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.
TTML |
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.
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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 What were your major
What What has been done What are your ARPU What initiatives How are your tie-ups Most of the What is your take on |
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.