Tags: Reliance, Tata

Tata Telecom in India

In my earlier post on Tata Telecom, I was justified in criticizing Tata’s piecemeal approach to the nation wide roll out. Tata’s seem to the dark horse of the Telecom party, widely perceived to be “also ran”. I have always held the belief that Data is a major product differentiator in this segment. Wireless Internet is a big opportunity; TRAI has indicated that it would be opening up the spectrum for 3G services. More than that, I feel that Tata needs to get aggressive on the WiMax roll out. If I am not mistaken, their existing infrastructure can be used.

I have always held that VSNL is among the best Dial up service providers; albeit with a screwed up priority and lack of cohesion in the marketing. Partly, apathy at the ground level and partly mismanagement of the resources. If Tata really control the leviathan, they seriously need to realize the potential of their gold mine.

VSNL is at the forefront of tie-ups and getting aggressive on corporate set up. Their tie up with Cable & Wireless is a pointer to this fact that corporate sector means more to them than the end retail customer. This has no meaning because again it is all about a few customers paying fancy prices; VOLUMES is the way to go. The “Dhaba Model” stands true. Frankly, that explains why Reliance has precisely chosen its strategy to communicate effectively at lowering the price barrier to own a mobile; their services are not elitist. Perhaps that’s the reason why they loose out on appeal to heavy spenders or those who swear by GSM.( Not to forget that the same customers are so happy to loose their hard earned money- it is not that Reliance are saints. It is the degree of rip off. Period)

Therefore, it is all about two things now. First and foremost is the price barrier. Secondly, get pushy about broadband and data. The more Tata’s delay their Metro Ethernet roll out; they would in fact be sounding their own end to Telecom party.

As an afterthought, does Telecom foray really matter to them at most? I mean, their core competency is Automobiles and steel. That would have served them better. Instead of sinking in money where there is no clear focus. Again, why have Sourav Ganguly model for them?

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.