[needforbbx]

Interview with MD of Blackberry India. Noticed two key items:
- I'm hoping this is a misunderstanding on my part, but reference to BB7 is "devices" - not a device.
- BBM on android/apple will be limited to chat only. No video or screen share.

Anyhow, interesting read.
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Priority is to regain lost market share: BlackBerry India MD

Notwithstanding the decline in market share in the past year, BlackBerry India Managing Director Sunil Lalvani is extremely bullish about the company�s growth in the high potential Indian market. He, however, makes it clear that the smartphone maker has no intentions of getting into the sub-100 dollar phone market to gain an edge over competitors.

In an interview to The Hindu, he talks on a variety of issues including the move to make BBM available on other operating systems, and the company�s plan to improve its after- sales service. Edited excerpts:

You joined BlackBerry at a time when sales were dipping. However, lately, we have been seeing a lot of action . How would you summarise your two months as the head of India operations for BlackBerry?

I�ll summarize it in three words � exciting, interesting and challenging. Firstly, I am very excited because we could not be in a better country than India because of the opportunities the market offers. While there are about 650 million mobile phone users in India, only 12 per cent of them are smartphone users. So, the headroom to grow is tremendous.

It�s interesting because it keeps you on your toes, and keeps you thinking at every stage how to differentiate yourself. We differentiate ourselves in two categories, one is for the consumer and other is for the enterprise. Enterprise market we always had a stronghold� so how do we continue to be relevant there. And, in consumer market, launches such as Q5, BBM Channel, BBM cross platform are what is driving the interest.

Challenging because the market is competitive, and there is no two ways about that. There are a lot of expectations, a lot of competitive pressure on price points. There is a very aggressive price war going on. A lot of demand tends to come from certain pockets of the industry where Blackberry is loved by people but they want a sub-$100 (about Rs. 6,000) device. We don�t have a sub-$100 device, and I�ll be the first to admit that.

I can not make a false promise that we�ll get one because it�s not practical. If you look at the way the market has evolved, a lot of these sub-$100 devices are imports from other countries, semi-knocked down or locally manufactured. They get some benefits which we don�t get.

So, we cannot get a sub-$100 device into the market. We are playing into the sub-Rs. 10,000 category going up to the Rs. 40,000 category.

India has always been a very price conscious market. Your Q5 model is the lowest costing BB 10 device, and is priced at nearly Rs. 25,000. How do you think this will impact your market share?

When we launched BB 10 in India, Z10 was priced at about Rs. 43,490. Then, we launched Q 10 (priced at Rs. 44,990). The market adoption and response to both these phones have been fantastic. But being a price sensitive market, a lot of users who could not afford Rs. 40,000 phone came back to us, saying that the platform is great but we can not afford it. So, with the Z10, for example, we launched an upgrade programme, and have seen a 40 per cent rise in our sales numbers. The Q5, which is targeted at urban youth, we think, is very aggressively priced. If someone finds this high, the option of going in for EMIs is always there. At every stage, we are trying to make products affordable to the consumer.

Someone in the market who is more price sensitive and maybe cannot afford a Rs. 25,000 device can also look at Curve. Curve is available with EMI option for as low as Rs. 799 per month.

Also, while OEMs are dropping prices and introducing cash back offers, one key element that is missing is what about your monthly cost of data usage? We have aligned with three carriers� Aircel, Vodafone and Idea� and are offering data plan. So, across 15 circles, for all these carriers, users can get a data plan of 1GB for as low as Rs. 129. Two years back, we were charging Rs. 229. So, we are making recurring costs for users come down rather than that one time thing.

Now that BBM will be available on iOS and Android platforms as well, do you think you�ll be able to retain customers, particularly the youth?

It�s a relevant question. If you look at the market over the last two years, with new instant messaging tools like WhatsApp, WeChat coming in�what is their USP? They work cross platform. They are not restricted to one OEM or platform. On the other hand, while people still swear by the user experience they get on BBM, they say the only reason they possibly moved away was because BBM was not available cross platform.

So, two things will happen. Someone who is possibly evaluating moving away from BlackBerry because BBM was restricted in the past will not move away as now he can stay connected using his or her BlackBerry device.

Similarly, those who had moved out to other OS may be a year ago because of other messaging apps available cross platform could look at coming back. But while BBM will be available cross platform, BBM experience on BlackBerry will always remain the best. There are features like BBM video and BBM screen share, which will all be available to BlackBerry users and not on other platforms. So, these will be our USP.

Then there is BBM Channel, which, according to me, will be the next game changer. We have 61 million BBM users worldwide who send and receive close to 10 billion messages each day. That�s big is terms of data usage. The moment you make BBM cross platform, you are looking at an exponential growth of that 61 million to a huge number.

BBM Channels will allow users to create channels for themselves, a brand, business or community. These can be paid or free channels. In case of free channels, there is ad-based revenue where we get a share, and if they are paid channel, there is revenue for us there. So this is the new BlackBerry we are talking about. It is a completely new revenue stream. We are definitely bullish on the way BBM will evolve for us as a big revenue generator as well.

What will happen to your relationship with the operators as currently you share revenue with them for specialised packages just for BBM?

BBM will continue to operate through the carrier networks, so there will still be a data plan. Operators will not see any revenue loss; revenue will only increase as more and more consumers use BBM. If you look at the key operators in market, they are looking at data services revenue uptake. Voice is virtually commoditised, and the tariffs are low anyway. So whole revenue stream or profitability that comes in for operators today is data, and BBM is data-centric. So, it will help drive revenue for them as well.

What about BB OS? What kind of roadmap do we see for that? Will it co-exist with BB 10?

Globally, we have segmented markets into prime BB OS markets and BB 10 markets. India is a prime market for both. There is an urban segment which is targeted for BB 10 as a platform with features like multi-tasking, social networking capabilities� it�s targeted at urban youth.

BB OS will continue. BB OS 7, in particular, will continue. We�ll roll out more devices on that platform as well where operator data bundling will continue as there are a lot of Tier 2, Tier 3 markets which are under penetrated. Smartphone adoption in cities like Delhi, Mumbai and Bangalore may be very high, but when you go to Tier 2 and 3 markets, the penetration is still low. And because it�s low, we are trying to get BB OS there. For operators, the benefit with BB OS is better data compression that helps optimise their frequency spectrum. For users in these markets, they get BB OS devices that are also available in the sub-Rs. 10,000 category along with lower recurring cost of ownership. So it�s a win-win situation. Operator gets more data services revenue, we get to sell more BB 7 devices and the user gets the power of BB OS at a lower recurring cost.

How many new devices can we expect?

It is difficult to put a number because the roadmap evolves. It is continuously evolving. But we definitely have some BB 7 devices coming in, and some BB 10 as well.

What type of market share are you looking to achieve in India?

We have lost a bit of market share in the past year, year and a half. Firstly because we didn�t have a lot of product launches as the company itself was going through a transition. The BB 10 as an operating system took a little longer and was launched in January this year. So, a lot of customers who could not wait for BB 10 moved ahead to Android and iOS. Hence, we lost a bit of market share. Our priority number one is how we can get that market share. We are trying to get back to the levels we were at. So, it�s really taking one quarter at a time.

After-sales service is not one of the strengths of BlackBerry. What are your plans in this regard?

We have got feedback, and are looking into it. One of key priorities that I have is to correct the after-sales service experience. Till last year, a lot of it was managed through our distributor partner Redington and in-house.

Starting January this year, we have outsourced it with certain SLAs (service level agreements) defined. We have close to 100 service centres where users can walk into. We are not there yet but are working to improve experience for our customers. So, our first approach is to bring a service centre as close to them as possible.

[howarmat]

that is an interesting read. Thanks for pointing out the key comments in bold too. I am really not sure about more OS 7 devices when sales of those devices are getting smaller as it is.

[kfh227]

No BBM video on Android and iOS.

Well, this should be fun to watch backfire. Why on earth would you not support this? I pray to The Flying Spaghetti monster that BBRY is atleast developing the required software as a plan B.

I hope they don't think that people on Android and iOS will get a half complete software application and say wow, I need a Z10 to complete the experience. It's not going to happen.

And Corporations adopting BES 10 might actually want this feature available. What is BBRY thinking?!?!?!?!?

Things like this make me a sad investor. Actually, I get the logic. Give them half the experience and expect a migration towards BB10. Good theory but this is a HUGE gamble.

[UnlimitedEra]

that is an interesting read. Thanks for pointing out the key comments in bold too. I am really not sure about more OS 7 devices when sales of those devices are getting smaller as it is.

Here in Egypt people are still buying the old curve and bold 9900 while no one is caring for the bb10 devices sadly. I guess they think that a phone that costs 4000+ should either be samsung's epic variety of phones or an iOS device but for a blackberry a big no... I think BBOS7 is still selling in some countries.


Sent from my iPhone 5 using Tapatalk

[Beesh1]

I thought Thor said that when BBM goes cross platform, both iOS & Android will have all the features. The chat would be immediate however the other features would come soon after? As for the more BB7 devices, probably means the new one coming out and maybe existing devices that they may not have?

[SHOBOKSHY]

BBM Should include all the features for all the platforms, otherwise I think it won't be able to compete with the other apps. However, when they announced BBM going cross - platform they've stated that Video, Voice and screen sharing are coming later on.

Posted via CB10

[Restrictive]

I thought Thor said that when BBM goes cross platform, both iOS & Android will have all the features. The chat would be immediate however the other features would come soon after? As for the more BB7 devices, probably means the new one coming out and maybe existing devices that they may not have?

Guess they changed their mind sadly...
Probably will come eventually, but I see them using this lack of feature to push the BB version of BBM.

[Brandon Orr]

Maybe he's just talking about initially that BBM will be restricted to chat on Android and iOS

Posted via CB10

[BBThemes]

So am i right in basically reading from that that either BBM Channels will be paid for by the channel provider, or it will be ad based? i mean iv no idea how many will want to pay, but channels with ads just sounds like a bad idea.

As for the USP`s of BBM (video and voice) staying BlackBerry only, hows that gonna work? because you will need to devise a way to tell other users that there are features that they don't have and can get on another device, while trying no to alienate them for giving them a subset of features. that's a very big tightrope to have to walk for any company.

[GTiLeo]

i would expect bbm video and screen share to come as a paid feature, the whole thing can't be free what incentive does BB have to make the whole BB10 experience with BBM free for those not using BB10 devices

[bmantz65]

I would take this with a grain of salt. Didn't this same person say that Playbook was getting upgraded to BB10? Not sure if iOS and Android owners will wait around for video and voice BBM.

[ljfong]

If BBM were to come with only very basic text chat capability on other platforms, that would provide ample ammunition for the haters to say, yep, good ol' RIM, the company that is always behind the curve and always late to the party.

Sent from my BlackBerry 9810 using Tapatalk

[BBThemes]

I would take this with a grain of salt. Didn't this same person say that Playbook was getting upgraded to BB10? Not sure if iOS and Android owners will wait around for video and voice BBM.

errr the CEO of the company said BB10 for PB too. but we digress lol.

will iOS and android owners wait? well lets just say that most users will read the tech site reviews (imore, androidcentral, engadget the verge etc) and from the sounds every review will say `doesn't have.....` so they probably for the most part wont wait because they probably wont know its there to wait for.

That and the fact people have absoloutley no faith in any `coming soon` promises from BlackBerry. case in point, wheres my Z10 media dock? phones 6 months old in the market now.

[3_M4N]

The only way BBM will crush Skype and Hangouts is if they can offer a better cross-platform video and IM client period. I hope that when they roll out full functionality to everyone it just dominates.

Posted while peeking and flowing on my incredible BBQ10!

[1Criz]

If blackberry offers Bold type device on USD 200 and Curve on USD 100 level it could be a great tool in the fight with low cost Android.

Posted via CB10

[MarsupilamiX]

I think that this was a pretty disturbing read, if more BB7 devices will be released and BBM Video won't be avalaible cross-platform...

If that is true.... Just wow...
I mean....
Wow....

I'm speechless...

Video would be an USP over every other chat app and could try to take on Skype as well.
Just to start.

More BB7 devices...
Just no....
Wtf.....
Wtf?!?!?!?!?!!!!!!!

Posted via CB10

[BB-04]

No BBM video on Android and iOS.

Well, this should be fun to watch backfire. Why on earth would you not support this? I pray to The Flying Spaghetti monster that BBRY is atleast developing the required software as a plan B.

I hope they don't think that people on Android and iOS will get a half complete software application and say wow, I need a Z10 to complete the experience. It's not going to happen.

And Corporations adopting BES 10 might actually want this feature available. What is BBRY thinking?!?!?!?!?

Things like this make me a sad investor. Actually, I get the logic. Give them half the experience and expect a migration towards BB10. Good theory but this is a HUGE gamble.

The original announcement was BBM for iOS and Android released in the summer basic functionality (puts it at least at par with whatsapp). BBM video, screen share ect. to be released by the end of the year.(Brings it to what BBM is on BB10)

[notfanboy]

I think that this was a pretty disturbing read, if more BB7 devices will be released and BBM Video won't be avalaible cross-platform...

More BB7 devices...
Just no....
Wtf.....
Wtf?!?!?!?!?!!!!!!!

BlackBerry doesn't have any low cost BB10 phones to compete with the Androids and Nokias. The Q5 doesn't fit the bill. It is possible that they may never have it.

What would you do? Would you have BlackBerry just give up the low end market then? It may be that BB7 phones are the only way they can keep playing in this particular space.

[Asmooh]

They should make it full options if they want users back

Posted via CB10

[MarsupilamiX]

BlackBerry doesn't have any low cost BB10 phones to compete with the Androids and Nokias. The Q5 doesn't fit the bill. It is possible that they may never have it.

What would you do? Would you have BlackBerry just give up the low end market then? It may be that BB7 phones are the only way they can keep playing in this particular space.

What do you think the parts for a functional BB10 device (like the Q5) will cost in one year?

Let's ask the same question with an outlook for the time of 2 years?
(of course with the premise of BlackBerry still selling phones)

The answer is, that it should be no problem for BlackBerry to have a viable 200$ BB10 device in 365 days. Not even speaking about 2 years away from now.

The problem is that I actually asked the wrong question, because keyboard devices are not the answer, in 2 years.
BlackBerry needs a lower cost touchscreen device, that can compete with Nokia's offerings and to some extent Android.

Your question about BlackBerry abandoning the low-cost market is therefore wrong.
The question should be:

How long will the low-cost market buy phones with a physical keyboard?
If BlackBerry can't offer a cheaper touchscreen device, they already lost the low-end market as consumers would have abandoned BlackBerry.
No need to wait for BBRY to abandon that segment.

Posted via CB10