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Stein-Erik Vellan, Managing Director, UniNor.

October 15, 2009



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Global Player
He realised pretty fast that the biggest mistake anyone could make was to treat a country as astonishingly diverse as India with 28 states, 24 official languages and over 1,500 dialects as a single market.

"Because this is not one market, business decisions must not be based on generalities. I do not see an average penetration. I do not see an average revenue per user figure. I do not see voice and data as `either-or' options. Yes, I know this is one of the most competitive markets in the world. But I also see opportunities that belie what `averages' will have you believe," says Stein-Erik Vellan, managing director, UniNor.

Vellan believes that India's GDP figures and development indices are saying in technical terms what he hears "on the street". "We are in a country that is rapidly developing and is clearly at the centre of the world's attention. This is exciting. To me, this foretells greater demand for better communication services from a much larger customer base," he says.

From an industry perspective, this means better revenue potential. From UniNor's perspective, it means that the strengths it brings to the market –­ the Telenor Group's expertise as the world's sixth largest mobile operator and Unitech's understanding of this complex market –­ are exactly what is needed to succeed.

As for defining success for his company, Vellan, a business management and marketing graduate from the Norwegian School of Management, says that the definition is an 8 per cent market share by 2018. An even bigger success would be to be recognised as the service that placed people –­ both customers and employees –­ at the centre of all it does.

He is undoubtedly excited about India and foresees big change. The time when you could simply put a service in the shop window and customers would come in has gone, he says.

Telecom no longer sells that way.Instead, with every passing month and with every new operator in the market, all telcos will have to work harder to get new customers and retain those they already have.

"Telecom is fast changing into a buyers' market, and this is good news," he says. "It is only when there is competition in the market, and real choice in the hands of the customer that customer service starts becoming your only real USP. It also means you need to be much more pragmatic on how you want to enter and operate in the market," he adds.

Vellan expects much more focus, much sharper positioning, robust customer service and innovation in products and services that recognise a more sophisticated and discerning customer.

Of course, technology will have to keep pace as well, but ultimately, success will depend on how close companies get to their customers.

"The other big trend is the one we are a part of today. We are calling it the telco model of the next decade, where the focus moves from how many towers you own and how many IT engineers you employ to how nimble you can be and how much of your energy you can direct to where it matters most –­ the customer," he says.

This model recognises the fact that there are partners out there with a core competence and the ability to implement parts of the business faster, cheaper and very often better than you yourself can.

It also recognises that time and resources are always limited. A service company must prioritise as much of these as possible to establish a meaningful differentiation in the market.

Vellan says that if a telco has to change from a product to a service orientation, then UniNor enjoys an advantage. With no legacy to contend with, it can start from scratch in building the company and everything it does around the customer.

Asked to say what can be expected from UniNor, Vellan enumerates what it will do –­ stand for two strong partners joining forces; embody certain values; put people first; empower customers and employees by unleashing opportunities in their daily lives; offer products and services that people can understand, choose and use quickly and easily; inspire with new ideas and new ways; keep its promises; and be respectful to every single customer and employee.

Vellan started his career in the banking sector, working in finance for more than three years before joining Cap Gemini Consulting as a marketing manager for Norway. He moved on to work as group marketing director and finally as group managing director for the Cap Gemini Group in Paris.

Then he moved back to Norway to head the turnaround of a Norwegian company for which he was CEO for two years.

Vellan joined Telenor eight years ago where he was responsible for the business sector in Telenor's Norwegian operations for some years before moving to Serbia to become the first CEO of Telenor's newly acquired operation there in August 2006.

During his two-and-a-half years in Serbia, he managed Telenor Serbia through an important transitional phase. The company delivered strong organic growth and good margins for the fourth quarter of 2008.

Serbia was memorable for Vellan because of the people and the country, as well as the challenging task of doing a complete turnaround of the operations there. He thoroughly enjoyed living in Serbia and experiencing the close bonds between Serbia and Norway. He loved the hospitality of the Serbian people and will regard his time there as truly special.

"It has always been the appeal of new challenges that has spurred the choices I have made. Tackling new challenges makes you grow. There is no doubt that the challenge of joining the most dynamic mobile market in the world is the fuel behind my move to India," he says.

As managing director of the company's pan-Indian operations, Vellan has a lot on his plate. On a larger scale, though, he says that his main responsibility is to create value for his shareholders.

"To be able to do this, I need to build a solid management team, as well as an energetic and driving organisation and we are well under way to do both of these things," he says.

He admits that being one of the new operators entering the market is a challenge for UniNor but believes its strengths will see it through. These strengths are strong shareholders (both of whom bring something to the table that can drive its success), entering the market with no legacy at all which means it has all the opportunities and none of the hindrances, and building an operation based on a business model that is designed to meet the requirements of the next decade.

He does not believe that being a new-comer to India is a drawback. What counts, instead, is his strong winning spirit driven by a competitive mind. This attribute in his personality was developed when he used to play basketball in the Norwegian national team.

"I have a solid understanding of the mobile value chain, and hopefully my management capacity and the ability to lead my team and organisation with energy and direction will be useful," he says.

The only motto he lives by is to make his people succeed. In that sense, you could describe his management style as one that responds to people and situations. Two corollaries of this style are, therefore, empowerment and delegation although, if he needs to be present, he makes sure that he is available. For Vellan, inspiration comes from the people he works with.

For relaxation, he turns to his family and friends. His family is used to his long working hours, but Vellan says that he seems to have struck the right balance between work and spending time with the people and things that give him energy and peace of mind. 


 
 

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