Tuesday, February 28, 2012

OUR DATA CUSTOMERS ARE OUR ONE BIG DIFFERENTIATOR

How MTS India is addressing the needs of today’s upload generation by creating product differentaition and offering innovative solutions.

You operate in a very competitive environment, with players like Tata Photon+, Reliance Netconnect, and other mobile service operators. In such a situation what is it that differentiates you as a brand and what is your USP?
Unlike the other brands, what really differentiates us is that we are not really a voice brand which is also in data; we’re a brand that primarily exists for data audiences. Therefore, our product, our network, our services, the structure of the company, and how we deal with customer service are tailored much more for data customers. Data customers are rather different from voice customers – that’s one big differentiator for us. Even from the branding point of view, we have some differentiators. Our brand, for example, is unlike other telecom brands in India, which are very collective in nature in terms of connections and strengths of the respective groups. We are doing completely the opposite, and we are focusing on individuals. So, even as 99% of the brands are talking about connectivity, we’re are talking about empowering an individual, making him influential, powerful and more secure. Apart from that, we build differentiation in the way we choose our media, the kind of sponsorships we have, the kind of market and imagery we are using.

Your data offering “MBlaze” is on the CDMA platform. Is it a better medium for data delivery?
Being on CDMA, we have some intrinsic advantages over the other operators, and that’s not just true for MBlaze but also for players like Tata and Reliance, which too offer their data on the CDMA platform. A CDMA network has two pipes, one for voice and the other for data, and therefore your data speed and throughput are faster, much more consistent and reliable. In GSM there is no such distinction in pipes, therefore, as there are more and more calls on bandwidth, they choke the pipes leading to poorer and poorer data connectivity. This is the reason why in India, and all over the world, when it comes to dongles and data, CDMA always has an advantage.

So the trend is that GSM in India will be used for voice and CDMA for data. Do you agree?
For now, definitely, no question about it. But it’s very hard to predict in this category what will happen 10 years from today, as technology changes rapidly. But for now that’s the trend and it shows in the market place. Three CDMA players dominate the dongle market. Collectively, the three players have captured almost 80% of the Internet dongle market. The remaining 20% is dominated by GSM players like Airtel, Idea, Aircel et al, with 3G offerings. While Vodafone is actually now using our dongle, called “NetCruise”, it’s basically a Vodafone branded product, but powered by MTS. Vodafone is only marketing it. The entire service experience is delivered from MTS network.

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Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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