78. Usha Martin Telekom

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Voice&Data Bureau
New Update

Factsheet

CEO: Rajiv Sawhney

Year of Start-up: 1997

Area of Operation: Cellular services

Address: 11, UN Brahmachari Street,

2nd and 3rd Floor,

Kolkata-700 017

Tel: 033-242 7657

Fax: 033-247 7657

Web site: www.commandcell.com 

SWOT

STRENGTH: Attractive tariff offerings, Hutchison’s muscle 

WEAKNESS: Marketing initiatives leave much to be desired

OPPORTUNITY: Value-added services, mobile PBX market

THREAT: BSNL cellular services
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For Usha Martin Telekom, which operates cellular services in the eastern
metropolis of Kolkata under the Command brand name, the fiscal 2000-01 was an
eventful year as Hutchison Whampoa purchased a 95 percent of stake in the
company. Hutschison operates the Orange brand in Mumbai and also has a majority
stake in the Essar brand of Delhi.

The service provider ended the year 2000-01 with a revenue of Rs 91 crore and
a subscriber base of 71,591. There was a 45.35 percent growth in its subscriber
base over the 1999-2000 figure of 41,558. This was far lower than the 89 percent
industry average as also the over 100 percent growth that the company had
registered in 1999-2000 over the previous year. Command’s stilted growth was
also witnessed in its declining Revenue Per User (RPU). While RPU in the first
quarter of 2000-01 was Rs 682 per month, it came down to Rs 565 per month in the
second quarter and Rs 503 per month in the third quarter, before recovering
slightly to Rs 551 per month in the last quarter.

Hutschison is expected to add both financial and marketing muscle to Command.
This will not only help Command to take on Spice, the other operator in Kolkata
that currently dominates the cellular marker in the city, but also put it in a
better position in the event of the third and the fourth service providers
getting operational.

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