Telecom Services

Pricing Structure and Delegation of Authority

Financial Year 2015 -2016

V1.0

Document Owner Product Management Telecom Services

Document Version 2015/4-1.0

Document Authorized by Daniel Alex

Overview and Objective This document is meant to be a quick reference guide on how the pricing structure for the key telecom

services are constructed, and an outline of the Delegation of Authority that various stakeholders will have

on the pricing structure

The price structure and this DOA has been created with an objective of empowering the field sales teams

and sales management, make pricing decisions, in the field seamlessly.

The objectives while creating this new pricing structure were multifold and a few of them are outlined

below

1. Enable the field teams to construct the pricing of the key telecom services (“Site Connect” our

MPLS VPN Service and “Express Connect” our Internet Service), while taking into factor the

various variables which influence the pricing, like the different forms of Access .

2. Enable transparent pricing of the various add-ons / Service variants like Managed routers /

Managed CPE services

3. Enable a multi-tiered Delegation of Authority for the sales teams and the telecom support groups.

The price points available in the price books have been market adjusted based on the country averages,

over the last year, and corrected for the price trends expected in the market this year.

The base line version is calibrated to be relevant for deals with Annual recurring Values up to 25 Lacs.

Depending on the “in year” market dynamics, newer versions of the price books may be rolled out.

The price books attached and the delegation of authority outlined in this document, is intended for new

contracts, with an annual contract period of 12 months more, for both new and existing customer

accounts. Renewal pricing is not intended to be covered by this set of price books

Delegation of Authority

Structure For the purpose of enabling a multi-tier DOA, 4 functional groups have been identified as below

Front End Sales (Base Line)

Sales Management (COO)

Telecom BDM Level

Product – P&L

Each group have different levels of DOA, which is primarily indicated by the price points available in the

price books attached, however governed by the guidance in this document.

Front End Sales (Base line)

For the purpose of this DOA, all sales personal, including team leads/ regional vertical managers except a

Regional COO, or equivalent have been empowered to close deals, upto price points available in the

Baseline price book

The baseline price points are the lowest price points that the sales org is expected to close at, and the

sales org is expected to mark up the prices to suit the customer segments they address. Engage the

regional sales leadership/Regional telecom BDMs for guidance on this markup.

At the baseline level the price book enables a user to construct a price for a service, taking into account

various variables which are relevant in solution construct as outlined below

Service configurations like bandwidth, Class of Service or Service variant

Variables of For wireless Access like

1. Tower heights

2. Fiber extensions

3. Special wireless equipment ( P2P sector / Radwin)

Variable For wire line Access such as

1. Sify fiber, based on cost inputs from the regional field engineering teams

2. 3rd party ( Other BSO ) access, based on cost inputs from the supply chain group

3. Data Center sites ( Both Sify and other connected Data centers )

Bundling Routers along with the Network service, be it a specific Router Model or a generic one.

Managed Services / CPE management

The price book will also enable the teams the flexibility of offering infrastructure (like towers) on

rental or selling upfront based on scenario

The front end sales force is expected to work with the presales and the regional BDMs to

understand the solutions being offered to a customer in detail, and leverage the price book for

creating appropriate commercial models.

All prices are valid only for contracts with a minimum term as specified / chosen in the price book.

The customer should be bound by a suitable clause in the contract / PO , such that Sify can enforce

an early termination penalty, if the customer exists before the contract term for any reason

whatsoever.

For seamless order processing, please attach a copy of the prices with the configurations used

along with the PO, to enable OPG and the support organizations to process the orders seamlessly

Sales Management (COO Level) The price points available in the COO version of the price books are the highest level of DOA extended to

the sales organization and is intended to be exercised with due discretion . The following is a guidance on

the scenarios where the COO Level of DOA is expected to be exercised.

1. Deals over 25 Lacs in Annual Recurring Revenues

2. Entry in to strategic Competition Accounts.

3. Other Exceptional Scenarios which demand a price point below the Baseline version

When a DOA above baseline is being exercised, in this case the COO Level, a covering note from the COO

should be attached with the order at time of login, which would provide a context in which the DOA is

being exercised and a copy of the construct of the pricing from the COO tool along with the configurations.

The assumption when the various price points for the DOAs were constructed was that 75 % of the deals

go through at baseline prices and only 25 % will require a lower price point

COO DOA Over and Above the Price points in the COO version of the price book

In Exceptional Scenarios, the following discounts may be authorized by the COO.

1. Discount / Waiver of Service OTC

The “service” component of the OTC may be discounted or waived by the COO. Please note that

only the OTC component marked as “Service” may be waived or discounted and not the OTC

charges under the head of “Infrastructure”

2. Discount of Service ARC for High Value / Volume Deals

The “Service” Components of the ARC (Port / Access) may be discounted by the COO by another

5 % over and above the price points in COO Version of the price book subjects in the following

scenarios

1. Total number of sites for the deal exceeds 25

2. Total Service ARC for the deal ( excluding managed services , infrastructure rentals and CPE

rentals) exceeds 1 Cr

The infrastructure rentals, CPE Rentals or Managed Services Charges may not be discounted

beyond the price points in price book.