INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT

Project Report

ON

Information Technology

Topic :- Future of WAN connectivity in INDIA

SUBMITTED TO:- SUBMITTED BY:-

Sushil Sharma

Group no- P123(Sec:- SP1)

PGP-SS-09/11

sushil_sharma_87@yahoo.com

ID No. D0911SSIIPM10501G(NOI-3/NA-1063)

CONTENT

1. Introduction

2 Theoretical Review

3. Review Research

4. Wan connectivity Market Analysis

5. Conclusion

6. Biblography

Introduction

A wide area network (WAN) is a computer network that covers a broad area (i.e., any network whose communications links cross metropolitan, regional, or national boundaries). This is in contrast with personal area networks (PANs), local area networks (LANs), campus area networks(CANs), or metropolitan area networks (MANs) which are usually limited to a room, building, campus or specific metropolitan area (e.g., a city) respectively.

WANs are used to connect LANs and other types of networks together, so that users and computers in one location can communicate with users and computers in other locations. Many WANs are built for one particular organization and are private. Others, built by Internet service providers, provide connections from an organization's LAN to the Internet.

WANs are often built using leased lines. At each end of the leased line, a router connects to the LAN on one side and a hub within the WAN on the other. Leased lines can be very expensive. Instead of using leased lines, WANs can also be built using less costly circuit switching or packet switching methods.

Network protocols including TCP/IP deliver transport and addressing functions. Protocols including Packet over SONET/SDH, MPLS, ATM andFrame relay are often used by service providers to deliver the links that are used in WANs. X.25 was an important early WAN protocol, and is often considered to be the "grandfather" of Frame Relay as many of the underlying protocols and functions of X.25 are still in use today (with upgrades) by Frame Relay.

.

TELEPHONE LINE

LITERATURE REVIEW

Different Modes of WAN connectivity

1. Leased Lines

World without VPN In the 1960s’ and 70s’, when the use of computer was just a bit fancy to

most of the people, the so- called “Network” would only mean a connection between two

computers using telephone line communicating by command line.

A leased line is a telephone line that has been leased for private use. In some contexts, it’s

called a dedicated line. A leased line is usually contrasted with a switched line or dial-up line.

Typically, large companies rent leased lines from the telephone message carriers to

interconnect different geographic locations in their company. The alternative is to buy and

maintain their own private lines or to use the public switched lines with secure message

protocols.

Pros:

•Completely owned & controlled which means better control.

•Dedicated bandwidth - Predictable performance even in peak h rs.

Dedicated Circuit - Highly secure NO threats of hacking and Intrusions.

Cons:

High Initial capital cost for Infrastructure. Need to purchase Modems & Routers

High operational cost

Overhead of maintaining the uptime of Leased Lines. Some redundancy needs to be built

for better uptime.

Does not support flexible bandwidth upgrade options

In housing network planning and Management

Does not support Remote access; require separate remote access method & equipment.

Need to build link redundancy, alternate routes ourselves on extra cost to eliminate risk

of downtimes/Link failures depending the strategic importance of the site.

2. V-Sat

To overcome the problems in leased line V-sat came into existence.

VSAT technology is a telecommunication system based on wireless satellite technology. The

term ‘VSAT’ stands for ‘Very Small Aperture Terminal’. As the definition itself indicates,

VSAT technology is made up of a small satellite earth station and a typical antenna of 1.8

meter diameter.

There are three components in a VSAT network. The first is called the Master Earth Station

which is the network control center for the entire VSAT network. The configuration,

monitoring and management of the VSAT network are done at this location.

The Master Earth Station also has a large six-meter antenna, a fully redundant electronics,

self-contained backup power system, and a regulated air conditioning system. This Master

Earth Station is manned 24 x 7 days throughout the year. The second component is the

VSAT remote earth station. This is the hardware installed at the customer’s premises that

includes the outdoor unit (ODU), the indoor unit (IDU) and the interfacility link (TEL). The

VSAT outdoor unit consists of a standard 1.8 meter offset feed antenna, a solid state

amplifier (SSPA), a Low Noise Amplifier (LNA), and a Feedhorn. The indoor unit is a VCR-

sized unit that houses the communications electronics that includes interface with the

customer’s equipment such as computers or telephones. The TEL consists of coaxial cables

that connect the outdoor unit to the indoor unit. Between the VSAT earth stations are beamed

through the satellite. The VSAT system uses a geostationary satellite, which is orbiting at

36,000 km above the ground.

VSAT technology offers many advantages

Ease of Implementation

Availability

Reliability

Network Management

Recovery

Security

Scalability

Flexibility

Disadvantages

Not suitable for latency-sensitive applications (roundtrip delay in access of l000ms)

Asymmetric bandwidth — Inproportionate upstream & downstream data rates

Not suitable for real time application like Voice, Video & other interactive applications

Shared Media — Collusion based

High Apex & Capex. Which means it is very costly while installing and one have to

spend a lot for maintenance. That is the reasons some people reject it due to cost.

3. Radio Frequency Technology: Wireless

Networking technology is based on the transmission of data through radio waves. Radio

Frequency (RF) refers specifically to the electromagnetic field, or radio wave, that is

generated when an alternating current is put into an antenna. This field can be used for

wireless broadcasting and communications over a significant portion of the electromagnetic

radiation spectrum — from about 9 kilohertz (kHz) to thousands of gigahertz (GHz) --

referred to as the RF spectrum. As the frequency is increased beyond the RE spectrum,

electromagnetic energy takes the form of infrared, visible light, ultraviolet, X rays and

gamma rays. Many types of wireless devices make use of RF fields: radio, television, cell

phones, satellite communication systems, etc. The RF spectrum is divided into several

ranges, or frequency bands. Each of these bands represents an increase of frequency,

corresponding to an order of magnitude. The continuing evolution of digital technology

sparked the development of spread spectrum data communication radios. The conventional

radio signal which these devices use is referred to as narrow-band, which means that it

contains all of its power in a very narrow portion of the radio frequency bandwidth.

However, as a result of the very narrow frequency, these radios are often prone to

interference. Spread spectrum is a technique that takes a narrow band signal and spreads it

over a broader portion of the radio frequency band, offering the operational advantage of

being resistant to interference. Spread spectrum radios are inherently more noise immune

than conventional radios, thus they will operate with higher efficiency than conventional

technology. In performing spread spectrum, the transmitter takes the input data and spreads it

in a predefined method. Each receiver must understand this predefined method and dispread

the signal before the data can be interpreted.

Radios

Radios are wireless modems that convert digital signals coming from a computer into radio

frequency signals and reverse. Consequently, each radio has a data port and a RF port. The

radios are put on the mast together with an antenna. There are different types of radios

depending on different features such as the frequency band wherein the data has to be

transmitted, indoor or outdoor radios

Advantages and Disadvantages of Wireless

Advantages:

Wireless offers flexibility to move with new technology that’s coming up.

Wireless always provides dedicated bandwidth. There is no contention or

collision. This means that the network will have the same performance even in

peak periods.

Less network overheads because you don’t need to install a back-up connectivity

Wireless networks are very reliable because they are not being influenced by

weather conditions or road construction. Therefore, with wireless connectivity an

uptime of 99.5% can be guaranteed.

Low latency and less turnaround time will offer higher efficiency on applications.

Low implementation time (about 3 weeks) and low recurring cost.

Flexibility in selection of technology and in migration to new technology.

Wireless is an ideal connectivity option for remote locations and rural

connectivity.

Disadvantages:

The aerial range of wireless radios is limited to 50 km.

Sometimes need to construct a mast on the rooftop and thus need for the

permission of the landlord.

Recurring charges.

Interference in the unlicensed frequency bands. The solution however is to use a

licensed frequency band where no interference is possible.

Line of Sight is not always possible if the requirement of the mast height is too

high.

The Line of Sight can be interrupted in rare cases if a higher building is

constructed between the two POPs.

4.WiMax

WiMax in India

WiMax aims to provide wireless data over long distances, in a variety ways, from point to point

links to full mobile cellular type excess. In comparison with Wi-Fi WiMax delivers long-range

connectivity in kilometers. To put it simplify, WiMax provides services to a cell phone and Wi-

Fl is more analogous to a cordless phone.

The worldwide band used for WiMax is 2.5-2.7 Ghz, but in India this band is locked for satellite

based mobile and broadcast applications. The available band for WiMax in India is spectrum in

the 12 MHz, 3.3 to 3.4 GHz, and 5.8 GHz band range. But the players in the market (Dishnet,

Microsence, Aircel, and Intel) say that this range of spectrum is just good enough for trials and

not enough for full fledged or commercial city-wide wireless roll outs. Indian government is yet

to adopt the policy on WiMax spectrum and pricing issues.

There is relative spectrum scarcity in India because the Defense establishment is unwilling to

give up a wide band. Already in this year Pune has became India’s first city to go wireless with

the ‘Unwire Pune’ project. The connectivity starts with 20 square Km area to 250 square Kms in

the next few months. Soon it will be in Delhi, Chennai and Bangalore. As per market predictions

there are going to be 13 million WiMax subscribers in India by end of 2012.

Pros and Cons of WiMax

Pros:

1. Point-to-Point WiMax Products

High data rate (50Mbits/sec or higher)

Long range (10 miles or more)

Low risk of interference

2. Point-to-Multipoint WiMax Products

Can work without line of sight.

Low-cost client radios.

Low entry cost for service providers, so lots of competition and wide coverage

likely.

Smooth upgrade path from fixed to mobile access.

Low risk of interference.

Cons:

1. Point-to-Point WiMax Products

Require a line of sight.

Can link only two points.

2. Point-to-Multipoint WiMax Products

Subject to interference, but less so than proprietary microwave

radio.

Lower data rate and range.

No service guarantees possible.

May suffer interference from Wi-Fl and other networks.

Cost and regulatory barriers will mean later rollout than unlicensed.

Will initially lack mobility, unlike 3G and 802.20.

5. Virtual Private Network

A virtual private network (VPN) is a private data network that makes use of the public

telecommunication infrastructure, maintaining privacy through the use of a tunneling protocol

and security procedures. The idea of the VPN is to give the company the same capabilities at

much lower cost by using the shared public infrastructure rather than a private one.

A Virtual Private Network, or “VPN”, is a tunnel that carries private network traffic from one

endpoint system to another over a public network (such as the Internet) without the traffic being

aware that there are intermediate hops between the endpoints, or the intermediate hops being

aware they are carrying the network packets that are traversing the tunnel. The tunnel may

optionally compress and/or encrypt the data, providing enhanced performance and some measure

of security.

The “Virtual” part stems from the fact that you are constructing a private link over a public

network, rather than actually buying a direct hardwired link over leased lines. The VPN allows

you to pretend you are using a leased line or direct telephone call to communicate between the

endpoints.

VPN Connectivity

Brief Overview of How VPN Works:

Two connections — one is made to the Internet and the second is made to the VPN.

Datagram— contains data, destination and source information.

Firewalls — VPNs allow authorized users to pass through the firewalls.

Protocols — protocols create the VPN tunnels.

The world has changed a lot in the last couple of decades. Instead of simply dealing with local or

regional concerns, many businesses now have to think about global markets and logistics. Many

companies have facilities spread out across the country or around the world, and there is one

thing that all of them need: A way to maintain fast, secure and reliable communications wherever

their offices are.

Until fairly recently, this has meant the use of leased lines to maintain a wide area network

(WAN). Leased lines, ranging from ISDN (integrated services digital network, 128 Kbps) to 0C3

(Optical Carrier-3, 155 Mbps) fiber, provided a company with a way to expand its private

network beyond its immediate geographic area. A WAN had obvious advantages over a public

network like the Internet when it came to reliability, performance and security. But maintaining a

WAN, particularly when using leased lines, can become quite expensive and often rises in cost

as the distance between the offices increases.

As the popularity of the Internet grew, businesses turned to it as a means of extending their own

networks. First came intranets, which are password-protected sites designed for use only by

company employees. Now, many companies are creating their own VPN (virtual private

network) to accommodate the needs of remote and Employees and distant offices.

A typical VPN might have a main LAN at the corporate headquarters of a company, other LANs

at remote offices or facilities and individual users connecting from out in the field.

What Makes a VPN?

A well-designed VPN can greatly benefit a company. For example, it can:

Extend geographic connectivity

Improve security

Reduce operational costs versus traditional WAN

Reduce transit time and transportation costs for remote users

Improve productivity

Simplify network topology

Provide global networking opportunities

Provide telecommuter support

Provide broadband networking compatibility

Provide faster ROT (return on investment) than traditional WAN

What features are needed in a well-designed VPN? It should incorporate:

Security

Reliability

Scalability

Network management

Policy management

The types of VPN:

1. Remote-Access VPN

2. Site-to-Site VPN

1. Remote-Access VPN

There are two common types of VPN. Remote-access, also called a virtual private dial-up

network (VPDN), is a user-to-LAN connection used by a company that has employees who need

to connect to the private network from various remote locations. Typically, a corporation that

wishes to set up a large remote-access VPN will outsource to an enterprise service provider

(ESP). The ESP sets up a network access server (NAS) and provides the remote users with

desktop client software for their computers. The telecommuters can then dial a toll- free number

to reach the NAS and use their VPN client software to access the corporate network. A good

example of a company that needs a remote-access VPN would be a large firm with hundreds of

sales people in the field. Remote access VPNs permit secure, encrypted connections between a

company’s private network and remote users through a third-party service provider.

2. Site-to-Site VPN

Through the use of dedicated equipment and large-scale encryption, a company can connect

multiple fixed sites over a public network such as the Internet. Site-to-site VPNs can be one of

two types:

Intranet-based - If a company has one or more remote locations that they wish to

join in a single private network, they can create an intranet VPN to connect LAN

to LAN.

Extranet-based - When a company has a close relationship with another

company (for example, a partner, supplier or customer), they can build an extranet

VPN that connects LAN to LAN, and that allows all of the various companies to

work in a shared environment.

Security Levels

Encryption: -

A way of coding the information in a file or e-mail message so that if it is intercepted by a third

party as it travels over a network it cannot be read. Only the persons sending and receiving the

information have the key and this makes it unreadable to anyone except the intended persons

Public Key Encryption Technique.

Encryption and Decryption

This is the way of encryption and decryption. Here the data encrypted during the encryption

process. And have been assured safe from the external factors.

VPN as Intranet:

Services possible

The MPLS VPN network provides a common infrastructure for carrying a wide range of

services. Some of the most popular services include:

1. Multimedia Services: It is possible to distribute voice, video and data across the MPLS VPN

network, just as it’s done in a LAN environment. This service facilitates the exchange of

information rapidly between the various sections of the organization.

2. Intra Office Voice Calls: The MPLS VPN network is capable of carrying voice calls. It gives

high priority for voice thus ensuring QoS (Quality of service). This presents huge savings for a

company, especially if the volume of intra-office calls is high.

3. V0IP: The MPLS VPN network can carry VoIP traffic, which may also include the service

providers’ VoIP traffic.

4. Video Conferencing: The MPLS VPN network enables users to set up video conferencing

with certain equipment. This service is especially popular among enterprises as it saves time and

travel costs. Universities can run a virtual campus through interactive video sessions.

Interconnection among Universities can greatly advance the cause of research and development,

as well as academic progress.

5. Data Transfer: High-speed data transfer is possible across this network. Since this is a

dedicated network, the delay is nonperceptible and error free. This is an ideal solution to meet all

the data transfer requirements of any organization.

6. E—mail: By setting up e-mail servers across their Internet, companies can transfer mail using

the MPLS VPN network. This eliminates the need for any other type of official correspondence,

while at the same time ensuring prompt delivery of information which greatly enhances the

speed and efficiency of workflow within an organization.

7. ERP: Many companies use ERP solutions for online business transactions with peer

companies, dealers, customers, branch offices, factories etc. Working online in this manner

requires highly robust and congestion free networks, which is made possible by MPLS VPN

networks of BSNL.

8. Access VPN: Employees, while on the move, may require to be constantly in touch with their

organization’s database for critical information, including product catalogue, pricing, marketing

material, inventory check etc. Such users can access their MPLS VPN network through a dial-up

Internet account, irrespective of their location.

9. Intranet There is hardly any organization which does not have its own intranet for work flow

management and for meeting their information requirements. Such intranet solutions can be run

across the MPLS VPN network thus enabling integration of operations across the country.

10. Extranet: Companies may prefer to exchange information with other similar companies to

speed up business transactions. The MPLS VPN network is capable of providing the extranet

facility by interconnecting the VPNs, depending on the customer’s requirement.

11. Internet: Customers preferring a common infrastructure for internet and Internet access can

have access to the Internet via the MPLS VPN network. However, this will be only according to

the customer’s preference.

12. Multicast: One of the important new features that MPLS VPN offers is multicasting. This is

especially useful for applications such as video conferencing and customer specific broadcasting.

Let’s suppose multiple customers at Chennai need to view a video clip being transmitted from

New Delhi. With multicast it is possible to send a single signal over a long distance, which is

replicated at the destination for multiple viewers. So after reaching Chennai, the signal is

replicated into multiple signals for further transmission to specific customers. This saves

bandwidth as multiple transmissions of the same video need not be sent from the source.

Moreover, customers can join and leave the multicast group as they please. This solution is

especially useful for services like Video on demand.

Why VPN is preferred?

VPNs offer many advantages over traditional leased line networks.

Some of the primary benefits are:

1. Lower cost than private networks

Elements of cost reduction include transport media, bandwidth, backbone equipment, and

operations. According to industry research, site-to-site connectivity costs are typically reduced

by 20-40 percent over domestic leased line networks. Cost reduction for client to site dial access

is even greater, in the 60-80 percent range.

2. More flexible and scalable network architecture

Enabling enterprises to more easily and cost effectively communicate with remote offices,

international locations, telecommuters, roaming mobile users, and external partners as business

requirements demand.

3. Reduced management onus

The cost of management and upkeep of the network setup compared to owning and operating a

private network infrastructure is drastically reduced. Enterprises may outsource some or all of

their wide area networking functions to a service provider. This enables enterprises to focus on

core business objectives, instead of managing a WAN or dial access network. Apart from

providing these cost related advantages, VPNs also help increase the productivity and improve

working conditions for the enterprises.

Elements of a VPN

VPN solutions vary based on the breadth of features offered. A VPN platform must be secure

from intrusion and tampering, deliver real time mission-critical data in a reliable and timely

manner. At the same time it must be manageable across the enterprise. Unless each of these

requirements is addressed, the VPN solution is incomplete.

Reserch and review

WAN CONNECTIVITY - Current Scenario

In the current scenario, small businesses are showing interest in having WAN connectivity to

connect their branches and remote offices through leased line links, broadband, and to an extent

through VSAT and VPN. The wholesale/retail sector has taken the lead in adopting WAN

infrastructure with 54% of companies going in for WAN connectivity. It is followed by

professional/other services sector with 48%, BFSI segment with 46%, manufacturing sector with

44%, IT/ITeS sector with 42%, and utilities/transportation/real estate/construction segment with

41%.

Also, 45% of the small companies with a turnover between Rs 25 to 49 crores have WAN

infrastructure in place, followed by 58% of the companies with a turnover between Rs 50 to 75

crores, and 62% of the companies with the turnover between Rs 76 to 100 crores.

Of 195 respondents, 36% of small businesses use leased line links, 28% broadband, and 8%

VSAT. The segment that uses leased lines the most is the IT/ITeS vertical with 42%, followed by

professional/other services with 39%, manufacturing with 37%, BFSI segment with 36%,

wholesale/retail with 29%, and utilities/transportation/real estate/construction vertical with 26%.

As far as broadband is concerned, the professional/other services sector uses it the most with

35%, followed by IT/ITeS with 33%, BFSI with 29%, wholesale/retail with 27%, manufacturing

with 24%, and utilities/transportation/real estate/construction with 22%.

In addition to the leased line connectivity there has been surge in adoption of technologies such

as VSAT and the VPN connectivity as the next preferred mode amongst small business. Many of

them have multiple locations and are opting for a VPN connection along with leased line ISDN

and dial-up. Further, VSAT services are used for broadcast applications and enabling

connectivity between remote factory locations. Others are using VSATs for application-specific

purposes such as stock broking and for rural connectivity where adequate infrastructure is not

available.

From the investment perspective, if we look at each of the WAN technologies, out of 179

respondents, 7% of small businesses would be investing in both leased lines as well as

broadband, whereas, only 1% will invest in VSAT because of the cost factor (VSAT prices are

beyond the reach of most of the small business). Across all the verticals, it is the

utilities/transportation/real estate/construction sector that will invest more in leased line and

broadband with 25% and 17% respectively.

WAN CONNECTIVITY MARKET ANALYSIS

Market Overview

Introduction to Enterprise Data Services Market

Most of the enterprises are scaling up their businesses and adopting enterprise solutions

to make the most of the existing opportunities. This makes it important for enterprises to

connect all its offices so that investments in solutions like ERP, SCM, CRM and other

applications can be fully leveraged.

The Indian Enterprise Data Services market experienced a growth of 21.3 percent over

2005 and reached INR 5,255.8 Crore in 2006 from INR 4,332.6 Crore in 2005. The

market is expected to reach INR 13,393.1 Crore by 2013, exhibiting a CAGR of 14.3

percent.

The fastest growing connectivity solution is the MPLS based IP VPN. Currently, MPLS

Services market is in its nascent stage with a high growth rate. People are turning towards

MPLS as the service offers connectivity between all offices at less expensive rates.

The software industry boom coupled with the exponentially growing business process

outsourcing (BPO) market has contributed immensely to the growth of IPLC services

market in India.

The pace of growth of the DLC market has slowed down. The reason for the slowdown

can be traced to the growth of cost-effective services such as MPLS networks.

Major local participants offering Data services include VSNL, Bharti, and Reliance

Communication, BSNL and Tulip Telecom. Market deregulation and tariff reductions

have resulted in increased participation from global service providers such as AT&T, BT,

Orange Business Services (formerly Equant), and Verizon Business.

Industry Challenges

Rank Challenges1-2

Years

3-4

Years

5-7

Years

1Pricing pressure on Internet Service

Providers (ISPs)Medium Low Low

2 Customer satisfaction High Medium Low

3 Security Medium Low Low

4

Regulation – Currently, Voice over

Internet protocol is allowed only on the

same network

High Medium Low

5Development of new technologies and

enhancement of existing technologiesHigh Medium Low

Figure 2-1 Enterprise Data Services Market: Industry Challenges Ranked in Order of Impact

(India), 2007-2013

Market Drivers

Rank Driver 1-2 Years3-4

Years

5-7

Years

1Use of Enterprise Application Solutions by

Small and Medium Enterprises (SMEs)High High Medium

2Increases adoption of Multiple Applications

like ERP, CRM, etc by enterprisesHigh High Medium

3 High Reach and Price/Performance of VPN High Medium Medium

4 Low cost and scalability High Medium Low

5 Increased return of investment (RoI) Medium Low Low

6Outsourcing of the management of the

networkHigh High Medium

Figure 2-2 Enterprise Data Services Market: Market Drivers Ranked in Order of Impact (India),

2007-2013

Market Restraints

Rank Restraint1-2

Years

3-4

Years

5-7

Years

1 Last Mile Connectivity High Medium Low

2 License Fee Medium Low Low

3 Bandwidth prices Medium Low Low

4

Resistance to adaptation of new technology

by enterprises due to investments in already

implemented alternative technologies

Medium Medium Low

5RBI Guidelines on Security for the BFSI

sectorHigh Medium Low

Figure 2-3 Enterprise Data Services Market: Market Restraints Ranked in Order of Impact

(India), 2007-2013

2.2 Enterprise Data Services Market: Revenue Forecasts (India), 2005-2013

Application Trends

Following are some of the applications that are expected to be taking shape within the forecast

period:

Enterprise Resource Planning (ERP)

Customer relationship management (CRM)

Supply chain management (SCM)

Sales force automation

Video based surveillance

Workflow automation

Cognos, a data warehousing and business intelligence platform

Today, a managed VPN network framework gives service providers a compelling set of services

that reach new corporate customers and take maximum advantage of the efficiencies of Internet

Protocol (IP). Voice over IP and Video over IP features are offered to the VPN customers at

moderate increment in costs

Enterprise mobility solution gives remote users a secure access to applications running on the

VPN backbone. Companies have designed industry specific products such as contact center

solutions designed to cater to the needs of the BPO industry. Apart from the available real- time

applications such as ERP packages and video conferencing on VPN, today many more

applications can run and their priorities can be adjusted.

Regulatory Trends

The reselling of IPLC is a much debated issue. The reselling has two possible

outcomes. One is the entry of several players especially foreign players into the

market. The other outcome would be reduced profits for existing telecom players.

The reduction of price of NLD and ILD licenses from INR 100 Crore to INR 2.5

Crore saw the entry of several new players in this market.

TRAI issued the following regulation for DLC in September 2007

A service provider can provide DLC and local lead for DLC (copper,

fiber, wireless) using any transmission technology, to another service

provider who in turn would provide leased circuits to end subscribers.

All service providers with copper, fiber or wireless capacities that are

licensed to provide DLC, are obligated to share their facilities with other

service providers. Availability or otherwise of facilities needs to be

confirmed to the requesting service providers within 30 days.

Technology Trends

MPLS VPN is gathering momentum due its ability to

Reduce cost through convergence of various networks

Enabling triple play through its efficient network management

Enabling providers to achieve high margins through its service offerings

that include multiservice support.

Market Share Analysis

Company

Share

(%)

VSNL 22.3

Reliance Communications 18.7

Bharti Airtel 17.1

BSNL 16.6

Tulip Telecom 6.0

Satyam Infoway (SIFY) 5.2

HCL Infinet 5.2

Hughes 4.0

MTNL 1.7

Others 3.0

Total 100.0

Figure 2-8 Enterprise Data Services Market: Company Market Share by Revenues (India)

Others include international players such as BT and AT&T

VSNL22.3%

Bharti17.1%

Reliance18.7%

BSNL16.6%

Sify5.2%

Tulip6.0%

HCL5.2%

Others3.0%

Hughes4.0%

MTNL1.7%

Chart 2.5 Enterprise Data Services Market: Company Market Share by Revenues (India)

Key Highlights

VSNL occupies the major market share, though other private companies like

Bharti and Reliance are slowly edging towards VSNL’s market share.

With the liberalization of several policies, the industry is seeing the entry of

foreign players like BT and AT&T into the Indian market. BT has acquired NLD

and ILD licenses in India to the tune of INR 5 Crore after the

Telecommunications ministry slashed the rates for NLD and ILD licenses. BT

hopes to contribute to the IT and ITeS sectors in India by extending its MPLS

network. This might help to lower bandwidth cost for India’s software industry.

Bibliography

Mainly complete research is being conducted from a helping source like www.google.com

Secondary sources

Web sites:

1. www.citeulike.org

2. www.icfshre.edu.sa

3. www.intradh.org

4. www.marketresearch.org

5. www.bussinessmonitor.com

6. www.howthingswork.com