MPLS VPN Service. Spice Telecom - Mobile Multimedia through MPLS. Case Study

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1 Case Study MPLS VPN Service Spice Telecom - Mobile Multimedia through MPLS Mobile communications is one of the most competitive industries in the world. Service companies live or die based on their abilities to develop the hottest new devices, support the widest variety of applications, and provide the best phone coverage at the lowest cost. Spice Telecom is one of the leading in mobile telephony provider in India, attracting millions of sophisticated consumers to its full line of mobile devices, attractive rate plans, and the latest in value added services such as music and ringtone downloads, live radio broadcasts, and over 12 television channels. Spice Telecom knows that technology and creativity gives an edge in the marketplace, but dependable and affordable service is the bedrock for success. Today Spice is one of the top GSM service providers in India, poised to expand throughout the region.

2 Spice Business Challenges Only a few years ago, Spice Telecom looked to upgrading or replacing its legacy communication infrastructure. The company needed a service platform that could accommodate the many other value-added services it hoped to introduce with a rapid time to market. The older system was costly, low performance and limited in this regard. Spice sought a solution that could accommodate multimedia solutions other than mobile telephony, aid in its expansion of PAN- India service coverage, and bring down the average cost per call. Also, in terms of maintenance and operations, Spice felt the current system was too costly and potentially unreliable over the long run. In short, the platform had outlived its usefulness. The company needed a scalable, multimedia-ready, and highly reliable service infrastructure that was more cost-effective than its legacy system all this was quite a challenge. And to insure customers were not inconvenienced, migration to the new solution would have to be totally seamless with no major service outages or interruptions.

3 Tata Communications Innovative Information Provider Approach As Spice Telecom took on the challenge with its innovation information provider approach Tata Communications joined their mission. Tata Communications and Spice IT team examined the Spice infrastructure from the top down: first, they evaluated the voice traffic history on the existing network, and then evaluated the upcoming service offerings and growth projections. Based on this extensive analysis, both teams jointly came up with an entirely new infrastructure that would provide maximum flexibility and scalability yet cut the current costs. The new infrastructure was designed around three major MPLS hub sites Chandigarh, Bangalore, and Dehli while additional co-located IP routers and media gateways were distributed throughout the country. All international calls were routed through the Delhi site where an international gateway hub resides. As a result, Media gateways in each region now translate TDM traffic to IP and vice versa and route the voice and multimedia data appropriately. All the hub sites are provisioned using dual last miles to eliminate any single points of failure in the system. Meanwhile, Tata Communications' flexible bandwidth assignment using traffic prediction techniques and traffic flow control saves Spice Telecom bandwidth costs. This along with co-location of media gateways and routers rather than housing and support of its legacy system also saves the company a tremendous amount of capital, in addition to increasing the overall uptime of the network. Spice Telecom also benefits from the competitive service level agreements from Tata Communications. Our customers are assured of the highest quality calls and great reliability, said Mr. R K Singh, President, Projects at Spice Telecom. This new network infrastructure not only delivers the best service, but has also drastically cut our delivery costs. Tata Communication's one-stop solution for Spice Telecom included network infrastructure and flow controls, co-location space, and global connectivity. The transition from the legacy system to the MPLS platform was a tremendous success.

4 Time-to-market is a key factor in this industry. We know that we can depend on the Tata Communications MPLS network to deliver quickly and efficiently when we need it. Mr. R.K. Singh, President - New Projects Partners in Success Replicating Success Tata Communications and Spice worked together in partnership mode to understand the challenges and devise the best fit solution, which enabled Spice to achieve key benefits including: Increased focus on the launch of lot of localized content & unique Value added services Increased Customer Base through bundled offerings including flexi-tariff plans with aggressive pricing strategies PAN India expansion in the GSM Mobile Space Rapid Time to Market- Key Driver for today's mobile market growth Because the new MPLS service platform has delivered such rock-solid performance and scalability in its initial stages, Spice Telecom is looking forward to replicating this success throughout the region, adding as many new subscribers and patrons as possible with additional gateways. Time-to-market is a key factor in this industry, Mr. R K Singh further commented, We know that we can depend on the Tata Communications MPLS network to deliver quickly and efficiently when we need it. With the highly scalable and flexible bandwidth capabilities of the Tata Communications MPLS backbone, Spice Telecom is a solid mobile solutions provider today and will undoubtedly continue its success far into the future.

5 Conclusion Business Challenges of Spice Telecom Business Benefits of Adopting Tata Communications MPLS Service Bringing down the average cost incurred per voice call. Nearly 50% reduction in costs : Increased Customer Base through bundled offerings including flexi-tariff plans with aggressive pricing strategies. Migrating from legacy systems to a next generation high performance infrastructure capable enough to handle VAS solutions other than the mobile telephony services. New network enables unique value- added services and localized content Rolling out PAN India distribution & service coverage, easy international expansion. PAN India expansion in the GSM Mobile Space with new infrastructure : Partnerships with global service providers. Exploring an innovative, cost effective, reliable & scalable mobile backbone solutions. One-stop solution provider: Superior fault tolerance and disaster recovery.

6 For more information on Global VPN Services, visit Tata Communications, a member of the $62.5 billion Tata Group, is a leading global provider of a new world of communications. The emerging markets communications leader leverages its advanced solutions capabilities and domain expertise across its global and pan-india network to deliver managed solutions to multi-national and Indian enterprises, service providers, and Indian consumers. Tata Communications range of services include transmission, IP, converged voice, mobility, managed network connectivity, hosting and storage, managed security, managed collaboration and business transformation for global enterprises and network, with connectivity to more than 200 countries across 300 POPs, and more than 1 million square feet of data center and colocation facilities. Tata Communications unique emerging market depth and breadth of reach includes a national fiber backbone network and access to network in over 60 cities and 125 POPs in India, strategic investments in South African converged services operator, Neotel, Sri Lanka and Nepal and, subject to fulfillment of conditions precedent, a 50% o w n e r s h i p i n C h i n a E n t e r p r i s e Communications (CEC) providing full country VPN coverage in China. Servicing customers from its offices in over 80 cities in 40 countries, India, the Company was named Best W h o l e s a l e C a r r i e r a t t h e W o r l d Communications Awards in 2006, Best Pan- Asian Wholesale Provider at the 2006 and 2007 Capacity Magazine Global Wholesale Telecommunications Awards and was awarded Best Progress in Emerging Markets at the 2008 Mobile Communication Awards. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange (NYSE: TCL).