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Telcos Think Beyond Tariffs !

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Telcos think beyond tariffs

18 Sep, 2008, 0106 hrs IST, ET

MUMBAI: Tariffs are no more the differentiating factors among telecom service providers. With call rates bottoming out to 40 paise per minute, the competition has now shifted to customer care, high-end value-added services, network quality and branding, as over 9-million users sign up for mobile services every month.

New operators, which are readying to roll out services in the world’s fastest growing telecom market, may have limited success if they play the tariff game.

They may end up with a large number of subscribers with low average revenue per user (ARPU). For attracting high ARPU users, existing and new telcos have to fight the battle on parameters like customer service and high-end applications.

According to PwC associate director Arpita Pal Agrawal, customer care, customised service offerings and new applications will play a bigger role in acquiring high-end customers.

“Also, when mobile number portability regime comes in, then differentiated customer care could lead to churn, especially in the post-paid segment,” she added.

“Service providers who score better on network quality and customer services will leverage their strengths by communicating it, thus changing the tone of advertisement from network reach and price to experience of availing and using services,” said Accendia Consulting principal analyst Alok Shende.

Idea Cellular is following root cause analysis, which is based on the belief that problems are best solved by attempting to eliminate root causes rather than merely addressing the immediate symptoms. Bharti Airtel is restructuring the partnership contracts with six BPO partners to whom it outsourced customer care operations in the last three years.

“We are restructuring BPO contracts so that they are more customer-friendly and outcome-oriented; more towards resolving customer issues rather than how long the call was,” said Airtel director Jai Menon.

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Reliance knows value of VAS thats why they thought of charging Rs. 1 / 10 KB for RWORLD. :Sorprendido:

There will be two differentiator in future, VAS and CC. So reliance is relying on VAS. :Contento:

Edited by kshah

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My dear friends, Reliance has to improve its CC also otherwise they could face big hurdles in the near future.

Regards.

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