Segment Analysis: PCO

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Voice&Data Bureau
New Update

The brainchild of Sam Pitroda, the PCO concept is an
indigenous way of spreading access to telephone in a country that has over a
billion people and a tele-density of less than three.

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The PCO Growth

According to NTP ’94 there would be one PCO per 500 persons
in urban areas, and for every one lakh lines released per month, 5 percent would
be for PCO booths. This is clearly a DoT-driven market. The total PCOs installed
in the country till January end this year were 6,13,071, including the 5,394
national highway phones.

The market for the PCO vendors is estimated to be around Rs
110 crore. And it is concentrated in Andhra Pradesh (AP), Gujarat, Karnataka,
Maharashtra, Punjab, Tamil Nadu, and the four metros. In fact, only AP and
Maharashtra have touched the 50,000-mark along with MTNL Mumbai that has over
64,000 PCOs. While in the local PCOs category, Mumbai, Delhi, and Chennai take
the lead, in the STD category Maharashtra, Gujarat, and AP are in the forefront.
Though these are the potential telecom units, but future opportunity would be in
Madhya Pradesh, UP, Rajasthan, Bihar, and the Northeast.

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The Vendors

There are an estimated 120 companies manufacturing PCO
instruments. But in effect there are about 20 main manufactures. There are many
local manufacturers who have obtained a TEC approval, but may be restricted to a
single area or two. Interestingly, this market has only Indian manufacturers
because the people manning the booths are not very literate technologically.
Also the Indians are still not in a habit of the card culture. Little wonder we
do not have payphone market like else where. Further more, many of the people
who go to the PCOs need assistance in terms of dialing numbers.

Linkwell Telesystem (Visiontek range of products) and
Computer Peripheral Devices (CPD range of products) dominate the market with
close to 75 percent market share. Linkwell is the leader in AP and CPD in
Karnataka. While Metascan and Digicontrols are the other major brands behind
these two, Goldtron is very strong in the North, TeleI is strong in Calcutta,
Microcontrol is a competition in Mumbai and Pune.

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The prices of a PCO today are anywhere between Rs 10,000 and Rs 18,000
depending on features. The local coin payphone market is witnessing a rise. MTNL
Mumbai has taken the lead and there are some cases in AP too. But it would need
a uniform policy to push its cause. There is also a good case for exports for
the PCO instrument vendors, if initiatives are taken with African and the SAARC
countries.

Status of PCOs>>>>

Status
of PCOs (till 31 Jan 2000)
State/City Local STD Highway Total PCOs in the
Unit
Mumbai 48,030 16,392 118 64,540
Maharashtra 20,670 31,630 832 53,132
Andhra Pradesh 21,890 27,800 233 49,923
Gujarat 13,248 29,358 800 43,406
Delhi 28,416 11,357 0 39,773
Karnataka 8,995 25,820 201 35,016
Uttar Pradesh(E) 8,019 26,436 390 34,845
Tamil Nadu 21,425 11,087 182 32,694
Madhya Pradesh 12,498 18,240 290 31,028
Chennai 23,086 7,414 0 30,500
Punjab 7,880 20,759 117 28,756
Kerala 9,648 16,751 414 26,813

More, Calcutta, Rjasthan etc.>>>

Status
of PCOs (till 31 Jan 2000) Calcutta 14,410 11,627 18 26,055 Rajasthan 5,870 18,834 78 24,782 Uttar Pradesh(W) 4,506 15,704 247 20,457 Bihar 4,158 12,035 313 16,506 Orissa 8,874 4,717 182 13,773 West Bengal 6,323 5,541 182 12,046 Haryana 2,461 7,893 381 10,735 Assam 732 5,160 106 5,998 North East 2,058 2,230 143 4,431 Himachal Pradesh 2,049 1,839 100 3,988 Jammu & Kashmir 1,496 2,091 67 3,654 Andaman & Nicobar 66 154 0 220 Total 2,76,808 3,30,869 5,394 6,13,071