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Tata Tele to focus on mobile segment in Tamil Nadu circle

09-June-2005
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Tata Tele to focus on mobile segment in Tamil Nadu circle

Tata TeleServices has unveiled its plans for Tamil Nadu circle, stating that it would shift its focus to the mobile segment in the current financial year. A new campaign is expected to break soon, featuring its new brand ambassador Trisha. According to the company its spend on promotions would go up this year.

At a press conference in Chennai, Madhusudan, COO, Tata Teleservices – TN and Kerala Circles, said, “The opportunity in the incremental mobile segment is very large. The movement of mobile is at a steeper climb. Going forward we would be focusing on this opportunity.”

Announcing an additional investment of Rs 375 crore in the circles in FY 2005-06, he added, “By this investment we expect to reach 1 million subscriber base in Tamil Nadu.”

The company also announced that its retail network of True Value shops would go up from the present count of 70 to 200. The telecom service provider currently has a base of over 4 lakh subscribers, of which 1 lakh are mobile subscribers. With its current base, the company’s revenue is around Rs 22 crore per month, according to the company’s spokesperson.

Madhusdan, without divulging the proposed promotion budget, said, “There will be more initiatives in that direction. Last year, the spend was at around Rs 12 crore. This will go up.” The introduction of newer handsets is expected to drive growth in the mobile segment, with affordable handsets with value-added services that ‘customers can relate to’. The central theme of all communication for the prepaid segment that forms a big chunk of its mobile base remains 100 per cent talk time, he said.

Details on its forthcoming advertising campaign with new brand ambassador Trisha were not forthcoming. The COO added that the company’s recent tie-up with the Rajnikant starrer ‘Chandramukhi’ had paid off dividends to both the producers of the movie and the company. He said, “Business has gone up. More importantly, brand recall has gone up. Between April and May, there has been a significant rise in brand recall, as we have found from our syndicated surveys.”

In its quest for a larger share of the state’s mobile pie, Tata Teleservices will compete with state-owned BSNL, Reliance, Airtel, Aircel, BPL (in TN) and Hutch (in Chennai).

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