On the current scenario of the fixed wire line phones market

The fixed wireline phones market has been witnessing stagnant growth. With the increased adoption of mobile telephony, there are lesser additions of landline phones that are seen as a more traditional and outdated mode of communication. Additionally, customers tend to be less involved while purchasing fixed-line phones, which is a major concern for this industry and needs to be addressed at the earliest.

On the market growth drivers

The Indian fixed phone market is witnessing a paradigm shift from basic phones to the CLI (Caller Line Identification) and cordless phone segments. The key drivers for the success of the CLI segment include availability of new and exciting features like polyphonic ringtones, FM radio, 2-way speakerphone, large screen displays, and color screens. In the cordless segment, the emphasis is on 2.4GHz digital technology with a focus on additional features like 3-way call conference, phone book memory, and sleek and slim aesthetics. In fact, the cordless segment is growing by 20 percent. At Bharti Teletech, we are also planning to tap the two-line phone segments.

On new markets and technology trends

While the market for fixed line phones in India has been stagnant, the CLI and cordless phone segments are showing marginal growth and are set to spearhead the growth in the fixed line phones market. The Indian fixed phone segment is seeing an increasing shift in consumer preference toward phones with new features like backlit display, larger display, phone books, speaker phones, battery back up, polyphonic ring tones, FM radio, etc.

In the cordless phones segment, the thrust is on sleek and slim models with features like phone book, 3-way conference calls, etc. As far as technology is concerned, the fixed-phone market has witnessed huge growth with the introduction of 2.4 GHz digital technology platform. Also there is a huge trend of features present in mobile phones to be adopted into the fixed-line phones. Manufacturers are increasingly adding features like SMS and picture messaging, internet connection etc., to enhance customer experience in order to attract and retain them.

Are Chinese manufacturers a threat to the local players?

We have a local manufacturing factory unit based in Ludhiana with a capacity for producing 5 million units annually, which can easily cater to the demands of the Indian market. Additionally, we have a strong R&D team for product development and after-sales support and superior customer service centers spread across India and our efforts have been to provide affordable fixed line phones at attractive prices. Hence, with this kind of price offerings and after-sales support, we are the preferred brand among consumers.

On future outlook

We believe that the fixed wireline phone sector is not obsolete and the market will remain alive and healthy. This segment offers numerous opportunities for growth which include increase in internet and broadband penetration.

Currently, it is estimated that out of the total 13 million internet subscribers in the country, the current broadband penetration in India stands merely at 6.5 million which is a huge opportunity for the fixed-wire line phones market. Additionally, the replacement market has immense potential in the Indian market as customers are looking forward to migrate from basic landline phones to more feature-rich and cordless phones. Also, demands from SMB will largely aid in the growth of the fixed line phones market.