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Spice builds distribution network through Karnataka Postal Dept.

13-January-2004
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Spice builds distribution network through Karnataka Postal Dept.

In yet another move to consolidate, Spice Telecom, Karnataka’s oldest service provider has tied up with the state’s Department of Posts to market its Uth pre-paid card and recharge coupons. The agreement will result in Spice recharge coupons and SIM cards being available in post offices across Karnataka. Initially available in Bangalore and Mysore, the distribution network is set to extend to the rest of the state.

Describing the tie-up as a “win-win situation”, Sean Dexter, MD, Spice Telecom says, “The postal department offers an excellent distribution network. Through this tie-up, Spice will increase its presence systematically across the state.” When asked how lucrative such an arrangement with a government organisation would be, Dexter says, “It’s a mutually beneficial agreement. The postal department will earn a commission on each SIM card and recharge coupon sold through its offices.”

About the expected sales through this tie-up, Dexter says, “At this point we haven’t set a target or reached an expectation. Our primary concern is to ensure that a distribution channel is established properly and the logistics is in place. Once we do that, we will start thinking of a figure.”

A total of 77 post offices have been identified to participate in this cross promo, with 62 coming from Bangalore and the rest from Mysore. An increase in this number will depend on consumer needs.

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