U110175 O-Zone Networks

8/6/2019 U110175 O-Zone Networks

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STM Term CaseReport on O-Zone networks, leadingwifi service provider in India

The document gives insight into wfi industrytechnology trends, major players andperformance of O-Zone

Sunita Mishra, U110175, Sec- C4/11/2011


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ContentsContents ..................................................................................................................... 2

Introduction ................................................................................................................ 3

Industry Analysis ........................................................................................................ 4

3G ............................................................................................................................ 5

Wifi (Wireless LAN) ................................................................................................. 6

Bargaining power of buyers: ............................................................................... 7

Bargaining power of suppliers: ............................................................................ 7

Competitive rivalry in the industry: ..................................................................... 7

Threat of new entrants: ....................................................................................... 7

Threat of substitutes: ........................................................................................... 7

Regulatory Policy Analysis .......................................................................................... 8

DOT ......................................................................................................................... 8

It is highly probable that WiFi services would come under the Indian governments

proposed Cyber Cafe guidelines. In that case maintaining and filing logs, User

Identification and setting up firewalls will hamper the growth of this service. It will

also discourage potential users, and make it expensive for small outlets to offer

WiFi access. O-Zones WiFi outlets are expected to come under these guidelines. 9

Market Analysis ...................................................................................................... 9

Performance Analysis ............................................................................................ 12


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Introduction

O-Zone networks is a PAN India company providing wifi solution. O-Zone

primarily provides wifi network in public places like Cafs, hotels, hospitals andmalls. It builds long term exclusive contracts for Wi-Fi deployment at strategic sites

and key locations across India and sizeable O-Zone subscriber base. O-Zone is a

neutral host, public Wi-Fi provider. O-Zone networks is Creating a community of Wi-

Fi so that the person on the move can always be connected.

O-ZoneNetworksPvt. Limited was founded with the aim of providing wireless

internet and mobility solutions to the masses across India. It was founded by Mr.

Sanjay Bobby Sarin and Mr. Dharmendra Amin. Mr Sarin has around 25 year

experience and has worked with reputed wireless service providers like The Cloud inBritain. O_Zone networks is the brain child of Mr. Sarin. In 2007 O-Zone networks

signed its first contact with DLF commercial Pvt. Ltd. For the last two years O-Zone

Networks has been extending its footprints across India. O-Zone is fully funded and

backed by Access Industries, one of leading Private Equity fund house in the world.

O-Zone is the only Wi-Fi service provider in India that has successfully integrated

and tested multiple Wi-Fi devices including Laptops, Nokia N-series mobiles phones,

PDA and gaming consoles on a secure authentication platform. O-Zone networks

adheres to Indian government internet security regulations and standards. O-Zone

has successfully deployed public Wi-Fi networks across multiple DLF Commercial

locations, Ansal Malls, Oberoi Hotels & resorts, Trident Hotels, The Lalit, Radisson

Hotels, The Claridges, The Hans Hotels, Choice Hotels and many more.


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Industry Analysis

With the advancement of technology the need for wireless internet has increased in

India. The increasing economic growth the usage of internet data, video and music

download has increased over the years. The introduction of social networking sites

have been giving an opportunity to youngsters to stay connected. With all of these

advancements the need to mobile internet has emerged as necessity over couple ofyears. The mobile internet has come to existence in various forms mainly GPRS, 3G,

WiMax and wifi technologies. Following diagram provides and comparative inside

into these technologies.


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3G

3G, third-generation mobile technologies allows mobile operators to offer

integrated data and voice services over mobile networks. 3G is a technology

mostly for mobile service providers. Mobile service providers use licensed

spectrum to provide wireless telephone coverage over some relatively large

contiguous geographic serving area. The key feature of mobile service is that

it offers continuous coverage.

Last year we have seen the distribution of 3G spectrums in India grabbing

lots of attention and raising huge money. From this we can understand the

expected growth of the industry over the years.


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Wifi (Wireless LAN)

WiFi, refers to the 802.11b wireless Ethernet standard that is designed to

support wireless LANs. The 802.11x family of Ethernet standards is for

wireless LANs. WiFi LAN operates using unlicensed spectrum in the band of2.4GH.

Though there has been a lot of talk about 3G and wifi over couple of year ,

still the wireless internet industry is in nascent stage in India. Now with the

availability of smart phones at economic prices and increased use of laptops

the demand of wireless internet is going to increase and it will add up to 300

million users over next 2 years in India as per the projection.

The overall Indian Wi-Fi market (including WLAN hardware, systemsintegration and software

services, not including embedded devices, laptops) is predicted to grow up to

$744 million by 2012 (CAGR of 61.4%). The necessary market drivers are in

place to propel the growth, development and deployment of Wi-Fi into a

mainstream technology across the country. WLAN network gear sector will

exceed $275 Million by 2011-12.

To analyse the industry lets take into consideration Porters five

forces.


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Bargaining power of buyers:

Like telecom sector the wifi industry in India is also price sensitive. The customer is looking for

wireless internet solution at lowest price possible. The aim of service providers is to provide

quality service at affordable price. As switching cost is very low or almost nothing the

bargaining power of the customers is very high.

Bargaining power of suppliers:

In case of wifi solution providers the list of suppliers is enormous especially in terms of

technology partners. Mostly companies are tied up with reputed organizations to install and

support hotspots and provide maintenance. As most companies are entering into long term

partnership with suppliers the bargaining power of the suppliers have been low till now.

Competitive rivalry in the industry:

Though there are many players in the industry the rivalry has been mostly in acquiring seen in

terms of starting partnership with renowned operators. Telecom operators on the other hand

understand that different service providers have penetration in different sectors ( private, public,

retail etc.). So they see a need to collaborate with multiple service providers where as the worth

of the deal depends upon the penetration.

Threat of new entrants:

The strict regulations and security needs have kept the threat of the new entrant low in the

industry. Whereas many experience players have entered with collaboration with highly

sophisticated technology partners. Availing partnership with technology partners is a major

barrier. Established wifi service providers are going for long term tie ups with retail chain, this

also decreases the threat of new entrants.

Threat of substitutes:

In the wireless industry major substitute to wifi is 3G, which is of popular form. Currently the

threat of substitute is high. But it is expected to decrease over the years, especially with the

introduction of I-pads and increased availability of laptops.


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Regulatory Policy Analysis

The concern over cyber security has increased especially because of the growing terror

threats in the country. To strengthen security and trace the origin to disruptive messages

proper regulatory policies are required. The wifi services fall under the strict provision of

department of telecommunication. The policies are stringent and being followed acrossservice providers. Following are the guideline laid by DOT.

DOT

Department of Telecommunications (DoT) India has introduced new compliance

requirements for all ISPs providing WiFi services. The regulation not only includes

public hotspots but also includes residential and business WiFi applications. It extends

requirements of centralized management, authentication and provisioning by the ISP for

all customers.

The outlines are:

ISP must ensure that all WiFi access points be encrypted & secured. The list of locations

includes:

o Public hotspots e.g. airports, transportation hubs, schools, Hotels, restaurants,

guest houses, malls & similar locations

o Private hotspots or Business and offices who use leased lines and install their own

WiFi Access Points (APs)

o Residential & Retail customers who install WiFi Access Points.

Service providers must offer central authentication and tracking system to secure all WiFiend points ensuring each subscribers access sessions are authorized and tracked. It is

requires to keep records of subscriber and records need to be kept for minimum 1 year.

The records must also include user metrics for full audit trace.

Identity verification of each subscriber is mandatory in form of photo identity based

verification using well established address proof documents such as PAN, Passport,

Driver License. The particular personal Identification needs to be copied and retained for

1 year;

Avoiding Internet DoT License Suspension requires ISPs to:

Ensure only secure and authorized subscribers are allowed network access at all wireless

end points;

Accurately ascertain network access and retain records of subscriber activity including IP

address & location where / when an authorized user accessed a specified Internet

resource;

ISPs must, upon lawful request, enable interception and tracking capabilities for agencies

to track unlawful activity.


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These new requirements have come into picture especially after the dreadful 26/11 Mumbai

Terror Attacks and other incidents where unsecured WiFi access points were used by anti-

social elements.

O-Zone networks provide Delivers layer 2 security which prevents network from Hackers attack.

O-Zone networks also has procured ISP(CAT- A) license nationwide. It provides authentication,

authorization and accounting. In order to ensure that only authorized users can access the

network, all users will go through a set of authentication processes that validate the identification

and access rights of the user. O-Zone networks maintains log of users for 5 years, which would

help to trace the user.

It is highly probable that WiFi services would come under the Indian governments proposed

Cyber Cafe guidelines. In that case maintaining and filing logs, User Identification and

setting up firewalls will hamper the growth of this service. It will also discourage potential

users, and make it expensive for small outlets to offer WiFi access. O-Zones WiFi outlets

are expected to come under these guidelines.

Market Analysis

The trend in wifi market over the years has been captured in the following graph.

The overall Wi-Fi market is growing at an even bigger pace and promises to take off

as a whole host of professional and customization services are beginning to grow.

Market Opportunities for Wi-Fi

Organized Retail is just opening up in India. It is a potential and

significant user of wireless computing solutions.

Wi-Fi requirement for conferences is going up.


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In hospitality sector with the increasing number of foreign tourists

visiting India demand for Wi-Fi equipped hotels is growing.

Hospitals are also gearing up to provide the best in connectivity,

especially to connect to remotely located places.

Mobile Wi-Fi will grow as handset markets use Wi-Fi for product

differentiation and ISPs find innovative business models.

World-class manufacturing facilities in the telecom being setup in India

are being Wi-Fi enabled.

Wi-Fi entering home, portable and mobile entertainment sectors.

Falling consumer electronics prices and a content hungry and tech-

savvy younger generation are driving change.

Expanding and new office complexes will create additional demand for

Wi-Fi connectivity for visitors, vendors and consultants and employees

A number of market opportunities for Wi-Fi technology are emerging as the

Indian economy continues to grow above 8% per year. The upcoming retail

revolution, expansion in organized manufacturing and the hospitality sector

including medical tourism are some key sectors. Yet another opportunity for

Wi-Fi could arise from innovations being attempted to drive the overall costs

of computing down.

The major Players in wifi industry are

1. Spectranet

2. Tikona3. Airlink

4. O-Zone

5. Airtel wifi

6. Aircel wifi

7. Tata indicom

O-Zone networks around 60% market share as of date.


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Performance Analysis

O-Zone networks has about 5,000 hotspots across India.The growth rate of

the company in terms of users is 30%, on a month on month basis. It has

carrier partnerships with Aircel and Airtel for WiFi hotspot access in thedomestic market. It also has international roaming tie-ups with Ipass, Boingo

and Comfone. It has plans to tie-up with 20 more international providers by

end of 2012.

The major strength of O-Zone has been collaboration with major

conglomerates as technology and service providers including best in the line

names like Airtel, Oberoi Hotels, Trident Hotels, Claridges Hotel, Cafe Coffee

day, Choko La, Om Book Shops, Fortis Hospitals, Ansal Plaza, Hard Rock Cafe

outlets to name a few.

O-Zone, a WiFi service provider in India, and Vyke, a mobile Voice over

Internet Protocol (VoIP) service provider, began the roll out of their exclusive

partnership to provide Vykes mobile VoIP service to O-Zones wireless

customers across India from August 1,2010.

O-Zone has added many new Wi-Fi hotspots for its consumer across Delhi,

Mumbai, Pune, Agra, Udaipur, Jaipur, Cochin, Bhubaneshwar, Allahbad and

Bangalore. O-Zone has built a wireless broadband entity that is a hybrid of

owned, overlay and roaming networks across retail, commercial, leisure,

hospitality, transportation and residential locations.

O-Zone has joined hands with Coffee Bean and Tea Leaf to give its customer

a joyful experience of enjoying O-zones Wi-Fi service. The tie-up will enable

customers of Coffee Bean and Tea Leaf to use O-Zones Wi-Fi service at all

the outlets of the caf chain through pre paid vouchers. The Wi-Fi services

can be enjoyed by the customers at all the Wi-Fi enabled devices including

mobiles, laptops and tablets.

O-Zone has location partnerships with Cafe Coffee Day, DLF, Fortis, Hard

Rock Cafe, and Om Book Shop, among others, for facilitating internet access.

Following are the major tie ups with retail chains.


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Following are the major tie ups of O-Zone networks in real estate sector.

Following are the major tie ups of O-Zone networks in hospitality sector.

Following are the major tie ups of O-Zone networks in hospital and education

sector.


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O-Zone networks also has partnership with the following organization to

provide quality service to the customer.


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Reference


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About organization and history, www.o-zonewifi.com, 8th April, 2011

Regulatory policy, http://www.inventum.cc/news/dot-wifi, 8th April, 2011
http://www.o-zonewifi.com/http://www.inventum.cc/news/dot-wifihttp://www.o-zonewifi.com/http://www.inventum.cc/news/dot-wifi

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