Francois M. Barrault, the Belgium-based president of BT International, was in India recently to promote the company’s interests in the country. In his own words: “We are not tourists here; we are a serious player interested in investing.” During the course of the visit, Barrault took time out to speak to tele.net on BT’s role in the Indian telecom industry, on the progress in the sector and future trends. We bring you excerpts from the interview…
How do you perceive the Indian telecom industry in terms of growth opportunities?
I would say it is on its way. The mobile market already has 2.5 million subscriber additions a month, which is very good. It is a bit slow on the internet side though, with the total subscriber base at 20 million only.The good news is that communications minister Dayanidhi Maran is pushing for reforms. I am very impressed with the person and by what he is doing. We strongly believe that the regulator will play a big role in deregulating the sector, which will lead to more competition, innovation and a more stimulating environment overall. In the UK, for instance, we were a very protective company in 2001. As the largest player we had about 89,000 DSL lines. Today we have more than 6.5 million lines.The regulator did a fantastic job in obliging us to reinvent ourselves and to stimulate innovation in a fashion that was good for the country. So, I think, the answer to your question would be that India is on its way and we are supportive of what the government is doing.
The Indian telecom market as such is complicated. There are strong incumbents, so I understand their point of view as well and what the easing of regulations would mean for their business. So it’s a tricky situation. However, we are very keen to be here. We are present in 136 countries. We want to work with companies to help build whole IP-VPN networks in such a manner that it is also good for the country.
Do you see BT’s role increasing in India’s current telecom scenario?
We have 6,200 people working with us.We represent 2 per cent of the total IT/telecom exports for the Indian government. So, we are not tourists here; we are a serious player interested in investing. We are spending a lot of management time here and have started building a relationship with Maran and his team.We are also investing in our networks and we are doing so because our customers ask for it. Many of our call centre customers and software companies are part of the BT worldwide network and want us to be present here. We are in effect looking to service a larger clientele with better schemes and a 24×7 connected IPVPN network.
What are your targets for the year?
We deal with larger companies and MNCs. We are not servicing the SOHO or SME segments. In this context, we are planning to target the bigger companies worldwide, which include large Indian companies as well. We see our role as the facilitator between the corporate world and the domestic world. We bring in the traffic, and thus business.When you talk to companies and they need to make a choice on infrastructure needs, we want them to think about BT.
What trends do you see in the Indian telecom sector?
The mobile business is exploding. It is also very cheap. With education being a priority, increased connectivity can be used to take education to kids through e-learning and other internet solutions. The government’s thrust on broadband and greater connectivity in the country will help stimulate competition, which will in the long run draw more foreign investment. For instance, we are investors. We have a presence in 136 countries and will be present in 170 countries by the end of 2007. As investors, what we need is some guarantees on return on investments.
Do you think the changing regulatory environment in the country will help international companies?
Yes, it would. Telecom is a huge capexintensive business, so when you invest, you need to take a long-term measure on returns. An investor should feel assured that it is better to invest in India than in any other country. We are in a connected world and in a global economy. So, it is important for us to be a global player. Our mission is to be a leader in the connectivity business and for that we need to be present worldwide. And to be present in different countries, we need assurance on the return on investment.
What are BT’s future plans vis-a -vis India?
We are very well positioned in India. We have invested here and have a large workforce that is growing. We want to help the major Indian companies improve their business in the world. We also want to have all the large worldwide companies as our customers, some of whom ask us to be much stronger in India.
How would you compare India to other South Asian countries?
The main challenge for India is access to knowledge through IP. There are 3 million students coming into the market. Of them, 500,000 are engineers; it is a big skilled workforce we are talking about. To strengthen their value, we are very suPportive of any programme that would bring IT and telecom to the people. The process of building crucial IT infrastructure in India has already started and we are looking forward to being a part of this journey.
There is a big change taking place here, which is very evident. I was very impressed when I was in Switzerland last year, there were Indian businessmen everywhere. Earlier it was the Chinese, but they are less in number now. On a more personal count, the trend I see is that while 10 years ago, people were leaving India to go to other countries, they now want to return to India. For me, it is very exciting and energising coming to a country that has good dynamic growth.
How is BT placed against the competition in the country?
We are extremely focused. We are not into the SME business. Our target is large multinationals.Typically, we transfer our clients’ entire infrastructure into an IPbased infrastructure. So be it call centres, or total outsourcing or the IT business, our effort is to make the solutions cheaper and simpler in order to help with their core business so that the benefits are passed on to the end-users.
What are the future technology trends worldwide?
The trend worldwide is an increased focus on consumers and enterprises having access to networks everywhere. The idea is also to increase connectivity everywhere, including the rural areas. To manage last mile connectivity, for instance, we have recently introduced a product called BT Fusion, a mobile phone that can adapt to a wireless or a GSM phone, depending on the best signal available at the cheapest rate.
Where do BT’s operations in India stand at the moment?
We are in business with Bharti and other big players in India. We have applied for licences. In India, our major thrust is on improving IP coverage. We see a lot haPpening in that direction here. Also, it is important to have the right people at the helm, who have an understanding of the business and can drive business, progress and innovation.
What, according to you, are the concerns that need to be tackled?
As far as regulation and getting investments are concerned, speed is the key. There is a need to redefine norms so as to get things done. In fact, I am leading a group in a proactive programme where we talk to governments in different countries to find a way to do things faster and better.Protection of state-owned units does not work for long. BT in the UK is a prime example. It has practically rewritten itself and we now strongly believe in competition. That is the beauty of politicians ?? they stimulate the environment for leadership and innovation.
