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VOICE&DATA CEO Conclave: Food for Telecom Thoughts
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Some of the best minds in telecom industry met to exchange views and mull future strategies
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| Saturday, January 19, 2002 |
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VOICE&DATA organized The CEO Conclave on 29 November, 2001, which aimed
at highlighting the challenges that can be met and opportunities in telecom can
be tapped by the industry without the policy and regulation coming in the way.
Industry experts debated various issues facing the telecom sector in the
country. The event comprised four sessions, with Prasanto K Roy, chief editor,
VOICE&DATA setting the tone for discussion by outlining the agenda for the
meet.
In his keynote address, Dr DPS Seth, CMD, BSNL pointed out the close linkage
between the state of country’s economy, the type of demand for
telecommunication services and also the technological development that has taken
place. "There is no well-defined cause and effect. It isn’t that only
when the economy is growing that telecom needs rise. It works both ways,"
he commented.
| Session
I: Songs
of Experience: The Learning Curve |
| Panelists:
SD Saxena, Sr DDG, BSNL, Ken Wye San, group head
(network service providers), Microsoft Asia, Nassem Ahmed, CEO,
HFCL Broadband, and Kaushik Dutta, partner, PwC
SD Saxena began
the discussion by sharing experiences in rolling out the huge network
and how institutions like C-DoT came into being to cater to the
organization’s needs of low-cost solutions unique to Indian
requirements.
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"Organizations
like MTNL and C-DoT
are a great achievement
on part of the government"
SD Saxena (BSNL) |
"Success
of mobile services
(in Singapore) came by subsidizing
handsets and locking subscribers"
Ken Wye San (Microsoft) |
"Getting
right-of-way clearance
from authorities significantly
delayed broadband projects"
Naseem Ahmed (HFCL) |
"A
1996 Act in the US put local
carriers in direct competition
with biggies like AT&T and MCI"
Kaushik Dutta (PwC) |
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Ken Wye San narrated success stories of
Singapore in particular and of Asia in general. He pointed out the
need for critical mass in the execution of a project and generation of
revenues.
Naseem Ahmed, who is credited with having
supervised the laying of Spectranet’s OFC network across the
country, brought the right-of-way issue to the fore.
Kaushik Dutta, Partner PwC, shared some learnings from
Asia-Pacific, Europe, and the US. He recalled, "In the US, the
biggest change was the permission through an Act of 1996 for other
carriers to enter the domestic long-distance market." |
| Session
II: Strategic
Issues and Challenges for Indian SPs |
| Panelists:
PK Dey, Sr DDG, BSNL; Sumanjit Chaudhary, CEO Bharti
Telenet (Haryana); Shubhendu Ghosh, DDG Strategic Planning,
BSNL, and Naresh Malhan, CEO, Essar Technologies
Moderated by Rothin Bhattacharya,
the session centered on telecom funding looking at NTP, service
differentiation, market segmentation and strategic churn management.
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“Churn is a problem, but do we have the strategies to addresss such issues? ”
Rothin Bhattacharya, (KPMG) |
“JVs are the best way for service providers to raise funds”
PK Dey (BSNL) |
“It’s crucial to lay networks in areas having high demand, and not in an arbitrary manner ”
Sumanjit Chaudhary (Bharti Telenet) |
“BSNL’s wider footprint puts it in an advantageous position to tap hitherto virgin markets”
Shubhendu Ghosh (BSNL) |
“Capex requirements and returns pose a stumbling block for service providers”
Naresh Malhan (Essar Technologies) |
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Naresh Malhan felt that coverage
was the most critical requirement in telecom as it was very capex
intensive. He said, "As service providers move into different
cities, the capex requirement and the returns becomes a major
stumbling block. A plan should be worked out to increase ARPU."
PK Dey said, "A joint
venture is the best option available for service providers for
funding. Another alternative is low-investment technologies. VoIP is
one such example."
Talking about entry strategies for SPs,
Sumanjit Chaudhary pointed out, "It is important to lay the
network at places where there is an actual demand rather than laying
arbitrarily."
Shubhendu Ghosh said there was a
huge cellular market lying untapped and BSNL was in a position to tap
that market considering its wider footprint and lower incremental
cost. Also, as a domestic and long distance operator, it could offer a
bundle of services." |
| Session
III: User
Needs and Demands |
| Ajay
Pandey, COO, Tata Teleservies; Jasjit Sawhney, CEO,
Net4India; MS Rehsi, CMO, Essar Teleholdings; Manish Gupta,
Business Development Manager, NSP, Microsoft; Rajeev Burman,
head, customer acquisition and retention, Escotel Mobile; PK Saha,
GM Marketing MTNL
Manish Gupta of
Microsft said, "The most important aspect is the confusion
between price and values. They are used so interchangeably, despite
being different. Value is something for which consumers are willing to
pay for, something which may not be quantifiable."
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“Value is what consumers are willing to pay for, even though it may not be quantifiable”
Manish Gupta (Microsoft) |
“Reliability and scalability, with little incremental cost is what consumers want”
Jasjit Sawhney (Net4India) |
“Consumers want to be treated fairly and have a clear understanding of the product”
Ajay Pandey (Tata Teleservices) |
“Consumers have been taken for granted.. a holistic approach is required”
MH Rehsi (Essar Teleholdings) |
“Indian consumers want more than one service provider. Regulation has ensured that ”
Rajeev Burman (Escotel Mobile) |
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Rajeev Burman said,
"Indian consumers want competition, they do not want there to
be only one service provider and that is where the regulation has done
a good job by ensuring fair competition. Affordability rather than
price is crucial."
Ajay Pandey put
forth his view, "The biggest issue today is to understand the
consumer’s needs. Communication with consumers is important. Often
they are confused due to lack of understanding. Not the price but
affordability matters more to Indian households. Affordability is as
important as the core product itself."
Jasjit Sawhney was
of the opinion that reliability and scalability were key areas of
concern for consumers. He said, "Consumers want reliability and
scalability, with little incremental cost. For ISPs, low price has not
always meant more customers. End-to-end solution is what customers
want."
MS Rehsi said,
"Tariff-based marketing strategy is okay up to a certain point.
Lack of education of consumers is a big hurdle. Consumers have been
taken for granted. A holistic approach is required in the larger
interest of consumers."
PK Saha highlighted
four basic requirements of consumers—cost, choice, convinience and
counseling. He ealaborated, "Cost is the major criteria for
customers to chose a service. The sense of choice is more important
than the actual choice. As for convinience, it is clear that mobility
provided by cellphones is the main reason for their popularity. Last
but not the least, customers need to be educated about the
services." |
| Session
IV: Technology
Roadmap |
| Jagbir
Singh, V-P
(tech), Bharti Telenet; A Mukhopadhyay, CTO, Fascel; KB
Lal, CTO, HFCL Infotel; VP Singh, V-P (network and
operations), Birla-Tata-AT&T; Mahesh Kherea, V-P
(networks), Tata Teleservices
In
this session, CEOs discussed technologies for the future. Babuji
S said, "As part of applications for new paradigm, we
need to deal with various services and access devices and emerging
applications like interactive mobile commerce, and the mobile
portal."
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“DSL is the best technology for broadband while CDMA is perfect for wireless”
Jagbir Singh (Bharti Telenet) |
“Frequencies have to be used in a manner that maximum number of people are served”
A Mukhopadhyay (Fascel) |
“The technology that deals with back-end operations is key to responsiveness of business”
KB Lal (HFCL Infotel) |
“Complete utilization of a technology will smoothen transition to a new technology”
VP Singh (Birla-Tata-At&T) |
“The most difficult task in the network is to address issues pertaining to access”
Mahesh Khera (Tata Teleservices) |
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Mahesh
Khera was
of the opinion that the toughest part in the network was to cover
access. "When we talk of access, we are used to talking about
copper-based distribution network. How to overcome this? Suppose
one wants to deliver wireline quality service, then LMDS may be
the best solution."
According
to VP Singh, judicious use of technologies was important.
"We need a favorable telecom policy, negligible spectrum
charges, need to have good knowledge of Indian consumers. Also,
full utilization of a technology before jumping on to a new
technology is critical for a smoother transition to the new
technology."
KB
Lal
stressed that three layers—network, service, and business—were
key to business. "A part of technolgies deals with the end
services delivered to customers. A large part of the technolgy
deals with backend operations, which make the business more
responsive," he elaborated.
A
Mukhopadhyay pointed
out, "Frequencies available are limited, and one has to use
frequencies in a manner that maximum people are served. There are
frequencies that have been alotted for different type of services,
and the number of frequencies for basic are also limited," he
warned.
Jagbir
Singh said
that TDM-based or circuit-switched solutions were perfect for
short-term gains. "All basic and wireless opertors should
take advantage of greenfields kind of situation. One should go for
DSL for broadband and CDMA for wireless, as they are very much
matured. Success of LMDS is 1 percent. Moreover, it is very
expensive," he suggested. |
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Sudesh
Prasad |
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