Tuesday, October 07, 2008
Google  
Web voicendata.com
Archive    
Find out how IT can help your business capitalize on change.
 Home > Equipment Business > The Middlemen
  EQUIPMENT BUSINESS
The Middlemen
Not only SPs and handset vendors but distributors are also on an expansion spree
Jahanara Parveen
Tuesday, August 07, 2007

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."

The Retail Strength

Retail Chain

No of Outlets

Presence

Future Plans

ConvergeM

50

In all of its Bigbazaar stores

190 stores by 2007 in top 15 cities

HotSpot

100

Delhi and other metros

1,500 outlets by 2009

Mobile Magic

60

Maharashtra, Madhya Pradesh, Chattisgarh, Orissa, Bihar, West Bengal, UP, Rajasthan, and Gujarat

3,000 outlets by 2010; IPO by 2008

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

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

RPG Cellucom

51

Delhi, Gurgaon, Pune, and Mumbai

1,000 stores by 2009

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  

The Innovation Machine
Wimax: Looks Good from a Distance
Broadband Service: The NextGen Strategy
 





 

Current Issue


Download reports make multiple decisions


e-Book guide to improve your PPM Process


Complexicity or Simplicity - Choose





Your Opinion Matters

CIO ROLE TOWARDS MOBILITY - ADMINISTRATION

CIO ROLE TOWARDS MOBILITY - ADMINISTRATION


   CIOL Services
IT News | IT Jobs | IT Outsourcing | IT Shopping
 



  For Voice&Data Print Subscription
  [ Magazine Subscription ]  [ Contact Info ]  [ Advertise : Online | Magazine | Advertising Print ]

 
Other CyberMedia web sites
[Dataquest]  [PCQuest]  [CIOL]  [Living Digital]  [IDC India]
[DQ Channels]  [The DQweek]  [CyberMedia careers]
[CyberMedia Events]   [CyberMedia Digital]  [Cyber Astro]  [CyberMedia India]
[Global Services]  [BioSpectrum]  [BioSpectrum Asia]
[Computer Shopper]   [College Buying Guide]   [Voice&DataConnect

CyberMedia India Ltd

 
  Copyright © CMIL. All rights reserved.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.
Usage of this web site is subject to terms and conditions.
Broken links? Problems with site? Send email to
webmaster@ciol.com