Is this service a path breaking innovative move in the telecom sector?

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So how is Netcore planning to get the cash flows and margins moving? The business model for this vertical of Netcore is the subscription model, wherein, the subscription charges would vary between Rs.25 to Rs.85 on a monthly basis depending on the usage (where the Rs.85 package would enable the subscriber to get an unlimited subscription of this service; and the Rs.25 package would be similar to pay per view after an initial free limit).

Is this service a path breaking innovative move in the telecom sector? Well, the truth is that though it might look as a revolutionary step in the Indian context, in the firang lands, this has been around for quite some time. There are companies like Momail.com and Teleflip.com, which are the top two choices in the US and European markets. Uniquely, they offer the basic services of these SMS/email messages at no charge at all; and only some specific add-on services are charged to the subscribers. Even at the recent CommunicAsia show in Singapore, Yahoo, which has been loosing its share of late, unveiled its own e-mail-to-mobile initiative. This initiative would allow its users to have their Yahoomail copied as text messages to their mobile phones, and also give an option of sending brief replies to these mails. Yet, Netcore MD Rajesh Jain terms his Emergic mail2sms service as being a ‘Blue Ocean’ service [suggestively named after the HBR paper titled ‘Blue Ocean Strategy’, which hypothesized that there are enough new markets for new players to enter], wherein, there is presumably and evidently a huge customer base that will pay up for their service rather than investing a heavy amount in purchasing a Blackberry and related service.

Competition or no competition, the fact is that in the Indian sphere, it is only Netcore that is offering this service. However, there might be a few others who might plan to jump in at a later stage. These are also early days for the mass marketing of Emergic mail2sms, perchance the reason why Netcore has targeted the offering currently at only enterprise customers who are constantly on the move.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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