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.