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A Presentation by: Syndicate 8 Systems and Finance

Problem Statement
To establish a framework for a collaborative outsourcing model

Methodology
Literature Review HBR Case Study on Indus Towers: collaborating with competitors on infrastructure Creation of a open-ended questionnaire Telephonic interviews with stakeholders Understanding of problems faced, their resolution and current problems Recommendations

Primary Data source


Murlidhar Shyam
Head HR

Gautam Bera
Sr. Manager, Business development

Harinder Singh Suri


Head mobile broadband

Sunil Goyal
DGM (PMO) Deployment

Analysis

Challenges
Valuation of assets Goal congruence Conflicting perspectives of mobile operators and tower operators Commercial aspects of leasing out and building new towers Employees Operational challenge:-Distinguishing b/w active and passive infrastructure

Assets
Valued towers according to a point scale that weighted different tower attributes Share in the partnership would be based on the number of points got by each player Each company tallied its towers by type Each type was given a weight based on this classification and certain other specifications Total score for a partner was calculated

Goal Congruence
Each of the stakeholders had its own objectives and culture Airtel:- First-mover advantage and considered speed and rural expansion critical Vodafone and idea:- Focus was on larger cities

Conflicting Perspectives
Mobile phone operators: Were concerned with operational performance and always strove to maximize tower ownership Disliked being dependent on third parties such as tower companies

Tower operators: Improve tower tenancy because that was a critical determinant of their performance Had to ensure that Operating level did not favor one customer over the other Required skills to manage multiple customers

Commercial Aspects Of Expansion


Master Service Agreement (MSA) was signed by all the partners Defined commercial aspects of leasing out and building new towers Non-compete clause In 7 circles where Indus had no presence there were no binding clauses Some sites classified as strategic sites

Active Vs. Passive Infrastructure


Distinguishing between active and passive network was done Identifying of specific outages (passive/active infrastructure failure) Redefined network of vendors
Managing local vendors becoming difficult Vendors took care of various passive infrastructure assets
Diesel generator sets Battery banks

Employees
Employees transferred to Indus based on voluntary basis from partners
Bharti Infratel contributed about 300 experts in the areas of operations, maintenance, acquisition ad site deployment Idea provided people in the area of operations and maintenance Vodafone had people double-hatting

The management committee had representation from all the partners

equal

Recommendations
Move from local vendors to national vendors Establish co-ordination between active & passive infrastructure teams