India to pull in 35% of the targeted $200 mn revenue by 2015: New Call Telecom

By Krishna Mukherjee

Since New Call Telecom was established in 2010, it has achieved significant milestone with 750,000 subscribers in UK. Now, with $100 mn investment, it is all set to tap the India market with major acquisition plans on the cards. In an interview with Voice&Data, Nigel Eastwood, CEO, New Call Telecom, talks about plans to achieve 50 mn active subscribers by 2016 and the different domains of telecom the company will venture into.

Voice&Data: Can you elaborate on your India plans?

Nigel Eastwood: We are planning to invest $100 mn over the next 18 months in India towards strategic acquisitions of four mid-level telecom companies to enter the fixed line connectivity, Wi-Fi and messaging domains. We are looking at an ecosystem for over-the-top (OTT) broadband services in the country, leveraging the existing service provider infrastructure with revenue sharing through various innovative business models by identifying synergies across a number of different existing businesses.

We would also explore the e-commerce segment in the country going ahead. Under our medium to long-term strategy, we would be looking at building synergies around our different business areas involving data analytics and e-commerce, thus, developing a unified communications platform.

Voice&Data: How many active subscribers are you planning to tap by 2016 in India and what would be the strategies employed to achieve the same?

Nigel Eastwood: We are planning to have 50 mn active subscribers by 2016. We aim to offer fixed-line broadband and public Wi-Fi services in the country. Our initial focus for 12-24 months will be on metro cities, since there is a concentration of subscribers in these cities. Moving forward, we would be tapping the semi-rural and rural areas of the country for the internet services.

Voice&Data: How are you planning to invest $100mn and which are the companies you are in talks with for a possible tie-up?

Nigel Eastwood: The investment would be primarily for acquiring mid-level companies. Currently, we are in talks with companies in the broadband and OTT space in India. We will be announcing the names in the following weeks. But let me make it clear that these are all telecom companies or operate in the telecom domain like—Wi-Fi, fixed line. So, when we have the right opportunity we will come and tell you who they are.

Voice&Data: How has the performance been since you established base in India?

Nigel Eastwood: With over 750,000 annual subscribers, New Call Telecom today is a price leader in the UK residential telecom market through its brands Primus Saver, which offer phone and broadband packages, and Planet Talk, Just Dial and Rate Buster, the low cost international calls services. We’ve had a presence in India since our inception in 2010 but have now propelled our direct focus in the telecom market here. Our short term vision in India is to capture the massive opportunity that the telecom sector here presents surrounding data transit, usage manipulation, and streaming; where ever possible collaborating with other incumbent telecom operators’ efforts and generating completely new revenue streams in the sector in India by identifying synergies across a number of different existing businesses.

Voice&Data: How are you planning to expand your product portfolio?

Nigel Eastwood: Yes, we are looking at expanding our portfolio. These strategies are around internet, around hotspots, Wi-Fi, value added services. So, a lot of complimenting things we will be doing and seeking to acquire businesses may be in other areas of monetization, maybe things around data analytics and mobile advertising.

We are talking to businesses in India and elsewhere about really utilizing the data on the platform in order to monetize, analyze and create revenue opportunity from it.

Voice&Data: What are the challenges you are facing presently?

Nigel Eastwood: For any investor, there are complex challenges around investment rules, regulatory rules, particularly in the telecom industry there are multiple regulations.

We’re currently in the process of identifying the right long term partners as per our growth roadmap which is a challenging task considering the high level and multitude of entrepreneurship talent in India, especially in the technology space. We’re also looking forward to the support of the government and the regulatory bodies in achieving our long term goals in the country which in turn will help the sector to grow as well as harness entrepreneurial talent in the country.

But the best part is that the incumbent government under Mr Narendra Modi has certainly made strong internet plans with ‘Digital India’ program. It is pro-democracy and this is really all about reaching to rural India through internet. I think the signs from the government are very, very positive.

But infrastructure is really bad and that’s where more creative strategies need to be deployed as we look to the government to cross the bridge.

Right now, we are using social media to connect with the rural India. Even through a 2G, 3G that’s the way we are coming to India. Building infrastructure for delivering fixed line services is quite a challenge, so Wi-Fi looks achievable option in these areas.

Voice&Data: What are your unique selling propositions?

Nigel Eastwood: We are actually creating something new and unique like digital life. That’s first for India as it brings together whole diverse world and connects with people. So, wherever you are whether in the coffee shop, hotel, home or office, you can connect with diverse services. In addition, we have decades of experience in marketing our products. We are in a highly competitive and creative market and we are very successful when it comes to price point. We bring in consumer–centric products using our experience and for internet to take-off.

Voice&Data: Where do you see New Call Telecom, five years down the line?

Nigel Eastwood: In the coming five years, we see ourselves as a well-established international unified communications brand here. During 2015, the New Call Group of Companies is targeting a $200 mn run rate in revenues globally, and India will contribute nearly 35% to this pie through our strategic acquisitions. We plan to invest more as we see growth and analyze the business.