For the man who earlier helped grew photographic categories at Kodak and established Amway's direct selling business in the country, price is but one factor for growing any category. ``Brand-building and customer-care will be the main growth drivers,'' says Mr Banerji. ``This year the bulk of our investments will be in the marketing sphere, following an investment of Rs 300 crore between June and December 2000 in doubling our capacity to handle four lakh users.''

Essar Cellphone is kicking off a major advertising campaign, handled by O&M, to position cellphone as a proposition that increases productivity, brings overall cost down, helps one in time-management, and gives a self-confidence which comes from being connected to the world.

Broadly segmenting the customer base between `within' (0.5 per cent of overall population who have cellphones) and `without' categories, Essar Cellphone will create sharply focused initiatives. For the `within' segment, for instance, it will communicate why one should not keep one's handsets switched off etc.

Moreover, the focus of Essar Cellphone will be to confront the general perception that the mobile phone is elitist, an unnecessary wasteful expenditure, and unaffordable for the common men. "It's a necessity," will be Essar's pitch.

Essar Cellphone will initiate talks with handset marketers to bring India-centric handsets to complement India's lowest cellular pricing in the world.

Essar to go in for brand-building push "We're telling handset marketers that what India needs is vanilla-sort of handsets with adequate functionality,'' says he, pointing out how Kodak's offering of cameras at Rs 1,000 boosted the photographic market. ``It's time that the second-hand market and handsets on installments schemes are developed."

Mr Banerjee says there is need to intensify crackdown against an increased number of smuggled handsets which command 30 to 40 per cent price advantage over legal marketers. ``Also, why should imported handsets attract counterveiling duty of 16 per cent,'' he asks. ``People are giving serious thought to manufacturing handsets in India.''

Essar Cellphone has announced three tariff options - Regular (earlier Talk Easy), Hear More (Listen More), and Party (Live More) - in post-paid category; and one option for pre-paid brand Speed. ``We expect the Hear More option (Incoming Rs 1 a minute and rental Rs 495) to be a major growth driver,'' he says.

Speed has 95,000 subscribers and accounts for over one-third of overall revenues. The company's distribution network includes 38 distributors who service around 2,000 outlets in Delhi; and a direct corporate team of around two dozen.

Range of services from MTNL stable
With existing cellular operators Essar Hutchison and Bharti Cellular joining MTNL in bringing tariffs down, the war has certainly shifted to a different sphere. Admits MR JM Mishra, principal general manager (operations), MTNL: ``The basic thing is the quality of services that will bring customers to our fold. We're entering a very competitive market and we're in the process of launching a range of services to promote our cellular brand Dolphin.'' Already as of January 20, over 7,500 consumers were registered for MTNL's Dolphin, which will commence in February in Delhi. MTNL has a network capacity to handle 1 lakh subscribers in the first year.

Range of services from MTNL stable
Mr Mishra says that the MTNL is building an efficient cellular network, billing system and call centres. ``We'll begin with 22-hours call centres - possibly in 20 positions - which will be gradually converted into 24-hours ones,'' adds he.

Also, besides leveraging MTNL's existing distribution network of 37 Sanchar Haats (distribution points for basic services) in Delhi, the MTNL is also exploring strategies to reach out to consumers' doorsteps. Once a dedicated cell to manage cellular operations is set up - currently, GM (cellular operations) department is working in conjunction with MTNL CMD office - MTNL is expected to appoint a field force.

Also, now that MTNL has secured a cellular licence for satellite towns of Delhi as well, it will be beefing up its distribution network in these fast growing locations.

As a sequel to competition's multiple rental-and-air time options, will MTNL formulate a new portfolio strategy? ``Nothing can be said now,'' says Mr Mishra.