How DOCOMO is changing the face of Indian Telecom

Tata DOCOMO -a  joint venture between Tata Communications and the Japanese telecom giant NTT DOCOMO is redefining the dynamics of Indian Telecom Sector.

tata-docomo-gsm

Docomo launched in India with a bang with a great branding exercise and an equally catchy caption "Do The New" .The caption signifies their focus on the Youth of India which is probably the most critical and the biggest target market for any telecommunication service provider.The advertising was done on full throttle too by choosing the places with maximum footfalls like Railway Station,Airports etc.

But, then that could not possible bother other competitors like Airtel and Vodafone which are strategically placed in the Indian market.So, how does DOCOMO break into an already saturated Indian Market.

Revolutionary Pricing Let's face it.India is a price sensitive market.So, for any company to get the customer's attention , the pricing of the product has to be perfect.DOCOMO hit it just right with a pricing model that is possibly revolutionizing the complete Telecom Sector. They coined it as "Per Second Billing"

The per second billing though introduced by TATA CDMA earlier was a first in the GSM space.The impact of the offering started a price war that Indian Telcos had witnessed before.Reliance joined the fray with 50 ps/minute billing to overthrow DOCOMO's move.So much so that the regulator TRAI made it mandatory for all operators to switch to Per Second Billing.

The news shocked the operators and even the Stock Markets were not spared.On the day of announcement, the telecom shares dropped by over 3-4% with AIRTEL suffering the maximum.

As if that was not enough , DOCOMO has recently dropped another bombshell with the announcement of "Per Second Billing On Roaming" too.Now, roaming is one service where telcos make a lot of money.But DOCOMO has changed the dynamics here too.Will the Other operators follow suit or let DOCOMO take the market share with their super attractive pricing plans.

Only time will tell , but one thing is sure!! DOCOMO is out in the market and changing the face of Indian Telecom.

What are your thoughts on this? Will DOCOMO be able to break into the Indian Markets where Vodafone, Airtel and Reliance occupy the major share

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11 Responses to How DOCOMO is changing the face of Indian Telecom

  1. Well, I doubt, because are reluctant to change and DOCOMO might have appealed the indian markets by initiating, but the market leaders would definitely create the entry barriers for it.

    Airtel and Voddafone- the existing leader tele co's might go along (not explicitly) to just ripe DOCOMO off Indian Markets...

  2. @cheekz Thanks for dropping by!!

    Docomo has hit the right nerve by getting dirt cheap and the timing couldn have been better.TRAI's number portability is going to be launched soon and it will give the subscribers to switch providers.With a pricing like that i bet atleast the ones with lower ARPU's are going to switch.The only detterent could be the network quality which i cant personally comment but given DOCOMO's reputation in Japan , i hope the quality is good.
    BTW , just for the info TATA has taken the lions share in the latest telecom subscriber report. Check the report here TRAI Report

  3. oh my god..!!!

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    u knw what... after reading the article.. my first thought was.. yaar I never write so professionally and so writers like.. :D :)

    mere ko to complex hi ho gaya tha... :D

    but then i thought about it for quite sometime.. and realized that this for such a content you need to be a very very well informed .. :( You do what I would like to do.. !! :) But I am not putting in the necessary eforts.. :D

  4. Ahem Ahem!! Was i subjected to some serious exxageration :) BTW i have not even listed the blog which features my best content :-) I am a paid editor on that blog, will put up the link tonight.

    And i am no writer here.I have only started and learning as i go.The best part with writing is the fact that it is self approving.
    Moreover, what i write comes from information i gather.What i see on your blog is creativity in the forms of poems which to me is more writer like :)

  5. Well, sorry to disturb the conversation thread above. To me I think DOCOMO has already started doing the damage with the help of their catchy ads and music. It has already established itself as a brand. But the brand itself won't give it a shot because ultimately what matters is the quality of the network and other value-added services. My personal opinion says that again Vodafone and Bharti are leaders into that. I still remember how Airtel uprooted the customer base of Idea in Pune when it got launched there around 2002-03. The only thing mattered to the bachelor city was less cost of Airtel, though quality was a compromise. The point I am trying to make here is that it all depends upon the type of customers you are targetting. Students or bachelors want less cost while the professionals would go for a better network facilities. DOCOMO has a better chance to get a hit with the students rather than for much matured customers.

  6. Thanks for dropping by:-) I second ur views as far as the branding and pricing is considered.THis is the kind of effort that was needed to touch shoulders with the likes of Vodafone and Airtel.

    As far as the target customer is concerned, they have very much taken the mass volume market -Students and the sector that deliver lower ARPU - the aam admi sector who has to be connected but doesn spend more.
    As for the matured customers, i cant bet but with DOCOMO's technical expertise - they are the pioneers of 3g and have launched 4g in japan, expect that they will deliver on quality too.
    So, from what i see they have quantity and quality very much in place.
    I am open for further discussions :-)

  7. Hey Kalyan ,
    I'd say write to them at social[at]tatadocomomarketing.com ..
    They respond and generally work get's sorted...
    don't forget to include your TD number...
    hope it helps.. :)

  8. Kalyan, sorry to hear bout your problems with Docomo folks. I tweeted bout the same and @tatadocomo responded http://twitter.com/tatadocomo/statuses/16407821351
    Have asked them to comment on the post and may be you can follow up with them
    Hope it helps

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