Hutchinson Essar to follow Bharti Business Model.
Bharti Televentures’ business model was applauded by IBM CEO Sam Palmisano during IBM business leadership forum in China where top CEOs from the western world participated. In Feb-2004, Sunil Mittal, CEO of Bharti took a bold step in outsourcing its cellular network operations to its equipment vendors – Nokia, Ericsson and Siemens. Sunil’s views were he could focus more on better customer service. This rocked the IBM forum as this was a bold and unique move by any large telco/cellco in the world.
After 2 years, Hutchinson-Essar a joint venture between Hutchinson Whampoa and Essar group is following similar model by outsourcing their network operations to Nokia. As C.K.Prahlad predicted that their is a lot for the Western CEOs to learn from the East, this proven business model is something which AT&T – Cingular and Sprint can’t afford to miss who are known for their poor customer service.
Convergence.In Broadband.Out
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[...] Earlier this year, I had reporetd on the unique business model adopted by Airtel for network expansion, upgradation and management – outsource the entire networking operation to GSM equipment manufacturer, Ericsson. Airtel has done it again. It has outsourced a Billion dollar(Rs4,600 crores) contract to Ericsson for the next 3 years to help Bharti expand and upgrade its GSM network in the country. Akil Gupta, Joint MD of Bharti-Airtel told that the deal would be financed through internal accurals. Had anybody thought in the 90s that Indian telecom would be a market worth billions of dollars and European telecos would get a considerable slice of this market ? Well early investment by those companies in India has paid off as revenues on their home-turf have slowed down. With 3G services in the offing, Telecom MNCs in India can expect a bigger slice of this market. [...]
[...] Mr. Sunil Bharti Mittal [popularly known as SBM within Airtel] surely thought out of the Box and outsourced the IT + Infrastructure of Airtel to IBM, the first kind of its deal which others copied ET reports that IBM has bagged another contract [...]