Security, reliability, coverage and service are among the key strengths of fixed lines

Asheesh Pandia
Manager - Communications
Siemens Enterprise Communications Pvt. Ltd.

Landline subscriber base has been on the decline (out of 706 million subscribers in India, only 35.80 million are landlines). How do you view the situation?

Perhaps, the gap has increased even further, as we speak. BSNL, for instance, has reported the first loss in its history recently in the face of heavy advertising, cheap call rates and smart packages. There is an alarming decrease both in the landline subscriber base and the ARPU (Average Revenue per User), despite the new value-added services such as IPTV and Broadband. Landline infrastructure has been playing an important role in connectivity such as metal local loop for last-mile telecommunications. Here too, the switch to FTTx is noticeable owing to its “future-proof” value. So, basically, we cannot count on the old infrastructure itself for its longevity.

The downward spiral in Fixed Line subscriber base will continue through the telecommunication industry barring the stable Broadband and corporate business. For home users, landlines are mostly living for incoming calls and ADSL connectivity and offices still prefer “call-forwarding” to “replacing” their landlines completely. So although extinction anytime soon is both doubtful and hyped, most users will keep moving away from landlines gradually for sure. 

The competition from cell phones that faces landline and PCO business is exceedingly stiff. The key factors in the downfall of Wireline are mobility and affordability that Wireless networks offer. Voice and data quality of landlines is much better than that of cell phones; they don't play the “switched-off” or “out of network” messages usually, but they lack on the convenience and mobility front. More to the point, disposable income of an average Indian has been on the rise and the number of road warriors is growing fast. Developments like MNP (Mobile Number Portability) are sure to empower Wireless networks, stealing away some more of the landline share.

How is Siemens positioning itself in such market conditions?

Attractive call package is an important but overrated strategy - people do not necessarily ditch their telephones only because of cost or monthly rental. Landline rates have already been lowered and mobile tariffs are getting enticing and dirt cheap day by day. Low tariff may not be the best area to work upon always and landline market share could now be more about focussing on the real strengths of Fixed Line networks. Security, reliability, coverage and service are among their key strengths. Health hazards, for example, which come along with mobile phones and mobile phone towers, can be avoided by using a landline. 

At Siemens Enterprise Communications, we believe that communication is the key in the day-to-day operations of every business. To ensure each type of worker has the right features and functionality to succeed in their role, we have engineered a comprehensive range of phones and clients. From stylish desktop phones, laptop and smartphone clients, and cordless devices to WLAN handsets, we can meet the communications needs of even the most complex organization. The world-famous OpenStage family is a range of handsets from entry-level to executive featuring high-definition voice quality, ease of use, and stylish design. Available for both TDM and IP environments, OpenStage phones also have a broad suite of applications to integrate with a company's business processes. 

We have come a long way from pure  hardware-centric focus to smart communication solutions based on open-standards. Our portfolio has products and solutions that support and integrate with legacy infrastructures as well. By combining all communications into a single, manageable interface, unified communications simplifies the way we share information and improves collaboration.

How are you making your solutions available that aim to enhance the growth of landline subscriber base in the country?

We are doing it in several indirect ways such that they support the corporate subscribers' base and the equipment manufacturers. As you can see, most of our competition has been moving to pure IP solutions because that is where the future is. However, no one has focussed much on the existing base or the open-standards based approach. Siemens will keep supporting TDM and the existing infrastructures of corporate subscribers due to its open solutions. Corporate subscribers need not switch completely or instantly. In this way, to some extent, we are preventing the fixed-line draining. 

Secondly, we engineer a comprehensive range of phones and clients available for both TDM and IP environments and with our Unified Communication solutions, the lines between different platforms is fading off. Irrespective of whether it is landline or mobile, we ensure presence and collaboration with UCC (Unified Communications & Collaborations) and both can coexist. Also, the larger chunk of landline exists owing to the data usage. Our data product and solutions portfolio also help propel data usage, thereby contributing towards the bigger part of landline subscriber base.

Specifically in the Indian market context, the products we offer have an edge on technology and are feature rich. We ensure that Channels are able to position these correctly and the customer sees our solutions as long-term investment in technology. 

Are you looking at specialized partners to table your solutions in the market? Please elaborate.

We need partners both with decent financial and technical competence. The margins are not very high and also not the volumes because ours is a different business altogether. Partners who have a long-term vision would be the best bet. They must appreciate they fit into a slab where one gets awarded on a recurring basis. The products and solutions get upgraded with sufficient margins and this is an ongoing process. Besides, there are AMCs and we are going very aggressive on our Managed Services.

What is your current channel base?

We have in excess of 100-strong and highly competent Channel Partners spread across India. Our reach is our key strength, from up north to down south. We enjoy a channel base with dedicated partners who have been loyal to us for over a decade. Looking at our channel base, the remarkable loyalty can easily be noticed. In fact, it is so unique in today's dynamic market.

For more contact:
beenish@varindia.com