Rental Service Business:
With telecom technologies upgrading at a fast pace and market maturing, the trend with enterprises to seek augmented services and bundled hardware and software on rental basis is fast catching up. Telecom companies are luring customers with end-to-end complete solutions. Keeping this in mind, Coral Telecom has tied up with the largest telecom companies in India i.e. BSNL and MTNL to supply customer premises equipments on rent cum revenue share basis.
Rental services business for voice and data services are expected to be large market worth at least two million ports per annum in India, which translates into a market of Rs. 2000 million. This model is being replicated in other countries in the Indian subcontinent and in Africa.
Model provides a zero capex based solution to end customers and absolves the service provider against challenges of technology obsolescence. Coral Telecom is in an enviable position to succeed in this market because of its pan-India presence to support service based business platform. Coral as a design house can handle challenges of technology obsolescence better than other traders and Coral as a manufacturer has lower break-even point in the business.