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Home > Chennai Business > Communication > Interview

CELLULAR SERVICE MARKET

Chennaibest.com speaks to G.V.Krishnan, Senior Marketing Manager - Prepaid, RPG Cellular Services Limited, about cellular services in Chennai.

In Chennai, has the Cellular phone become a utility today, from its earlier position as a luxury?

It has become a utility like the Air Conditioners, which we are getting so used to. Then again, each category looks at it in a different manner. For the upper class, not to have a cellular is a sin. For the middle class, it is a utility and a productive tool, as they are always on the move. They are the traders and businessmen. For the lower class, it is highly aspirational.

Have Cellular services made a dent in rural segments?

Yes they have, to some extent. It is rationally used, wherever it is cheaper to use and, where it can be a substitute for a land-line. Again, its based on utility. Down south it is used for making urgent STD calls. Even a few auto-rickshaw guys in Chennai use cell phones. It basically serves as an information network.

Approximately how big is the Cellular phone market in Chennai?

Right now, there is a 5 lakh plus market in Chennai.

How competitive is the market in Chennai?

Its fairly competitive. Other than us, there is Skycell. And right now we are fighting tooth and nail.

How different is the market in Chennai from that in other major cities? How price-sensitive is Chennai?

Chennai is a conservative market. Very rational. Chennaites want to be convinced that what they buy is going to be useful for them. More than price, Chennai is value sensitive. They like to put a value to whatever they decide to buy.

Are Chennaites aware of the possibilities of WAP? Are they asking for it?

Yes, Chennaites are quite aware of whats happening, and they are asking for WAP (Wireless Application Protocol).

What about the issue of cellular phones being a health hazard?

There has been a lot of talk, but nothing has been proved. In countries like Finland, the penetration level is about 66%. People should be dropping dead there. I don't think it has made any difference.

Any innovations in service that Chennai users can look forward to in the future?

WAP and GPRS (General Package Radio System) will be a good combination. There are lots of innovations we can look forward to. For example, you are walking down Mount Road (Anna Salai), and you want to know where to have your dinner, you dial into your WAP and the ISP asks your choice of cuisine - Chinese, Continental, South Indian etc. Depending on your choice and your location, it gives you the address of the nearest joint. And once the meal is over you can dial and give feedback about the food at the restaurant. You are not charged for this call, as the restaurant you have visited pays for this call in exchange for feedback data. So this a win-win-win situation. There are 3 winners here.

Can you tell us something about RPG's strategy?

We offer two services - pre-paid service and the regular service. We started in 1995 and have about 50,000 subscribers today. The majority of this growth has happened in the last one to one-and-a-half years. What drives the strategy is, that it is for everybody. The pre-paid service has become very popular, as it is simple, affordable and available to everyone.

Finally, how decisive is the vernacular media, as opposed to English, in Chennai? Who are you targeting with the Pre-paid Cellular package?

The vernacular medium is working very well. Our target group was the businessman, trader, student and housewife. And this community feels comfortable with the vernacular. We tried advertising in the Dina Thanthi and Kumudam. This has been received very well.

- Anuradha Sriraman


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