Top10 Vendors: 6 - TTSL: Tremendous Leap

In FY '06-07, Tata Teleservices (TTSL) registered revenue of
Rs 5,178 crore, growing 101% y-o-y. The subscriber base also crossed the 10 mn
mark, putting it in the league of telecom bigwigs of the country. In the last
couple of years, TTSL has been focusing more on building capacities, enhancing
distribution network, focusing on VAS and enterprise applications, and improving
on quality of service. And, all this has started paying off in terms of quantum
jumps in subscriber additions as well as revenue growth.

TTSL was the first company to take the risk of experimenting
with Chinese players like Haier, and ZTE in the private telco space for
handsets, data cards, and infrastructure requirements. The operator is taking
strategic steps in the field of customer satisfaction and service. Recently, the
company has made better quality as its USP, and has launched a new campaign
called 'switch to Tata Indicom and experience the difference', driving
service level and data speed differentiation.

Operational in ninteen circles, TTSL has done well on the sales
and distribution front. The company stressed on branded retail to provide lively
experience to customers. It has around 3,000 True Value Hub and True Value
Shops, and around 1,200 distributors in the country. It has now started focusing
on small towns and cities. It became the first operator to open 100 True Value
Shops in one day. Total retail spends, the company invested close to Rs 100
crore to augment its retail presence. The company also took an initiative to
open an online store, i-choose.in, for mobile connections. Also, it tied up with
Motorola, LG, and Qualcomm to add style to its services, taking a step forward
in strengthening its customer base. Apart from this, to boost its subscriber
base, the operator launched a number of innovative packages such as 'Don't
Stop Mobile', providing the users endless opportunities to communicate.

On the 3G front, it plans to roll out 3G when the government
allows, initially in the big metros. And, the focus is on seven cities-Kolkatta,
Chennai, Delhi, Mumbai, Bangalore, Hyderabad, and Ahmedabad. The company is
keenly watching regulations on Mobile TV, and plans to launch it when the
opportunity comes. On the enterprise side, the company is focusing on
pharmaceutical and healthcare, banking and finance, retail, and manufacturing
verticals, and has carried out pilots successfully.

The focus of the operator is now shifting to semi-urban as well
as rural areas. It has strategies in place for its retail, services, and VAS
models for these areas, and plans to dominate them through its one-of-a-kind
offerings. To retain its dominance, the company is continuously innovating and
testing new technologies like 3G and WiMax. The company now plans to invest Rs
3,000-3,500 crore, and this includes investment in three new circles. It also
plans to roll out services in 1,000 plus census towns, which will help the next
level of telecom penetration in the country.

We will also be focusing on
VAS to enhance the overall communication experience of our customers.
Joint collaborations, and marketing and content tie-ups with various
companies and network providers have helped TTSL in offering unique,
innovative, and exciting VAS to

customers.

What's your strategy for
three new circles where you plan to start services in the coming
fiscal?  

The company launched its operations in twelve new circles in 2005. This
was the fastest ever roll out of national operations by any telecom
operator in India, and a major milestone for India's youngest national
telecom player. We intend to roll out our services in J&K, Assam, and
the North-East as soon as we get the government's approval for our
license applications and spectrum allocation.

What's your plan on
divesting tower infrastructure, and how do you plan to move in this
direction? Have you finalized partners for tower infrastructure?
 

TTSL is planning to spin off its tower operations into a separate
business. While focusing on our core business of providing mobile
telephony service, we intend, going forward, to increasingly share
infrastructure to reduce both our capital and operating expenses.

What's your strategy on 3G, and how
do you plan to move in this direction? What is your plan on WiMax?

Backed by our superior 3G networks, we at TTSL are awaiting the government's
nod to jumpstart 3G services in India. The key application for 3G
networks, especially in rural and semi-urban areas, will be basic
broadband access. Using 3G, we can also rollout of the following
applications particularly relevant to the rural markets in India:
e-learning; telemedicine; and in virtual market place, nationally linked
local commodities exchanges and purchasing portals.

Regarding WiMax, we are
committed to offer the latest in technology to our valued customers in
line with customer demand and the economical viability of new
technologies, which we keep evaluating.

The company has invested close to Rs 4,000 crore for network
expansion in FY '06—07. Currently it has presence in over 3,400 plus towns,
and plans to add another 1,000 towns by year-end. It has over 47,000 km of
backbone network. The company has installed over 6,500 BTS with 20 mn subs
installed capacity.