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Among the fastest growing sectors in the country, telecom has
been zooming up the growth curve at a fiery pace. The last few years saw India
adding many firsts to its list of achievements. Some of these are: the world's
lowest call rates (Re1/minute), fastest growth in the number of subscribers (6-7
mn per month), fastest sale of a million mobile phones (1 week), the world's
cheapest mobile handset (Rs 777), and the world's most affordable color phone
(Rs 1,234).
Ever wondered who, apart from telecom service providers and
handset manufacturers, have helped achieve these distinctions? The middlemen!
These middlemen are muscular, have a pan-India presence, and good nexus with the
top brass of the telecom industry. And, they are growing at a rapid pace. For
the industry they are not the main revenue earners but their contribution is
prominent. They are the distributors and retailers of the telecom industry. Yes,
these are the people who made it possible for every Indian to get access to a
mobile phone. They have achieved some targets-a lot still needs to be
achieved. And, they are on the prowl.
Who are They?
In terms of distribution, there is a clear demarcation between CDMA and GSM
phones. CDMA is distributed directly through operators, except Nokia and
Motorola, who distribute handsets through Brightpoint. Whereas in GSM, it is
through the open market. Nokia phones are distributed through HCL Infosystems,
but with the market expanding, the company is looking at direct sale of
handsets. Early last year, the market leader Nokia decided to rework its 10-year
alliance with its distribution partner, HCL Infosystems. The new agreement has
led to Nokia venturing into direct distribution and sales for the first time
since its entry into India a decade ago. Even as HCL Infosystems continues to
remain its sole distributor and marketing partner, till 2011, this will be
applicable to just half the country's geography, with Nokia India to take over
distribution and sales of the other half by 2008.
Brightstar is the largest wireless products distributor in the
world and had launched its subsidiary in India, Brightstar Telecom, in 2005 to
support the high growth market. To best serve this market, the subsidiary
operates two main sales and distribution offices in Mumbai and Delhi, as well as
22 main hubs supported through 79 billing points throughout the country. This
infrastructure allows Brightstar fast delivery, localized distribution and
billing support across India. Brightstar is the sole distributor of LG GSM
phones. According to HS Bhatia, business head, LG GSM mobiles, "The
challenge in India is not the overwhelming demand for wireless handsets, but
rather the ability of manufacturers to reach consumers quickly in our highly
fragmented marketplace. Ability to distribute products anywhere across the
country and provide speed-to-market are key components for success."
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The
Retail Strength |
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Retail Chain |
No of Outlets |
Presence |
Future Plans |
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ConvergeM |
50 |
In all of its Bigbazaar
stores |
190 stores by 2007 in top 15
cities |
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HotSpot |
100 |
Delhi and other metros |
1,500 outlets by 2009 |
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Mobile Magic |
60 |
Maharashtra, Madhya Pradesh,
Chattisgarh, Orissa, Bihar, West Bengal, UP, Rajasthan, and Gujarat |
3,000 outlets by 2010; IPO
by 2008 |
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MobileNXT |
40 |
Ahmedabad, Bangalore,
Chennai, Delhi, Gurgaon, Ghaziabad, Hubli, Hyderabad, Kolkata, Lucknow,
Mangalore, Manipal, Mysore, and Salem |
150 stores by 2008, targets
Rs 200 crore. To raise $10 mn from PE & Venture funds |
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Mobile Store |
222 |
Mumbai, Delhi, Hyderabad,
Chennai, Ahmedabad, Pune, Kolkatta, Bangalore, Kochi, Chandigarh, Ludhiana,
Erode, Madurai, Trivandrum, Vijaywada, and Mysore |
2,500 stores by 2010,
targets $1 bn |
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RPG Cellucom |
51 |
Delhi, Gurgaon, Pune, and
Mumbai |
1,000 stores by 2009 |
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Subhiksha |
500 |
All over South, Mumbai, and
Delhi |
1,000 stores by end 2007,
targets Rs 3,500 cr in FY '08 |
Ingram Micro is the largest distributor for IT and telecom
products in India and is the national distributor for Sony Ericsson. This
company has more than 50 branches in India, and through Ingram Micro, Sony
Ericsson is having a presence in more than 15,000 retail outlets. Sudhin Mathur,
general manager, Sony Ericsson, India, says, "With the enhanced portfolio
of products across segments that we have to offer from the start of 2006, now is
the right time to consolidate and further the inroads we made into the booming
market last year. The tie-up with Ingram would help us make a Sony Ericsson
handset available to even the farthest consumer in the country." Salora
International is the second national distributor for Sony Ericsson. It is also
the national distributor for BenQ mobiles. Salora has more than 4,000 retailers
out of whom 3,500 are loyal retailers who place orders for products every month
on a regular basis. Page(s) 1 2 3 4
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