“EPABX Is for the Cost-Conscious, KTS for High-Profile Users”

Rajesh

Tuli, director, Usha Informatics Pvt Ltd.

Today

everybody is talking of convergence and the emergence of new

products like communications servers and other desktop

communications devices? What do you think will be the future of

traditional products like EPABX and KTS in the new scenario?

The

future prospects for both the type of products is very bright in

India as well as in international market. There is still a big

untapped market for them. The EPABX segment is expected to see

greater penetration in small- and medium-sized towns and

villages where EPABX was hitherto unknown. These customers are

looking for basic features like call-receive/‘0’

dialing/call-transfer, and may be billing.

As in other product lines

we will find EPABX systems going through an extended product

life in India owing to their cost-effectiveness and more so

because India is a very large market and the first time users

would be content with the convenience of EPABX. It is imperative

that the EPABX would continue to have a good market in India.

The market of first time users is expected to grow at a good

pace driven by the continued liberalization and globalization

process. The markets are growing, needs are growing, development

prospects are increasing and the Indian business market is

taking the best advantage of the opportunities.

KTS or digital telephony

is the future of telecom products as it has much advanced

facilities and features to meet future demands. The audio and

video conferencing facilities, Computer Telephony Integration (CTI),

facility of both synchronous and asynchronous data transmission,

high-speed data transmission, wireless telephony, etc., will be

in high demand to fulfill the multifold increase in

communication facilities. In the growing business complexities

and competition, all the business concerns will surely look

forward to good digital telephony to have the competitive edge.

Are present

users of EPABX/KTS delaying their decisions to buy because they

now hear of convergence and would like to wait for such

products?

Though

they are showing interest in convergence, they are not delaying

buying decisions on EPABX/KTS products. Major driving force for

EPABX and KTS is the Price Performance Ratio (PPR). In other

words we can say that it is the cost-effectiveness which is the

major driving force for influencing the decision in buying these

systems.

How is the

EPABX market structured in India vis-a-vis the KTS market?

EPABX

caters to the lower end of the market, which is fairly large in

India. These are used by cost-conscious customers and have

occupied a large market in this country. The market of EPABX in

India is over Rs 300 crore and is expected to grow at the rate

of 20-25 percent. As far as market penetration is concerned, a

large chunk of this market is catered to by unorganized operators who are catering to cost-conscious customers willing

to pay in cash and those who would like to save on taxes.

KTS caters to the

high-profile corporate customers who are aware of latest

features and facilities. Customers who are looking for

facilities like caller identification/e-mail/ISDN features, etc., are going in for KTS. Unlike EPABX buyers who are

first-time users of telecom product, the growth in market of KTS

systems is mainly due to repeat buyers. Customers who want added

convenience and style opt for the KTS systems today. The KTS

market is around Rs 100 crore but is also bound to grow at the

same pace as EPABX. 

Between the

two products, EPABX and KTS, what do users prefer and why?

Today

increasing number of customers wants to buy KTS solutions but

end up buying EPABX or hybrid solutions. There is, in fact, a

very large market segment of customers who want hybrid systems.

These offer not only the cost-effectiveness of EPABX to bulk of

the users in an organization but also the convenience of KTS to

some senior people in the organization.

In India most of the

customers buy hybrid systems with 80 percent or more extensions

using Single Line Telephones (SLTs) or analog phones and only 20

percent or less extensions are true digital extensions.

Internationally, it is primarily KTS that is dominating the

market in developed markets like Europe and USA, and EPABXs are

becoming non-existent. But in developing nations EPABXs still

have a large market.

We at Usha are exporting

EPABX systems to some countries. Software companies prefer

buying Digital KTS, having all the latest facilities adding to

their speed and convenience. Though the costs are high, to them

the latest features and techniques are more important. Hotels

prefer buying the EPABXs, which are cost-effective and fulfill

their requirements. SOHO markets also go in for EPABXs.

Similarly there is a large market for the same in towns and

villages.

There seems to

be a fairly high level of user dissatisfaction, irrespective of

what products or what brands customers buy. Are there any

specific reasons for this?

Post-purchase

dissonance is sometimes very high for customers looking for

high-end solutions. KTS alone is not the guarantee that this

system offers the latest technology. There are Analog KTSs that

will not support high-speed data transmission. There are Digital

KTS systems that will support medium range of data transmission

but may not support ISDN (BRI or PRI) and videoconferencing.

Lack of customer education and appreciation of his present and

future needs leads to cognitive dissonance. The spectrum of

technology is so large that a KTS system might cost three times

the cost of another basic KTS system. Both might be digital,

both could be ISDN compatible, but their ability to handle

high-end CTI/ACD, or voice and data transmission/networking

capabilities may be widely different. Customers need to

understand their present and future needs and logically

understand the concept of Digital. Digital has become a buzzword

but the customer needs to think on the following lines before

making any decision.

• Why does he
  
  want Digital?

• What speed
  
  does he require?

• What better
  
  alternative solutions are available for data transmission?

• Does he
  
  necessarily have to send data and voice together now or even
  
  in future?

He needs to understand future trends of

P&T lines available. They could be only BRI and PRI, because

on single pair of copper wire 2 or 30 pairs of communication

will take place. So service providers might only provide BRI and

PRI connectivities. But how fast it will happen in towns and

villages is the question?