Spectranet, which is well known in the telecom industry as the pioneer of broadband in India, is rapidly expanding its operations to new product and service areas under Shyam Group (was under Punj Lloyd till 2008). Company MD Udit Mehrotra elaborates on the company’s plans for markedly growing its stature as well as reach in the Indian market...

Shyam Group acquired Spectranet two years back. Has the acquisition delivered in your view?
The journey has been very interesting actually and has been very fruitful for us. When we bought Spectranet, it was purely an internet service company. Since then, we have grown it into an integrated communication services provider; with services like broadband, the entire spectrum from data printer, internet connectivity, et al and voicemail services like audio conferencing, video conferencing, VoIP, et al. We believe the growth will continue.

Spectranet currently offers its services to over 20,000 customers in Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad & Chandigarh and is extending its footprint to many more cities across India. What challenges are you facing?
Challenges have mainly been in the terms of market competition. Today, the broadband space is growing in a very small range as compared to mobile subscriber growth. So everybody in this segment is fighting for a very small share; this has been one challenge. This is happening but the growth for sure will continue. And then the next challenge for us would be that we are growing and getting into different cities, so to understand the market in different places will be a big challenge for us. But we have been quite good considering the geographic expansion. We’ve grown from 2 cities in 2008 to 6 in 2010. In the coming months, people will see us in more cities.

How has the arena changed for Spectranet in providing Enterprise and Home solutions?
Earlier, the company was focusing primarily on enterprise customers. Since then, the focus has evolved to the home customers as well. In the enterprise segment, we are trying to offer more end to end solution to our customers. We are good in the enterprise segment and will grow in the retail segment as well. If a home customer has taken a broadband plan from us, he can also buy anti-virus solutions by paying `20 or `30 extra.

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Source : IIPM Editorial, 2011.

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

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