We detect a subtle shift in your branding strategy. Is this part of a definite change in your marketing approach?

Well, from the outset all our efforts have been geared towards one singular aim, that is to 'demystify the brand' and pitch the mobile phone as a utility. In a trend noticed in various markets overseas also, a new product has to weather testing times before it garners acceptance from the marketplace. The Indian market is no different, we had to wear down the initial resistance and mental barriers that existed in the minds of the consumers before we could make any inroads into the potential that India presented. So, I think that it would be more accurate to term our newer measures as a natural progression in the scheme of things, an 'evolution in branding strategy rather than a revolution'. All our newer ideas are based on painstaking and extensive research and are aimed at highlighting the 'functional value' of a mobile phone. Our advertisements try to capture the essence which is totally Karnataka, through 'Yakshagana', usage of Kannada, etc. and evoke a wholly unique flavour.

A few of the newer players might pose a potential threat to your position and stronghold in the market. Your comments in this regard.

We are not worried about competition. I could offer you statistics to qualify that statement further. India has a mammoth population with the penetration level of mobiles still far below the desirable figures. In this scenario, competition is a very welcome phenomenon if we are to realistically work towards achieving the projected levels of Teledensity. Thus, the industry is in its nascent stage making concerns about rivalry irrelevant.

Furthermore, operations overseas take place in far more competitive atmospheres with numerous operators vying for very small consumer bases, so we have a relatively larger potential market at our disposal here. Competition is always good for the industry and the consumer. As long as all the players in the industry are operating on a level playing field, and there is free and fair competition, we are not unduly worried by possible threats. Only transparent measures of regulation can ensure equability, and we are constantly working towards ensuring that we receive this. We are constantly trying to make value additions to the quality and effectiveness of the service we provide to our customers to stay ahead.

Convergence is creating quite a buzz. What does this foretell for the Telecom industry?

This question encompasses so many facets. One of them would be to look at convergence in an exaggerated simplistic view and comprehend what it signifies to the layman. Convergence would essentially mean life made simpler for the customer, and his accomplishing more with lesser effort. Technology is all about the art of possibility, but needs to be complemented by the science of practical implementation.

Though a lot of people are getting quite excited about the convenience it offers, it is a little premature when juxtaposed with the Indian context. All this hype around convergence could be shrouding the issues underlying it. It distracts us from the more real issues that confront us. Our focus and energies should be towards improving the quality of the present infrastructure, upgrading it, and also to bridge the huge disparities that exist within the norms of the industries.
Convergence is a gradual and logical next step in the ladder, offering concrete benefits through more efficient and cost effective methods to access information wherever we are.

Could you tell us more about your efforts to connect every part of Karnataka through optic fibers?

We are the first private operator's to use optic fibers for linkage and have already got 1200 kilometers of fiber in place that connects Bangalore- Mangalore, Bangalore -Hubli, and Belgaum, Bangalore- Mysore, and handles the bulk of our traffic. We are also in the process of installing additional fibers that stretches up till ITPL, at Whitefield. This would help us enhanced services for our subscribers and support them better. This is a part of our long-term strategy that has seen us making substantial investments to be equipped to face the demands of the future, in the form of convergence and providing better telecommunication solutions.

There is a constant influx of technological innovations in this field, be it WAP, GPRS. What do you have to say about this and the consequent value addition to services you offer?

We consciously try to keep out the complex technological specifications that are the backbone of our services when we are trying to talk to our customers. This is because we would like to leverage the content of our services rather than draw attention to other unnecessary details, which is irrelevant to our consumers. We prefer to channel our energies into providing a cost effective delivery mechanism and not go into the intricacies of the actual process. The kind of service required would depend on the situation one is in, i.e. to say that if a person wants to know the cricket score, an SMS would serve his purpose, whereas if one was looking to check his bank account it could be done through WAP. So, at any given time our emphasis is on simplicity and solutions and making life easier for our subscribers.

What inspired the company to come up with the name and logo 'Spice'?

The evolution of the concept and the brand building exercise took 3-4 months on the whole. Distacom was quite emphatic that we should not call ourselves a Tel a Cel or a Com, considering it had no great associative value in the Indian peoples minds due to its novelty. When we hit upon the name Spice, it instinctively brought with it images of traditional spices, of chillies and other assorted ingredients. But this was not what we were looking for, because such an idea ran the risk of becoming dated too soon. We were aiming to be having an appeal that was timeless and wouldn't become jaded.

Spice was very peppy and young in its appeal, though there were initial teething problems with us seeing a phase of chillies of every imaginable shape and size, we finally got a logo, i.e. the digitized speech bubble which has made it all worth the trouble. It is a logo that is universally accepted and instantly identified with us. Also, it manages to be distinct and rise above the clutter, which is no mean feat in today's age. We are the only people to have a brand name that is not a spin-off on the name of the company. We want to sell the brand rather than the company. Spice, as the name suggests, has a very Indian connotation, what with India being the heartland of spices across the world.

Could you tell us more about the future plans that you have for expansion and growth?

We are looking at improving our capacity and coverage over Bangalore, which is an ongoing process, linked directly to demand and subscriber volumes. So, essentially, we would be looking to capitalize on our strong points and make good on the commitments we have. We would be looking to converting the islands of coverage into continents of coverage. By providing greater connectivity across every area, we could expand our subscriber base to include our potential targets too.

Are government policies supportive of your plans for growth?

There has been a significant improvement in the existing scenario with the introduction of MTP 99, which make cellular operations viable today. But a huge distraction has been the introduction of limited mobility for basic service providers, which does not reflect the needs of the consumer.

The consumer is primarily looking at value for money; that is the deciding factor. The parliamentary committee has taken this fact to cognizance for IT and Telecommunications. They recognize that, in spite of a few improvements, Telcom operators pay an enormous amount of their revenue to the government or quasi government organizations like DOT, by way of taxes and license fees. The bottom line being that we end up paying a substantial chunk of 45% of our total revenue to organizations linked to the government.

If we are to tackle issues regarding affordability, we need to cut down on these taxes. We need to have a proper revenue share agreement regarding interconnect payment with the DOT, which would have a cascading effect on prices, and leading to us cutting airtime rates significantly. Also other measures could be taken to see to it that subscribers do not have to pay for incoming calls.

What do you envision for Spice Telecom 10 years down the line?

I cannot make any predictions regarding the changing equations in the industry, but it is true that 'now' is a period of transition and consolidation. Right now there are 16 -1 7 operators countrywide, which is already a few less than the figures a few years before. So it is going to be a gradual process of selection and weeding out with only the serious and committed ones still playing the field. A fair estimate would be to envision the market share being divided between 5 players, out of whom 3 are regional ones and the rest are national level. Shareholders are looking to increase shareholder value, which is in turn linked to the size of the subscribers. This can only be achieved by expanding ones base geographically thus allowing operators leeway to offer greater value for their customers. Mergers, acquisitions, entry of major multinational companies looking to tap the potential offered by the Indian industry are all going to be a part of this tumultuous period of growth, which would span the next 10 years.

Would you like to tell us about your personal impressions regarding India and its work atmosphere, people etc?

I am up beat about the market here and given time we can utilize its potential to the fullest extent. The customer does not accept any product overnight but commitment can work wonders. India has been a fun place to work, with its share of frustrations which are to be expected everywhere. In terms of the quality of people I have interacted with in Punjab and Karnataka, it has been consistently high. The professionalism and dedication of the people has been a very welcome feature indeed. The younger generation in particular has been very focused about personal growth that contributes to the success of the organisation. So, my years in India have been a very rewarding experience and I look forward to a brighter future ahead.

Address:
Spice Telecom Ltd.
148, Embassy Square, Infantry Road, Bangalore 560001
Phone: 2209 8305
Fax: 22098441
Email: shachi@spicetele.com

By Preeti Prakash
Photos by Levine Lawrence

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