Freshtel’s goal would be to create unique consumer base by introducing the advantages of VOIP based data and voice transmission. Freshtel should focus on launching its flagship IP telephony products that focuses on small and medium sized enterprises. The majority of population is still not very technology-savvy; therefore targeting the non-corporate consumer base will bring us in direct competition with conventional telecom companies. Existing mobile communication companies hold considerable advantage.
With the expansion of our consumer base among commercial consumers, we can then seamlessly launch retail communication products in the market. Entry Mode Since Freshtel relies on foundations of technical infrastructure and trained support staff, the best entry mode would be to select a non-competitor Indian company that can facilitate and support our distribution. A Joint Venture with an existing IT infrastructure company is the most plausible entry mode. Freshtel can initially invest at promoter level with a 50-60 percent stake.
Tata Consultancy Services or TCS has been selected as our strategic partner for making inroads in the Indian market. TCS will enhance and widen Freshtel’s path in the following ways: Technical Infrastructure IT Infrastructure Services (IS) is a strategic business unit of TCS that is focused on providing IT infrastructure solutions
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Efficient Overseas Management TCS has expertise in providing remotely managed services. These services could offer Freshtel its multiple global delivery centers across the world. Alliances and Partnerships TCS has a record of building strong alliances and partnerships to provide complete range of solutions to its clients. Freshtel can utilize TCS’s market reputation in India as well as Asia to leverage sustainable growth. Future tie-ups with Indian retailers and marketing groups would become a lot easier for Freshtel. Business Excellence
Freshtel also stands to gain from TCS’s business model for telecom industry in Indian markets. TCS has setup a Telecom Centre of Excellence to research and develop consulting and implementation offerings for the Telecom industry in line with the emerging standards, such as enhanced Telecom Operations Map (eTOM) in different areas. Overview of TCS by an independent agency (Cahill, Tim, 2006) Hong Kong, February 10, 2006: Moody’s Investors Service has assigned its A3 issuer rating and an indicative foreign currency debt rating of Baa1 to Tata Consultancy Services (TCS).
The ratings outlook is out-performer. The current ratings reflect the company’s four core credit strengths: * Dominant domestic market position and major global presence. * A favorable long-term IT industry trend, which involves off-shoring and business-process outsourcing. * Good growth prospects, including proven ability to win and handle large-scale projects globally. * The support provided to its business growth by healthy recurrent cash flow and a strong balance sheet.