News From Telecom World

Low tariffs are no more a reason to lure customers! (India)

Posted on: September 18, 2008

Telcos to sustain in the competitive mobile market, tariffs are no more a factor to attract customers. Now the competition has shifted to customer care, high-end value-added services, network quality and branding. It is anticipated that new operators which are ready to launch their service cannot back upon tariff to achieve success. They may end up with a large number of subscribers with low average revenue per user (ARPU). Existing and new telcos have to focus on parameters like customer service and high-end applications for attracting high ARPU users. 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.

Telcos like Idea Cellular is going by root cause analysis, which is based on the belief that problems are best solved by attempting to eliminate root causes rather than just addressing the immediate symptoms. Airtel director Jai Menon said that 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.

Source: Wireless Federation

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