Times
of India September 1, 2001
In
future, he predicts that TCS’ role will become
even more crucial as the industry becomes more
customer-centric and software to power billing
systems of multiple services (voice, data STD,
ISD and so on) becomes central to the success
of a service provider.
Similarly,
the Tata-Birla AT & T merger threw up systems
integration issues which were solved by TCS. "Expertise
built on a global basis can be used in the domestic
market, while new intellectual property and software
developed for the Tata telcos can be sold internationally,"
said Mr. Ramadorai.
Support
comes not only from the 12th man on
the team but between players as well. Take AP,
a state where the Tatas offer cellular, basic
and Internet services. Tata ISP and Tata Tele
are working together to provide Tata with fixed
line customers with an option to be billed for
their internet usage in their phone bills.
This
says N. Srinath, CEO, Tata ISP, is the first time
any ISP can offer users a package where they pay
as per use rather than buying a whole load of
hours in advance.
In
a similar vein, Tata ISP, currently present at
five locations other than AP, is planning to expand
only in centres were Tatas will start basic services,
so that multiple services can be offered to customers.
Likewise, it is working with TCS to become an
application service provider (ASP) to corporate
e-mail systems.
Tata
Teleservices is also working closely with BATATA
currently in Andhra Pradesh, where the companies
share office space, cell sites and other facilities
to squeeze costs.
This
cooperation, according to officials of both companies,
will be extended to new circles like Delhi where
the Tatas are supposed to roll out basic and cellular
services.
Watch
that fumble
While the Tatas are marshalling every group resource
possible to make infocom its future, their success
is by no means assured. For one, for all the talk
of a captain and his team, the decision to invest
in telecom will have to be made by each company’s
board and shareholders.
"At
the end of the day, we (Tata Sons) can only push
and nudge these companies. But it is for them
to justify to their boards and shareholders, that
the business is worth investing in," says
Ishaat Hussain, finance director.
For
the record, none of the companies sponsoring the
new telecom flagship have got board approval for
their investments yet. Another worry, evident
even in Bombay House, is the marketing aspects
of the business.
There
is a history of weakness when it comes to consumer
marketing – a skill crucial in the telecom business
where a captured consumer can be sold all manner
of voice data and video services.
Team
Tata hopes that a new umbrella brand for these
services and human resource initiatives, which
are inducting new people at all levels, will help
them sell.
Moreover,
while Team Tata may now have a strategy and players
to make Steve Waugh jealous, in no domain does
it currently have a leadership position. Its ISP
business, launched in March, is only present in
eight locations and has 30,000 customers, although
group efforts are on to reach 30 places in a month’s
time.
Its
basic services business physically exists only
in AP, although four more circles’ licences have
been paid for.
The
cellular business is still to complete its merger
with BPL and it’s too early to make a call. The
national and international long distance businesses
still depend on government policy.
Ten
years later, if the Tata Group is defined by its
infocom business, it will be as much of a contortionist’s
turn as that made by founder Jamsetji Tata when
he moved from trading to manufacturing a hundred
years ago.