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

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

1. Asia Pacific

Australia Korea Sri Lanka

Bangladesh Malaysia Singapore
India New Zealand Thailand
Indonesia Philippines Vietnam
Japan

2. Greater China

Shanghai Hong Kong

Taipei Beijing

3. Latin America

Argentina Colombia Peru

Brazil Ecuador Venezuela
Chile Mexico

4. Middle East and Africa

Afghanistan Lebanon Senegal

Algeria Libya South Africa
Angola Mali Tanzania
Bahrain Morocco Tunisia
Cameroon Mozambique UAE
Egypt Namibia Uganda
Ethiopia Nigeria Yemen
Jordan Oman Uzbekistan
Kyrgyzstan Pakistan
Kenya Qatar
Kuwait Saudi Arabia

5. North America

U.S Canada

6. North East

Armenia Finland Russia

Azerbaijan Kazakhstan Sweden
Belarus Latvia Turkey
Denmark Lithuania Ukraine
Estonia Norway

7. West South Europe

Austria Greece Portugal

Belgium Hungary Romania
Bosnia Israel Serbia
Herzegovina Italy Slovakia
Bulgaria Ireland Slovenia
Croatia Luxembourg Spain
Czech Netherlands Switzerland
Republic Poland United
France 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

Administrative
HR manager and Finance
manager

Research and
Operation and development
planning manager

Engineering Logestic and

manager distribution

Telecom Telecom network Telecom business Mobile telecom IT and data

engineering services services services services services

Nortnwest Western IT support

Technical
Switching Transmission region region support
MM services
Northeast Southern
Transmisson Switching region region Resource
administration Customer
services
Outside plant Statelite Customer
project services

Power International
engineering

Tele civil
construction
CHAPTER 4

FUNCTIONS OF DIFFERENT DEPARTMENT

Human resource department structure:
 Head of Human
resourse
Management

Assistant HR
Manager

Strategy and
Compensation and
Recuritment Operations Payroll sourcing HR Administration HR Industrial relation
Benefit Manager
Manager

Reaginol HR Reaginol HR Network HR

Manager (EAST) Manager (NORTH) Manager
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 Fund
Taxation Reporting
Keeping management
manager Manager
manager manager

Profit/ loss and

Working Long term
cash flow Balance sheet Maintainance
capital funds
statement
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 Design and Pllaning and

civil engineer construction permitting

Principal
Administrative Construction Senior civil Engineering
engineer-- Assitant engineer
analyst inspector engineer technician
Supervisor

Administrative
Administrative Associate civil Administrative Associates and
asitant or
assitant engineer assitant junior engineers
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 3 rd 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