internship report

CHAPTER –1

INDUSRIAL PROFILE

Introduction

The telecommunication industry deals with the activities and services of electronic

system for transmitting message through cables, telephones, radio or television.

The telecom industry had struggled for establishing and maintaining its existence

in the Indian market. The industry had to take up many research so that it can meet

the need, wants and preferences of the people of India.

There are two major factors responsible for the growth of the telecom industry, the

use of modern technology and the market competition.

The use of communication satellites makes this telecom industry a booming sector.

These industries provide cheaper products of high quality products and services.

Overview of telecom industry

The telecom industry is considered as the most booming sector than any other

sector. The statistical report made by PHOENIX CENTRE RESEARCH revealed

that in the coming year there will be a healthy competition between the provider of

telecommunication services which will lower the price and the quality will be

higher. Presently there are around 200 million telephone lines in India which

makes it the world 3rd largest phone network in the world after China and U.S The

Indian telecom market is divided into two major segments viz; fixed service

provider and cellular service. The fixed service provider comprises land lines,

basic services, domestic and long distance call services. The two major operators

BSNL & MTNL comprise almost 90% of the fixed service providers in the

country. In case of cellular service there are mainly two subdivisions viz; code

division multiple access (CDMA) and global system for mobile communication

(GSM). These industry is going to be digitized by using ISDN (inter services

digital network).

Telecom industry has created immense employment opportunities. Most of the

employees in the industry is engaged in large establishments, although there are

small establishments where a large number of small contractors are involved. 55%

of the workers are engaged in office & administrative support occupations and the

others are in installation, maintenance and repairs

Today the telecom market enjoys the growth rate of 45% which is highest in the

world wide. The telecom market is expected to grow by is 344921 corer by the

year 2012.The rate of growth will be around 26% and the sector and the sector will

also generate employment to 10 million people, but it is necessary to ensure that

India emerge as a major exporter of telecom equipments, provide world class

services by proper handling of consumer complaints, disputes resolution and public

interface and meeting customers demand at reasonable rate. IT has been seen that

there are some bottlenecks that the telecom industry always suffer from these are:

Slow reform process

Low penetration.

Service provider bears huge initial cost to make inroads and cost to

achieving break even is difficult.

Lack of infrastructure in semi-rural and rural areas.

Huge initial investment.

Limited spectrum availability and interconnection charges between the

private and state operators

The government has taken many initiatives which is responsible for the rapid

growth of the telecom industry, some of this initiatives are:

Opening the industry for private sector participation.

100% foreign direct investment (FDI) is permitted in telecom equipment

manufacturing through the automatic route.

FDI ceiling in telecom services has been raised to 74%.

Introduction of unified access licensing regime for telecom services on

open Indian basis.

Implementation of new telecom policies.

Introduction of calling party pay (CPP) regime and lowering of access

deficit coupled with introduction of revenue share regime in analogous-

digital converter (ADC).

Introduction of mobile number portability in a phased manner.

Allowing services provider to share active infrastructure.

History of the telecommunication industry

1851- British first introduced telecommunication services in India through

operational land lines near Calcutta.

1881-The telephone services was made operational.After independence,

the foreign telecommunication companies were nationalized and the posts,

telephone and telegraph (PTT) company was set up by the ministry of

communication.

1981-From this year the economic linearization started when the Prime

Minister INDIRA GANDHI signed contract with France to merge with the

state owned telecom company (ITI) in an effort to set up 5000000 lines per

year. This initiative has improved the telecom market through improving

services and tariff.

1985-The department of telecommunication (DOT) was set up to provide

domestic and long distance telephone services.

1986-The government established two companies namely MAHANAGAR

TELEPHONE NIGAM LIMITED (MTNL) for metropolitan telephone

services and VIDESH SANCHAR NIGAM LIMITED (VSNL) for

international telephone services.

1997-The government had set up telecom regulatory authority of India

(TRAI).

1999-The cellular services were introduced.

Economy

The telecom industry could play an important role in liberating the global economy

from slowdown and to bring the gross domestic product growth back on track. The

share of this industry has increased from 71.69% in 2006 to 87.69% by the end of

may 2008.consquently telecom density has increased to 27.59% to the end of may

2008.

The booming telecom domestic telecom industry has been attracting accelerating

amount of investment, during April 2000 to March 2009 cumulative foreign direct

investment inflows into the Indian telecom sector a marked to US$3.84 billion

accounting for 6.81% to the total foreign direct investment inflows into the

country.

Indian runaway success in mobile telephony has also given a boost to mobile value

added services (MVAS) market. According to the study STANDFORD

UNIVERSITY AND CONSULTING firm Berkeley design automation, the Indian

MVAS is likely to grow at a compound annual growth rate of 44% by 2010.

25 telecom firms including Nokia, Ericsson and Orange under the leadership of

GSMA have sent a letter to G20 summit in which they have state that this sector

could raise the GDP by 3-4% by 2014 provided they are allocated with right

broadband spectrum and flexible industrial regulations.

The industry is expected to invest nearly $800 billion in near 5 years to expand the

mobile broadband. MICHAEL O’HARA chief marketing officer of GSM

association industry group told “we believe we have the potential to connect 2.4

billion people to the internet by 2013 via mobile” He estimated that nearly 200 to

300 people are currently accessing internet via mobile.

The year 2007 saw India achieving significant distinctions:

1) having the world’s lowest call rates of 2-3 US cents

2) the fastest growth in the number of subscribers were 15.31 million in 4

months

3) the fastest sale of million mobile phones in a week

4) the world's cheapest mobile handset, US$ 17.2

5) the world's most affordable colour phone, US$ 27.42

6) largest sales of mobile handsets in the third quarter

Segment-wise growth

Wireless segment has emerged as the preferred mode of telephone service by the

consumers, reflected in the rising share of mobile phone connections to total

connections.

1. The share of mobile phones has increased from 71.69 per cent at the end of

March 2006 to 87.68 per cent at the end of May 2008.

2. While total mobile subscriber base was 277.92 million, wire line subscriber

base was 39.05 million.

3. Consequently, overall tele-density has increased to 27.59 per cent a the end

of May 2008.

India is likely to be second largest mobile market in the BREZIL,RUSIA,INDIA

CHINA(BRIC) nation with560 million mobile users representing the next great

growth curve for both mobile and interactive marketing industries, according to a

report by eMarketers.

Investment

The booming domestic telecom market has been attracting accelerating

amount of investment. During April 2000 to March 2008, cumulative FDI

inflows into the Indian telecommunications sector amounted to US$ 3.84

billion, accounting for 6.81 per cent of the total FDI inflows into the country.

In fact, the surge in mobile services market is likely to see huge amount of

investment implying a mobile in the hands of every second person in the

country.

Buoyed by the rapid surge in the subscriber base, huge investments are being made

into this industry by companies like.

Maxis Communications-owned mobile service provider Aircel

Srei Group's Quippo Telecom Infrastructure Ltd (QTIL)

The Central public sector enterprises (CPSEs) have lined up investments for

infrastructure sectors like telecom energy and power for 2008-09.

Vodafone Essar will invest US$ 6 billion over the next three years in a bid to

increase its mobile subscriber base from 40 million at present to over 100 million.

Manufacturing

India is emerging as a handset super-power as more manufacturers set up

base in the country, it is not only the world's fastest-growing telecom market

but it is also making remarkable progress in the telecom manufacturing

space. The Indian telecom equipment manufacturing sector is set to become

one of the largest globally by 2010.

Simultaneously, India's surging domestic market is also providing excellent

Investment opportunities in other segments of telecom equipment industry.

Nokia Siemens Networks (NSN) is shifting its global services business Unit

headquarters from Munich to India.

Nokia set up its manufacturing plant in Chennai.

Samsung has set up its GSM mobile manufacturing base in Manresa.

Motorola has established a manufacturing plant in Sriperumbedur.

Sony Ericsson has set up GSM Radio Base Station Manufacturing Facility in

Jaipur and Research and Development centre in Chennai.

LG Electronics set up plant of manufacturing GSM mobile phones near Pune.

India's runaway success in mobile telephony has also given a boost to the

mobile value added services (MVAS) market. According to a study by

Stanford University and consulting firm Berkeley design automation, the Indian

MVAS is likely to grow at a compound annual growth at compound annual growth

rate of 44% in 2010.

Road Ahead

According to a report by Boston Consulting Group, while only one in 20 of the

world's first two billion mobile subscribers live in India, as many as one in every

four of the next billion subscribers will be an Indian.

The department of telecommunication estimates the total subscriber base to total

500 million by 2010, out of which 80 million are expected to be from rural areas.

The Indian telecom industry's revenue, likewise, is estimated to increase, which

according to Ernst & Young is expected to total US$ 35 billion, accounting for 3.6

per cent of the total Gross Domestic Product of the country. With such growth

projection, this industry is likely to see increased

investments. In fact, total investment is projected at US$ 76.6 billion during the

eleventh plan period (2007-12). Private sector is estimated to continue its dominant

share, accounting for 67 per cent of the total projected investment while public

sector accounts for the rest.

Rural India will wrest 40 percent of new telecom market

India’s rural telecom connectivity is poised for explosive growth in the next five to

10 years, grabbing a 40 percent share of the new market, a study released by

federation of Indian chamber of commerce and industry and Ernst and young, said.

“Of the estimated new 250 million Indian wireless users, in next 5-10 years

approximately 100 million will be from rural areas,” . Operators have

demonstrated they can achieve profitability by reducing fixed costs, controlling

variable costs and carefully tailoring services to the requirements of their

customers. A similar model with minor customization could be emulated in the

rural areas. The government will roll out new incentives for mobile networks in

rural India. It’s also planned that the ultra-low cost handset of approximately

Rs.840 ($20) to the market with built-in subsidies, lifetime validity and minimal

maintenance costs have promoted mobile usage in remote areas.

CHAPTER 2

c

The Nokia Siemens networks have its presence in countries such as:

1. Asia Pacific

Australia

Bangladesh

India

Indonesia

Japan

Korea

Malaysia

New Zealand

Philippines

Sri Lanka

Singapore

Thailand

Vietnam

2. Greater China

Shanghai

Taipei

Hong Kong

Beijing

3. Latin America

Argentina

Brazil

Chile

Colombia

Ecuador

Mexico

Peru

Venezuela

4. Middle East and Africa

Afghanistan

Algeria

Angola

Bahrain

Cameroon

Lebanon

Libya

Mali

Morocco

Mozambique

Senegal

South Africa

Tanzania

Tunisia

UAE

Egypt

Ethiopia

Jordan

Kyrgyzstan

Kenya

Kuwait

Namibia

Nigeria

Oman

Pakistan

Qatar

Saudi Arabia

Uganda

Yemen

Uzbekistan

5. North America

U.S Canada

6. North East

Armenia

Azerbaijan

Belarus

Denmark

Estonia

Finland

Kazakhstan

Latvia

Lithuania

Norway

Russia

Sweden

Turkey

Ukraine

7. West South Europe

Austria

Belgium

Bosnia

Herzegovina

Bulgaria

Croatia

Czech

Republic

France

Greece

Hungary

Israel

Italy

Ireland

Luxembourg

Netherlands

Poland

Portugal

Romania

Serbia

Slovakia

Slovenia

Spain

Switzerland

United

Kingdom

Germany

History of Nokia Siemens network

On June 2006 Nokia and Siemens announced that these two companies are to

merge their mobile and fixed line phone network equipment businesses to create

one of the largest network firm known as Nokia Siemens network. Nokia Siemens

Networks was officially launched at the 3GSM World Congress in Barcelona in

February 2007.Nokia Siemens Networks then began full operations on 1 April

2007 and has its headquarters in Espoo, Greater Helsinki, Finland, while the West-

South Europe headquarters and three of its five divisions are based in Munich,

Germany. The Services division is based in India. Nokia Siemens Networks has

operations in some 150 countries.

On 19th of July 2010, the company acquired the wireless-network equipment

division of Motorola, to be completed by the end of the year

The company build 50 offices in India and employed more than 8000 people across

200 locations. It had committed to $100 million 3 year strategic investment in

India. The company has set up a network management centre in Nokia known as

global network solution centre.

Products, services and solutions provided by Nokia Siemens network

Products:

1) Broadband connectivity: The products under broadband connectivity are.

Access switches

Carrier switches

DSLAM—Digital subscriber line access multiplexer.

DWDM—Dense wave length division multiplexing.

Internet Protocol connectivity

Microwave

Narrowband/ multiservice solutions.

NGN metro—Next generation metro

RESIP—resilient internet protocol.

2) Converged core

Consumers and business voice over internet protocol

Fixed switching

Intelligent packet core

Mobile switching

Mobile soft switching

One voice initiative

Rich communication suite

Subscriber management evolution

Subscriber data management.

3) GSM/EDGE (Global system for mobile communication/ Enhanced data

rate for global evolution)

Nokia Siemens networks village connection

4) Business support system

Charge@ once business

charge@ once unified

5) Network management OSS (operational support system)

OSS connectivity management

Share technical support portal

Serve at once traffic

6) Mobile broadband

3G femto solution

Enhancing the customer experience

Flexi BTS (Base transceiver station)

High performance site solution

Long term evolution

Single RAN

Smart network for smart devices.

Internet HSPA (high speed packet access)

WCDMA/HSPA (wideband code division multiple access/ high speed

packet access)

WCDMA frequency reframing solution

Quality of service differentiation.

Services: The Nokia Siemens network provides care and consulting services. The

operators are always concerned to achieve the best possible quality and

performance of their network and to give their users the maximum availability of

services and applications. NSN helps these operators to overcome this problem.

Using a solution approach, the challenges facing an operator are analysed and then

attached to appropriate services ensuring, the operators get a customized

maintenance solution that is a perfect match to the business needs.

A. CARE SERVICE—The NSN care organisation is worldwide distributed and

has 6000 world class experts around the world providing high technical and

methodological expertise in new services launches and services management

for both NSN and third party products. These services are.

1) CLASSIC CARE—It provides a traditional care offerings, concentrating on

cost effective and professional back up support for problems and incident

management processes in network operations. Classic care services is

meant for the operators who can take care of their own network

functionality and just need some professional support to cover incidents

and gaps in their knowledge.

2) CONNECTED CARE—It is a new way of working with network

operators. It ensures that the services provided to the end users are

continuously available and match agreed performance level. This care is

meant for operators looking for maximum network availability and

connectivity while making best use of resources. Connected care offers a

new but proven three-step maintenance mode.

Predict phase—NSN monitors the vital signs of network, looking for any

potential problems.

Preventive phase—immediate corrective actions are proposed to prevent

any imminent problems.

Improve phase—Experience care experts will work out a long term

improvement plan with the customers.

3) MANAGED CARE—It is the maintenance solution for managing complex

functionality efficiently with an optimised OPEX/ CAPEX (operational

expenditure/capital expenditure) structure. It allows operator to focus on

their core business while NSN take care of functionalities entities. This

type of care is meant for operators who look for the professional partner to

maintenance of some or entire technical environment.

4) EXTENDED CARE—this type of care allows the operators to keep their

network running while planning the transition to new, NSN solution

enabling them to maximize returns on mature network investments. It is

meant for operators that want to extend the life span of their equipments.

B. CONSULTING SERVICES—the consulting of NSN combines experiences

from over 170 consulting engagements. The consulting services of NSN think

differently, it adds real business value and work closely with their customers to

deliver innovative solutions. Through a combination of proven expertise and

practical hand-on experiences, the consulting seeks to inspire and deliver.

Solutions – The various types of solutions provided by NSN are.

1) Solution for public and corporate customers—At private and corporate solution

NSN provides specialist communication solution for customers beyond the

telecommunications industries such as: a) Railway and train operations. b)

Government agencies.

a) Railway and train operations

Making train the first choice for 21st century travel—Travellers and

government around the world are working up to the convenience and

environmental benefit of high speed train travel. This helps a railway

infrastructure operator to grasp opportunities by increasing capacity, speed

and security to attract new customers.

Railway infrastructure solution—Based on GSM the internationally proven

digital communications platform for railway specific voice and data

operational services NSN solution can help to 1) Reduce cost by replacing

multiple analog systems with a single stream lined digital system .2)Reduce

idle time and increase capacity utilization. 3) Meet increased signalling,

safety and security demand of high speed travel.

Train solution—Broadband in trains is a platform that support a rapid

growing suite on a board customers and stuff applications.NSN solution

can help to deliver 1) Enhanced ticketing and seat reservation services. 2)

Improved security through remote security monitoring. 3) An unlimited

range of internet based information, news and entertainment services for

business and leisure customers.

b) Government solutions—when national and international security is at stake

there is no room for error for government communications network,

99.999% carrier grade reliability is the minimum specification.NSN is the

world leader in the design, implementation, operation and support of secure

inter-office communications solutions for security authorities, defence

organisation and other government departments. These solutions includes:

Next generation military network

Large network implementation

Command and control solution

Infrastructure modernisation on projects

Deployable voice/ data solution.

2) mmunication service provider

a) Prepaid and top-up solution—It helps to keep the customers at the centre of

the business, who quickly can adapt the business offerings to their

behaviour and also offers them the best possible value of money. It

delivers.

A wide choice of ready to use, adaptable marketing use cases.

Easy administration for successful differentiation of the business offerings.

Fast roll out of new marketing campaign.

High customer’s satisfactions and locality.

Flexible and easy maintenance.

b) Unified billing and charging solution—It helps by integrating the prepaid

and post-paid billing system which is beneficial for both the customers and

the business by.

The customers gets the personalized services to help them make decision

about how to pay, which services to access and how to control their cost.

Helps to understand the customer’s usage pattern better, accurate

information available when it is needed.

Increases revenue by services differentiation, combining business and

customers services for implementing new business model through

advertisement and phone sharing.

Reduce operational expenditure by simplifying the system used to process

post-paid and prepaid subscription.

3) Outsourcing—through outsourcing NSN take responsible for providing high

quality and efficient network related services.

4) The NSN integrated provisioning solution—It provides powerful tools for

workflow modelling, service configuration and their activation onto network

and devices. The solution helps operators to increase revenue by improving the

end-users experiences, increase top lines rapid service introduction, connect

people, process and system efficiently.

5) Broadband and transport solution—Mobile backhaul solution enables the

operators to earn profit. By this NSN can optimize the transport infrastructure

and meet the demand with reduction in operational expenditure, limits on

capital expenditure scalable services, future-proof infrastructure.

6) Energy solution—NSN energy solution is developed to provide reduce network

operating cost and lower the power consumption of telecom networks by

exploiting more efficient technology and renewal energy.NSN energy solution

consists of 6 elements that combines both product and services. They are:

NSN energy modernization.

NSN off grid site solution.

NSN bad grid site solution.

NSN energy efficiency consulting.

NSN green energy control.

NSN energy operational expenditure (OPEX) management.

Vision

The road ahead

Until now, development in telecom industry has mainly been a matter of delivering

connections – more, faster, cheaper, and more efficient. This is still important. The

connectivity explosion continues, and by 2015, 5 billion people and further billions

of devices will be connected. So, Nokia Siemens is continue applying their

expertise in order to deliver on the reality of hundred-fold increases in traffic.

Towards an ecosystem of partners

Today, however, Nokia Siemens is also focusing like never before on delivering

quality – quality experience. The company can see that a more open, collaborative

and customer-centric way of working could bring so much more value to billions

of individuals, and to millions of businesses. Nokia Siemens Networks must drive

that change by leaving the closed and proprietary mindset behind, and leading the

way in a new spirit of openness and collaboration.

Customers’ challenges

The Communications Service Providers (CSPs), face challenges on all fronts: the

need to increase efficiency keeps pressure on capital and operational costs; the

dramatic rise in traffic due to the proliferation of internet applications demands

new business models for monetization; and an ever fiercer competitive climate is

challenging CSPs to prove they can retain the customers they have and win back

any they might have lost. Nokia Siemens Networks will play a vital role in helping

CSPs meet these challenges. This role is NSN mission – it’s about building value.

NSN says that their mission and vision are:

Our mission

…by improving efficiency and experience

We have built value by addressing efficiency, and we continue to do that. But we

also need to address the customer’s need for a better experience, because it’s

experience that builds relationships, and relationships that build value.

Our vision

We believe that CSPs can ultimately enable and deliver a “segment of one” –

where they can define and enhance the service experience for each and every

individual. Customers whose communications experience fit and works for them

don’t change operators. And operators who can devote themselves to enriching the

customer’s experience build stronger, more lasting and profitable customer

relationships.

The individual communications experience is the greatest value a communications

service provider can deliver to their customer, and so it’s the greatest value we can

support communications service providers in delivering.

The road ahead

The future of service is largely network-based. Internet applications hosted in the

‘cloud’ (email, social networking sites, corporate service and communication tools,

etc.), already account for a large proportion of the services people access every

day. Every day, therefore, quality of network experience has more and more to do

with quality of life.

Ultimately every service is delivered to an individual. And those individuals will

benefit from the services being delivered in a way that fits their personal needs and

desires. This experience cannot be the privilege of the few. It must be as true for

customers in emerging countries with just a dollar to spend, as for businesses in

developed countries with greater resources, and for the trillions of devices that

make up the Internet of Things.

Our vision acknowledges that communications service providers need to manage

this complexity wisely, ensuring the necessary security and authentication for

users, while having the ability to profitably deliver a customized experience, based

on a person’s locations, context, device, usage patterns and preferences.

Our vision guides our mission, and our mission is to build more valuable customer

relationships. The individual communications experience builds more valuable

customer relationships.

Turnover of Nokia Siemens network

The turnover of Nokia Siemens have many ups and downs, the company’s revenue

fell hard in 2009 considering a year of missed opportunities and disappointments.

The total revenue for 2009 were $17.6 billion an almost 18% decline over 2008.

NSN loss is much steeper than rival Ericsson, who reported that yearly earnings

decline only 9% to $28.6 billion. In 2009 third quarter report the total loss were

$2.3 billion but in fourth quarter the NSN reported to earn $23.8 million operating

profit, during this quarter the unit generated $2.38 billion or about 47% of that

quarter revenue of $5.08 billion.

Again in 2010 the company reported a revenue decline in first quarter. It reports

a$3.62 billion in revenue, down 9% from first quarter of 2009.

NSN reported a $354 million operating loss which was less than first quarter of

2009. Taking out an onetime $166 million restructuring charge NSN was able to

achieve a $20 million adjusted operating profit.

However gloomy was the first quarter for NSN the second quarter is showing some

promises. NSN expects it will report $4.1 to $4.5 billion in second quarter revenue.

CORPORATE SOCIAL RESPONSIBILITIES:

1) Maximizing our positive influence through taking into account these steps.

a) Mobiles and development

At the beginning of 2009 there were already 400 million users of mobile internet

services worldwide and by 2013 the number is forecast to rises to 770 million –

one fifth of all mobile phone users

NSN Internet for the Next Billion project has moved on from the business

development phase and the concepts are now being integrated into their

mainstream business. The company continue to develop innovative business

models which help to address the connectivity needs of people in remote

communities Village Connection.

NSN also continue their activities to develop a deeper understanding and

communicate the benefits of connectivity with a series of White Papers exploring

the key challenges. In 2009, they cooperated with Nokia to improve knowledge of

affordability barriers to mobile internet access, discovering worldwide variations

due partly to taxes and regulation. In their White Paper analyzing competence and

motivation they argued that to engage people, information services must be

tailored to local needs and ease of use is essential. People need to see why the

internet can be an important new element in their lives, as well as how people can

get the most from it.

b) Useful connectivity

The key to improving the economic and productivity performance of every country

in the world lies with the greater and better-focused use of Information and

Communications Technology (ICT).

NSN stand on the threshold of a new era, with information services holding vast

potential to enhance the lives of literally billions more people. People want

services that can improve their own lives and stimulate development within their

local communities. Modern communications technology is spurring new

entrepreneurial spirit in emerging markets and creating novel businesses. Also, for

industrialized world, there is still a lot to be improved in the usage of ICT, as

shown by a study commissioned by Nokia Siemens Networks, the Connectivity

Scorecard, which highlights the continued need for investment in information and

communications technology (ICT).

Increased broadband deployment can have a significant impact on productivity and

economic growth, according to a study written by Law and Economics consulting

group, and commissioned by Nokia Siemens Networks. The study, which is part of

the ongoing Connectivity Scorecard research program, focuses on the impact of

broadband in 15 origination for economic co-operation and development countries.

The research suggests that with the right skills and infrastructure in place,

broadband strategies could increase national productivity and growth by up to

15%.

c) Village connection - promoting rural connectivity

Nokia Siemens Networks Village Connection is an innovative approach to

promoting access and extending coverage in remote and rural areas. In October

2009, they announced a ground-breaking partnership with the international

telecommunications union (ITU) to bring affordable connectivity to the world’s

rural and remote areas. We are providing our Village Connection platform and

expertise at no charge. An The system is designed to bring communication services

to underserved markets as it extends mobile voice and data coverage to rural

villages.

d) Access to education

NSN believe that education is a vital foundation for successful development In

2009 they contributed to an international initiative headed by UNITED NATIONS

EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGINATION(UNESCO),

the World Economic Forum, and the International Institute for Educational

Planning to provide content, case material and editorial support for the “Manual for

Monitoring and Evaluating Education Partnerships”. They are also engaged with

other partners in the Global Alliance for information and communication

technology (ICT) and Development of the United Nations, including UNESCO, to

develop a framework for an international education partnership for the use of ICT

in development.

The company’s long term goal is to achieve a 100 percent pass rate among the

students. Once improvements have been made to the facilities we will focus on

teaching mathematics, science and technology to the young students. To further

this goal, a mentoring program the company has launched in April where staff

members were encouraged to adopt a Grade 10 learner. The mentor is responsible

for guiding the student towards academic excellence and will assist with social

skills development, social responsibility and career guidance.

e) Connectivity and productivity

The Nokia Siemens networks have sponsored two major studies to improve

understanding of the impact of Information and Communications Technology

(ICT) on economic growth. These studies emphasize the need to consider the

economic impact of connectivity, not just the technology, and have been of great

interest to a wide range of stakeholders including our customers, governments,

policy makers, regulators and other key industry players.

Connectivity Scorecard:

The Connectivity Scorecard is a unique global study that ranks economies

around the world in terms of “useful connectivity

Broadband Impact Study:

The study concludes that there are significant economic benefits from

broadband if overall Information and communications technology skills and

use are high. So policy makers and the industry as a whole should not only

enable affordable and universal broadband access but also emphasize access to

computing devices and services as well as Information and communication

technology awareness, training and education to boost skills and usage.

f) Disaster relief and preparedness

As a company, NSN have defined three key areas of response to natural disasters:

Protect their employees and their families from personal harm and injury and

protect our corporate assets as part of our business continuity management

program.

Work with their customers to help maintain or re-establish vital

communications links; this is to enable emergency response agencies and the

people in affected regions to coordinate their activities and communicate their

needs.

Provide relief and support for affected communities and societies through

donations to relief agencies, and through rebuilding efforts, often in

cooperation with our customers.

In February 2009 NSN demonstrated a new emergency communications package

at the Mobile World Congress in Barcelona, which will be further developed in

collaboration with the Finnish Red Cross during 2010. The system is designed to

be used to provide emergency communications when disaster strikes and disrupts

existing communications networks. The company encourage their employees to

contribute to disaster relief and match donations on a case-by-case basis. Here is an

example of how NSN have helped people in India.

India: floods

Floods in Andhra Pradesh caused severe devastation; hundreds lost their lives,

and many were made homeless.

NSN had collaborated with a charitable trust with their initiative "REACH the

needy" to provide relief and rehabilitation to the flood affected victims. Within

three days, NSN collected Rs.150, 000. Employees working in proximity to the

flood-hit villages provided us with updates on the current situation as well as the

nature of contributions needed. There was demand for temporary shelter materials

and safe drinking water.NSN procured 800 Tarpaulins (temporary shelter) and

2000 packets of drinking water with the contributions received from their

employees. Employees personally visited the villages to distribute the items.

g) Connecting the disadvantaged

Nokia Siemens goal is to unite communities and people through communication.

Access to information and communication with modern technologies helps people

to fulfil their potential, develop their individual knowledge and skills and raises

productivity levels throughout an economy. Everyone in the community, whether

old or young, with different abilities, and from any background, should have the

chance to participate in modern communication.

In 2009, NSN continued to provide capacity building activities in a variety of

projects, including educational activities for people with disabilities, the elderly

and socially or economically disadvantaged members of society

2) Positive environmental impact

a) Low carbon economy

Nokia Siemens is in a unique position to reduce the environmental impacts of other

companies by:

Making their operations more efficient (through automation, monitoring and

optimization)

Replacing physical products with virtual versions (dematerialization)

Enabling environmentally friendly services

Reducing the need for travel and transport

In 2009 Nokia Siemens launched solutions to manage electricity grids more

effectively which reducing total energy demand and CO2 emissions by.

Managing energy consumption:

“Smart meters” provide information for utility companies to measure energy

consumption in real time and for customers to follow the amount and cost of

their consumption.

Managing renewable energy generation:

Reducing greenhouse gas emissions requires a massive expansion of renewable

power such as wind and solar In 2009 Nokia Siemens had formed a partnership

with ServusNet, a software provider, to create a management solution for wind

farm operators. Using our Open Element Management System Suite,

ServusNet was able to develop software in a matter of months that will help

operators to improve wind farm productivity and the predictability of

electricity supply. ServusNet began trailing the solution with a customer in

2009.

b) Research and development

Nokia Siemens have a global network of approximately 16,000 people working in

research and development (R&D) and in 2009 they had invested 18 percent of

sales in R&D .One of our aims is to use our technology to provide

telecommunications, networking and software solutions for the energy sector.NSN

are researching energy efficient optical and wireless networks, sensor networks,

machine to machine services, intelligent business and operations process

management systems.

c) Engagement

To maximize the company’s impact, NSN motivate employees to act on

environmental issues and work with key stakeholders and other companies in their

industry to raise environmental standards. These were done by by engaging them

in various activities.

Employees

in 2009 NSN launched a campaign among employees to promote the idea of the

‘environmentally sustainable office’, encouraging them to reduce waste and energy

use.

A pilot project in Tampere, Finland, was followed by similar campaigns in

Germany and China. To mark the launch of the campaign in Tampere, NSN ran an

Environment Day with presentations by internal and external experts. Regular

emails were used to share top tips on cutting waste and energy use.

World Wide Fund for Nature (WWF) partnership

NSN is in the second year of a three-year partnership with conservation

organization WWF. The environment group runs online trainings and web

campaigns for employees, to raise awareness of key sustainability issues and the

role we can play. NSN regularly consult WWF for external feedback on our

environmental plans and prioritization.

NSN supported the WWF Earth Hour campaign in March 2009 which aimed to get

one billion people around the world to show their commitment to tackling climate

change by turning off their lights for an hour at a specified time. The company also

encouraged employees to take part by turning off office and desk lights and

unplugging other non-essential electronic devices such as printers, copiers and

faxes. All major Nokia Siemens Networks sites participated to the campaign.

Nokia Siemens Networks is also a member of the WWF Climate Savers program,

which brings together major international companies committed to reducing their

greenhouse gas emissions.

3) Employees relationship

a) Culture and values

Nokia Siemens values focuses on.

Focus on customer

Win together

Innovate

Communicate openly

Inspire

Creating a company culture is an ongoing process in which all Nokia Siemens

Networks employees have participated since the first day of our operations. The

company ran a wide range of local programs in 2009 to embed our values and

build NSN culture together with employees around the world.

The “People’s Choice Award” in the Asia-Pacific region recognizes employees

who demonstrate NSN values in action. Winners, nominated by their colleagues,

receive a cash prize and are invited to present the companies values to new

employees during their induction.

b) Diversity

NSN respect employees’ individual differences and recognize that their diverse

backgrounds, skills and perspectives benefit our business. Nokia Siemens

Networks is committed to equal opportunities for all employees and have started

several initiatives to promote diversity at global, regional and business unit level.

In 2009 NSN has

Developed a diversity framework which sets out key messages, aspirations and

metrics to guide and support leadership teams and business units in target

setting and action planning

Started embedding NSN diversity approach into global recruitment, talent

management and leadership development processes

Included diversity in induction training for all new employees, as well as in

leadership and culture related trainings.

NSN monitor gender and nationality balance. Figures from 2009 show that:

Gender balance among all employees is 80 percent men and 20 percent women

Gender balance in our senior leadership is 90 percent men and 10 percent

women

Of 1,050 employees nominated to the company’s future talent pool, the gender

balance is 80 percent men and 20 percent women

Approximately 150 nationalities are represented in our workforce

12 percent of employees are Finnish and 13 percent German

32 percent of senior leaders are Finnish and 25 percent are German.

In 2010, the company aims to improve our diversity and gender balance in senior

leadership positions – and benefit more from the diversity they have in their teams,

giving everyone a chance to contribute to their full potential

c) Training and development

NSN believe that the greatest contribution to personal development is achieved

through learning on the job and this is intended to make up around 70 percent of

development activity. Self-study, coaching and mentoring are also important and

should provide an additional 20 percent, with structured learning making a 10

percent contribution. The “Nokia Siemens Networks Career and Development

Journey” helps employees chart the course of their career and development.

Target in 2010

Ensure over 50 percent of line managers participate in ‘Consistency in

Leadership’ workshops

Launch Nokia Siemens Networks Leadership Code eLearning

d) Compensation and benefits

NSN have a common global model for job levels, salary administration processes,

incentive management, benefits packages and expatriation policies.

NSN want to ensure that the reward packages they offer are understood and valued

by their employees. In 2009, the company rolled out an education program for HR

professionals to improve their understanding of NSN reward programs. This

included practical workshops and self study.

e) Change and restructuring

Nokia Siemens Networks was formed to strengthen the market position partly by

streamlining the network businesses of the two parent companies, Nokia and

Siemens. As a result of the merger, synergy-related restructuring was expected to

result in a reduction of 9,000 jobs in the first two years of the company’s existence.

This synergy-related restructuring was completed by the end of 2009.

Nokia Siemens Networks provides professional outplacement support to help

impacted employees find new jobs quickly either within or outside the company.

This includes support in searching for and applying for positions, and coping with

change.

4) Working with suppliers to improve competency

Engaging with suppliers on corporate responsibility (CR) issues is vital to ensure

they are aware of and meet the company’s requirements; it helps the company to

make improvements to their corporate responsibility management and work with

their own suppliers. Working with suppliers on specific issues such as health and

safety and energy efficiency builds competency and raises standards in the supply

chain. NSN also get useful feedback from suppliers on how well we are

communicating on corporate responsibilities issues.NSN has performed the

corporate responsibilities by:

a) Communicating Nokia Siemens networks requirements

With the launch of companies new internet portal for suppliers in December

2009 the company introduced a new channel to share and promote information

on corporate responsibilities.NSN ensure that suppliers are informed promptly

about any changes that may affect them, including changes to the supplier

requirements. In July 2009, the company communicated the revised list of

restricted substance to relevant suppliers.

b) Supplier corporate responsibility workshops

NSN held two workshops for suppliers in India in 2009 to communicate their

Supplier Requirements raise awareness of corporate responsibility and drive

improved standards further down the supply chain. Suppliers were able to raise

challenges they face in implementing our corporate responsibility requirements

and share solutions.

These workshops follow our pilot corporate responsibility workshop in China in

2008. We plan to conduct two more workshops for suppliers in countries identified

as high-risk in 2010.

c) Raising health and safety standards in the supply chain

Health and safety was an important focus in all NSN work with suppliers in

2009. The company published a brochure on health and safety in October 2009,

available in eight languages. It sets out the requirements for suppliers to have

procedures for identifying, minimizing and preventing hazards. It also provides

guidance on the precautions needed to mitigate specific health and safety risks.

d) Supplier satisfaction survey

every year, the company commission an independent third party to ask key

suppliers to rate Nokia Siemens Networks on several aspects of their business

relationship, including requirements on business ethics and environment. In

2009, 313 suppliers responded. It was scored higher, with an average score of

8.3 out of 10.

. 

Target for 2010.

Implement a pilot assessment program on supplier occupational health and

safety

Conduct at least two supplier workshops in higher risk countries

Roll out industry-wide Corporate responsibility training among our key

suppliers through our participation in the Global e-Sustainability Initial.

The company work together with suppliers to develop their competency by helping

those raises performance in any areas identified for improvement through their

self-assessments and audits. In addition, NSN also run training programs for

suppliers on corporate responsibility as well as sharing best practice on issues such

as energy efficiency.

5) Environmental sustainability.

a) Minimizing product impacts:

Although Nokia Siemens’ products and services make a positive environmental

contribution through the role they play in improving energy efficiency of other

industry sectors, the products inevitably impose an environmental burden because

energy and other resources are used in their manufacture, distribution and use.

making it essential NSN work to improve energy efficiency and increase the use

of renewable energy through, product development processes integrate Design for

Environment principles to minimize impacts across the lifecycle, including End of

Life services.

In 2009, the company had launched Energy Solutions to help customers save costs,

energy and greenhouse gas emissions in their network.

b) Minimizing impacts of operations

In 2009, NSN stepped up efforts to cut energy use and related CO2 emissions

throughout the business. The priority in improving the environmental performance

of operations is to reduce our carbon footprint. The footprint of the company

operations includes CO2 emissions from energy use in our offices, manufacturing

and research facilities, and external data centres, from the transport of products to

customers and from their own business travel.

In 2009, NSN added a focus on logistics and information technology (IT) to their

existing work on reducing CO2 emissions from energy use in buildings. Emissions

from IT, including computers, other office equipment and data centre. The

company have quantified their IT footprint (which also includes some data centres

housed externally) and set a target to reduce it by 10 percent by the end of 2010

(from the 2008 baseline).

NSN has also cut down its business travel in 2009, reducing emissions from flights

by approximately 20 percent.

c) Suppliers and the environment

Nokia Siemens Networks is committed to reducing the impacts of their products

throughout their lifecycle. Promoting high environmental standards among their

suppliers is an important part of this commitment.

Environmental management systems:

NSN require suppliers to have a documented environmental management

system (EMS), which must be certified to environmental management standard

ISO 14001.They work continues with those suppliers who did not yet comply

with this requirement.

Working with suppliers to improve energy efficiency:

Cutting emissions related to energy use is a key part of NSN corporate

responsibility strategy. This includes our commitment to improve energy

efficiency in the supply chain.

The company have asked suppliers to set targets to improve the energy efficiency

of their operations and, where applicable, their products, beginning in 2010.

6) Mitigating corporate responsibilities risks

a) Code of conduct

In January 2009, NSN published a revised version of their Code of Conduct. The

Corporate responsibility Steering Committee regularly assesses adherence to the

Code and whether employees around the world are integrating the companies Code

of Conduct into their daily business activities.

The Code covers:

I. Human rights

The company respect the rights laid down by the United Nations’ Universal

Declaration of Human Rights, including:

Freedom from discrimination on any grounds

Freedom from arbitrary detention, execution or torture

Freedom of peaceful assembly and association

Freedom of thought, conscience and religion

Freedom of opinion and expression.

II. Ethical conduct

The company is committed to the highest standards of ethical conduct and full

compliance with all applicable national and international laws, including issues

such as:

Labour conditions

Antitrust and promoting fair competition

Prevention of bribery and corruption

Good corporate governance

Protection and recognition of copyright, company assets and other forms of

intellectual property

Privacy and data protection.

b) Ethics Training and awareness

All employees of NSN are expected to complete training on ethical business

conduct annually. The Code is available in 22 languages on our intranet and

external website, and an introduction to the Code is included in our induction

program for new employees. In February 2009, NSN introduced a new online

training program on ethical business conduct, designed to help employees identify

and solve ethical dilemmas they may face in real-life work situations, know who

they should ask for support, and where to report concern.

By the end of 2009, 82 percent of employees across the business had completed the

training up from 50 percent in 2008. Over 90 percent of employees in key target

groups, such as sales and procurement, have completed the course.

c) Reporting concerns

Employees and other stakeholders are encouraged to report any concerns about

unethical behaviour or suspected violations of the company’s Code of Conduct,

either openly or anonymously, with their line manager or local Human resource

department in the first instance (unless the concern relates to them), who can

address the concern or advise who to contact if escalation is required

Concerns can also be reported to the Office of the General Counsel. All reported

concerns are logged using case management tools, which also helps NSN monitor

developments in investigations.

d) Anti-corruption

Corruption not only distorts competition and fair trade, but it can have an

extremely negative impact on economic development in emerging markets. Recent

enforcement actions by regulatory and judicial authorities have increased the

perception that the telecommunications industry may be exposed to improper

business practices. Nokia Siemens Networks is committed to fight against any

corrupt practices in the industry.

In March 2009, NSN has appointed a Chief Compliance Officer, who takes up

anti-corruption program and works closely with the Ethics Officer to support the

employees in making business decisions that are legal, ethical and in line with the

values the company also have an Anti-Corruption Compliance Employee

Handbook available on our intranet. Which ensure that employees understand what

is expected of them in relation to the companies Anti-Corruption Compliance

Program. It includes guidelines to ensure their policies on gifts, entertainment,

sponsorships and hospitality are implemented, and helps the employees and

partners to prevent and detect bribery, corruption, conflicts of interest, and any

other unethical or illegal conduct.

e) Privacy

As access to wireless communications and the internet have become more

widespread, there has also been a worldwide increase in demand for technology

that can provide more control over what individuals send or receive. 

Communications service providers may require this control for a number of

reasons, including optimizing network traffic, complying with anti-pornography

laws, protecting individual privacy, addressing copyright abuse or limiting phone

and email spam and the spread of computer viruses.  .

As with any tool, administrations may abuse the access they have to

communications networks in ways that could compromise the human right to

privacy and confidentiality of communications. Nokia Siemens network condemn

such abuse and endeavour to minimize the potential, but the risk remains. We

believe it is possible to meet user requirements for privacy as well as the

requirements of society for public safety and protection against crime. Which can

only be achieved when authorities are transparent about the security mechanisms

that are in place, the rule of law is respected, individual human rights are

recognised and when clearly understood protocols, responsibilities, and processes

are followed. NSN encourage awareness of how communications networks can

potentially be misused by hackers, criminals or non-democratic forces. The

company is eager to work with governments, non-government organisations,

industry groups, and other parties to address these issues and to maximize the

benefits of communications technology while minimizing the potential for their

abuse.

f) Health, safety and labour conditions

Protecting the people who work for NSN and with NSN is a fundamental objective

that the company have worked hard to achieve since the formation of the company.

They do business in some difficult and challenging environments and the nature of

our business means that employees and contractors are involved in risky activities.

It is the company’s responsibility to ensure that we assess and manage risks

effectively but ultimately safety depends on a culture in which accidents are

unacceptable. The company is working to build such a culture so that everyone

accepts a responsibility for safe working. This is a long-term process which they

are determined to sustain regardless of financial conditions.

NSN ambition goes beyond avoidance of harm. They want to promote wellbeing

so that employees can make the most of their lives at work and at home. This

begins with providing decent labour conditions, respecting employees’ rights and

ensuring the company have effective policies to provide fair employment practices.

7) Radio waves and health

Mobile communications use electromagnetic fields (EMF) at radio frequencies –

radio waves. Some people worry that radio waves might be harmful which is also

pointed out by the world health organisation. Nokia Siemens Networks is engaged

in discussing about this together with governments, mobile network operators and

other stakeholders.

For the solution of the problem NSN monitor the latest scientific studies on radio

waves and health, and are involved in relevant scientific events. NSN is engage

with mobile network operators, customers – to raise their awareness of EMF

concerns and also provide detailed instructions to ensure they operate equipment

appropriately to keep local exposure within recommended limits. Nokia Siemens

Networks offers support and training for customers and also help them in

responding to concern.

There are many other activities of Nokia Siemens which is done for the well being

of either customers, society or for the nation as a whole. The company values all

the compliances which a company should follow for help making all their

stakeholders profitable.

AWARDS:

Nokia Siemens Networks is proud of its award-winning achievements, with more

organizations recognizing theirr innovative technology and leading edge business

practices.

1) June 2010

Mr. Antti Toskala of Nokia Siemens was honored with the ‘Award for individual

contribution to long term evolution (LTE) development’ in LTE award function.

2) December 2009

Nokia Siemens Network was awarded with the African vendor of the year for its

services and commitment to the African continent, in the commsMEA award

function.

3) December 2009

The Nokia Siemens Networks Flexi Multiradio Base Station won the Future

Mobile Green Awards 2010 from Juniper Research on December 1st for their

contributions to reducing the mobile industry’s greenhouse gas emissions, and

promoting environmentally sustainable business practices.

4) November 2009

Telco TV 2009 announced Nokia Siemens Networks as a Vision Award winner for

Innovation in Middleware with the company’s Interactivity Markup Language

(IML) Framework.

5) October 2009

The Connectivity Scorecard of NSN, the study of how the connectivity impact the

country’s economic and social developments, has won the International

Development category at the SUPERCOMM 2009 EOS Awards.

6) September 2009

Nokia Siemens Networks garnered two 2009 InfoVision Awards at the Broadband

World Forum in Paris, organized by the International Engineering Consortium

(IEC).

7) June 2009

Nokia Siemens Networks has won the Frost & Sullivan Telecom OSS Vendor of

the Year award in recognition of its strong growth and performance across Asia

Pacific during 2008.

8) April 2009

At CTIA (Cellular telecommunication industries association) Wireless 2009, the

Nokia Siemens Networks Flexi Multiradio Base Station was selected by a panel of

judges as the first place winner of the 4th Annual CTIA Emerging Technology

Award in the Green Network Hardware and Infrastructure category.

9) January 2009

Nokia Siemens Networks' Environmentally Sustainable Business initiative has

been nominated for an award in the Green Mobile Award category of the annual

GSMA Global Mobile Awards 2009.

10) May 2008

Nokia Siemens Networks Village Connection wins 'Excellence in Innovation'

Award at the 2nd TEMA (Telecom equipment manufacturers association) National

Telecom Awards .

COMPETITORS OF NOKIA SIEMENS NETWORK:

These are some of the top competitors of Nokia Siemens.

1) Alcatel-lucent.

2) Ericssion.

3) Orange.

4) Virgin mobile telecom.

5) Sun micro system

6) Hewlett-Packard.

7) Swiss com.

8) Hutchison whampoa.

9) KPN (koninklijke).

10) China mobile.

11) Huawei technology.

12) Telecom Austria.

13) Telephonica Europe.

14) NTT DoCoMo.

15) Telestra.

16) Deutsche telecom.

17) Belga com.

18) AT&T mobility.

19) IBM

20) M1 limited.

CHAPTER 3

ORGANISATIONAL STRUCTURE

Board of directors

Managing director

Telecom engineering services

Switching

Transmisson

Outside plant project

Power engineering

Tele civil construction

Telecom network services

Transmission

Switching

Statelite

International

Telecom business services

Nortnwest region

Northeast region

Western region

Southern region

Mobile telecom services

Technical support

Resource administration

Customer services

IT and data services

IT support

MM services

Customer services

HR managerAdministrative

and Finance manager

Operation and planning manager

Research and development

Engineering manager

Logestic and distribution

CHAPTER 4

FUNCTIONS OF DIFFERENT DEPARTMENT

Human resource department structure:

Head of Human resourse

Management

Assistant HR Manager

Recuritment

Reaginol HR Manager (EAST)

Reaginol HR Manager (NORTH)

Operations

Network HR Manager

Payroll Compensation and Benefit Manager

Strategy and sourcing HR

ManagerAdministration HR Industrial relation

Function of human resources department:

1) Recruitment and selection.

2) Talent management including succession/ career planning of employees.

3) Develop people management capabilities of managers/ team leaders.

4) Learning and development.

5) Employee’s engagement.

6) Taking care of Compensation, promotion, benefits etc of employees.

7) Participation in ongoing Human resource projects.

8) Responsible for the interpretation and application of the staffs rules, regulations

and procedures ensuring uniform applications in accordance with guidelines

from headquarters.

9) Providing advice to staff member on specific entitlements taking action locally

as appropriate ,or submitting recommendation for exceptions to DHRM

10) Ascertaining Human resource requirements for the office ensuring the timely

advertisement and filling of vacancies.

11) Participate in the selection of internal selection candidate and submit

appropriate recommendations interview and tests of new candidate, verifying

educational qualifications and previous employments records.

12) Organise and supervises the functioning of a local APPL, as appropriate,

ensuring adherence to the policies and procedures specified in the relevant

regulations.

13) Brief newly arrived on related administrations formalities and ensures all

arrangements made for onward travel, if applicable; supervise the prompt and

efficient processing of documentation for the arrival and departure of

international staff.

14) Control the maintenance of the personal records in the office .Monitor the

follow of correspondence between each sub/field office and headquarters,

ensuring that outstanding queries receive a timely response, after due analysis.

Maintain and monitor leave records and requests for overtime.

15) Participate in the preparation of submission for review by APPB and APPC for

the filling of post as well as for the promotion and the review of contractual

status of staff member.

16) Participate in the preparation of ROR/LOR submission.

17) Clear all the payments related to personal issues such as MSD/DSA hazard

pay/ MIP reimbursements/ medicals evacuations /travel cost etc for branch

office and on behalf of sub/field offices.

18) Provide support guidance and training to personnel staff as required.

19) Represent the office individually or as part of a team in meetings concerning

personnel issues.

20) Negotiates staff complaints and maintain harmonious relations with local staff

council.

Financial department structure:

Head of financial

management

Secretary/ Assistant

Associates

Accounting Keeping manager

Profit/ loss and cash flow

statement Balance sheet

Taxation manager

Fund management

manager

Working capital Long term funds

Reporting Manager

Maintainance

Functions of financial manager:

The financial manager is responsible for the entire finance of the project. Each and

every transaction related to cash or credit is responsible for the financial manager.

All the financial activities related to the business nature of the company is

monitored keeping in mind not to be below the breakeven point. The financial

manager have the command over all the areas of finance i.e, Accounting, auditing,

taxation, provided to the top management for the decision and policy making.

The responsibilities include:

1) Preparation of financial statements such as profit and loss account, balance

sheet.

2) Anticipation of fund requirements for the projects undertaken.

3) Acquisition of exact funds required for the projects to run.

4) Preparation of cash flow statements

5) The most important function of a financial manager is that he is responsible to

control as well as reduce the cost of funds and achieve organisational goals by

using appropriate mix of debt and equity.

6) Manage all the activities related to funds in the organisation.

7) Arrangement of short term and long term funds.

8) To make financial feasibility of projects by checking the net present value or

discounted cash flow of a particular project.

9) To focus on cost minimization and profit maximization.

10) Taking important investment, financial, and working capital decision.

11) Making financial reports timely.

12) Analysing the future earning or expenses.

13) Forecasting the organisational financial position.

14) Manage firm’s assets structure, financial structure and cash flow.

15) Evaluate and implement strategies.

16) Ensure resource and protect it from waste.

17) Find out discrepancies in accounting statements and get it corrected from

subordinates and help subordinates when they need help in their job.

18) The financial manager is also responsible for suggesting managements on the

profitability of expansion/ new projects within the organisation or investment

outside the business.

Engineering department structure

General engineer

Assitant general manager/ District

engineer

Principal/senior civil engineer

Administrative analyst

Administrative assitant

Design and construction

Principal engineer-- Supervisor

Associate civil engineer

Assitant engineer Construction inspector

Administrative assitant

Pllaning and permitting

Senior civil engineer

Associates and junior engineers

Engineering technician

Administrative asitant or

representative

Functions of a engineering department

1) Wireless Network Base Station power equipment/system design and

installation.

2) Determine the power consumption for a facility containing communications

equipment.

3) Analyze the electrical protection requirements and design the electrical

protection layout for a wireless telecommunications facility.

4) Installation/ operations and maintenance Diesel Generator set etc.

5) Perform operations and maintenance of all power systems related activities

like preventive and corrective maintenance and troubleshooting.

6) Perform the design, installation and testing of solar systems equipment.

7) Provide alternative energy sources to wireless communications facilities.

8) Design, Planning, Installation operations and maintenance of Back-up

Storage Batteries.

9) High Voltage Engineering, Electrical Installations, Power transmission and

Distribution Systems, Power system protection and support, Alternative

Energy Solutions, HVAC.

10) Undertake all work in accordance with required technical and quality

standards, selecting and using appropriate methods and tools in order to

achieve well-engineered product which exhibit the necessary attributes such

as fitness for purpose, reliability and cost effectiveness.

11) Document all work using appropriate standards, methods and tools,

including prototyping tools where appropriate.

12) Prepare, or contribute to, project and quality plans taking account of the

requirements for functionality versus the constraints of time, cost and

quality

13) Give technical leadership to small teams. Planning, estimating, controlling

and reporting on work performed accurately and effectively in order to

achieve targets.

14) Carry out full impact analysis of new software releases and recommends

upgrade plans. Reviews upgrades and fixes available from system software

suppliers and identifies those which merit action.

15) Investigate potential and actual service problems and recommending

solutions.

16) Develop and use formal procedures to plan and test proposed solutions.

Develop and use procedures for collection of critical information in the

event of system failure.

17) Analyse documentation, storage dumps and logs relating to system failures

to identify the failing component. Isolates failures and recommends actions

to circumvent problems and enable the restoration of services with

minimum business impact.

18) Ensure that operational documentation for relevant system products is fit

for purpose and current. Provides advice and guidance to systems

development and service delivery start on the correct and effective use of

system software

19) Monitor system efficiency against published service level agreements.

Monitors both resource usage and failure rates of installed systems and

provides detailed feedback to management.

20) Produce procedures such as the CM plan, defect/problem reporting

procedures, change control procedures, etc, ensuring their compatibility

with prescribed standards

CHAPTER 5

SWOT ANALYSIS OF NOKIA SIEMENS NETWORK

Swot analysis means the strength, weakness, opportunities and threats of the

company. This analysis helps to have a quick view on the company’s position in

the market.

The swot analysis of Nokia Siemens network is:

Strength:

1) As Nokia Siemens is a company formed after the merger of the two

companies (NOKIA OF FIND LAND and SIEMENS AG OF

GERMANY), this means the company has access to knowledge and

technologies from both the companies. This sharing of knowledge and

technologies has strengthened the base of Nokia Siemens.

2) On April 2010 Nokia Siemens had started manufacturing 3G mobile

communications infrastructure, with this move Nokia Siemens became the

country’s 1st telecommunications infrastructure vendor to manufacture 3G

product in India.

3) For Nokia Siemens network the acquisition deal of Motorola allows it to

get a bigger traction in two key markets – the United state and Japan. With

this deal Nokia Siemens became the 3rd largest infrastructure provider in

U.S and 2nd largest in worldwide.

4) Nokia Siemens have high quality products and services which the company

provide to customers in an innovative way which creates new wants and

demands in the market, it is considered as the largest cellular provider in

India

5) The company has high quality professionals teams in human resources

development department, and also it has best research and development

facilities with over appromaxtely 16000 people working.

Weakness:

1) The acquisition of Motorola required an investment of $1.2 billion which is

considered to create some problems for Nokia Siemens because to cover

this cost Nokia Siemens is deciding to cut down the number of

employments which will lower down the motivational level of the

employees and thus the goodwill/ image of the company in the market may

drop.

2) Nokia Siemens have tough competition among Huawei and Ericcson which

hampers the market share of Nokia Siemens.

3) The bribery scandal in Siemens involving many executives members is the

main weakness for Nokia Siemens as it reflects to the image of the

company.

4) The financial area of Nokia Siemens is also not very good although it is

consider as the market leader because it is seen that in 2009 the revenue of

Nokia Siemens was $17.6 billion an almost 18% decline over 2008 and in

1st quarter of 2010 the revenue is $3.62 billion almost an 9% decline from

2009.

5) Inconsistent market positioning.

Opportunities:

1) Nokia Siemens village connection is an innovative approach to provide

access and extending coverage in rural areas, this is the profitable

opportunity of Nokia Siemens which will increase its market share.

2) The acquisition of Motorola Company has opened lots of opportunities for

Nokia Siemens; NSN got a hold in Motorola’s Wimax business which has

41 deals in 22 countries.

3) Nokia Siemens has an emerging market in BRCI (BRAZIL, RUSSIA,

CHINA, INDIA) countries, it is earning high growth rate in this countries.

4) The prices of 3G devices are falling sharply, global demand for broadband

and internet access is booming. By 2015 it is surveyed that 5 million people

will be connected via communication network so Nokia Siemens will be

having a good opportunity to capture the market faster and easier.

5) As the company is committed to innovation and quality product and

services the company will be able draw demands of the consumers from the

rival companies. And thus the market position will be high.

Threats:

1) Nokia Siemens has to tackle with other mobile companies in the market to

maintain and for its growth.

2) There is a threat like cheaper and newer services, features, technology etc.

3) Product substitution.

CHAPTER 6

SPECIAL TASK

A SPECIAL TASK ON THE LAYOFF OF THE EMPLOYEES OF NOKIA

SIEMENS NETWORK:

Nokia Siemens, a market leader in telecommunication industry has announced the

acquisition of Motorola Inc. The wireless infrastructure by the end of 2010 for $1.2

billion which the company is decided to pay through its cash reserve.

As the company has planned to pay for the acquisition of Motorola’s infrastructure

through cash, the company is under the financial crisis it is now running short of

finance. Moreover after the acquisition Nokia Siemens will hire Motorola’s 7500

employees and transfer to its business worldwide. This decision of Nokia Siemens

to pay $1.2 billion through cash and hiring of Motorola’s employees have lead the

company to take a rough decision to lay-off (reduction in company’s workforce in

response to temporary or long-term strategy or economic condition) its employees

in order to cut down the burden of high cost.

Nokia Siemens in 2009 had a total of 64000 employees worldwide but due to

recession the company layed-off approximately 5% to 7% employees worldwide to

boost up the rough financial time, and now in 2010 the company is deciding to

layoff around 9000 jobs globally to annually save $655 million by 2011.

This decision of Nokia Siemens has created an environment of tension and

confusion among the employees because the company is not clear about which

jobs/ position the layed-off will be taken, on what criteria the employees will be

out of job, whether for temporary or permanent basis the company is not clear

about. The company is also not clear about that how many employees from each

country/ state should be layed-off, the employees do not have any information

regarding on what basis the jobs will be slashed down this is the main cause of

tension among the employees.

This negative impact has a negative impact on the employees, the behaviour and

the feelings of the employees observed due to layoff are:

1) Greater employee insecurity

2) Higher stress

3) Less team work

4) Feeling of heavier workload

5) General feeling among all employees that they are less valued.

6) Low motivation.

7) Pressure of searching a job beforehand.

8) Frustration.

9) The employees who will remain will not credit the company.

10) Doing all possible things like punctual, no leave, etc to avoid the lay off.

It is been noticed that this layoff will be having certain advantages and

disadvantages on the part of both the company (Nokia Siemens) and the

employees.

The advantages are:

1. Severance benefits—The laid-off employees in the Nokia Siemens will

be offered various severance payments or packages containing several

month of salary plus pay for unused vacation time.

2. Bonus—The employees will be given some amount of bonus to leave

the job.

3. Cash payment—The Company will pay the employees in cash those

who will agree to leave by themselves.

4. Career management—Through this the employees who want to change

their their employer and career path can easily go for this procedure.

5. Important for the company—This procedure will help the company to

infuse employees from Motorola who know better how to perform with

their wireless infrastructure.

6. Innovation—The layoff will give the company to hire new and fresh

blood in Nokia Siemens, who will be having new ideas, creativity etc

which will be beneficial for the company.

The disadvantages are:

1. Frustration—The announcement made by Nokia Siemens to cut off the jobs

has lead an environment of frustrations not only among the employees of

lower level, but the higher level employees are also tensed as the

employees do not know which position will be layed off. And also the

company is tough situation because they have to handle grievances of the

employees.

2. Loss of skilled employees—The company will be have to face the problem

of hiering unskilled employees. As the employees who were been working

for the company and had full experience will be layed off.

3. Problem of reemployment—As the company will require employees in

future, the company have to face all the problems related to recruitment and

selection of best employee again.

4. Unemployment—This layoff will create unemployment in the country and

also this procedure can lower the image of the company.

Rights of employees during layoff:

In the event of layoff it is important that the employee should know the voluntary

and mandatory obligations of the employer/ company. The employees should have

the idea about all the severance packages that they can receive at the time of layoff,

this can include 2 weeks to 6 month pay of the current salary plus payments for

unused vacations and sick days. The employees should be aware that the layoff

makes the company obligatory that they should offer “outplacement services” to

the employees such as career counselling and access to office equipments (phone,

fax, computer, etc) in order to assist the employee to search job. The employees

who will face the layoff should know the federal and state laws that the company

must comply with such as workers adjustment and retraining notification act, title

V11 of civil right act, the age discrimination act and many other acts to protect

their rights. Employees should know their rights in case a layoff occurs regardless

of the reason of layoff.

1) State Unemployment—Employees who undergo a decline in hours or a layoff

might be eligible for state unemployment benefits. The employee has to file a

claim with his state unemployment office to receive the benefits, which vary by

state. Typically, unemployment benefits include a weekly payment, opportunities

for job training, help with job searches and other employment assistance to

qualified individuals. Unemployment eligibility also varies by state but usually

requires that the employee was employed for a specific time frame, earned at least

the minimum amount during this period, and is willing and available to work. The

unemployed worker can usually collect benefits up to a year.

2) COBRA—COBRA stands for Consolidated Omnibus Budget Reconciliation Act.

Under COBRA, employers with 20 or more workers who were offered group

health insurance benefits must temporarily provide these benefits to employees and

their beneficiaries during a qualifying event, such as a layoff. COBRA only applies

to health insurance, not disability insurance or life insurance. The employee has the

right to purchase insurance under COBRA for up to 18 or 36 months.

3) HIPPA—If the COBRA benefits expire before the employee gains coverage from a

new employer, he might be able to purchase insurance under a new plan through

the Health Insurance Portability and Accountability Act. HIPPA laws protect the

employee from being subject to high premium increases and plans that include a

limitation or exclusion of benefits for a medical condition.

4) Wrongful Termination—According to Employeeissues.com, wrongful termination

typically refers to unfair discharge of an employee. Consequently, the employer

cannot illegally fire an employee under the guise of a layoff. For wrongful

termination to occur, the employer must illegally discharge the employee. For

instance, if the employee is discharged because of his gender, the discharge is

illegal and constitutes wrongful termination.

5) WARN—Under the Worker Adjustment and Retraining Notification Act (WARN),

specific employers must give employees 60 days notice before a mass layoff or

office closing. The notice must be given to the workers or their labor union.

Coverage extends to companies with 100 or more workers, except for part-time

workers; or 100 or more employees--including part-time workers--with a total of

4,000 hours per week, excluding overtime. A mass layoff refers to employment

loss at an employment site (excluding office closing) during a 30-day time frame,

which affects at least 50 employees who make up at least 33 percent of the active

workers, excluding part-time employees.

6) Pay—generally, employees are entitled to their final pay check immediately or

soon after the layoff, such as the next pay date following the layoff effective date.

The employer should check with his state workforce agency on final pay laws,

which vary by state.

Here are some general rules that the employer/ company should take in mind

while lying off the employees so that they are not in loss or cannot be sued by

employees:

1) The Company should first see all the possible alternatives that can reduce

their over cost burden before lying off people such alternatives could be

cuts in the compensation for temporary period accomplished by reduction

in basic pay, overtime, or bonuses, shortened work weeks, unpaid vacation

and leave of absence or reduction to employees benefit.

2) Another step to avoid mitigate layoff include hiring freeze coupled with

transfer ( and if necessary retraining) of workers into job openings in other

parts of company, bringing into the company subcontracted work,

accepting lower profit work which no company favours, having employees

performing other useful task which was postponed cue to prior heavy

workload.

3) When layoff is impossible to avoid then seek employees to leave the

company through either voluntary separation or early retirement

accomplished by offering financial incentives e.g.; cash, health insurances

other benefits etc.

4) Seek council from the company’s city attorney- the company should know

all the federal and state laws governing the layoff of employees like

workers adjustment and retraining notification act, older workers benefit

protection act and many others also plan to spend some quality time with

the city attorney.

5) Study the rules and regulations of the company regarding the layoff

properly and act accordingly, re-read the bargaining unit contracts.

6) Recognise that it’s the economic condition forcing the company to take

such step and do not let the employees feel that its their bad performance.

Show employees how they are important to the company value them.

7) Don’t be bias or show favouritism to any employees while lying off the

employees.

8) Pay severances according to the title in the company and the length of

services.

9) Consider usefulness, skill of the employees. Do not throw employees who

are very important for the company.

10) Consider the future of the company, which project the company is focusing

on now and in future.

So to conclude their is only one problem seen for the layoff to cut cost burden but

this step of the company will be much costlier than keeping back the employees

because the company is going to provide some amount of cash, benefits, bonuses

to leave the company. Instead of this the company can cut salaries, reduce benefits

and focus much more in work so that this tough time can be handled properly with

the help of work force. Lying off will reduce the goodwill of the company as the

survived employees will be less motivated and work out of fear.

CHAPTER 7

FINDINGS SUGGESTIONS AND CONCLUTIONS

FINDINGS:

These are some of the findings which was recognised during the study of the

organisation.

1) Nokia Siemens on July 1st had acquired the wireless- network equipment

division of Motorola; this acquisition has helped Nokia Siemens to have a large

hold in Motorola’s Wimax and a strong global footprint in CDMA.

2) It has been analysed that appromaxitely 7500 employees of Motorola are

accepted to transfer to Nokia Siemens and some percentage of employees of Nokia

Siemens will be layed off so as to appoint the employees of Motorola and to cut

down its acquisition cost of $1.2 billion which they had financed from their reserve

cash and credit facilities available.

3) In 2009 Nokia Siemens decided to lay off 7% to 9% employees and the

company had also planned to shrink its departments from 5 to 3 organisations till

the end of 2010.Due to this the employees are losing the faith on the company and

their motivational level is also lowered.

4) Nokia Siemens has seen dwindling profits in recent years which has been

worsened by the global economic down turn.

5) Nokia Siemens have many problems related to Nokia Siemens router and

also port forwarding issues in C2110 ADSC modem and utorrent.

6) Although of many problems Nokia Siemens is committed to social causes

like providing education, taking care of health and safety of employees, emergency

and disaster relief reduction of emission of CO2, increasing energy etc.

7) There are many issues related to the connectivity failures of Nokia

Siemens.

8) Nokia Siemens have 47 research and development offices all over India

located in Bangalore and Mumbai.

9) The village connectivity particularly in Bihar, Uttar Pradesh, and Haryana

etc is considered to be a profitable market for Nokia Siemens. The company can

earn a strong consumers base in the rural market.

10) Nokia Siemens Networks is providing its multi-screen IPTV platform that

allows the operator to deliver high-definition video and advanced capabilities

including personal video recording (PVR), faster channel change speed and

personalized, third party apps.

11) The company have a very stringent method of recruitment. An applicant

has to go through a number of steps in order to be selected, the company also have

promotional polices to be abided by all employees in order to seek promotion.

12) Nokia Siemens have around 30% market shares in India.

13) Nokia Siemens is the 1st telecommunication infrastructure vendor to

manufacture 3G product in its Chennai facility.

14) Nokia Siemens has the contract from Aircel to build and operate Greenfield

GSM network in India, the value of which is RS 300 crore.

15) Nokia Siemens will invest USD 100 million in India to develop a strong

telecommunication environment in India and to address to the growth of Indian

mobile industry.

16) Nokia Siemens is clear market leader in its “wave length division

multiplexing” deployment of 40 gigabit per second with a total market share of

35%.

17) Nokia Siemens is able to reduce the gap between pre-paid and post paid by

launching “charge@once unified and charge@once business as a part of its

convergent unified charging and billing solution.

18) Nokia Siemens had to face many times the problem related to poor

redressal facilities for the consumers, the consulting services is not proper.

19) Nokia Siemens takes immediate action for any corruptions occurred. The

employees should not take any gifts, cash etc as it is considered as bribery.

20) As it is a private sector organisation, government intervention is much. The

acquisition and merger procedures are strictly adhered by government regulations

so that it cannot affect the country’s growth and development.

SUGGESTIONS:

As there are many problems seen related to employees, customers, products and

services. Here are some suggestions that could be implemented in the company to

tackle those problems efficiently.

1) As Nokia Siemens is deciding to cut down the number of their employees

to reduce the burden of the cost they used for the acquisition, the company can use

some other strategies like optimum utilisation of resources, reducing the cost of

production, minimization of wastage, recycling etc.

2) The company can provide proper redressal facilities to the employees so

that any greviencies or violation of the rules and regulations of the company can be

easily known to the concern person and thus these could be handle immediately

and effectively.

3) The employees should be encouraged and should be motivated to raise

questions confidentily and to report on issues relating to the code of conduct to

their line manager or the representive of the senior manager through an electronic

channel developed in the company’s website.

4) To tackle with the connectivity problem of the company’s network. Nokia

Siemens can implement a connectivity scorecard programme in the company

quarterly or annually. This connectivity scorecard will provide that how the

company’s infrastructure is performing and if it is not doing well it will provide

some effective suggestions as well.

5) The company is also seen to be in financial crisis so to overcome this the

company can strengthen its base in the rural market where the company can earn

more and more profits due to increase number of demand. Although the products

and services will be provided in cheaper rate but the company will be profitable as

the sale volume will be high.

6) The company should advertise about the “customer’s login” facilities where

the customers can address their grievances. As there has been seen there is 3

customers login facilities but not much customers know about this facilities.

7) It is noticed that the prices of the 3G products will fall in recent year so the

company should focus more in the production of 3G so that they can grab more

customers in the market and thus increase their market share.

8) There is only few number of consulting service offered, so the company

should increase the number of consulting services in order to reduce the unwanted

problems faced by the customers.

9) The company should work for more social causes in order to gain a good

reputation, image which was hampered by the news that the Siemens AG

employees were involved in the bribery scandal. There should a strict

implementation of rules and regulations which should be equal for all whether

employee of higher level or lower level.

10) As the company is running short of money, they can use their debt funds,

sell unwanted assets, keep in hold to the creditors, use funds from bill receivables

and also the company can raise funds from long term loans which will be payable

after 2 to 3 years.

CONCLUSION:

Nokia Siemens network is the company formed after the merger of two companies

“NOKIA of FINLAND “and “SIEMENS AG of GERMANY” has a strong base of

technical knowhow and knowledge from both the companies. The company had

seen many ups and downs due to its financial crisis and had run its business even

though the company was in loss. And in 2010 from its second quarter Nokia

Siemens is showing an increase in its profitability.

Nokia Siemens had earned many awards for its good performance like “future

mobile green”, “long term evolution”, “info vision” and many more. The company

is committed to provide more high quality products and services and more

creativity and innovation. Nokia Siemens now-a-days are much more focusing in

providing connectivity infrastructure in the village areas so as the people of rural

areas will have better access to the communication facilities and ear profitability.

Nokia Siemens has now a strong hold in Wimax, CDMA and 3G products. Nokia

Siemens also creating an idea of having a sustainable business, building corporate

responsibilities which will not only be taken care by the company but the entire

stakeholder of the company like customers, suppliers, operators, employees of all

level.

Nokia Siemens runs its business following some code of conducts which covers

human rights, protection to environment etc. It does not violets any rules and

regulations applied by the government of India. Although Nokia Siemens had

faced many unwanted circumstances it was always able to overcome. The

company has helped the Indian telecommunication industry to have a profitable

market share and it had also lead to the growth and development of the nation as a

whole.

BIBLOGRAPHY

Company records and magazine.

WWW. Google. Com

WWW. Nokia Siemens. com