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A FINAL REPORT ON

“PROMOTION & SALES OF 55 INTERNET


CONNECTIONS WORTH Rs.55, 000/- IN 14 WEEKS FOR
SIFY BROADBAND IN HYDERABAD”

Submitted by
NAME D.SRIKANTH
Enroll No: 6NI14059

UNDER THE GUIDANCE OF

Mr. Zakir Hussain


Faculty

ADAM SMITH INSTITUTE OF MANAGEMENT


ICFAI UNIVERSITY
SR.NAGAR,HYDERABAD

INDUSTRY PROFILE
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Broadband Takes Off Globally
Numbers of global broadband users have grown rapidly in recent years and are now fast
approaching the quarter of a billion mark, fuelled by a number of factors, including a host
of exciting broadband-enabled applications and content as well as proactive national
stances. Although huge contrasts remain between those countries whose populations are
broadband 'haves,' to those who are 'have-nots', the prospects for broadband growth
across the globe are very positive.

Rapid Take-Up so Far


Once upon a time accessing the web
was a lengthy and unreliable process,
involving a screeching dial-up
analogue connection that often
monopolized the only phoneline into
the home, delivering at best speeds of
56kbps. Despite this less than high-
speed technology, the power of the
web was so great that over 77m users,
many on dial up connections, were
accessing the web in 1996, up
threefold from just 25m in 1994,
according to ITU.

As internet user numbers spiraled and


internet-enabled applications grew
more complex, the demand increased
for 'always-on' connections with
much higher data rates. Consequently
more and more users have switched
to broadband. In recent years,
broadband user numbers have
skyrocketed in a number of countries
across the world, and by 2005 some
217m people were solely broadband
users, according to ITU, over three
times as many as in 2002.

Countries such as the Republic of


Korea, the Netherlands, Hong Kong
(China), Denmark and Iceland are the
world leaders in terms of user
numbers, with Iceland topping the
global broadband penetration league
in 2005, with a rate of 26.5%
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according to ITU, narrowly pipping
former leader the Republic of Korea,
which stood at 25.2%, to the post.
ITU analysts attribute high broadband
penetration to a number of factors
including proactive government
policies promoting the growth of high
speed access, a transparent regulatory
environment, and a dynamic
understanding by service providers of
user's needs.

In terms of access technologies, DSL


(Digital Subscriber Line) is the most
popular access medium in most of the
developed world. Cable networks also
have a strong showing - particularly
in countries where this can be
combined with large existing cable
TV customer bases, such as the US
and Canada. Wireless technologies
are also beginning to make their mark
with technologies such as WiFi (IEEE
802.11b or Wireless Fidelity),
WiMax or WiBro (in the Republic of
Korea) helping to boost the uptake of
high speed internet.

New Applications & Content Drive Demand for Speed

From sending large email attachments, sharing digital photographs through to voice over
IP, IPTV, user-generated content websites such as YouTube and interactive gaming,
broadband has paved the way and also been driven by a host of different bandwidth-
intensive applications, many of which have now become a firm part of our everyday
lives. Without broadband none of these would be viable. As demand for these types of
applications increases, so too does the need for high-speed access. Now, new models
such as Multiple Play are emerging, and fast gaining ground. Multiple Play schemes offer
different services such as voice, broadband and television over the same network, helping
cut end-user cost and installation complexities. The potential for all of these is immense,
although a number of crucial questions including regulation, cost, traffic capacity and
handling- in particular through the issue of network neutrality-still need to be addressed.

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Competition is Critical

Another essential factor in the success of broadband is a healthy competitive climate.


More competition means broader choice and ultimately lower prices for end users.
Markets such as the Republic of Korea, Hong Kong (China), the US, France or the UK
-to name just a few-are all highly competitive, with large numbers of broadband
providers, and consequently a wide choice for end users. Competition needs to be
supported by an effective regulatory body to ensure that it functions well and that new
market entrants, for example, are granted access to the unbundled local loop to help them
offer services directly to the end-user. Regionally, in terms of the level of competition on
the internet market, Europe leads the way with a 100% competitive internet services
market in 2005, according to ITU, meaning that no single monopoly providers operating
within this sector. Asia-Pacific and the Americas also have highly competitive Internet
markets with levels of 96% and 93% respectively.

Governments Have A Key Role to Play

The role that governments themselves play in stimulating broadband should not be
overlooked. Governments have widely acknowledged broadband as a growth engine. As
well as providing public services such as e-government and e-learning, broadband has
helped open up new markets, and helped economies become and remain highly
competitive.

In economies with high broadband penetration, it is the government's active commitment


and the initiatives undertaken to extending the reach of the technology which have been a
major factor in the technology's growth.

In the Asia-Pacific region, for example, governments in a number of countries have been
active in fostering the take-up of broadband. The Republic of Korea, for example, has
undertaken a whole raft of measures from the construction of a fiber backbone to the
creation of incentive schemes for broadband in rural areas, and from providing free
internet to schools to becoming a pre-eminent user of the technology itself.

A number of EU (European Union) ICT initiatives such as "Broadband for all" are now
in place. This sets down key action points to facilitate the rollout of broadband including
the strengthening of national broadband strategies and the channeling of EU and national
funding to help extend broadband into less developed and rural areas.

Positive Prospects for Developing World, Too

While broadband has been enjoying a healthy growth in the developed world, the story in
the developing world has been a somewhat different tale, so far. According to ITU,
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Internet penetration in the African region stood at a mere 2.6% at the end of 2004, a stark
contrast to a highly broadband-penetrated nation such as the Republic of Korea, where
broadband users alone number over 12 million.

All this could slowly be changing; although broadband rates in least developed countries
remain low, there are some positive indicators of growth. Not only has teledensity more
than doubled in most least developed countries (LDCs) since 2000, some have boosted
connectivity by 20 times or more, thanks to rapid growth in the deployment of mobile
technologies. Internet user penetration has also increased, with a number of LDCs now
reaching the 5% mark; Cape Verde and Togo both stood at 4.9% and Senegal at 4.6%.

Of course, Broadband has not yet been launched in every country around the world, but
there are signs that popular demand for services is encouraging more countries to upgrade
from dial-up to broadband. In 2005, for example, over 89% of all Internet subscribers in
Senegal were DSL subscribers, compared with 70% in the Maldives and 17% in Cape
Verde.

Of course, DSL is only one method of providing broadband access, and for many
developing and least-developed countries, the lack of fixed line infrastructure, amongst
other factors, hampers the prospects for large-scale DSL deployment. However, wireless
technologies, such as the long-range WiMAX, might be a viable option to to "leapfrog"
the need for traditional fixed line infrastructure and provide access to voice, data and
Internet services in regions which previously did not have ICT access. Similarly, IMT-
2000 or 3G technologies are a viable option to provide portable internet access. Indeed,
extending the reach of wireless access is one of the many areas in which ITU is active,
carrying out vital work on spectrum, examining innovative applications of broadband,
producing a number of key publications, as well as helping advise countries on the most
suitable wireless technologies for accessing ICTs.

Broadband's Future: Better, Bigger, Faster and More Mobile

From Senegal to Singapore, from Cape Verde, to Iceland and the Republic of Korea,
broadband is taking off all over the world.

The rise of broadband in much of the world has left narrowband, or dial up, looking a
much less desirable option, both in terms of quality of service and cost. Ultimately, these
two factors are likely to see the majority of remaining dial-up customers opt for
broadband connections in the near future.

But high-speed growth is not likely to just stop once everyone has a broadband
connection. Access to broadband is not only getting faster, but it is also getting more
mobile. Highly data intensive applications, such as IPTV, video on demand or online
gaming are driving early domestic adopters as well as companies to upgrade the speed of
broadband connections, with download speeds of up to 30Mbit/s-once the preserve of
large companies-now available at a premium cost.

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With so many new applications, the need for improved underlying infrastructure, faster
speeds and the ability to handle large data transactions is ongoing, and across much of the
developed world, operators in the Republic of Korea and Japan have been rolling out
even higher speed VDSL (Very high bit rate digital subscriber line) technology.
Operators in a number of European countries including Germany, France, Belgium and
Spain have also been deploying the technology.

Meanwhile, FTTH (Fiber to the home), a broadband technology offering even faster
speeds than DSL- and one which is also well suited to providing entire buildings with
broadband access, is being deployed, in a number of countries worldwide including in
Asia Pacific, Europe and North America. In countries such as Japan it is used particularly
for providing connectivity for whole buildings while in the US there have been a number
of fiber rollouts to communities and different municipalities.

A number of advanced wireless technologies are also being used to expand the reach of
fixed broadband access, with last mile broadband technologies such as Wi-Fi (IEEE
802.11) already being used to provide broadband access in airports, restaurants and many
other public places. A number of cities and even countries - in the case of Mauritius, for
example- have announced plans to implement wireless broadband networks. In addition,
many operators around the world are already conducting trials using WiMax technology.

Be it wired or wireless, broadband has firmly made its mark. High-speed Internet
technologies are showing signs of taking off across the whole world, and carry much
potential for both developed and developing markets.

“Broadband” has become a buzzword in recent years. East Asia leads broadband
penetration in the world. Korea, Hong Kong, Taiwan and Singapore are regarded as the
leading “Asian Tiger” countries with significant amounts of export by their electronics
industry, and also as the “Net Tigers” when it comes to the Internet. In the case of
broadband, however, Korea is the sole front runner followed by Hong Kong, while
Singapore and Japan are lagging far behind. What factors exist behind these differences?

Level of economy is not the biggest factor to determine broadband development, nor does
government policy to promote broadband have much influence. Rather, social factors
such as political situation, people’s mentality and cultural context may play more
significant roles than economy and policy.

In Korea, bottom-up, grass-roots entrepreneurship and aggressive Netizenship


contributed the most to its rapid explosion of broadband, coupled with accidental excess
of bandwidth supply, fierce market competition and freedom-hungry citizens’ activities.

The conservative and rigid institutional frameworks of Singapore and Japan may be the
biggest barriers that suppress the healthy development of broadband applications,
services and the market.

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1. Internet Penetration in Asia

Asian Tigers such as Hong Kong, Korea, and Singapore enjoy high ratio of Internet
penetration, with more than half the population using the Net in 2002 (Table 1). In Japan
and Taiwan, however, less than 40% of the population is online. Nordic countries such as
Sweden, Denmark, Norway and Iceland have the highest Internet penetration in the world
with more than 60% of the population online (Table 2).

Table 1 Internet Penetration in East Asia (2002)

Number of Users Penetration Per


Country
(Thousands) Population (%)
Hong Kong 4,310 59.0
USA 161,140 58.5
Korea 24,380 56.6
Singapore 2,260 50.8
Japan 49,720 39.2
Taiwan 7,820 35.1
Source: NUA Internet Survey (www.nua.com)

Table 2 Internet Penetration in Nordic Countries (2002)

Number of Penetration
Survey
Users Per Population
Month/Year
(Thousands) (%)
Sweden 5,740 64.5 Feb. 2002
Denmark 3,230 60.4 Feb. 2002
Iceland 168 60.8 Dec. 2000
Norway 2,450 54.4 July 2001
Source: NUA Internet Survey

Internet Penetration and GDP


One can easily agree that ICT development is largely dependent on economic wealth.
Rich countries in general have higher ICT penetration both in terms of ICT industry

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growth and the use of ICT in various sectors of society. The Internet is no exception. In
2000, the majority of Internet users were in the Northern hemisphere and their
penetration rate already exceeded 30% of the population.

If one takes a closer look however, economic factors are not necessarily the single
determinant of Internet penetration (Table 3). There are certain deviations within the
general framework of this digital divide. This becomes more evident when we compare
“GDP Coefficient”, the value of Internet Penetration Rate divided by GDP per capita,
between Korea and Japan. The GDP Coefficient of Korea is 41.24 and that of Japan is
9.46. Therefore, Korea in a sense has four times more Internet penetration in relation to
its economic potential than Japan. Similarly, Malaysia’s coefficient is 19.53, two points
higher than its neighbor Singapore with 17.52 (Fig. 1).

In the case of Internet penetration, the GDPs used were ones without purchasing power
parity, so making a simple assumption may be a little bit risky. Nevertheless, the author
believes that we can still safely conclude that level of economic development has
significant impact on the diffusion of the Internet in general, but it should not always be
considered the only determinant.

Table 3 Internet Penetration and GDP Coefficient (2000)

GDP*
Users Penetration Population GDP
Country Per Capita
(1,000) (%) (1,000) Coefficient**
(USD)

USA 153,840 55.3 278,357 30,600 18.06

Singapore 1,850 51.9 3,567 29,610 17.52

Hong Kong 3,460 49.9 6,927 23,520 21.24

Australia 8,420 44.6 18,886 20,050 22.24

New Zealand 1,490 38.6 3,862 13,780 28.00

Korea 16,400 35.0 46,844 8,490 41.24

Japan 38,640 30.5 126,714 32,230 9.46

Taiwan 6,400 29.4 21,780 12,040 24.41

Malaysia 1,500 6.7 22,244 3,400 19.83

Thailand 1,000 1.63 61,399 1,960 8.31

China 16,900 1.32 1,277,558 780 16.96

Brunei 4 1.22 328 25,000 0.49

Pakistan 1,200 0.77 156,483 470 16.32

Philippines 500 0.66 75,967 1,020 6.45

India 4,500 0.44 1,013,662 450 9.87

Sri Lanka 65 0.35 18,827 820 4.21

Indonesia 400 0.19 212,107 580 3.25

Nepal 35 0.15 23,930 220 6.65

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Vietnam 100 0.13 79,832 370 3.39

Mongolia 3 0.11 2,662 350 3.22

Lao 2 0.04 5,433 280 1.31

Bhutan 0.5 0.02 2,124 390 0.60

Bangladesh 30 0.02 129,155 370 0.63

Source: Nua Internet Survey, World Development Report (World Bank)


*GDP data is in 1999
** “GDP Coefficient” is the value of Internet Penetration Rate divided by GDP per capita

Fig. 1 Internet Penetration and GDP Coefficient

2. East Asian Countries Leading in Broadband

When it comes to broadband deployment, it is clear that East Asian countries, not
northern European countries, are leading the world (Fig. 2). Among them, Korea is by far
the most advanced. As of April 2002, Korean broadband subscribers reached close to 8
million or 16.7% of the population and almost half of its households. Considering that
Korean household Internet penetration was less than 5%, with 731,000 subscribers in
1996, the rapid growth of the Internet in general and of broadband in particular in Korea
is quite significant (Fig. 3 & 4).

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Fig.2 Broadband Penetration in Asia by Population (Feb. 2002)

Source: Government agencies in each country

Fig. 3 Internet Users in Korea (1994 -2001)

Source: Korea Network Information Center (KRNIC)

Fig. 4 Broadband Users in Korea (1998 - 2001)

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Source: Ministry of Information and Communication, Korea

It should also be noted that some Asian providers are now offering 1.5M to 8M bps DSL
services, much higher speed than most services in the US at almost half the price. In
Japan, even Fiber-to-the-Home with 10M to 100M bps service is starting to be introduced
at less than $80 a month.

The second highest penetration of broadband in Asia is seen in Hong Kong.According to


the Office of Telecommunications Authority (OFTA) of the Hong Kong Special
Administrative Region Government, the number of broadband subscribers in Hong Kong
reached 623,000 in February 2002, almost 10% of the population or one third of
households. Taiwan is in third place among Asian countries in terms of broadband
penetration. The number of broadband subscribers in Taiwan is 1,130,000 as of February
2002, 5.2% of the population according to the Institute for Information Industry (Table
4).

Singapore and Japan, on the contrary, are slow to increase broadband users even though
they have high Internet penetration. Five years ago, Singapore was spearheading
broadband deployment with its national project called SingaporeONE, launched in 1996.
Despite this early start, however, current penetration of broadband in Singapore is quite
low, with subscribers at just beyond 100,000, or less than 4 % of households. Japan is
even lower in terms of penetration rate to the population: only 2.2% in February 2002,
though the growth rate is rapidly accelerating (Table 4).

Table 4 Broadband Penetration in Asia per Population

Sep. 2001 Dec. 2001


Penetration Subscribers Penetration Subscribers
Korea 13.3% 6,251,000 16.7% 7,805,000
Hong
6.0% 415,000 9.0% 623,000
Kong
Taiwan 2.9% 890,000 5.2% 1,130,000
USA 3.5% 9,616,000 4.1% 10,134,000

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Singapore 2.8% 100,000 3.4% 120,000
EU
1.8% 68,5000 2.3% 860,000
(mean)
Japan 1.0% 1,25,8000 2.2% 2,824,000

Source: Korea: Ministry of Information and Communication; Hong Kong: Office of


Telecommunication Authority (OFTA); Taiwan: Institute for Information Industry (III);
US: Federal Communications Commission (FCC); Singapore: various sources; EU:
Development of Broadband Access Platforms in Europe, The European Commission,
Japan: Ministry of Home Affairs, Public Administration, Post & Telecommunication

3. Why Broadband Exploded in Korea but not in Singapore or Japan

It seems that the penetration gap of broadband among East Asian countries is rather
significant. What are the reasons why Korean broadband exploded while Japan and
Singapore show very different processes and results?

One way to approach this question is to try to understand it in economic terms. In the
case of Internet, we have seen that there exists a general tendency that Internet
development and economic development go hand in hand. But in the case of broadband,
at least looking at the East Asian situation compared with that of the US and Europe, it
seems that economic factors have less to do with broadband deployment. Let us examine
this by the available data.

Table 5 compares broadband penetration and GDP per capita with Purchasing Power
Parity. As the coefficient between the two values clearly indicates, there is little
correlation with broadband penetration and the level of economy in the positive sense.
Fig 5 is a visual representation of Table 5. This illustrates that of the six nations Korea is
the lowest in GDP per capita, yet it boasts the highest broadband penetration--almost two
times higher than the second highest, Hong Kong. The US has the highest GDP per capita
but broadband penetration is below 5%, only slightly higher than Japan (2.2%) and
Singapore (3.4%)

Table 5 Broadband Penetration and GDP per capita

GDP per capita


Broadband Penetration Coefficient
(w/Purchasing
Per population(A) (A)/(B)
Power Parity)(B)
Korea 16.7% $16,100 1.037
Hong Kong 9.0% 25,400 0.354

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Taiwan 5.2% 17,400 0.299
USA 4.1% 36,200 0.113
Singapore 3.4% 26,500 0.128
Japan 2.2% 24,900 0.088

Fig. 5 Broadband Penetration and GDP per capita by country (Aug 2001)

For comparison purposes, let us examine the broadband situation in Europe. According to
a NetValue survey, Nordic countries again seem to be leading broadband penetration
(Table 6). Among them, Sweden and Denmark are ahead of the others. Since the
difference in per capita GDP is relatively small among these European countries, the
author assumes that the difference in broadband penetration in European countries has
less to do with the level of economy as well.

Table 6 Broadband Penetration in Europe (Aug 2007)

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Total GDP
Cable ADSL Per Per Per
household population capita

Sweden 3.3% 5.5% 13.8% 6.6% $22,200


Denmark 6.6 6.6 13.2 5.7 25,500
Germany 3.6 4.2 7.8 3.4 23,400
France 3.2 2.8 6.4 2.5 24,400
Spain 2.7 3.5 6.2 1.8 18,000
Norway 3.5 1.4 5.1 2.3 27,200
UK 1.7 0.5 2.3 0.9 22,800
Italy 0.5 0.3 0.9 0.3 22,100
Source: Broadband Penetration from NetValue, www.netvalue.com/corp/plan/index.htm
Per capita GDP from CIA World Fact Book, with purchasing power parity

Strategy and Marketing Problem

It was not a mere technical issue, but more of a strategy and marketing problem. For
example, 1-NET tried to employ standard Ethernet, which could connect multiple PCs
into one ADSL modem. But Singapore Telecom did not accept this idea of offering very
cheap connectivity that allows many computers to use the same single line. For them, a
contract should be limited to one individual customer and a PC. For end users, the value
is totally opposite. They wanted to spend as little money and connect as many machines
as possible. There was heavy criticism in the market from high-end users that this
thinking was limited.

The second problem was a typical chicken-and-egg problem: content providers were not
coming in because of low numbers of subscribers; subscribers did not increase because of
the poor and limited quantity and quality of the contents. In other words, there was no
“killer application” for SingaporeONE that took advantage of the high-speed connection.
With little demand for traffic and a limited customer base, 1-NET had to modify their
business plan and in 2001 diversified into a multi-service provider including operation of
data centers for eGovernment websites and services.

Media Control Policy a Barrier for Broadband?

Thanks to tight media control by authorities, the TV and movie programs available in
Singapore are very conservative and often dull. Sexy and violent scenes are restricted.
News programs from the state-owned stations are mild at best. Satellite programs are
only allowed to view via cable channels screened by the authorities before reaching the
audience7. These elements make most programs in motion pictures in Singapore less
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exciting than in the rest of the world. Naturally, Singaporeans became not media-savvy or
content-hungry in general. Finding strong incentives to sell content on broadband is, in
this social context, not easy at best.

In fact, according to Mr. Ken-Thai Leong, acting Director General of IDA whom the
author met in March 2002, the biggest challenge now facing IDA in the age of broadband
is the convergence of content from conventional broadcasting services and from the new
broadband services available via Internet. So far broadcast content has been governed by
Singapore Broadcast Authority (SBA), but now both IDA and SBA are considering how
to synthesize broadband and more conventional broadcast media policy in a single
coherent policy framework.

Conclusion

In conclusion, the author believes that the important lesson taken from the Asian
broadband experiences is that government policy to dictate market direction will lead
nowhere. To find new markets with innovation, minimal intervention by government is
required.

Though we have not analyzed it in detail, the fact that Hong Kong is now in second place
in terms of broadband penetration in Asia and Japan is lagging far behind in terms of
percentage to the population (if not by volume) indicates that this conclusion is on the
right track. Hong Kong is known for its free market environment and strong competition
in ICT markets even after its transition to the Chinese government. Pyramid Research
recently published a report saying that Hong Kong will have the highest broadband
penetration in Asia by 2006, yet it also predicts that this will only take place after a series
of competitions and intense price wars take a toll on operator margins 9 .

In the case of Korea, social and cultural factors such as the aggressive mentality of the
Korean people, high awareness of the challenges of globalization, and political and
historical context played the decisive role in its dynamic acceptance of the Internet and
acceleration to broadband. But in Japan, the author observes that the private sector in
established large corporations is still dominating the marketplace and leaving little room
for real entrepreneurs to breath. Thus the exit from the economic “black hole” is yet to be
seen.

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An encouraging phenomenon lies in the market itself. Yahoo Broadband, led by
entrepreneur Masayoshi Son broke into the ADSL market in Japan in 2001 with a very
low pricing strategy. This assault was welcomed by users, criticized by the industry for
cutting margins razor thin, but acted to stimulate the market a great deal. In any case,
many service providers responded to this price war and ADSL prices in Japan went down
significantly: less than $20 per month for 8M bit services.

If the Japanese players can learn from the experiences of the Korean broadband market,
and if Japanese users become well aware of the new social context and challenges of
globalization in the worst economic situation in its recent history, just like the worst
economic crisis in Korea a few years ago, then there will be some hope for explosive
broadband growth in Japan, too. For that to happen, the author believes that this kind of
comparative study and analysis will offer useful and valuable lessons.

COMPAN
Y
PROFILE
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HISTORY OF SIFY:
Sify is India’s largest provider of Broadband service that
explores the true potential of the Internet. It offers high speed; high quality, low cost and
easy to use Internet connection at home in two categories: Broadband and Hi-Speed
Plans. Sify broadband keeps pace with the new, fast, and ever-changing world of Internet
needs. The need to get easy, quick and uninterrupted access to net is a reality with Sify
Broadband.

COMPANY PERFORMANCE:
During the quarter ended Sept. 30, 2008 SIFY recorded significant growth in all
three of its businesses, consisting of Internet access, portal content and corporate
services.

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The financial highlights are as follows:

Revenue grew to Rs 435.16 million ($9.4 million) for the second quarter. This is over
three times the revenue of the corresponding quarter of the previous year and 35%
higher than the June quarter.

Loss before interest expense, income taxes, depreciation and amortization for the Sept.
30 quarter was Rs 232.8 million ($5.1million)

During the quarter ended Sept. 30, 20007 SIFY recorded the following charges to the
Profit and Loss Account:

Depreciation expense of Rs 94.0 million ($2 million)

Amortization of goodwill of Rs 328.63 million ($7.1 million), largely consisting of the


goodwill recorded in the India World transaction, which is being amortized over five
years.

Deferred compensation expense of Rs 28.41 million ($0.6 million related to the


amortization of stock-based compensation.

Net loss for the quarter was Rs 614.9 million ($13.3 million) after considering the above
charges.

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BUSINESS PERFORMANCE:
Access: The company's Internet access business had robust subscriber
growth with more than 320,000 subscribers in September 30, 2007 as compared to
more than 87,000 subscribers in September 30, 1996, for a growth of 268% net.
This also represents a 60% growth over the more than 200,000 subscribers in June
30, 2007. Recent initiatives to stimulate the market, such as the launch of the
unlimited Internet access product (branded as 'UnLtd'), have had very good results in
terms of growth in subscribers. This has necessarily resulted in lower revenues per
user, offset to some extent by lower cost of bandwidth.

ONLINE PORTAL:
Re-launch of the consumer portal as www.sify.com and its emergence as one of India's
leading portal networks with 105 million page views during the month of September.

The successful re-launch and increase in page views was achieved with a greatly
enhanced portal with a well researched user interface for better navigation, new
channels and services, enhancements to existing channels and a contemporary new
design.

SIFY to acquire US based leading India-interest online shopping mall


www.Indiaplaza.com in an all-stock deal involving 480,000ADSs.

Acquisition of www.kheladi.com for $1.3 million, 5% to be paid in cash and 95%


through the issuance of equity shares.

Re-launch of www.Khel.com as the complete sports site for Indians covering cue sports,
tennis, golf, chess, hockey and football besides cricket.

Tie up with Landmark, one of India's leading bookstores, to offer over 200,000 books
under 2,500 categories for the online bookstore at www.sify.com.

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CORPORATE SERVICES:
The corporate services business continued strong growth with growing revenue streams.
E-business products and services include sectors such as banking, securities
brokerage, manufacturing, retail, media and telecom. Today the Company's
corporate services business is moving up the value chain with assignments in e-
Strategy and consulting.

Launch of state-of-the-art Hosting Center in Mumbai, the first of its kind in India spread
over 20,000 square feet with international standards of design and specifications.

Launch of Net Builder, a powerful tool for creating transaction oriented market place or
portal for eMarkets.

Launch of www.AutoWebex.com, a portal for the Automotive Industry that aims to serve
as a 'Business Efficiency Enabler' providing global reach.

Signing of MOU with US Business Network (owner and operator of


www.meetchina.com) for setting up a virtual market place that will concentrate on
cross border trade between Indian companies and those of developed economies.

Acquisition of majority stake in eChem.com Limited, a B2B portal focused on facilitating


transactions for the Chemicals Industry.

Acquisition of www.Formsindia.com, India's leading portal with a comprehensive


database of forms for free downloading and printing by the general public and
corporates.

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NEW BUSINESS INITIATIVES:
Formation of 100% subsidiary for Education services

Satyam Education Services Limited to provide online learning in India.

Formation of 100% subsidiaries for B2B services -- Satyam Web exchange Ltd., to
establish a platform for vertical B2B portals by Industry segment.

Formation of 100% subsidiary for IT enabled and related services Satyam Serwiz.com
Ltd. for processing and delivery of IT enabled and related services to global
customers.

Formation of 100% subsidiary for security related services- Safescrypt Ltd. for providing
security products from Verisign, the world leader in digital authentication and
certification, to enable corporates, websites and individuals to conduct secure e-
commerce on the Net.

SESL's acquisition of majority stake in Eduempire.com (P) Ltd. which is in the business
of integrating educational communities like colleges and institutes, parents, teachers
and students on a single platform and providing the benefits of the Internet to them.

21
Sify services
Corporate Services

Consumer Services

International Services

Corporate Service:-
Sify Enterprise Solutions is the corporate services arm of Sify Limited, and is India's
leading provider of end-to-end corporate network, application and security services.

We apply our expertise in making the latest Internetworking technologies to work for
you.

We help you extend your enterprise through intelligent network, security and applications
services that maximize your employee productivity with the collaborative efficiencies
that they unlock.

We use our expertise, mature processes and experience to set the standards for the
industry in pursuit of our mission of ensuring customer delight. That’s why Sify
Enterprise Solutions is the first and only service provider in India to be ISO 9001:2000
certified in network operations, data center operations and customer relationship
management.

We are the clear market leader in India for VPN solutions* and have a history of
pioneering IP based services. Some of our many firsts include:

First managed IP network

First National ISP in India

First to implement Multi-Protocol Label Switching (MPLS)

First to deploy Cisco Gigabit Switch Routers (GSRs) in the national backbone

In addition, we built the first ATM and Frame Relay backbones, as well as the first Level
3 Internet Data Centers (IDC) in India.

Sify eLearning provides unique end-to-end solutions and dedicated services for
corporates and eLearning organizations, with a radical approach to developing eLearning
techniques.

A division of Sify, one of the premier Internet and E-business companies in India, Sify
eLearning is headquartered at Chennai, the knowledge capital of India.

22
Sify is a
fully

integrated Internet and network services company and the first Indian Internet company
to be listed on the Nasdaq.

It is India’s leading private Internet company with a product range that covers the four Cs
of cyberspace:

connectivity

content

commerce

community

Sify commissioned the country’s first level 3 Internet Data Center at the Vashi Infotech
Park in New Mumbai. With this world-class center, Sify eliminated the need for India
centric applications to be hosted in a remote country.

A testimony to Sify's expertise in the hosting arena is the large number of discerning
customers across diverse industry verticals who host their applications at the center.

For Sify’s hosting services not only offer state of the art hosting solutions, but also make
available the best of products and services in strategic alliance with global majors such as
Intel, Compaq, Hewlett-Packard and Microsoft.

Sify continually evaluates new technologies and processes to benefit customers ahead of
the curve. So that your business can leverage these services for competitive advantage
leading to customer acquisition, satisfaction and retention.

23
SecureConnect

A comprehensive array of secure, reliable and scalable IP VPN solutions that meet both
mission-critical data networking and converged voice, video and data connectivity needs.
Variety of Intranet and extranet configurations for connecting offices, remote sites,
traveling employees and business partners, whether in India or abroad.

ExpressConnect

Platinum, Gold and Silver grades of premium Internet Bandwidth services with
customized SLAs tuned to meet varying protocol, latency and throughput needs. First
mile connectivity options include fixed wireless broadband, leased lines and ISDN.

ExpressTalk

Near toll quality, Internet telephony service for corporate. Can be used to make
international and intra-company calls. Saves up to 50% on telephone bills.

Web Services

An array of customizable intranet and extranet web applications, ranging from websites
to workflow automation and eBusiness applications. Easy to deploy, cost-effective
solutions that can quickly web enable your enterprise.

DocImage™

Sify DocImage (Digitized Document Management System) reduces the need for
expensive storage area, by enabling you to electronically store and retrieve documents in
seconds.

InnerSpace

Sify InnerSpace (A Daily Operating Platform) is a comprehensive, integrated intranet and

24
enterprise knowledge management portal.

Sify SFA

Sify SFA (Sales Force Automation) has been designed to manage customer interaction
through the sales cycle, from prospecting through order fulfillment. Sify SFA comes in
two flavors Corporate & Pharma.

Workflow

Sify Workflow Solution combines robustness with the flexibility, scalability, and
accessibility of the web. Furthermore, it is designed to enable Six Sigma teams, Business
Analyst, Knowledge Workers or Business Users to build and deploy sophisticated
business process without assistance from developers.

SifyM@il™

A range of email solutions suitable for small offices to large corporates. Available in both
Intranet and hosted versions, with single number access across the country.

Web Conferencing

Antarya Boardroom is a full-featured server- based Web Conferencing and Collaboration


suite that is designed specifically for multi-modal Internet communications. Antarya
Boardroom includes several integrated components for multi-user text chat, voice chat,
remote application sharing, annotation tools, drawing board, remote presentations,
document collaboration, and file transfer.

Network Management Services

Beacon™ is a comprehensive network infrastructure management solution designed to


aid you in managing your network. More than just the software tools, Beacon™ provides
an expertise driven approach that combines best-in-class network management software
with process know-how and training.

Managed IT Services (MITS)

25
Sify's Managed IT Services (MITS) is a comprehensive offering designed to meet the IT
needs of any organization.

eMarket Services

Online communities (over 40,000 SME members) and B2B exchange services featuring
web storefronts, virtual office facilities and online buy-sell transactions. Popular services
include SeekAndSource.com and SatyamPlastics.com.

Sify Guardian - Your Ultimate Security Power House

SifyGuardian is the dedicated corporate Security Services division of Sify Enterprise. It


provides a comprehensive suite of Enterprise Assurance, Implementation & Procurement
and Managed Security Services. We are a full-fledged security practice with an in-depth
understanding of the business processes and practical technological expertise.

We believe in providing high value and quality services to our Customers. We have been
able to maintain such high standards across our services by continuously upgrading and
sharing skills.

Sify Guardian:

Experience and expertise in Security Solutions


Expertise

• Team of around 50 certified professionals in CISSP, CISA, and BS7799.


(Including EAP’s professionals)
• Team of around 30 Certified people in deploying security products
• Team of around 100 Certified people in deploying IP, FR, and MPLS based
networks

Experience
26
• In excess of 5 years in deploying security products
• In excess of 4 years in Security Consulting
• In excess of 5 years in managing networks and applications.
• In excess of 5 years in managing one of the biggest private networks in India,
the Sify Backbone.

Process Driven

• ISO 9001 certified

Partners not vendors

Customer list in excess of 100 corporate clients

Safes crypt: Data Security Solutions & Services


SafeScrypt is a subsidiary of SIFY that focuses exclusively on
Data Security Solutions and Services in the Information
Security Domain.

Enabling true, end-to-end E-Business involves addressing the


following critical issues that prove to be the stumbling blocks :

Privacy or confidentiality

Authentication

Integrity of Data

Non-Repudiation

In other words, this is often referred to as “PAIN” The solutions from SafeScrypt help
address this PAIN. Our solutions encompass:

1. Certifying Authority Services :

SafeScrypt is an Affiliate of VeriSign Inc and a part of the global VeriSign Trust
Network. SafeScrypt is also the first licensed Certifying Authority in India under the
Indian IT Act 2000, offering both retail certificates valid under the IT Act as well as
Managed PKI Services to enterprises and communities.

2. PKI and Encryption Technologies solutions:

In order to use Digital Certificates effectively, applications need to be enabled. Safescrypt


27
offers a basket of products and customized solutions to PKI-enable applications.

3. Strong Authentication Solutions :

These include solutions ranging from One-time-Password based solutions using various
media like the mobile phone or the web browser interface to Smart Cards, Biometrics and
Cryptography based solutions catering to a wide set of business uses.

4. Data Protection and Privacy Solutions:

With Data Protection coming increasingly under the scanner for a variety of Regulatory
and business reasons, SafeScrypt’s range of solutions under this category help enterprises
address vulnerabilities in this area.

5. Document Protection & Rights Management Solutions:

When critical data and documents need to be protected in a persistent manner, even after
the document has gone beyond the control of the creator, Document Protection and
Rights Management solutions help address the same.

The above solutions are offered through strategic partnerships with best of breed players
in key segments including VeriSign, Siemens Information Systems Ltd, SafeBoot, Swivel
Secure, Elock, Seclore and Alladin.

Why outsource IT Infrastructure Management to Sify?

Gartner estimates that the hourly cost of network downtime


costs is about $42,000: even brief downtime can result in lost
revenues, unhappy customers and loss of productivity.

Sify makes it easier and more cost-effective to handle IT


infrastructure management: a winning combination of
offshore advantages, dedicated trained personnel and diversifying costs and risks.

Sify’s world class service operation centers deliver 24/7/365 availability and scalability
to your business without your having to make high levels of investment. Sify’s extensive

28
experience in running mission critical, high availability network and data services using
state-of-the-art technologies mean that your IT is in safe hands.

You are guaranteed responsiveness under "response-time" and escalation SLAs. Your
people have multiple access modes (via Web, telephone and e-mail) to monitor
performance and avail of customer support. You benefit from real time and transparent
reporting online, through our service portal.

Selectively outsourcing Infrastructure Management results in significant cost savings, as


well as a reduction in risk.

Sify’s Specialized "Infrastructure Management Services" Includes

• Data Center Operations Management Services


• Network Operations Management Services
• Security and Information Assurance Services
• End User Services

Benefits of outsourcing

Improving IT infrastructure uptime and productivity

To maintain high levels of availability without expensive ongoing investments in


performance management technology, more companies are beginning to outsource IT
infrastructure management to specialists. In addition to cost savings, Sify’s experience
managing thousands of networks and data centers ensures optimal results through the use
of advanced technologies, focused skills and automated processes.

Focus on core competencies

Routine operations management of IT infrastructure frequently bogs down key personnel


who spend more time fire-fighting than they do on supporting more strategic initiatives.
This also impacts the IT organization’s ability to rapidly adopt new technologies. By
outsourcing Infrastructure Management, resources can be redeployed to critical projects
that enhance business productivity and profitability.

Simplified operations management

The difficulty and complexity of staffing a 24x7x365 IT operation is expensive and hard
to achieve for many businesses. Many organizations either over-staff to handle
contingencies, peaks and night shifts, or on the other hand stretch their IT staff thin,
keeping them on call night and day. This increases the difficulty in staffing and also
increases operational costs for a round-the-clock operation. When day-to-day

29
management of IT infrastructure is outsourced, the challenges of managing IT are
reduced.

Enhanced ability to adopt new technology

To benefit from new technology, IT organizations must constantly evaluate, install and
integrate new hardware and software. They are faced with the challenges of training
existing staff, retaining highly specialized personnel or attracting skilled engineers and
technicians. By outsourcing, some of the burden of evaluating and implementing new
technology is passed on to a third-party that specializes in the field and therefore has
access to the best talent in the area with an advanced skills and certified expertise.

FORUM
How many times have you faced the ire of your
distributor or exclusive retail outlet over stockpiles or the
other extreme of shortage of stock during peak demand?
This problem of inventory management and lack of
information directly affects profitability. Your army
manning the frontlines can help you anticipate market
trends, provide sales trends, deploy media campaigns and
give critical competitor feedback in real time enabling you to be proactive and take
decisive action under pressure.

Sify’s Forum equips businesses with a simple yet powerful, cost-effective tool for
managing the forward supply chain. It is a revolutionary, innovative solution that
seamlessly integrates and connects your business to the critical components in a supply
chain. Forum works as two way street where data and information is accessible to your
suppliers. This helps greatly in planning, logistics, inventory management, sharing crucial
market information and speed up service. In the long run, Forum can expose your
suppliers to cutting edge technology, dramatically improve their skills and mould them
into a highly competitive force.

30
How Forum can make a difference to your business:

Forum collates stock and sales information from distributors and exclusive retail
outlets

• It enables two-way communication between the organization and supply chain


partners including distributors. For instance, Product or Scheme Masters can
be delivered to the distributors through the internet. Or, additionally,
distributor’s claims can be uploaded to the company’s ERP; Invoices can be
delivered online to the distributors impacting collections timelines
• Companies can implement a continuous replenishment mechanism, reduce
inventory levels, cut operations costs and make channel members more
efficient, thereby increasing profits
• It will directly integrate the distributor data to your ERP like SAP, JD
Edwards, and MfgPro etc. Forum, therefore, aids in integration of supply
chains with minimum disruption to pre-existing IT infrastructure
• By integrating and connecting hand-held applications to the main system, it
extends the supply chain and enables unprecedented reach
• Multiple versions – Regular micro ERP to manage any finished goods
distributor business, Service version to manage both products and servicing,
Serial number version to manage products like mobile phones

31
Forum is working wonders at……

Forum is being used by organizations of various sizes; from large corporations to very
small businesses. Sify Forum users are spread across Singapore, Malaysia, Thailand,
China and India.

Forum fulfils important needs for organizations of all sizes. Large enterprises use Forum
at their distribution points for integrating their supply chain. It has improved their bottom
lines and efficiencies. It has integrated operations in their branches, automated their sales
force and helped them interact with their principals more effectively; for retailers Forum
is proving to be a complete business solution – The solution supports bar-code, enables
Points-Of-Sale (POS) operations, automates inventory and re-ordering logic. The real
impact, though, has been in the mindset of retailers. Forum has made them take to
modern business practices and benefit greatly in the process. Today, a retailer can quickly
deploy Forum on a PC and connect for a short time over a dial-up internet connection at
the end of the day and exchange critical information with trading partners. It is boon
during events, festive seasons and promos.

FMCG companies, Pharmaceuticals, Durables, Garments,, Mobile Phones, Engineering


Goods, Petroleum Products, Retail and industries with complex supply chains benefit
immensely when they use Forum to integrate their Forward Supply Chain. ITC Ltd,
Bunge India, Glaxo SmithCline, Pidilite Industries, Chevron, Bosch, TotalFinaELf,
Finolex Ltd, Palepu, TCNS are some of the marquee clients besides many others.

Minimal Hardware Requirements!

Distributors and retailers can run Forum on their Windows based Personal Computers.
The recommended hardware configuration for running Forum on the PCs is:

Processor : Pentium III and Later


RAM : 256 MB (Recommended)
32
Hard Disk Drive : 40 GB (Recommended)
Operating System : Windows XP / Windows 2000
Monitor : Colour Monitor, 800 x 600 resolution, 16 bit colour

CD ROM Drive, modem (minimum 28.8 kbps) and internet connection (minimum
dialup) are necessary.

Would you like to sign up?

Forum will provide marketing and planning teams a critical edge. It will bring them
closer to customers like never before.

And it will do this without asking clients to invest in expensive software licenses and
without putting them to years of implementation hardships. Why, it does not even require
the organization to be always connected online with hundreds of distribution points. A
simple, nominal costing dial-up connection for daily or weekly updates would suffice!

Forum makes business sense anyway you look at it. It is a holistic solution that gives you
an unmatchable panoramic view of your business. Not to mention the fantastic double
role as a business tool for your partners who do all the legwork. Contact us for a detailed
presentation and demonstration.

33
Competitors

34
Comparative Analysis of BROADBAND of
different companies.

BSNL is in the process of commissioning of a world class, multi-gigabit, multi-protocol, convergent IP


infrastructure through National Internet Backbone-II (NIB-II), that will provide convergent services
through the same backbone and broadband access network. The Broadband service will be available on
DSL technology (on the same copper cable that is used for connecting telephone), on a countrywide
basis spanning 198 cities.

In terms of infrastructure for broadband services NIB-II would put India at par with more advanced
nations. The services that would be supported includes always-on broadband access to the Internet for
residential and business customers, Content based services, Video multicasting, Video-on-demand and
Interactive gaming, Audio and Video conferencing, IP Telephony, Distance learning, Messaging: plain
and feature rich, Multi-site MPLS VPNs with Quality of Service (QoS) guarantees. The subscribe will
be able to access the above services through Subscriber Service Selection System (SSSS) portal.

Key Objectives

o To provide high speed Internet connectivity (upto 8 Mbps)


o To provide Virtual Private Network (VPN) service to the broadband customers
o To provide dial VPN service to MPLS VPN customers.
o To provide multicast video services, video-on-demand, etc. through the Broadband
Remote Access Server (BRAS).
o To provide a means to bill for the aforesaid services by either time-based or volume-
based billing. It shall provide the customer with the option to select the services through
web server
o To provide both pre-paid and post paid broadband services

Technical Capability of the Backbone The Broadband Service will be given through the state of
the art Multi Protocol Label Switching (MPLS) based IP Infrastructure, which is designed to provide
reliable routes to cover all possible destinations within and outside the country. Layer 1 of the
network will consist of a high speed Backbone comprising of 24 powerful Core Routers connected
with high speed 2.5 Gbps(STM-16) links. The routers are located on the national DWDM network
interfacing at STM-16 optical level to provide for high transmission speeds.

Services available through Broadband

o High speed Internet Access: This is the always-on Internet access service with speed
ranging from 256 kbps to 8 Mbps.
o Bandwidth on Demand: This will facilitate customer to change bandwidth as per his /
her requirement. For example a customer with 256 kbps can change to 1 Mbps during
the video Conferencing session.
o Multicasting: This is to provide video multicast services for application in distance
education, telemedicine etc
o Dial VPN Service: This service allows remote users to access their private network
securely over the NIB-II infrastructure.
35
o Video and Audio Conferencing:
o Content based Services: Like Video on Demand, Interactive Gaming, Live and time
shifted TV

What the customer needs in order to be able to use Broadband?


o BSNL's Bfone (Basic phone) connection
o Personel Computer with 10/100 Ethernet Port

o ADSL CPE (Customer Premise Equipment). This can be taken from BSNL at
nominal rental per month.

Broad Net: Consumer Internet Service from


Reliance

Get on the Internet Expressway

Say goodbye to that irritating hourglass on your computer


screen. Leave behind that crawling dial-up or always-on cable
connection. Bring home Reliance BroadNet and get onto the
high-speed Internet Expressway, with unique features introduced for the first time in
India.

Online speed select


Reliance BroadNet allows you to choose online, how fast you want to surf. Simply put,
you can control your speeds and spends. When you connect, you get the option to choose
speeds ranging from 100 kbps to 1,000 kbps (1 Mbps). If you just want to check your e-
mail or chat, you can switch to a lower speed and pay less. But if you want to download
video or music, you can switch to higher speeds to save time and get a unique Internet
experience.

Bonus bandwidth

When you choose Reliance BroadNet, you get additional 'bonus bandwidth' to improve
your surfing experience. Enjoy speeds of 100, 300 or 600 kbps in place of 64, 256 and
512 kbps, only from Reliance.

Per-minute charges

With Reliance, you no longer have to pay ‘per hour or part thereof’. Per-minute charges
apply on our Online Speed Select and Postpaid Night Unlimited plans. Our improved
pulse rate leaves you with a lighter heart and a heavier pocket!

Look out for our attractive Combo Plans too!


Internet Services are provided by Reliance Communication Infrastructure Limited.
Services available to Wireline subscribers only.
36
SWOT

ANALYSIS
37
SWOT Analysis
Strengths
 One of India’s leading and fastest growing private sector internet services
companies, and ranks among the top 3 private sector internet services, in terms of
net worth.
 Strong position in the internet services category.
 It is India’s largest provider of Broadband service that explores the true
potential of the Internet.
 It offers high speed; high quality, low cost and easy to use Internet
connection at home in two categories: Broadband and Hi-Speed Plans.
 Excellent outreach with a large distribution network.
 Expert’s and research team to make strategies and products for company .

Weaknesses
 Dependence on fellow subsidiaries for various supplies.
-Extra control or interference from fellow subsidiaries.
 Sudden expansion in year 2007-08 by establishing more than 125 branches
has increased operations and administration expenses due to which losses incurred.

Opportunities
 Sify broadband keeps pace with the new, fast, and ever-changing world of
Internet needs. The need to get easy, quick and uninterrupted access to net is a
reality with Sify Broadband.
 The company has moved to 3rd position amongst Private Sector.

38
Threats
 New Entrants
-Reliance Broadband
-Airtel
-Tata Indicom

FINALCIAL
STATEMENT
39
Sify Technologies Ltd · 6-K · For 9/30/07, On 31/03/08
Three months ended Six months ended Year
ended
September 30, September 30, March 31,
2007 2008 2008 2007 2008 2008 2008
Rs Rs US$ Rs Rs US$ Rs
------ ------ ---- ------ ------ ----- ------

Other income 0.50 68.17 1.48 0.50 125.72 2.73 8.56

Total income 127.92 503.33 10.93 208.73 882.56 19.16


679.58

Cost of Revenues 68.21 273.49 5.94 107.11 470.29 10.21


293.73

Selling, general
and administrative
expenses 98.28 450.34 9.78 161.12 754.95 16.39
582.64

Equity in losses
of affiliates -- 12.30 0.27 -- 17.72 0.38 --

EBITDA (38.57) (232.80) (5.06) (59.50) (360.40) (7.82)


(196.79)

Depreciation 26.79 94.05 2.04 48.09 159.38 3.46


125.89

Amortisation of
goodwill -- 328.63 7.13 -- 415.62 9.02 115.99

Amortization of
deferred stock
Compensation
expense 0.28 28.41 0.62 0.48 47.28 1.03 20.63

Taxes -- -- -- -- (0.33) (0.01) (1.48)

Minority interest -- -- -- -- (0.38) (0.01) (1.80)

Interest
(Expense)/income,

40
Net (11.27) 69.00 1.50 (20.59) 188.73 4.09 74.12

Net Loss (76.91) (614.89) (13.35) (128.66) (793.24) (17.22)


(381.90)

Analyst Estimates

Current Qtr Next Qtr Current Year Next Year


Earnings Est
Dec-07 Mar-08 Mar-08 Mar-09
Avg. Estimate N/A N/A N/A N/A
No. of Analysts N/A N/A N/A N/A
Low Estimate N/A N/A N/A N/A
High Estimate N/A N/A N/A N/A
Year Ago EPS 0.00 -0.04 N/A N/A

Current Qtr Next Qtr Current Year Next Year


Revenue Est
Dec-07 Mar-08 Mar-08 Mar-09
Avg. Estimate 38.88M 40.07M 150.59M 159.55M
No. of Analysts 1 1 1 1
Low Estimate 38.49M 39.65M 144.91M 159.55M
High Estimate 38.49M 39.65M 144.91M 159.55M
Year Ago Sales 31.50M 33.00M 128.00M 150.59M
Sales Growth (year/est) 23.4% 21.4% 17.6% 5.9%

Earnings History Dec-06 Mar-07 Jun-07 Sep-07


EPS Est 0.03 0.03 -0.02 0.01
EPS Actual 0.00 -0.04 -0.03 -0.02
Difference -0.03 -0.07 -0.01 -0.03
Surprise % -100.0% -233.3% -50.0% -300.0%

Current Qtr Next Qtr Current Year Next Year


EPS Trends
Dec-07 Mar-08 Mar-08 Mar-09
Current Estimate
7 Days Ago 0.04 0.04 0.18 0.20
30 Days Ago 0.04 0.04 0.18 0.20

41
60 Days Ago 0.04 0.04 0.18 0.20
90 Days Ago 0.04 0.04 0.18 0.20

Current Qtr Next Qtr Current Year Next Year


EPS Revisions
Dec-07 Mar-08 Mar-08 Mar-09
Up Last 7 Days 0 0 0 0
Up Last 30 Days 0 0 0 0
Down Last 30 Days 0 0 0 0
Down Last 90 Days

Growth Est SIFY Industry Sector S&P 500


Current Qtr. N/A N/A N/A N/A
Next Qtr. N/A N/A N/A N/A
This Year N/A N/A N/A N/A
Next Year N/A N/A N/A N/A
Past 5 Years (per
0% N/A N/A N/A
annum)
Next 5 Years (per
N/A N/A N/A N/A
annum)
Price/Earnings (avg. for
N/A N/A N/A N/A
comparison categories)
PEG Ratio (avg. for
N/A N/A N/A N/A
comparison categories)

42
CUSTOMERS:-
The following are the types of customers on whom the main focus if done to
Improve the business.

Loyal Customers: They represent no more than 20 percent of our customer base, but make up more than 50
percent of our sales.

Discount Customers: They shop our stores frequently, but make their decisions based on the size of our
markdowns.

Impulse Customers: They do not have buying a particular item at the top of their “To Do” list, but come into the
store on a whim. They will purchase what seems good at the time.

Need-Based Customers: They have a specific intention to buy a particular type of item.

Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather,
they want a sense of experience and/or community.

TARGETS:-
The targets given to me by the company is 55 for the whole period.

BREAKUP OF TARGETS:-
The targets are divided as 14 targets per week for 16 weeks.

STRATEGIES TO ACHIEVE:-

The main strategy is to give them the package at desired amount and by providing
them with some discounts and offers, easy payment and good service.
43
Objective of study

The primary objective of the study is to have awareness of Broadband and the
Investor’s perception towards investment in Broadband connection, to be specific
investor refers to “retail investor”, an important segment.

However the detailed objectives are as follows:

• To clearly understand the concept and parameters Broadband


Products.

• To have a comparative study among various organizations during the


period of last one year.

• Finally to analyze the sectoral allocations and finding out the logic
behind investing heavily in particular sectors and how they are going
to out perform in the near future basing on the present conditions.

• Lastly comparing the returns of various organizations and suggestions


regarding the sectoral allocations to the organization.

44
LIMITATIONS

The limitations are as follows-

• The study is made within the geographical boundaries of Hyderabad and


Secunderabad only.
• The study is for 16 weeks only.
• Market fluctuations are not taken into consideration.
• There are various competitors available in the market.
• Some customers are brand loyal; they don’t want to change their existing
internet connection.
• Tuff competition.
• Wireless technology.

45
Achievements:
The targets achieved so far are as follows

Date Targets

21/04/09 Training
28/04/09 Training
5/5/09 5 targets achieved
12/05/09 3 targets achieved
19/05/09 6 targets achieved
26/05/09 10 targets achieved
02/06/09 9 targets achieved
09/06/09 5 targets achieved
16/06/09 8 targets achieved
23/06/09 5 targets achieved
30/09/09 3 targets achieved
07/07/09 9 targets achieved
14/07/09 4 targets achieved
21/07/09 2 targets achieved

TOTAL ACHIVED = 77

46
Conclusion:

“Broadband in SMEs” is a project which definitely shows the accessibility and


requirement of internet in the remote areas. The main problem the SMEs are facing is the
complex and expensive wired technology which they are bound to use over the years
until the wireless technology comes. With the wireless technology, they can be relieved
from the problems like failure of connectivity, cable cut, security problems etc.

By this type of connectivity, Sify can be in directly contact with the customers and
can handle them according to their policy of customer handling.

I have also analysed the Sify’s current market position in relation to its wireless
broadband technology with SWOT analysis.

The project also helps me to learn and experience the corporate life style. During the
project, I met different corporate people who gave me valuable tips and advice which I
should follow during my training and in the future also. So this has been a good learning
experience for me.

Finally I can conclude that Sify has come a long way in the business of internet and
is growing still further. It has brought a revolution by bringing the Broadband technology
to the SMEs with a cheaper rate so that they can easily afford it and enjoy more reliable
and secure network than they have ever used.

47
48