Introduction
The focus on supply chain management in the telecom sector has been imperative in the past few years with companies struggling to achieve profitability. The unique aspect about this industry is that it straddles both manufacturing and services together. It involves the production of mobile handsets, establishment of networks and service delivery. Moreover, the technical specifications of handsets have a wide range. Also, since the telecom industry has been globalized for long, up-gradations have occurred largely due to global production networks. In developing nations such as India, operators are now grappling to achieve profitability with the decrease in voice revenues and revenues from data services being unable to match the …show more content…
Since infrastructure procurement costs generally contributes around 60-70% of the total costs for a mobile company, strategies for cost savings such as that of network sharing, have emerged as the most popular form of network infrastructure deployment and management. As a part of network sharing, major telecom operators collaborate with each order in order to create synergies. This also leads to savings in network expenditure …show more content…
Almost all other functions are outsourced to different partners. Airtel initially IBM’s IT infrastructure and business frameworks to reduce capital expenses and improve the experience quality. It outsourced its network deployment and maintenance to Ericsson and NSN, whose revenue sharing model depended on usage of network infrastructure instead of a fixed upfront fee. Since Airtel was able to increase its customer base without much increase in fixed costs, this enabled lower service charges for its customers. For providing value added services, Airtel partnered with Microsoft, Verisign, Tech Mahindra etc. Its call centers were outsourced to IBM Daksh, Mphasis, Aegis
The focus on supply chain management in the telecom sector has been imperative in the past few years with companies struggling to achieve profitability. The unique aspect about this industry is that it straddles both manufacturing and services together. It involves the production of mobile handsets, establishment of networks and service delivery. Moreover, the technical specifications of handsets have a wide range. Also, since the telecom industry has been globalized for long, up-gradations have occurred largely due to global production networks. In developing nations such as India, operators are now grappling to achieve profitability with the decrease in voice revenues and revenues from data services being unable to match the …show more content…
Since infrastructure procurement costs generally contributes around 60-70% of the total costs for a mobile company, strategies for cost savings such as that of network sharing, have emerged as the most popular form of network infrastructure deployment and management. As a part of network sharing, major telecom operators collaborate with each order in order to create synergies. This also leads to savings in network expenditure …show more content…
Almost all other functions are outsourced to different partners. Airtel initially IBM’s IT infrastructure and business frameworks to reduce capital expenses and improve the experience quality. It outsourced its network deployment and maintenance to Ericsson and NSN, whose revenue sharing model depended on usage of network infrastructure instead of a fixed upfront fee. Since Airtel was able to increase its customer base without much increase in fixed costs, this enabled lower service charges for its customers. For providing value added services, Airtel partnered with Microsoft, Verisign, Tech Mahindra etc. Its call centers were outsourced to IBM Daksh, Mphasis, Aegis