Operators, Watch out!

We did a survey of business and corporate users of communications services
across the country, a few months ago. And the results showed that while users
did not rate the incumbent operators very highly, they were in no mood for
changing over to the new private operators. They found no compelling reason to
do so.

Let’s look at the some perceptions on the street. Rollout of private
operators is not as fast as the hype that is there in the market. Which means,
services start with some areas within a circle, and move slowly to other
locations. If one asks for a new connection, the waiting time is not very short.
Wherever services have been started, the response time to customer complains is
also not very high. Prices are also on the higher side. Some value-added
services are offered, but have hidden costs attached. From whatever little
experience users are having in this short span of time, nobody seems to have
anything special to say about the new operators.

As an optimist, one can attribute the above scenario to industry growth
cycle, and ignore it. Obviously, offering good quality service to users will get
operators happy customers, less churn, and goodwill. Quality of service (QoS)
will be a terminology that will assume a lot of significance with the onset of
private service providers getting active and aggressive. But just to be sure, we
threw this question back to the operators. Is QoS a tool that will get an edge
over competition, bring growth and more revenues? But the deliberations at a Top
View 2002 panel discussion organized on the subject in Delhi, were a little
disappointing. Panelists, who were senior industry members, who are planning and
driving operators’ strategies, seemed to be looking at QoS as something needed
to survive, rather than a mantra for growth.

So, what is the difference between the incumbent operator and the new private
operators. Is it that the new operator will only be helping in reducing the long
waiting lists for telephone connection and meet some unfulfilled demand? As of
now, things look like that. The dream that private operators will change the
face of communications in the country still looks distant.

Finally, have users started throwing away their MTNL/BSNL connections and
getting Bharti and Tata connections? Not at all. In fact, they are finding the
‘old man’ really changing his attitude and becoming customer friendly. As of
now, there seems to be no reason for looking at other options.

So, new operators, watch out! The going might get tougher.

ibrahima@cmil.com