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Vsevolod Rozanov
President & CEO
Sistema Shyam TeleServices
Speaking at the Accenture Global Convergence Forum, Vsevolod Rozanov, president and CEO, Sistema Shyam TeleServices, told attendees that the competition in India is so fierce that we cannot assume a significant ARPU increase over the next few years. Given that most of the future consumers purchasing a mobile connection in India will be low ARPU customers originating from rural and semi-urban areas, a business model based on acquiring customers will not work in India, he said. Sistema Shyam Teleservices, is a joint venture between Shyam Group and Russia’s Sistema. Recently launched the MTS brand in India.
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The growing Indian market is currently driven by price wars. The key to survive and thrive in these conditions is to be cost-conscious from day one. “This is a key area for business model innovation,” said Rozanov. He placed equal emphasis on finding attractive new segments and market niches in order to make current growth profitable. To discover these segments and niches, the key will be to differentiate oneself in terms of value-driven product offerings.
Rozanov said that he believed the successful business model MTS employed in Russia, which placed customer acquisition as the central point, would require substantial modification for India. He believed that network roll-out, sales, branding, corporate governance excellence, focus on mobile high-speed data and content sales would be equally critical to MTS’s success in the Indian market.
Answering a question as to whether MTS was unsuitably positioned in the CDMA space, Rozanov said that MTS was, in fact, much better positioned to compete there, as it is far less cluttered than the GSM market. Being in the CDMA space offered MTS a good opportunity to differentiate itself on quality of service and unique content offerings by launching products such as high-speed CDMA-based data cards.
Concluding his presentation, Rozanov said that MTS’s business model would be centered around using innovations to impact the bottom line and launching differentiated products in attractive segments to deliver a robust top line.
Biography of Vsevolod Rozanov
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Vsevolod Rozanov is president and CEO of Sistema Shyam TeleServices, the subsidiary of JSFC Sistema in India. Prior to assuming his present responsibilities in July of 2008, Rozanov was vice president and chief financial officer of Mobile TeleSystems OJSC, the largest mobile telecommunication operator in Russia and the Commonwealth of Independent States. From 2004 to 2006, he was deputy general director for economics and finance at Comstar UTS. Prior to that, he worked as deputy general director for economics and finance at MTU-Inform and earlier held various consulting positions at Bain & Co. in Moscow, London and Stockholm.
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