 16,963 17,049 17,154

Total B Circle 146,751 146,399 147,212 147,958 148,867

C Circle Himachal Pradesh 3,045 3,038 3,055 3,070 3,089

Bihar 26,438 26,374 26,521 26,655 26,819

Orissa 10,307 10,283 10,340 10,392 10,456

Assam 6,378 6,363 6,399 6,431 6,470

North East 4,469 4,458 4,483 4,505 4,533

Jammu & Kashmir 3,447 3,439 3,458 3,475 3,496

Total C Circle 54,084 53,954 54,254 54,529 54,864

All India 371,510 370,618 372,678 374,567 376,867Source: TeleAnalysis

4.1


4.1.2 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head



FY 10 296,565 11,863 1,854 232

FY 11 353,813 14,153 2,211 276

FY 12 376,187 15,047 2,351 294

FY 13 371,510 14,860 2,322 290

FY 14 370,618 14,825 2,316 290

FY 15 372,678 14,907 2,329 291

FY 16 374,567 14,983 2,341 293

FY 17 376,867 15,075 2,355 294

Two Tower Technicians will service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower TechniciansOne Circle Head for 8 Cluster Manager

4.1.3 Forecast of Employment numbers in Tower Technician, Cluster Manager, Circle Head (with Attrition)



FY 10 296,565 12,337 1,928 241

FY 11 353,813 14,719 2,300 287

FY 12 376,187 15,649 2,445 306

FY 13 371,510 15,455 2,415 302

FY 14 370,618 15,418 2,409 301

FY 15 372,678 15,503 2,422 303

FY 16 374,567 15,582 2,435 304

FY 17 376,867 15,678 2,450 306Two Tower Technicians will service 50 sites Source: TeleAnalysisOne Cluster Manager is required for 80 Pair of Tower TechniciansAttrition @ 4 Percent



4.1.4 Forecast of employment numbers in tower technician(FY 14 to FY 17) (State-wise) (Overall)


Delhi 657 661 664 668

Mumbai 472 475 477 480

Chennai 263 265 266 268

Kolkata 313 315 317 319

all metros 1,706 1,715 1,724 1,735

A’ Circle Maharashtra 1,251 1,258 1,264 1,272

Gujarat 967 972 977 983

Andhra Pradesh 1,177 1,184 1,190 1,197

Karnataka 879 884 889 894

Tamil Nadu 1,103 1,109 1,115 1,122

Total A’ Circle 5,377 5,407 5,434 5,468


Punjab 528 531 534 537

Haryana 340 342 343 345

Uttar Pradesh (W) 868 873 877 882

Uttar Pradesh (E) 1,368 1,376 1,383 1,391

Rajasthan 877 882 886 891


WB & A&N 702 706 709 714

Total B’ Circle 6,090 6,124 6,155 6,193


Bihar 1,097 1,103 1,109 1,116

Orissa 428 430 432 435

Assam 265 266 268 269

North East 185 186 187 189

Jammu & Kashmir 143 144 145 145

Total C’ Circle 2,245 2,257 2,268 2,282



4.1.5 Forecast of employment numbers in Cluster Manager(FY 14 to FY 17) (State-wise) (Overall)


Delhi 103 103 104 104

Mumbai 74 74 75 75

Chennai 41 41 42 42

Kolkata 49 49 49 50

all metros 267 268 269 271

A’ Circle Maharashtra 195 197 198 199

Gujarat 151 152 153 154

Andhra Pradesh 184 185 186 187

Karnataka 137 138 139 140

Tamil Nadu 172 173 174 175

Total A’ Circle 840 845 849 854


Punjab 83 83 83 84

Haryana 53 53 54 54

Uttar Pradesh (W) 136 136 137 138

Uttar Pradesh (E) 214 215 216 217

Rajasthan 137 138 138 139


WB & A&N 110 110 111 112

Total B’ Circle 952 957 962 968


Bihar 171 172 173 174

Orissa 67 67 68 68

Assam 41 42 42 42

North East 29 29 29 29

Jammu & Kashmir 22 22 23 23

Total C’ Circle 351 353 354 357


4.1.6 Forecast of employment numbers in Selected positions (FY 14 to FY 18)

17,213

20,83322,807

24,730

29,002

17,213

20,83322,807

24,730 25,393

0

5000

10000

15000

20000

25000

30000

35000

FY 14 FY 15 FY 16 FY 17 FY 18

Total OFC Technicians Total Splicers

Source: Juxt



4.1.7 Forecast of employment numbers in OFC technicians(FY 14 to FY 18) (State-wise) (Overall)

State FY14 FY15 FY16 FY17 FY18

andhra Pradesh 1,210 1,493 1,654 1,812 2,119


assam 595 682 719 755 893

Bihar 856 1,013 1,093 1,170 1,377

Chhattisgarh 604 740 816 890 1,043

goa 339 380 395 410 486

Gujarat 609 770 867 961 1,121

haryana 515 617 671 723 849


Jammu & Kashmir 55 88 111 133 152

Jharkhand 361 432 470 507 596

Karnataka 1,192 1,373 1,453 1,531 1,809

kerala 594 673 704 734 869

madhya Pradesh 1,211 1,502 1,668 1,832 2,141

maharashtra 1,725 2,109 2,323 2,532 2,965

Manipur 88 117 136 154 179

Meghalaya 86 106 117 128 149

Mizoram 86 101 108 116 136

Nagaland 86 103 113 122 143

Odisha 261 331 374 415 484

Punjab 692 855 949 1,041 1,217

Rajasthan 857 1,019 1,102 1,183 1,391

Sikkim 85 96 101 105 125

Tamil Nadu 1,200 1,424 1,540 1,652 1,943

Tripura 103 122 131 141 166

Uttar Pradesh 1,345 1,830 2,145 2,456 2,841

Uttarakhand 364 455 509 561 655

West Bengal 681 785 832 877 1,036

uTs

a. & n. islands 17 20 21 22 26


D. & N. Haveli 17 19 20 21 24

Daman and Diu 17 19 20 21 25

Delhi 847 951 988 1,024 1,215


Puducherry 170 191 199 206 245



4.1.8 Forecast of employment numbers in OFC Splicers(FY 14 to FY 18) (State-wise) (Overall)

State FY14 FY15 FY16 FY17 FY18

andhra Pradesh 1,210 1,493 1,654 1,812 1,855


assam 595 682 719 755 782

Bihar 856 1,013 1,093 1,170 1,206

Chhattisgarh 604 740 816 890 913

goa 339 380 395 410 426

Gujarat 609 770 867 961 982

haryana 515 617 671 723 743


Jammu & Kashmir 55 88 111 133 133

Jharkhand 361 432 470 507 522

Karnataka 1,192 1,373 1,453 1,531 1,584

kerala 594 673 704 734 761

madhya Pradesh 1,211 1,502 1,668 1,832 1,875

maharashtra 1,725 2,109 2,323 2,532 2,596

Manipur 88 117 136 154 157

Meghalaya 86 106 117 128 131

Mizoram 86 101 108 116 119

Nagaland 86 103 113 122 125

Odisha 261 331 374 415 424

Punjab 692 855 949 1,041 1,066

Rajasthan 857 1,019 1,102 1,183 1,218

Sikkim 85 96 101 105 109

Tamil Nadu 1,200 1,424 1,540 1,652 1,701

Tripura 103 122 131 141 145

Uttar Pradesh 1,345 1,830 2,145 2,456 2,488

Uttarakhand 364 455 509 561 573

West Bengal 681 785 832 877 907

uTs

a. & n. islands 17 20 21 22 22


D. & N. Haveli 17 19 20 21 21

Daman and Diu 17 19 20 21 22

Delhi 847 951 988 1,024 1,064


Puducherry 170 191 199 206 214




4.2 Salient Findings: QualitativeIn addition to the numbers, the research threw up some important qualitative findings. Here is a brief description of those that could have significant implication for labor market.• Towards Bharat: It is a no-brainer. There is an expansion to rural markets.

While in wireless services it is already evident, wirleline—thanks to its prohibitive cost structure—has not kept pace. The ambitious NOFN project of the government, if implemented successfully, could be a game changer. The project, that plans to connect 2,50,000 gram panchayats all over India through broadband, could open up new opportunities for service providers. However, the typical access provision model may not work there, and services need to be build up on top of network. If it could be done by telcos or other proactive brands such as a bank or an FMCG company remains to be seen. Entertainment services could become another killer app. But a lot of that will depend on how the ecosystem works together and how the NOFN rollout happens.

• Data Revolution: There is a clear movement towards data. While wireless is moving from 2G to 3G data and is getting ready for 4G, optical fiber is being aggressively laid by new operators such as Reliance Jio. The government has aggressive broadband push plans. This has two implications for labor market. One, there would be more skilled jobs. Two, the jobs would be more distributed among various players. The traditional telecommunication was a closed system with the carrier being responsible for everything. With data and content-based services, there would be an ecosystem of players. They will all contribute to creating the skilled jobs.

• NOFN has given a lease of life to the OFC sector: The optical fiber cable (OFC) industry which had all but ceased to operate, with many seeing closure staring at them, has got a lease of life because of government spending through the NOFN project. This could ultimately push broadband equipment sales, and if successful can create a multiplier effect on services too, though it is too early to take a call on that.

• Move to B2B: Even the consumer telecom services players such as mobile service providers are shifting their focus to B2B and are pursuing enterprise customers aggressively. Enterprise customers require a different level of services and a better integration with IT. At present, most operators employ fully qualified engineers for support. However, as the demand goes, they may want to employ diploma engineers/trained technicians for some support functions.

• Employment levels are becoming static: The total direct employment in the industry is becoming static. This is because of three reasons.o One, the industry is putting a lot of thrust on productivity and there

has been measurable change in productivityo Two, the industry is not growing as much as expected. That has slowed

job creation.o Three—and this is extremely significant—jobs are moving from the

companies to external service providers. While in some case, it is easy to measure as those ancillary industries cater only to telecom (such as towers or OFC), in certain others, it is difficult to measure when the ancillary industry caters to multiple verticals. The most common example with large job base is customer service. Most telcos have outsourced their customer service to third party call center service providers who cater to the needs of not just telecom but other sectors such as banking, insurance, and travel. It is often difficult to estimate how many jobs are created for one particular vertical.

• Efficiency most important priority: Any mature industry—especially one going through a slowdown phase—is bound to see some move towards leaning. Indian telecom is no exception. As there is enhanced focus on profitability, operators are re-evaluating their mindless expansion exercise. It has led to more emphasis on business efficiency, not just at

4.2


organizational levels by adjustment of processes (leading to slower job creation) but also at individual levels. Employers now expect enhanced productivity at all levels of organizational structure.

• Individual productivity gets a lot of attention: The expectation from individuals is to be more productive. One finding that the research threw up is that cutting across sub sectors and job positions, companies feel the employees should be productive faster. Many think that better skilling could do that trick. Also, many overtly expect that the employees at all levels should be made aware of their productivity levels and rewarded/penalized based on that.

• Getting raw manpower is not a problem: For low skilled positions, getting raw manpower is not an issue, as we have seen in other industries where the entry bar is a bit higher, such as IT and BPO. Almost everyone thinks that mobilizing labor pool—though there is scope for improvement there—is not an issue at all. Getting the workforce productive at the shortest possible time and give them growth path are the issues that they seem to be worried about.

• Industry is mildly excited about standardization/certification: While the large players in the organized sectors see standardization of skills/certification to bring in efficiency in recruitment and enhancement in levels of productivity, small and unorganized players clearly see it as a double-edged sword. While they do admit that it may lead to better productivity, they feel it could push up wages significantly. Many of them are very clear that they do not want any third party/government role in mobilizing the workforce.

• Technology/business change and convergence to have an impact on labor market: As there is more and more data play, we see more and more convergence of IT skills and telecom/networking skills. This has already impacted the skill requirement within these industries. Mobile phone repair/data download/desktop/laptop maintenance in small towns is already being provided by the same set of players, often single individuals. As pointed out in Chapter 3, we may see the same happening in the cable industry. With a lot of OFC being deployed by the cable operators, this industry is absorbing the OFC skills such as maintenance and splicing. With the typical worker of a cable industry being far more street smart and multi-skilled, this may have impact on the way jobs are created.

4.3 Recommendation for Further ResearchThis research was a pilot study involving two sub sectors and five positions, restricted to secondary research. So, as such there is a prima facie case for doing further research across other sub sectors/positions as well as collecting primary data from players in these sectors.

But beyond that, there is some learning from the exercise which can go as inputs to any further research.

One, the information availability is generally low and being a zero sum market (in contrast to the IT services market, for which the world is the market), the tendency to share information is low. This can be built by encouraging stakeholder participation and building trust.

As the industry sectors are converging, the clear demarcating lines between sub sectors (even sectors) are getting thinner and thinner. At the same time, within the industry, there are segments that are organized and ones that are unorganized.

We recommend different strategies for sectoral/sub-sectoral approach to research.

4.3



In information collection, we reiterate the need to divide the industry into organized and unorganized segments and then take a call on what type of research is required. This is in contrast to traditional way of approaching research from logical sectoral classification. We reproduce here, in the box, the approach outlined for organized and unorganized segments.

Research Requirements for Organized Sub-SectorsFor organized sub-sectors, the research efforts should be optimized to the following

• Stakeholder participation

o Quantitative research through administering questionnaire (requirement/information)

o Qualitative inputs to be collected through workshops and forums both offline and online

• Secondary Research & Data Analysis

o Analysis of existing data from companies and TRAI

o Environmental/macro-economic factor analysis

• Primary Research where absolutely needed

o Qualitative information through sample B2B primary research (either internally or through a small outsourced research assignment)

o Quantitative online surveys wherever required (No offline survey needed)

Research Requirements for Unorganized Sub-SectorsFor unorganized sub-sectors, some primary research and long-term efforts are needed to get the requisite information.

• Formal Market Research (Primary)

o For segments such as mobile phone repair as well as OFC turnkey industry, primary research is a must. It should be done with those agencies with no conflicting interest (such as skill imparting firms, telecom consultants etc)

• Trend Forecasting Using Secondary Macro-economic indicators

o This should be undertaken internally or with firms specializing in macro economic analysis and sectoral understanding

• Engaging with NSSO to create more specific rounds/include more sector specific questions

In analysis/forecasting, we recommend that a holistic approach is taken by TSSC using primary data, secondary data and different segments participation. This will not only help create create a better big picture, it will help avoid overlaps. While this can certainly be done across all telecom sub sectors under the aegis of TSSC, it could be even attempted across industries, under the aegis of NSDC.

Also, important learning can be obtained from engaging with the employers on what they expect from the employees going forward through their lifecycle and not just skills and qualification during hiring—and if skilling/training could help in meeting some of those expectations.


4.4 Steps for LMIS: Actionable PointsHere are some of the more practical implications

4.4.1 Tower Subsector• Unlike OFC industry, towers is a fairly organized industry with limited

players. So, there is no need for a full-fledged market research. It can be done directly by sending structured questionnaires by TSSC.

• The 3G/4G impact is yet to be seen. Also, once OFC connectivity is available in villages, it may have its bearing on the wireless data market in rural areas. This needs to be studied.

• A sub-sectoral stakeholder participation workshop could be undertaken to understand the needs better

4.4.2 OFC Subsector• Information collection from turnkey industry should be undertaken

through primary research• Cable industry should be studied if possible to find out the overlapping

of skills• A sub-sectoral stakeholder participation workshop could be undertaken

to understand the needs better• We do not see any sub-sector specific requirement for design of the

system per se.

4.5 Final ConclusionThe most important challenges and opportunities that the research found are as follows• The information availability about labor market information is low,

which essentially means a lot of stress has to be on ways and means of getting that information rather than just on building a good system. The latter could be the focus, right from day one, in a segment where information is available in plenty, such as IT.

• The telecom industry is entering a phase of expansion to a phase of efficiency. This means qualitative thrust on skilling/training to be more important than getting the big numbers. The industry does not see finding raw manpower as a challenge.

4.4

4.5


abbreviations

Abbreviations

ARPU Average Revenue Per User

BBNL Bharat Broadband Networks Ltd

BCOFT BSNL Certified Optical Fiber Technician

BSNL Bharat Sanchar Nigam Ltd

BWA Broadband Wireless Access

DAS Distributed Antenna Systems

DTS Department of Telecom Services

DTO Department of Telecom Operations

DWDM Dense Wavelength Division Multiplexing

FTTC Fiber to the Curb

FTTH Fiber to the Home

GP Gram Panchayat

IBS In Building Systems

ILD International Long Distance

ILO International Labour Organization

LMIS Labour Management Information System

LTE Long Term Evolution

MOST Mobile Operator Shared Tower

MoU Minutes of Usage

MTNL Mahanagar Telephone Nigam Ltd

NE North East

NIC National Informatics Center

NIXI National Internet Exchange of India

NKN National Knowledge Network

NOC Network Operation Center

NOFN National Optical Fiber Network

NLD National Long Distance

\NTP National Telecom Policy

OFC Optical Fiber Cable

RCOM Reliance Communications

RITL Reliance Infratel Limited

RTL Reliance Telecom Limited

SSTL Sistema Shyam TeleServices Limited

TSSC Telecom Sector Skill Council

USOF Universal Services Obligation Fund

UTL United Telecom Limited

MTML Mahanagar Telephone Mauritius Limited

Documents

Employment Demand Forecast Report 2014 - National ...nqr.gov.in/sites/default/files/Skill Gap Report - JUXT_15...4 Employment Demand Forecast Report Table of Content 3.3 Talent Scenario