We have economies of scale a new entrant cannot achieve | Q&A: M A Madhusudan

A year ago, Virgin Mobile, the Indian arm of UK-based industrialist Richard Branson’s aviation and communication group, entered India as a franchisee of Tata Teleservices. In a first, Virgin designs, markets and services Tata’s offerings for the youth. Hit by the recent regulatory changes in telecommunications, M A Madhusudan, India head, talks to Ishita Russell about the reduction in termination charges and the road ahead for the company, now that it has completed a year in the country. Edited excerpts:

How was the first year?

We don’t reveal our subscriber base because there will be double counting of figures since they’re already included in Tata Teleservices’ numbers; every customer we bring in is counted as a Tata customer. However, our subscriber base is definitely more than a million.

What is the addressable market for you?
Of the total telecom market of approximately 300 million, 45 per cent is the existing youth segment or existing user base, plus there are 50 million more that are expected to join this segment in the next three years including this year. However, we are focused only on the urban youth. So, effectively it is 17-18 per cent of the entire market. At present, 70 per cent of our subscribers are existing users of mobiles.

You came with the offer of paying 10 paise a minute for incoming calls. Now that the regulator has reduced termination charges, how will you cope?
It has definitely affected our margins. However, the effect is not much, since our outgoing and incoming is almost equal. So if my 30 paise have gone down, my outflow has increased by the same amount. Our overall calls were initially more towards incoming tariff offering, since typically we have kids and college goers on our profile, people who give missed calls for other people to call back. But now it is neutralised.

Everyone is focusing on the youth.
We won’t diversify and dilute the property of the brand. Even after a lot of brands floating in the market, we have 87 per cent recall in a span of one year, and some of the brands don’t even figure in the youth segment. So despite all other operators in the market we are being seen as a youth brand. We don’t have any ambitions of dominating the market, we started this venture only to address a particular segment, which is not being addressed by one of the stakeholders.

Now that MVNOs (mobile virtual network operators) are allowed, would you consider a plunge?
We are not tempted, given the way MVNOs are being implemented in India. With three more operators coming in, there will not be enough space for an MVNO to try for an urban market.

How much competition do you foresee in the urban markets?
Any new entrant will have to make a lot of investments in infrastructure. We are working on an existing infrastructure, only adding to it. We have already found economies of scale that normally a new entrant would find hard to achieve. We will be able to compete with any new brand that comes into the market.

Tata is entering GSM. Will you come along? What about 3G?
Our partnership with TTSL is not technology-dependent, it is only a brand. So we have the opportunity to go for GSM. They will take time to establish their GSM network so we have time to take decisions. It definitely opens up much larger options. We would definitely be excited about 3G. Whenever it comes, we would be ready with our offering. We will not bid individually for 3G.

Do you have plans of getting into other forms of data connection?
We’ve just made an entry into the data space with USB dongles and data cards. We will not make much hype about this. We will go through our normal channel; it’s an add-on product. We want to provide a complete package to the consumers to cater to all their needs, this is not specific to the youth market.

Virgin Mobile aims to get 10 percent market share by 2011

Virgin Mobile and Tata Teleservices joint venture is eyeing to get 10 percent of that market by year 2011.

Virgin Mobile’s Chief Executive Officer M A Madhusudan told reporters here that the company aims to acquire five million mobile users in the Indian market by 2011.

Though, Mr. Madhusudan was reluctant to release the details of his company’s present market share.

Virgin Mobile has come up with six handsets and launched a music edition handset in India. It’s offered to the consumers by Tata Teleservices through a brand franchise with Virgin.

The company has recently said that the latest mobile handset would be priced at Rs 4,250.

This handset comes with music player, music keys, FM radio, video playback, 1.3 MP camera, 1000 SMS and phone book storage space each and bluetooth.

Virgin launches its first music phone - vJaaz

Virgin mobile, known as a youth brand has further enhanced their quotient by launching their first ever music phone vJaaz. The company claims that vJaaz is set to redefine the music phone category in India.

vJaaz is a snazzy wine red and black colour handset and the best part of the phone it allows the user to download unlimited free full length songs. This feature is available for a year with a library of 1,00,000 tracks to chose from Bollywood to regional and International chartbusters. The downloaded tracks will be still accessible by the user after the subscription expires.

Talking to radioandmusic.com, Virgin Mobile India CEO M A Madhusudan says, “We have tied up with Hungama and Sony Music for music downloads, and there is nominal fee that we are paying them for the music.”

He further adds, “Music is at the core of youth culture – Bollywood, Jazz, Hip-hop, Rock, Alternative – you name it, they know it! Our studies indicate that the existing phones in the market allow youth to carry a small collection of songs. They have a desire to refresh music regularly. However, their music consumption is hindered by the exorbitant cost of downloading full-length songs, which is about 40-45 per song. And with vJaaz in the market the music phone category is set to be revolutionize and set a precedent for other’s to follow.”

vJaaz comes with a 1 GB SD Card, allowing the user ample memory space for the music. The other features include music player, music keys, FM radio, video playpack, 1.3 MP camera, loud speaker and bluetooth. It also comes with an striking feature with a storage capacity of upto 1000 SMS and 1000 contacts.

vJaaz is priced at 4, 250, costlier than all the other existing six Virgin Mobile in the market vKewl, vTrendy, vDesire, Vbond, vRange and vGlide but comes with added features.

Full Story @ radioandmusic

Virgin Mobile India Now Offers Users Access to MySpace

Virgin Mobile India has entered into a partnership with MySpace that will make MySpace's social networking services available on Virgin Mobile WAP-enabled phones. The company said the agreement will provide its youth customers with instant access to the social networking site at no extra cost on handsets starting at just Rs. 2,999/-.

With this service, Virgin Mobile has further spiced up its vBytes data portal. Users can access MySpace by simply clicking the MySpace link on vBytes and logging in the user ID and password. New users can begin by creating a fresh id and password. (Users pay a daily charge of Rs. 5/- for accessing vBytes)

Virgin Mobile said that with access to the online community, its users can now actively meet their friends and add their friends' friends on the fly, as well as share photos, journals and interests with their growing network of mutual friends.

Among other activities, Virgin Mobile users can send and receive messages, read and post blogs online, browse photos and albums, update their mood status in real time with just one click, meet singles, match make amongst friends, keep in touch with family members through Family Tree, network with business contacts and lastly, locate their lost classmates and friends.

Deval Parikh, Chief Officer, Handsets and VAS, Virgin Mobile India, said, "With more and more online youth community logging onto social networking sites, we wanted to make this service available to our customers on a broad set of handsets. We are thrilled to be the first to have partnered with MySpace in the Indian mobile service space to make this service accessible to Virgin Mobile customers on handsets as low as Rs. 2999/-."

"MySpace is the most popular social network with existing worldwide user base of 210 million and an Indian user base of 1.2 million, which is growing at a tremendous pace. We are sure our youth users will be delighted with it's accessibility at the press of a button, anytime, anywhere at no extra cost," added Parikh.

"MySpace and Virgin Mobile users in India will love having the freedom and convenience of accessing their social network while they're on the go," said John Faith, Vice President and General Manager of Mobile for MySpace. "With India being the fastest growing wireless/mobile market, it is a priority for us to provide our users in India access to their MySpace network in ways that fit their lifestyle. Virgin Mobile is an ideal partner that will help us deliver on that strategy in India."

vKewl and vSleek are two WAP-enabled handsets from Virgin Mobile's product portfolio. The company said vKewl is the only handset in the Indian market in the price range of Rs. 3499/- that can boast of providing features like video recording capability, 1.3 MP camera and comes with lifetime incoming validity and a prepaid connection. Besides this, the phone comes with MP3 player, FM radio, MMS, speakers and headsets. On the other hand, vSleek is an ultra slim phone priced at Rs. 2999/- and bundled with lifetime validity.

Virgin launches sub-Rs 2,000 phone

Virgin Mobile has further enhanced its handset portfolio by launching vDesire. The slim vDesire measures 11.5 mm, has chrome finish and claims to have 1000 SMS storage capability.

The phone supports a large internal phonebook with 500 X 5 entries and comes with 65K color screen, FM radio, stereo headset, speaker phone, prepaid connection and lifetime validity at a price point of just Rs 1,699. The handset also allows user’s one-touch access to vbytes, Virgin Mobile's data portal, from where they can download wallpapers, ring tones and games.

Delighted to announce the vDesire phone in India, Deval Parikh, Chief Officer, Handsets, VAS & Procurement, Virgin Mobile India said, "Constant access to social circles is a top priority for youth consumers. The need for style and instant communication has hit the younger generation like never before and SMSing has become an integral part of their lifestyle today. Keeping this in mind, we have introduced the vDesire phone that comes with a harmonious blend of style and features at a price that no other phone offers in this space".

The company which targets the youth segment has claims to have given its handsets a blend of style and features. This includes introduction of a few bundled offers such as vKewl, vBling, vSleek, vTrendy and vSwing.

vKewl has features like video recording, 1.3 megapixel camera, MP3 player, FM radio and is loaded with MMS, speakers and headset and is priced at Rs 3,499.

vBling offers a mirror finished, dual screen, clam shell handset bundled with lifetime validity and a prepaid connection at Rs 2,199 whereas vSleek is an ultra slim phone priced at Rs 3,299 bundled with lifetime validity and a starter user kit.

The colour screen vTrendy is priced at Rs 1,499.

Virgin Mobile Unveils vKewl Phone In India

Virgin Mobile surely deserves lots of congratulations for expanding its range of mobile phones, with the launching of its latest addition ‘vKewl’ in the Indian market.

Targeting youth, vKewl comes packed with a 1.3 megapixel camera having video recording capability, an MP3 player, FM radio, MMS, speakers and headsets.

The CDMA-capable phone features vBytes and WAP connection, 1.8-inch display screen with resolution of 176 x 220 pixels , 256 MB flash memory together with 64 MB SRAM.

Mr. M A Madhusudan, Chief Executive Officer, Virgin Mobile India, said, “Mobile phone is a lifestyle device for youth and has become an extension of their personality and entertainment requirements. Keeping this in mind, we have now made facilities such as video recording and 1.3 mega pixel camera more affordable for youth so that they can capture and share impromptu moments spent with their friends and family without hurting their pockets.”

“According to reports, there will be over 50mn new youth subscribers added over the next 3 years in India and we expect to take a good share of this incremental market,” Mr. Madhusudan added.

Moreover, the phone also has a video player, MicroSD card support, a 262K color screen and WAP and MMS support.

It carries lifetime incoming validity and a prepaid connection.

The Virgin ‘vKewl’ is available at just Rs 3,499 in India.

Virgin comes with an STD revolution

NEW DELH,INDIA: Virgin Mobile, India's first nationwide youth focussed mobile service, today announced its new 50 paise STD Local tariff for the prepaid segment.

Customers can now call any number (mobile or landline) across networks, across India at only 50 paise per minute after the initial three minutes of the day.

"Youth are high users of mobile services. This offer will meet their behavioural needs by providing a value proposition on long distance calling," said M A Madhusudan, CEO of Virgin Mobile India.

"This new tariff enjoys special significance given the fact that urban youth have a strong need for STD which comprises around 25 per cent of their outgoing usage but importantly their spends on STD are as high as 50 per cent."

All new customers can avail this new tariff with a new Virgin Mobile connection on purchase of a starter kit priced at Rs 99. Existing subscribers, who wish to migrate to this plan, can also do so.

"Our strategy has been to offer vigour and flexibility that meets the unique needs of urban youth. We launched in India with the 'Get Paid for Incoming' offer and with the launch of New 50 paise STD Local tariff, we are delighted to set yet another benchmark in the telecom industry in less than a year," Madhusudan added.

According to him, this tariff is first of its kind offer in the country and is part of the company's effort to put end to distances across geographies in India.

Comparing to industry he said: "Against the industry norm of providing STD at the rate of Rs 1 per minute at an additional monthly commitment, this new offer will provide the lowest all India STD base tariff offer at the rate of 50 paise per minute with no extra cost or purchase of a pack – a value proposition no other mobile service offers in India currently".

As per Virgin Mobile estimates, commitment to STD packs is not a regular affair for the youth. The new 50 paise STD Local is aimed at targeting this latent need of the youth by giving them the benefit of lowest STD base rates apart from benefits for local calling at no extra cost.