With a unique convergence strategy, RCOM now means much more to Indians than a mere price leader. By shashank shekhar
To match the cost of a call to a subsidised government
postcard was pioneering enough. Such ideas, often hailed as proprietary of a few gifted people, predictably came from the patriarch, thereby establishing Reliance Communications (RCOM), a telecom major credited with skipping and climbing the golden ladder that leads to the world’s second fastest growing cellular market. That drew in the hordes flaunting white LG phones with blue-lit screens, which could literally be had by just walking into one of those Reliance stores better known as R-World cafes. Of course, detractors were quick to speculate that Reliance Communications would be all about price leadership and nothing more.
Unfortunately for them, nothing could be further from the truth, Reliance Communications is creating waves in the telecom circles in more ways than one, be it with Anil Ambani’s exemplary network expansion drive, his foray to be a dual service provider (CDMA & GSM) or his most innovative convergence plans that transcend the entire gamut of digital media. In particular, RCOM’s endeavour to build a powerful portfolio of VAS services from the grassroots, is a feat arguably unparallaled in the telecom arena. No wonder, Anil enthusiastically commented while announcing the Q3 results, “The Indian telecom sector is poised at the threshold of a significant growth opportunity and RCOM, as a fully-integrated and converged service provider, is best-positioned to capture this growth.” What makes RCOM so different with respect to its approach to VAS?
“Fortunately at RCOM, VAS is treated as fundamental to our telecom business. Starting from handsets, we ensure that each piece is WAP enabled,” comments Krishna Durbha, Head – VAS, Business & Marketing Applications and Solutions. With commoditisation of voice, as is being witnessed by the industry, telcos have but little choice to tap into the services’ revenue stream that attracts a premium in today’s scenario. But most remain skeptical of introducing new products in the backdrop of thousands of ‘ring tones’ or ‘caller tunes’ and are also appalled by prospects of piracy. A point at which Durbha – salt & pepper haired with serious demeanour – lets out a contained chuckle for, according to him, VAS applications from a Reliance mobile phone can’t be pirated as phones are locked from the factory.
Over due course of time, RCOM has successfully tried out innovative services and to say that it is amongst the world’s foremost VAS providers and that too, to over 10 million subscribers won’t require much authentication. “The number of games downloads that we do everyday creates history on a daily basis,” puts in Durbha. Amongst other models, to penetrate into a larger market, Reliance has introduced a unique concept of sachetisation of game downloads, which Durbha calls as its second innovation, the first being introducing multi-player games on handsets. “We’ve introduced sachetisation as we’re very clear of the fact that in a market that is essentially pre-paid, people would not prefer downloading games for Rs.50.” And thus emerged the concept of “pay per play” that is usually about 2-3 rupees. On the content end, the company has encouraged a large amount of content development on mobile, since RCOM initiated its own Reliance Developer program on the lines of Microsoft. Social networking, the latest from the RCOM stable is creating waves too. Already, networking website Big Adda has been a phenomenon with some 1.5 million users within 6 months of inception.
Another point of focus in RCom’s agenda is to provide more regional content in its offerings. “The more local content you give, the more people will consume,” is the mantra on VAS. While at present, entertainment runs through its very veins, the shift towards utility services in near future is seen as a potential driver for growth. “We’ve gone wide. Now we need to grow deeper,” adds Durbha. Indeed, usage has only gone up with increasing regional content, as people are more comfortable in their native language, especially in case of voice based services.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
To match the cost of a call to a subsidised government
postcard was pioneering enough. Such ideas, often hailed as proprietary of a few gifted people, predictably came from the patriarch, thereby establishing Reliance Communications (RCOM), a telecom major credited with skipping and climbing the golden ladder that leads to the world’s second fastest growing cellular market. That drew in the hordes flaunting white LG phones with blue-lit screens, which could literally be had by just walking into one of those Reliance stores better known as R-World cafes. Of course, detractors were quick to speculate that Reliance Communications would be all about price leadership and nothing more.Unfortunately for them, nothing could be further from the truth, Reliance Communications is creating waves in the telecom circles in more ways than one, be it with Anil Ambani’s exemplary network expansion drive, his foray to be a dual service provider (CDMA & GSM) or his most innovative convergence plans that transcend the entire gamut of digital media. In particular, RCOM’s endeavour to build a powerful portfolio of VAS services from the grassroots, is a feat arguably unparallaled in the telecom arena. No wonder, Anil enthusiastically commented while announcing the Q3 results, “The Indian telecom sector is poised at the threshold of a significant growth opportunity and RCOM, as a fully-integrated and converged service provider, is best-positioned to capture this growth.” What makes RCOM so different with respect to its approach to VAS?
“Fortunately at RCOM, VAS is treated as fundamental to our telecom business. Starting from handsets, we ensure that each piece is WAP enabled,” comments Krishna Durbha, Head – VAS, Business & Marketing Applications and Solutions. With commoditisation of voice, as is being witnessed by the industry, telcos have but little choice to tap into the services’ revenue stream that attracts a premium in today’s scenario. But most remain skeptical of introducing new products in the backdrop of thousands of ‘ring tones’ or ‘caller tunes’ and are also appalled by prospects of piracy. A point at which Durbha – salt & pepper haired with serious demeanour – lets out a contained chuckle for, according to him, VAS applications from a Reliance mobile phone can’t be pirated as phones are locked from the factory.
Over due course of time, RCOM has successfully tried out innovative services and to say that it is amongst the world’s foremost VAS providers and that too, to over 10 million subscribers won’t require much authentication. “The number of games downloads that we do everyday creates history on a daily basis,” puts in Durbha. Amongst other models, to penetrate into a larger market, Reliance has introduced a unique concept of sachetisation of game downloads, which Durbha calls as its second innovation, the first being introducing multi-player games on handsets. “We’ve introduced sachetisation as we’re very clear of the fact that in a market that is essentially pre-paid, people would not prefer downloading games for Rs.50.” And thus emerged the concept of “pay per play” that is usually about 2-3 rupees. On the content end, the company has encouraged a large amount of content development on mobile, since RCOM initiated its own Reliance Developer program on the lines of Microsoft. Social networking, the latest from the RCOM stable is creating waves too. Already, networking website Big Adda has been a phenomenon with some 1.5 million users within 6 months of inception.
Another point of focus in RCom’s agenda is to provide more regional content in its offerings. “The more local content you give, the more people will consume,” is the mantra on VAS. While at present, entertainment runs through its very veins, the shift towards utility services in near future is seen as a potential driver for growth. “We’ve gone wide. Now we need to grow deeper,” adds Durbha. Indeed, usage has only gone up with increasing regional content, as people are more comfortable in their native language, especially in case of voice based services.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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