Tata Tele to form clusters within circles
Daily News & Analysis — June 15, 2006

For telephony majors, the next phase of growth will come from the rural areas as the urban markets reach a saturation point, feels Charles Antony, managing director, Tata Teleservices Maharashtra Ltd (TTML). "Our main focus will be the rural market as it has a great potential. To tap this growing market, we have decided to decentralise our circles into clusters where each cluster will be headed by a cluster executive officer," Antony told DNA Money.

"These officers will execute the different models we are preparing for our aggressive rural expansion plans," he added. TTML, a subsidiary of Tata Teleservices, offers telecom services in the Maharashtra and Goa circles and the move to decentralise is a part of its strategy to increase accountability and competition within the organisation. In Mumbai, the company has created north, south, west, and central clusters, while the rest of Mahrashtra would have seven clusters including Goa, Kolhapur, Nagpur, Nashik, Aurangabad, Pune and Vasai.

This is the first time an Indian telecom company is creating clusters within circles and putting officials in place to head them as distinct profit centres. "We had invested over Rs 650 crore last year and will be investing more than Rs 600 crore in the current financial year," Anthony added. The company plans to raise money through a rights issue, he said, adding, its board of directors will soon meet to draw up a revised plan in the light of recent events in the stock market.

For 2005-06, TTML reported a total income of Rs 1,096.79 crore, up 31% over Rs 836.48 crore the previous year. Meanwhile, the company has tied up with US-based Kodiac Networks for launching instant conference facility for its post-paid customers. Under the service, a customer can speak to several persons at a time by dialing a number that represents a group.