Tata Teleservices Limited spearheads the Tata Group
Anil Kumar Sardana, Managing Director, Tata Teleservices Limited, India’s fastest-growing pan-India dual-technology telecom service provider. He spearheads all operations at Tata Teleservices Limited, which, along with Tata Teleservices (Maharashtra) Ltd, serves over 45 million customers in more than 325,000 towns and villages across the country. Under Anil’s leadership, TTSL has grown from strength to strength. Some of the key milestones under his leadership include pan–India operations for CDMA brand Tata Indicom, tie-up with NTT DOCOMO, one of the world’s leading mobile operators, and a reverse equity swap with Quippo Telecom Infrastructure Limited, resulting in Wireless TT Info-Services Limited (the fully-owned telecom tower subsidiary of TTSL) becoming the largest independent entity in this space, with the highest tenancy ratios in the industry.
Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata Group had revenues of around USD 70.5 billion in Financial Year 2008-09, and has nearly 100 companies, over 350,000 employees worldwide and more than 3.2 million shareholders. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. It launched mobile operations in January 2005 and today enjoys a pan-India presence through existing operations in all of India’s 22 telecom Circles. Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves around 53 million customers in more than 400,000 towns and villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline Services.
While replying to Anurag More of India Infoline, Anil Kumar of Tata Teleservices says, that "Mobile Number Portability will be the litmus test for the telecom operators in India."
How has been the response to DOCOMO after the launch?
I think the greatest validation of our efforts as a company and the path-breaking approach of Tata DOCOMO has been the fact that TTSL has emerged as the leading operator in terms of new subscriber additions for the past four months. And, this has happened when we have not launched our GSM operations in all the circles yet. In the circles that we have already launched, we are already placed in the top league and are confident that we are well on our way to becoming the market leader.
Our path breaking tariff option—Pay for Exactly What You Use—allows the consumer to pay only one paisa per second for all local and national voice calls. This has not only garnered overwhelming response, but also led to a revolution and a paradigm shift in the overall telecom experience. We are overwhelmed by the love and affection we have received so far and our aim is to keep this momentum going and ring in many more exciting and revolutionary offers and services for our customers.
From 31 December 2009, users can change their operator without losing their number. How will it affect your business?
The Mobile Number Portability will be the litmus test for the telecom operators in India. In a dynamic industry, which has witnessed exponential growth over the last few years, MNP will usher in the next revolution. Operators will have to provide quality service and support to customers to have them stay on their network. The focus will not be merely on numbers and acquisitions; it will be customer focus and service quality that will be the deciding factors. We have invested a lot on both these aspects - network and customer service - and are confident that our efforts will pay off.
Now that almost every operator is offering the per second pulse, how do you see the telecom market, going forward?
The Indian telecom industry will continue to be one of the fastest-growing in the world. With penetration at over 80% in the metros, the growth is now coming from the Tier II and Tier III cities, and also villages - typically characterized by low ARPUs. While the total cost of ownership for telecom services is reducing, income levels and consumerism are increasing, thereby continuously expanding the addressable market.
Worldwide, the most promising trend being witnessed is the emergence of the mobile handset as a ‘Convergence’ and ‘Lifestyle Support Device’. India too will be witness to this phenomenon, with the rollout of cheaper and efficient voice and data services, especially in the 3G regime. The introduction of 3G services holds significant advantages. 3G has four-to-five times higher voice capacity than present 2G services. In a market that is driven by affordability, 3G can serve as an ideal platform to deliver low-cost voice telephony to Indian consumers, in turn increasing the usage. Also, 3G enables high-speed data capabilities and this will fulfill the content-rich mobility experience that will increasingly be demanded in the urban and metropolitan markets.
While there are many trends in the space, mobile applications (m-apps) have become central to entertainment, information, banking and other services.
Value-added-services (VAS) too have redefined the mobile space by allowing multiple platforms such as mobile web, widgets and m-apps to co-exist and bring forth a host of benefits to the end-user. From knowing the rates of vegetables and grains in the market to accessing social networking sites to keeping in touch with friends and family - the scope of VAS cuts across segments and social demarcations.
In terms of new VAS offerings, the sky is the limit; our own innovations, plus our tie-up with NTT DOCOMO, the world leader in VAS offerings, will ensure a never-before telecom experience from the Tata Teleservices stable.
What is your share in the CDMA and GSM market, respectively?
In a few circles, Tata Teleservices is already close to being in the leadership position and the numbers for the last four months in terms of new subscriber addition says it all.
Brief us about your expansion plans? How will you be raising the funds for it?
Year 2010 will see us continue the momentum gained in the previous year. We will continue with our efforts to delight customers with our service quality. The current year is very exciting for us as we have rolled out our GSM services across 15 circles.
We have already raised money by way of a stake sale to NTT DOCOMO and we will use these FUNDS for both GSM and CDMA expansion.
Do you plan to offer any schemes on VAS and your data card? What is the size of the VAS and data card business?
Keeping in tune with changing customer demands and preferences, Tata Teleservices is currently offering a host of new-generation value-added services such as voice portal, roaming (national and international), weather forecast, games, banking, astrology, access to social networking site sites like Facebook, etc. We plan to introduce more interactive and personalized VAS catering to the interest of every segment, be it the youth or the business class, urban or rural.
On the data front we have Photon, one of the fastest growing and most popular brands. Tata Photon+ mobile broadband service is up to 20 times faster than existing mobile wireless technology. With the significant Internet penetration in India, it is becoming crucial for telecom service providers to meet the increasing consumer expectations. The awareness and demand for wireless Internet connectivity is increasing rapidly. With laptop and PC sales showing exponential growth, there is a huge demand for mobile broadband service.
Volume picking up at a lower tariff was a possibility earlier—with the changing landscape, do you expect volumes to compensate for the fall in tariffs?
Keeping in view the large market, we do expect volumes to increase as mobile services become affordable for all. With tariffs at an all-time low, we expect data and value-added services to ring in the revenues.
Do you think incumbent players enjoy any advantage in the present situation?
Vis-à-vis the new players that will be entering an already competitive market, existing players do enjoy an advantage, but I do believe that the market itself is large enough to accommodate and sustain all.
What advice would you give those who wish to join this industry/ company? Typically what kind of people would you look for from the B-Schools?
The telecom industry is one of the most dynamic environments to work in and anyone aspiring to join needs to be adaptable and ‘keep-on-their-toes’.
We typically look at people with a drive and the one factor that all employees at the Tata Group share is a respect for the values of our company and working towards inspiring trust.
What do you think B-Schools need to do the make their students ready for the job?
I think youngsters today are fairly responsible and evolved, thanks to advanced technology like Google and internet through which they can keep themselves updated on the latest trends and happenings in telecom space. All that companies look forward to is the right attitude and willingness to work in a dynamic environment against tight deadlines.
What are your hiring plans?
Hiring at Tata Teleservices is a recurring process as we continue to grow. Having started our GSM operations, there is recruitment happening on an ongoing basis.