MTS India has roped the famous and youth star Imran Khan for 10-crore as their brand ambassador. The deal has been finalized for two years. Delhi Belly star is the latest one to join a long list of celebrities and the 10-crore deal has really made him famous along with other stars. There are other stars such as Sharukh Khan, Abhishek Bachan, and MS Dhoni who are endorsing telecom companies.
Sistema Shyam TeleServices brand has taken the celebrity plunge for the first time to endorse brands. Imran Khan endorses Coke and Levi’s jeans prior than MTS India. MTS India spokesperson and celebrity management firm KWAN Entertainment, who don’t manage Imran Khan but got him in striking this deal, refused to comment.
“Imran will promote MTS through mass media, online and below-the-line promotional activities. He will also be part of Red Energy, a youth-centric online activity for the brand," an official directly involved with the developments said. While the 2G scam has never warned telecom firms from wooing celebrity endorsers, it has influenced their ad spends.
10 TV advertisers out of eight countries during January-September this year were consumer goods makes. Idea Cellular was the only telecom firm in the ranking, according to the media research firm TAM. The telecom sector has been facing tough times with raging controversy on 2G spectrum allocation, rock-bottom tariffs, sliding average revenue per user, thinning margins and falling profits.
There were numerous problems due to higher interest costs, 3G roaming agreements being disputed by the government add to the sector’s problems. Approval and introduction of the new telecom policy that would have allowed liberal merger and acquisition norms and helped in consolidation of the sector, has been pushed back by nearly half a year.