Tata Tele aims for profit flow in five months
Business
Standard — December 16, 2004
Tata
Teleservices aims to have five million subscribers
in next five months to start earning profit on
investments. This is being done through massive
expansion programme in non-metro centers and wooing
more subscribers in metro centers through of better
value added services, said Ajay Pandey, president,
Tata Teleservices. Pandey was here for the Orissa
launch of Tata Indicom, the brand under which
the company provides its telephony services in
the country. Orissa is among the 12 new circles
in which the company intends to launch its telephony
services soon.
The other circles being added to the Tata Indicom’s
bouquet of services include are Bihar, Haryana,
Himachal Pradesh, Kerala, Kolkata, Madhya
Pradesh, Orissa, Punjab, Rajasthan, Uttar Pradesh
(East), Uttar Pradesh (West) and West Bengal.
“We have already launched the service in Bihar
and the next is Orissa. By January end, next year,
all the circles will be fully operational,” Pandey
said, adding this will give the company a national
foot-print. The only regions the company has no
immediate plan to go are Jammu and Kashmir, Assam
and North East.
We expect to add about one million subscribers
through these new launches in next two months
and then reach the critical mass of five million
subscribers over next five months, Pandey said.
The company, at present, has a 2.7 million subscribers
base in eight key circles it is operating now.
They are Andhra Pradesh, Chennai, Gujarat, Karnataka,
Maharashtra, Mumbai, New Delhi and Tamil Nadu
comprising 70 per cent of the telecom revenue
potential of the country.
The company has already invested about Rs 9,000
crore in building the infrastructure and network
in eight existing circles and intends to invest
another Rs 2,400 crore for providing the service
facilities in 12 new circles. Pandey, however,
pointed out that recently the non-metro centers
have shown a robust telephone subscribers growth
rate compared to metro centers. Keeping in line
with this trend the company has shifted its focus
to the non-metro centers, he added.
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