Tata Tele ties up with TCS, Qualcomm
Business Standard — October 13, 2006

Tata Teleservices Maharashtra (TTML) plans to introduce a host of applications in partnership with Qualcomm, TCS, US-based Kodiak Networks and OnMobile to cater to the "fast-growing" enterprise business. It will focus on providing a range of end terminals and seamless connectivity targeted at sectors including BFSI, retail, hospitality, government, transportation, and pharmaceuticals. TTML will demonstrate its enterprise solution portfolio at a special event called 'Mpower' tomorrow targeted at enterprise customers. Meanwhile, Tata Indicom too plans to demonstrate a unique instant group mobile conferencing service - touted to be the first in the world to be demonstrated on a CDMA network.

The service will allow fast and easy conferencing of up to 10 participants through mobile phones. Subscribers will be able to manage their contact list and create instant conference groups directly on their handset. Charles Antony, MD, TTML, said: "The enterprise segment is going through a process of evolution with more and more people opting for wireless mobility. TTML with its strong network and best-in-class service has already gained a very strong foothold in the enterprise business. Moving forward TTML is gearing up to become a dominant player in this segment by introducing world-class innovative products and services to empower our enterprise customer base."

Detailing his business model, he noted that value-added services (VAS) contributes approximately 11 per cent to its revenues and plans are to increase it to 18 per cent. He added that leased lines have witnessed a surge in demand especially after the floods and bomb blasts in Mumbai. He also pointed out that 35 per cent of its capex (amounting to Rs 590 crore in this fiscal) has already been utilised. The rest will be rolled out in the remaining six months. The delay was owing to monsoon. The blended ARPUs for TTML are at Rs 550 (higher than its nearest competitor).

TTML is also tying up with airports, government agencies and the police for its phone booths and FWPs. TTML, claimed Anthony, has been growing at the rate of 63 per cent CAGR compared with the industry's growth of 22 per cent CAGR in the last financial year. From an operational cost of Rs 1,047 per subscriber in Q3 FY05, TTML has reduced costs significantly to Rs 449 per subscriber. The company has reached 43 villages in the current fiscal and under the USO programme, it is targeting rural subscribers of 100,000 by March 2007. Its current subscriber base is 50,000.