Ringing in a vas strategy
After losing out in the race to add millions of new customers, Ratan Tata has decided that apart from boosting Tata Tele’s subscriber base, he will focus on the more-profitable, higher-margin value-added services By devdeep singh
“We were perhaps the last to join the telecom race in India, but over the past few years, we are the fastest-growing brand
in the country. At the end of February 2008, with more than three million subscribers, we are the second-largest player in the important Delhi and NCR region,” claims Anil Sardana, MD, Tata Teleservices. But even as one hears Sardana dole out such statistics, one distinctly feels that there is some sort of a disconnect between what he’s saying and the subscribers’ base figures that are regularly released by the Telecom Regulatory Authority of India (TRAI).
With around 23 million subscribers, Tata Teleservices stands at the No. 5 position in the great telecom race, behind behemoths like Bharti Airtel, Reliance Communications, Vodafone Essar and BSNL. “Tata has been a laggard. It has grown at a decent pace but obviously their execution has not been quite at par with that of other biggies,” says Harit Shah, Telecom Analyst at Angel Trade. “Lack of market-centric strategies and restricting to limited number of product and service offering did not work in favor of the company,” adds Shushmul Maheshwari, Telecom Analyst at RNCOS. But the Tata strategy is different from those of its competitors. Since the inception of Tata Tele in 1996, the company has chosen to concentrate on margins and profitability, rather than chase volumes (as is the case with the others).....Continue
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
“We were perhaps the last to join the telecom race in India, but over the past few years, we are the fastest-growing brand
in the country. At the end of February 2008, with more than three million subscribers, we are the second-largest player in the important Delhi and NCR region,” claims Anil Sardana, MD, Tata Teleservices. But even as one hears Sardana dole out such statistics, one distinctly feels that there is some sort of a disconnect between what he’s saying and the subscribers’ base figures that are regularly released by the Telecom Regulatory Authority of India (TRAI).With around 23 million subscribers, Tata Teleservices stands at the No. 5 position in the great telecom race, behind behemoths like Bharti Airtel, Reliance Communications, Vodafone Essar and BSNL. “Tata has been a laggard. It has grown at a decent pace but obviously their execution has not been quite at par with that of other biggies,” says Harit Shah, Telecom Analyst at Angel Trade. “Lack of market-centric strategies and restricting to limited number of product and service offering did not work in favor of the company,” adds Shushmul Maheshwari, Telecom Analyst at RNCOS. But the Tata strategy is different from those of its competitors. Since the inception of Tata Tele in 1996, the company has chosen to concentrate on margins and profitability, rather than chase volumes (as is the case with the others).....Continue
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
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