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 Home > V&D PLUS > TARIFF SCHEMES: Up BSNL’s Sleeves
  V&D PLUS
TARIFF SCHEMES: Up BSNL’s Sleeves
The behemoth may soon dish out inviting incentives for its commercially important customers
Saturday, September 07, 2002

The gradually intensifying competition in the fixed phone services is proving to be a boon for corporate customers. The good news certainly is better deals, more services and freedom to choose from among the new fixed service operators. However, more than that what could be heartening for the corporates is that competition is bringing in a change in the attitude of BSNL officials who often acted tyrannically and whimsically in the past while dealing with them. This is good news because despite the coming up of new service providers, many of the corporates would not like to jettison BSNL for a number of reasons. In the absence of number portability, shifting phone lines could involve huge hidden costs. Also, the new service providers are still at least a couple of years away from offering the kind of coverage and the variety of services that BSNL offers now. Most of the new private operators offer the same kind of services that BSNL provides and have nothing new to offer in terms of technology. However, it is true that the private operators are relatively better in the area of customer-care and complaint redressal. And it is here that BSNL is trying to put its acts together.

Increased Corporate Focus
BSNL seems to have realized that unless it brings in a change in the way it deals with corporate customers, it will have a tough time fighting competition. As such, it has taken a number of initiatives aimed at not only retaining its existing customers but also acquiring new ones. One of the initiatives that it has taken recently, something that is of significance for the corporates, is the identification of ‘Commercially Important Customers’ or CICs. Organizations which have 10 or more telephone connections, and organizations which have less than 10 connections and the total bi-monthly telephone bill of more than Rs 10,000, have been defined as CICs. The concept was discussed during the recent heads of the circles meeting in Delhi. BSNL officials are now busy preparing a list of such customers. For the first time in its history, the company has appointed account managers to look after key corporate clients.

Get Closer to Customers
Another major initiative that BSNL has taken is the setting up of 2,790 customer service centers to help customers, primarily corporate customers. The existing customer interfaces of BSNL are getting a face-lift and employees are being put through special training sessions. "We have appointed account managers in every circle and they have been directed to personally take charge of the corporate customers," says Prithipal Singh, chairman and managing director, BSNL. The other good news is that BSNL is also trying to match the flexible pricing options offered by some of the private operators. In simple terms, a corporate customer can now bargain on prices of various services, including calling rates. The newly designated account managers have been empowered to offer volume discounts. "We are giving special corporate discounts. We have people designated for that purpose. We are telling enterprises to give us their requirements and we will provide specific solution in a cost-effective manner," says Singh. He further adds that wherever needed BSNL would match the tariff offered by the private operators.

"We have appointed account managers in every circle and they have been directed to personally take charge of the corporate customers,"

Prithipal Singh, chairman
and managing director, BSNL

Gurgaon: Testbed for BSNL

BSNL’s corporate-centric tariff and customer-care initiatives in Gurgaon are under close observation of industry onlookers, especially because Bharti’s TouchTel services have also become operational in the city. This offers the incumbent behemoth the opportunity to compare the quality of its services against a significant competitor, and improve. So far, BSNL has managed to retain most of its corporate clients in Gurgaon, a city where the number of corporate customers, especially multinationals is very high. Some of its big clients like GE have chose to stick with BSNL.

The Four-pronged Strategy
To face competition and to service customers in a better way BSNL is adopting the following approach:

1. To beef up existing customer interface, BSNL employees are getting face-lifted by special training sessions

2. Technology is getting upgraded wherever required and possible

3. BSNL is able to match the tariff as announced by either TRAI or by private operators wherever competition is on

4. All services will be made available under the BSNL umbrella

Upgrading Network
On the technology front, the company is upgrading its network and solutions wherever required and possible. BSNL is extensively using digital loop carrier (DLC) and wireless in local loop (WiLL) system for improving reliability of external plant. Remote line units (RLUs) and remote subscriber units (RSUs) are being provided extensively to reduce the long lengths of copper cables. A countrywide network management and surveillance system (NMSS) has been deployed to ensure uninterrupted and efficient flow of telecom traffic. NMSS is being managed from network management centers in Delhi, Mumbai and Kolkata.

Another initiative taken by BSNL, which is likely to benefit the corporate customers, is the ‘Corporate Group Billing Scheme’. Under this scheme, all the phones of a company as well as phones in the names of subsidiary companies and sister concerns can be included in a single bill, and a consolidated monthly bill for all telephone lines (PSTN / ISDN) of the corporate customer will be issued on the allotted group number. Discounts are being offered to the group billing customers. At present this is available for rent, call charges, trunk calls, phonogram at 5 percent for the amount exceeding Rs 1 lakh and at 10 percent for the amount exceeding Rs 2 lakh.

Advantage BSNL
BSNL has responded to private basic operators’ poaching mission with better services for corporates. Given BSNL’s massive infrastructure and its eagerness and sincerity to reform itself after corporatization, it will remain a force to reckon with for a long time to come, given a delayed rollout of networks by the private basic operators. More importantly, the near total national footprint (except for Mumbai and Delhi) gives it an added advantage to provide better and reliable services to the corporates than most of the private operators like Bharti, Tata or Shyam, who are spread in certain pockets. Only Reliance network, as and when it is operational, can be a potential threat to BSNL, but that may be about 5 years down the line.

Sudesh Prasad and Ravi Shekhar Pandey

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