Tuesday, July 17, 2007

Bharti Telesoft claims to be making waves in VAS. But does it have a clear strategic direction?

As an industry, VAS truly seems to be enjoying its place in the sun. A booming mobile subscriber base in India, which has touched 166 million and is growing at a fantabulous rate of 68% y-o-y (TRAI figures for March 2007), is a perfect platform for VAS. In India, VAS is expected to grow by 60% y-o-y to touch Rs.45.6 billion by 2007 end (IAMAI report).

However, there is a significant caveat to this burgeoning sector! It’s still an emerging and largely unorganised space, just like the Internet was over a decade ago, with so many big and small players planning to jump into the fray. Chowfla, Chief Strategy Officer, Bharti Telesoft , expresses this very avidly to B&E (when asked about Bharti Telesoft ’s five-year vision for growth), “The crystal ball (for the VAS industry) is not exactly tuned for five-year targets.” And clearly, quite a few of these players are headed for liquidation or takeovers (as they choose), while the global high and mighty like LogicaCMG, Comverse & Starhome are expected to take the industry forward. But the killing question is – does Bharti Telesoft , with its relatively small size and reach, have the wherewithal to withstand the incoming wave? Or is it liable to be swept away?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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