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Still
Bullish on India
 Worldcom,
(WCOM on NASDAQ), is an 'all-distance' communication services provider
with operations in over 65 countries and revenues of over $37 billion
(1999). Thus far, its association with India has been limited to a partnership
with the State-owned Videsh Sanchar Nigam Ltd. (VSNL) for long distance
telephony services between India and the US. In April, 2000, the company
secured an approval from the Foreign Investment Promotion Board to set
up a fully-owned subsidiary. Mark Russell, Worldcom's 33-year-old
General Manager for South Asia, discussed his company's India plans with
BT's Suveen K.
Sinha. Excerpts:
On Worldcom's
India strategy:
The company's strategy is: local to global to local. We have been able
to connect customers in the US from building to building. As a global
carrier, we have built a fibre optic network connecting cities across
Europe and, in turn, connecting them, through a transatlantic network
to those 150 cities that we cover in the US. We have broken the mould
by being (globally) one company with one network. The network distinguishes
Worldcom from other telecommunications companies.
On the implications
of this one network concept for the consumer:
The mean time for installation is greatly reduced as there is only one
company doing it, not several companies. Two, if there is a problem--in
a network run by several companies--it cannot be located quickly. Since
it is entirely our network, we can do this rapidly. Three, if there are
seven companies involved, each would want its own pound of flesh--in terms
of margins.
On the reasons
for focussing on Asia:
Number one, our global customers say we need to be here. Two, because
data and Net services are in great demand over here. It is becoming more
of an Asian community. Within the next 12 months, 60-70 per cent of the
voice and data transaction originating in India will be to other Asian
countries.
On India:
India is one of the fastest growing markets in the world. It is also a
liberalising market. There are many people looking at national data requirement.
They will be needing access to broadband. The Tata Group, for example,
is not present in a big way at the international level, but it operates
across India. The Net today is very much US-centric. About 90 per cent
of all content originates in the US. If you are setting up an ISP, you
need to have connectivity to the US. We can provide that. Our global customers--
like BP Amoco--want us to be in India. Ultimately, we can look forward
to supporting other customers. Projections of the bandwidth needs of Indian
software sector are phenomenal.
On the partnership
with VSNL:
With VSNL, we have, perhaps, the largest link connecting India to the
US. We work very well together.
On the potential
for business in India:
Commercial organisations need connectivity to the US as a means of working
in a global environment. Today, data transaction is catching up with voice
transaction. In 2-3 years, data transaction will be 25 times the voice
transaction. With our submarine fibre optic cable network--APCN-2--we
can provide the broadband connectivity Indian businesses will soon require.
On the quantum
of investment planned:
Last year, we invested $7.5 billion globally. At that time, our operations
in Asia covered four countries and had 150 employees. Today, with the
announcement of India operations, we have a presence in 11 countries and
a staff strength of over 1,000. India will perhaps be our fastest growing
business.
Impact of the
shelving of Worldcom's merger with MCI on India plans
:I am here today, and launching the operations according to the plans
we finalised last month (when the merger was still very much on).
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