Friday, March 13, 2009

We are currently focused on developing a pan-India presence.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

If convergence is the future, some kind of divergences are clearly needed. And that is exactly the kind of gameplan that telcos are adopting for their second innings. To be fair, far sighted players like Airtel, RCOM and Tata Teleservices have pro-actively added many of these new wings to their business spectrum. In fact, for Sunil Bharti Mittal, these new business lines have already started to contribute around one-fourth of total revenues. As a result, they have mitigated some of the future risks and ensured that their revenue stream continues moving upward without getting affected by increased competition, slowing subscriber growth and declining ARPUs.

What’s worrying is that others like Vodafone and Idea continue to bank on just their wireless business and are in no mood to shift gears – an affection which may prove fatal in the long run. While till recently, because of unavailability of spectrum, both these players had been unable to develop a pan-India presence like their counterparts, their mini steps toward diversification are far from comprehensive. To an extent, Vodafone is still looking at launching data cards and entering the enterprise segment, but Idea Cellular seems bullish only on wireless growth. When quizzed about their Plan B, Rajat Mukarji, Chief Corporate Affairs Officer, IDEA Cellular, absolutely refused to acknowledge the need. “We are currently focused on developing a pan-India presence. Wireless will grow and we will continue working on this front for the time being.” Here’s hoping that this “idea” does not make them miss the bus sirji!

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IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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