Financial Daily from THE HINDU group of publications
Tuesday, Sep 20, 2005
Financial Daily from THE HINDU group of publications Tuesday, Sep 20, 2005 |
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Info-Tech
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Telecommunications Marketing - Strategy Tata Tele to expand, to connect 80 more towns in Karnataka Our Bureau
Bangalore , Sept. 19 TATA Teleservices Ltd will roll out its expansion programme next month to extend its services to 80 more towns in Karnataka. The company currently has networked about 150 cities and towns in the State. Mr Prabhat Pani, Chief Operating Officer of Tata Teleservices (Karnataka and Andhra Pradesh), said an investment of Rs 400 crore had been earmarked for the current fiscal to augment its network infrastructure, while stepping up efforts to enrol more subscribers. Mr Pani said the southern States were seeing a robust growth, being at the vortex of economic growth. Though the average revenue per user, which at present is Rs 300 for prepaid and Rs 600 for post-paid users, has not improved, the telecom company's efforts have been focused on increasing the subscriber base to optimise the incremental investments being made on infrastructure and acquisition of subscribers. Tata Teleservices, which offers wireline, Walky (wireless landline) and mobile telephone services, has witnessed an encouraging growth in all the three categories, with the Walky and mobile services logging growth at the same pace of 20,000 subscribers per month. To meet the growing subscribers' requirements, Tata Teleservices has also decided to increase distribution outlets to 150 in the State. Bangalore alone will see 40 new outlets coming up in the next few months. Though bundling the handset with mobile services had helped the service provider expand its subscriber growth, the company has also tied up with distributors for supplying SIM cards to new subscribers. This helps the company reduce the adverse impact of the frequent drop in the price of handsets as stocking leads to slower growth of business. Tata Teleservices has an overall subscriber base of five lakh in Karnataka, which includes wireline, wireless Walky and mobile phone service users.
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