The Hindu Business Line : Broadband is a wireless challenge

An IT manager now fully recognises that the speed and performance of the network is as much an element of the passive infrastructure as it is the active, says K. Bala Chandran of ADC Krone.

Delivery of high-speed Internet, data, video, and voice services hinges on networks. And ADC is a big player in the field of network infrastructure products and services. Founded in 1935, the company `holds thousands of patents,' as one learns from www.adc.com.

`Telecommunication service providers, wireless operators, broadcast operators and Fortune 500 enterprises around the globe' use ADC's products and services. The company has sales, manufacturing and development offices in 35 countries; sells into 140 countries; and employs more than 8,000 professionals.

ADC acquired Krone Communications Ltd in 1989. "Established in Berlin in 1928 as a specialist company for wired data and telecommunication network technology, it is recognised today as one of the leading suppliers of line technology components worldwide," is a snatch about Krone from www.kroneindia.com.

Meet K. Bala Chandran, Managing Director (India & SAARC), ADC Krone. He has played a key role in positioning ADC, through the Krone acquisition, as an important player in the network infrastructure space covering copper, fibre and wireless within the Indian market, and also expanded the company's operations into cabling infrastructure for enterprises.

Currently, he is leading a few `thought leadership activities' relating to `active infrastructure sharing' for rural connectivity. Here are Bala Chandran's answers to a few questions from eWorld:

How big is India in the global pie of ADC Krone's sales and employee strength?

Currently, the India revenues form 1.2 per cent of global revenues of $1.3 billion. However, India holds a strong potential for growth in the communications and IT (information technology) sector. Of the 8,500 employees in ADC globally, India houses about 240 employees, of whom 120 are in operations and `go-to-market', and the balance at our `shared services' entity.

Has the Indian unit been active in IP creation in the company? In what areas? Details of patents filed lately?

Through many software development projects, over the last five years, the Indian unit has been contributing to ADC's intellectual property by adding value to a wide range of products. Our focus has been on timely, high-quality product development rather than generating patents. In the future, we expect to increase our activities in these areas and expect to patent some of this innovation. Areas include, network management (services, clients and agents), embedded software for subsystems and systems, planning and development tools.

Is there a continual audit of patents owned by the company, to ensure their optimal utilisation? What is the methodology of monitoring the same?

The company continually audits its patent portfolio, primarily by business unit. Each business unit has a patent review committee comprising product management, engineering management, and legal departments. The committees meet quarterly, and make decisions on priority and international patent application filings, and the prosecution, issuance, maintenance and enforcement of the business unit's patent rights.

What have been the major turning points in the cabling industry in recent times?

The advancement of technology from fast Ethernet to gigabit Ethernet, and recently to 10 Gigabit over copper, has been the major turning points. Besides technology, there are two other turning points that the markets have experienced. First is the importance of cabling infrastructure that is being given by an IT manager today. An IT manager now fully recognises that the speed and performance of the network is as much an element of the passive infrastructure as it is the active. The second turning point is the proliferation of LAN networks into the small and medium enterprises. It is difficult to imagine any enterprise that does not exist on a LAN.

Today we see that 10 Gigabit Ethernet over UTP (unshielded twisted pair) is the next significant advancement in the structured cabling industry. 10G and intelligent cabling (PLM or physical layer management) are two new solutions that are catching up. Intelligent cabling (PLM) will reduce the cost of network ownership by solving issues like unplanned downtime, inefficient manual moves, adds and changes, redundant ports, inaccurate records etc. It increases the network management efficiency and network security considerably.

How do you promote invention and innovation within the company?

The basis of our success is centred around creating extraordinary customer relationships. Although at the surface it seems tactical in dimension, creating such a relationship with the customer really opens up opportunities to innovate, keeping the customers' benefit in mind. The customer's confidence in our execution capabilities more often than not ends up in their seeking solutions to their deeper problems. It is this platform that presents opportunities to innovate which then gets discussed internally for an appropriate response. We therefore, view innovation as something that goes beyond just products and instead explores opportunities to add value to the customer's business.

Are there specific skills that are in short supply in the industry? How do our skills compare, as against the best of breed?

I think that talent base and talent potential in India is vast and is available with a sound academic base. What is required is a strong link between industry and institution to leverage academic excellence into strong functional capabilities within the organisation. In terms of comparative skills at all levels, India compares amongst the best of breed but is not recognised simply because of a lack of exposure on a trans-national basis.

What fiscal changes does the industry look forward to in the forthcoming Budget? Are there also other policy and legal issues that need ironing out?

A key policy issue would be to further the cost of local manufacturing. Although global majors have committed themselves to manufacture in India, the food-chain has to be deeper at a component level and this is related to anomalies in tariffs and commitments to improve general supply chain-related infrastructure.

The Indian telecom market has witnessed robust growth in mobile subscriber base with over 1.5 million mobile subscribers being added every month. Reduction in tariffs and cost of handsets, which essentially makes the service very affordable for the user, has supplemented the growth of the Indian telecom sector. The Indian government has been very proactive over improving and attending to the infrastructure needs in the country, and we are looking forward to the budget which offers allocation of more funds, bigger outlays, adequate incentives to investors willing to invest in network infrastructure projects.

Have you lined up new product launches for 2007?

ADC Krone is a global network infrastructure solutions company. We cater to the enterprise and telecommunication markets by offering structured cabling products and connectivity and wireless solutions respectively. In 2007 we intend to launch our new entrant to our TrueNet portfolio (structured cabling) called the TrueNet PLM. It's the intelligent PLM solution to manage, monitor and maintain a vast and big network with the help of software. We do have more solutions lined for launch that will be announced in the future. Within the telecom space, our focus will be to design and deliver solutions that are based on technologies that lend themselves to active infrastructure sharing.

Is ADC KRONE scanning the deal space for acquisitions?

Because ADC is a global network infrastructure company, inorganic growth is definitely a part of the global growth strategy. However, this is dealt with and assessed at a corporate level rather than at a country level.

MuraliDe@gmail.com

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