Major part of RM revenues tagged as international are meant for communications that are in-bound for India.
Tanla has similar business coming from internet giants and several other enterprises who are sending SMS to India, but Tanla doesn’t usually segregate this in their reporting.
Ask Route to confirm how many local enterprises they serve locally in each country through local Telcos, answer will surprise you. For example UK subsidiary has no local presence (serving local enterprises through local Telcos) and is purely an invoice routing entity – which has one of the biggest revenues if not the biggest within international revenue.
Apart from that part, installing off-the-shelf standard SMSC servers (& firewalls) in 100 plus Telcos globally to provide low margin sms inter connectivity services is something that I would hardly qualify as doing a better job.
For fifteen odd years, Route has been present in several countries and failed to leverage its presence to penetrate into local enterprise market – what does it tell you – to achieve this one needs to become a viable proposition while competing local players & require market understanding with constant improvement in product line through innovation to match the market – which Route has clearly failed to achieve.
Now the only hope for them is the inorganic expansions like Masivian and Mr Messaging – let’s see how they fare to integrate these acquisitions, coming from very different cultures. But since Route has certain DNA – not being agile, not innovative and doing same stuff over & over again – I am afraid that they may pull these acquisitions to its own level & kill the innovation instincts these acquisitions might have.
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