Monday, May 14, 2007

Finally BSNL Wakes up !!

Bharat Sanchar Nigam Ltd(BSNL) is the 3rd largest Cellular operator and the largest Telephone operator in India. Of course the public sector monopoly over the first 40 years of Independence helped in bringing in these numbers. But a company of this size normally has a substantial ad spend and makes itself the highly visible in the marketplace ( Remember the AR Rahman composed Airtel tune ? It is the de facto No 1 mobile tune at one time in India). That BSNL achieved this scale in mobile operations despite very minimal ad spend is a testimony to how price senstive the Indian Consumer is.

BSNL entered the Mobile Telephony space only in the year 2000 ( nearly 5 years after Bharti Airtel and other started) , but still using it's pricing power made in roads into the Indian hands especially in the Semi urban and Rural Areas. So having garnered so much of marketshare and having attracted it's consumers so easily , what has made BSNL finally bring in the Pretty Printy Zinta as the brand ambassador ? And why is it showing these ads in Channels like CNBC?

Well, of the many reasons, one of them surely is Anil Dhirubhai Ambani Controlled Reliance Communications . Reliance is fighting tooth and nail with BSNL in the very markets where BSNL had so far enjoyed undisputed numero uno position. It is hitting BSNL at the place where it hurts the most , the Rural Areas and the lower Strata of the Mobile telephony markets - The consumers whose ARPU does not cross Rs.300pm(USD 6$ per month) by launching phones for as cheap as Rs 777/-( USD 15$)- Also notable is fact that many of the loyal BSNL Fixed line customers are returning them to pick up Reliances' technologically advanced Fixed Service WLL phones . These market forces are compelling BSNL to revamp itself and Preety Zinta has answered there call(Literally at that).

So an elephant has woken up.. Will it Shatter the Earth beneath ? Well, will have to wait and watch.

No comments: