Advertisment

Top 10: 9 - TTML: The Silver Lining

author-image
VoicenData Bureau
New Update

Tata Teleservices-Maharashtra (TTML) has made significant

progress on its turnaround plan. The company reduced its losses in FY 2005-06.

The decentralization of its new sales team has brought it closer to the

customer, and as a result it added more than a million subscribers last year.

The company grew by 31.2% and clocked revenue of Rs 1,097 crore, as against Rs

836 crore last year. The company posted a net loss of Rs 493 crore, down 6.63 %,

as against Rs 528 crore last year.

Advertisment

TTML





Area of operation: Fixed

and Cellular Services, Data Services




Address: Tata Teleservices (Maharashtra) Ltd, Ispat House, BG Kher
Marg, Worli, Mumbai-400018



Phone: +91-22-56615445


Fax: +91-22-56605094

Soon after joining as managing director of TTML last year,

Charles Antony's first priority was to turn the fate of the company in 18

months. The result this year was quite in line with what he expected. TTML got

ISO 9000 certification and its cost per subscriber decreased to Rs 450 from Rs

1,100 earlier. The ARPU level for the company was around Rs 500. It has added

0.84 mn (8.4 lakh) customers last year and has overall base of around 2 mn

customers. It is expecting to have around 3 mn customers by this year-end. TTML

invested around Rs 500 crore last year in network upgradation. For expansion in

rural areas, the company has been allotted 43 SDCs, and of these, 27Â

are already operational. It is planning to pump-in additional Rs 600

crore this year in various telephony initiatives.

For better customer service in rural areas, the company has

made six end-to-end partners. The company would only handle the customer

acquisition part. TTML has also opened 300 'True Value' outlets to handle

customer care activities in towns. Since opening these outlets is not feasible

in interiors, fully loaded 'True Value' outlets would be made available on

mobile vans for rural customers.

Advertisment
HIGHLIGHTS

  • Invested Rs 500

    crore in network expansion in rural areas

  • ISO 9000

    certification from KPMG

  • Decentralized sales

    force

The company has formed north, south, west, and central

clusters of Mumbai while rest of Maharashtra has been divided into seven

clusters that include Goa, Kolhapur, Nagpur, Nashik, Aurangabad, Pune and Vasai.

The sales team in these clusters interact directly with customers to provide

better service.

On the enterprise side, 75% of these customers use TTML's

last mile access. Though most of the Tata companies are customers of TTML,

around 52 Tata companies are willing to go for TTML offerings. At present, TTML

offers its services in seven verticals. This includes BFSI, travel, tour and

hospitality, media and entertainment services, IT/ITeS and telecom,

manufacturing and utilities, government and transport.

'Decentralization

of sales force helped us in a big way'

What were your major

achievements last year?



We have been running into losses for the past few years. But now, we

are slowly becoming profitable. We have posted a net loss of Rs 493 crore,

down 6.63 % as against Rs 528 crore last year. We have made lot of changes

in the organization and made it more customer-centric. The

decentralization of sales force has helped us move closer to the customer.

It was due to our clear focus towards customers that we got the ISO 9000

certification last year.

Managing

Director



Charles Antony

What

customer-focused initiatives have you taken so far?



We have made six partners, who are responsible for providing

end-to-end services to customers. The company would only handle the

customer acquisition part here. We have also opened 300 True Value outlets

to handle customer care activities in towns. And since opening up of these

outlets is not feasible in interiors, fully-loaded 'True Value'

outlets would be made available on mobile vans for rural customers.

What has been done

on the rural telephony front?



Our rural focus is more than that of any other operator. Under USO, we

had been asked to start services in 43 SDCs, of which 27 are already

operational. This year, the focus would be more on rural. We have already

signed ZTE for our rural telephony initiative. Last year, we invested

around Rs 500 crore in rural telephony and network upgradation. This year,

we would invest around Rs 600 crore.  

What are your ARPU

levels?



Falling ARPUs are really a concern for operators today but we have

managed good ARPU levels at Rs 500. Our cost per subscriber has decreased

from Rs 1,100 to Rs 450. Our enterprise ARPU is Rs 650.

What initiatives

have you taken in enterprise area?



We operate in seven verticals that include BFSI, travel, tour and

hospitality, media and entertainment services, IT/ITeS and telecom,

manufacturing and utilities, government and transport. At present around

40 Tata companies are our customers and others are willing to move to us.

We have an edge over others in the wireline services.

How are your tie-ups

with TCS and VSNL helping in your operations?



We leverage on the expertise of TCS and VSNL. The tie-ups with these

companies help us in providing VAS. We will continue to have relationships

with these companies and leverage on their strengths.

Most of the

operators are now planning to have their own NLD services as its license

fee has become cheaper. What are your plans?



We don't intend to go for NLD licenses. We will continue to take

services from   other NLD

operators. We will evaluate operators and on the basis of their service

offerings and prices, we will go for it.

What is your take on

Carrier Access Code?



It is definitely beneficial for customers. But it's premature to

speak on it unless it really happens.

The company has also leveraged its tie-ups with TCS and

VSNL to provide value-added and broadband services to its customers. For last

mile access, the company is using its own wireline service. TTML has expanded

its services from 173 towns in FY 2004-05 to 226 towns in FY 2005-06.Â

It has also tied-up with Railtel to provide connectivity on all major

railway stations.

Advertisment