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IIPM: An intriguing story of growth and envy

Vsevolod Rozanov
President & CEO, SSTL

And to succeed in this strategy, MTS is in fact collaborating with handset makers for more affordable data capable phones. It’s even considering to offer exclusive and subsidised handsets in India much like the global market.

Another thing that works in favour of this service provider is that Open Market Handsets (OMH) have been recently given a green signal in the country, which means that CDMA subscribers would now have a greater choice when it comes to purchase a handset. Though Lenny does not deny this opportunity, but he points out that even with the introduction of OMH in the country, existing customers will have to buy in a new phone to avail MTS services. However, to address the problem there will soon be handsets in India that would be technology agnostic, making it simpler for the subscriber to shift whenever he desires even without changing his/her handset.

No doubt, in the recent past we have seen many new players, be it RCOM’s GSM foray, Aircel or even Tata DOCOMO entering the Indian telecom market, but they all have harped on the low pricing strategy, freebies, et al, and nothing else. Even MTS seems to be going the same way as of now. Though the company has been ranked as number one or two by TRAI in terms of network service in various circles in which it currently operates in, but if MTS wants to make a mark for itself in the Indian market, it will have to work more towards creating a differentiating factor (which somehow seems missing at the moment) and that too before it’s too late.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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