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"Product Innovation and Service Differentiation Will Be the Key to Success in Basic Services," |
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While the Latest technology fast connectivity, |
What is your perception about the future of private basic services operators in the country? A service provider should ensure that the steps taken are in the right direction. However, it is critical that the Regulator is strong and independent. It may not be appropriate for me to comment on the future of Private Service Operators (PSOs) since all of us are waiting for the TRAI recommendations and the announcement of New Telecom Policy.
The pioneer will always have some unique challenges and we have been no exception. Issues relating to Right of Way (RoW)—approvals from local authorities for laying cables and so on—have always been there. But these issues are industry-related and not company- specific. Scores of people and organizations have been watching us with curiosity and even extending a helping hand.
What is the attitude of MP’s DoT personnel to your When competition comes, it generally brings growth. For example, since we launched our services in Indore, the growth in new DoT connections has been 20 percent plus, which is much more than witnessed earlier. Also, the competition is helping customers get better services. With teledensity low at present, both DoT and AirTel are trying to reach out the potential customers. We have quarterly co-ordination meetings with DoT to resolve network inter-connect issues.
Has your launch brought out any changes in the way DoT These are early days of our service launch. DoT has clearly recognized us as a strong competitor and is making efforts in the right direction. However, we believe that product innovation and service differentiation will be the key to success in this market. Ultimately, when there are two players, benefit goes to the customers. When DoT becomes better, our task is even clearer and we have to become even better.
Do the users distinguish the service providers in terms The latest technology from global leaders like Siemens and Motorola, fast connectivity (through WILL and wired line)/easy availability (we reach out to the customers), efficient and responsive customer care, cutting edge services like ISDN and score of value-added services and innovative value tariff are the key distinguishing preferences that customers have shown in favour of AirTel. Our research shows that AirTel customers prefer us on account of these parameters.
From the level-playing angle, are you happy with your Privatization is not an event but a process. The most critical task is to have a strong and independent Regulator that will lead to providing level-playing field. This will ensure that both the incumbent and the private basic services operator remain focused on the customer. That is how the industry and business will grow.
How far have you built-up the network and what is the As of date, we have launched services in Indore and Bhopal regions. Gwalior network has already been tested by TEC and we have launched services in the region on 20 March 1999. We have an installed capacity of 57,000 lines and plan to add at least another 100,000 lines during the financial year 1999-2000. We are targeting about 20,000 subscribers by March 1999.
What are your action plans and when are you going to We plan to set up MSUs in all the five regional headquarters in Indore, Bhopal, Gwalior, Raipur, and Jabalpur within 12 months of our first launch. The project activities are in full swing. Around 25 towns will be covered by the year-end with RSUs, DLCs, and BTS sites.
Do you foresee any threat from the prospective ISPs? The provisioning of local access to ISP is violative of basic service operator licence. Although, at present, voice on Internet is not permitted, it would be very difficult to monitor and enforce this provision.
What do you suggest to take the Indian telecom out of The most important thing, which the country needs to focus on, is to have a penetration level of 20 per 100 and the focus should remain on the customer services by inducting world-class technology, quick provisioning, and achieving international benchmarks. All concerned need to focus on this.
What are your experiences in financing your project? Fairly smooth sailing. Bharti has received strong support from financial institutions for its MP project. Besides IDFC disbursal of Rs 75 crore, it has received sanctions for term loans of Rs 250 crore from IDBI and Rs 125 crore from SBI. We also have an offer of Rs 400 crore from our vendors. The Rs 1,100-crore first phase of AirTel’s MP project is financed with a debt-equity ratio of approximately 1.5:1S. |