Cheap Talk

In a major bonanza for customers, state-owned telecom majors—Bharat Sanchar Nigam Ltd and Mahanagar Telecom Nigam Ltd—on Friday last announced a maximum tariff of Re 1 per minute for calls anywhere in the country under the much-publicized One-India plan, effective from March 1. Leaving aside the details of the bonanza all this cheap talk may however put a dent in its revenue and how BSNL is expected to address the enormous costs of network up-gradation remains to be seen. At the end of the day, consumers do not merely want cheap talk time but a service which is reliable and one that delivers on the network front that allows people to remain connected hassle free. The BSNL will therefore have to address the issue of quality service which it has not been too well equipped with to deliver and one that remains a major public grievance point for sometime now.

One thing that remains incontestable is the fact that today the market has become consumer driven and on the plus side this amounts to consumers becoming the king. The private sector GSM companies would also have to bring down their prices to survive the competition. All this would augur well for the common public who will have the much needed choice to choose the best of the services available. BSNL would be well advised to look into the needs of consumers for every sensible marketer knows the importance of relevant consumer insight. The consumer is the king around whom the world of marketing revolves, goes the saying. And that ought to be the single most potent factor that will shape a successful marketing campaign. 

The recent announcement made by Air Deccan to sell one lakh tickets at a cost of Rs 999 for selected routes should be seen as a sign of things to come in which the consumer will be spoilt for choice. No doubt, the Indian traveler has never had it so good with all these airlines wooing them. More choices mean that consumers stand to gain in terms of price, options and service quality. Even for a common man the option of air travel will become a cheap option.

Increased competition therefore means that no service provider can take its clients for granted. As such, the BSNL in Nagaland and other Northeastern States will do well to assess irregularities in its functions and services and improve them immediately. While it is accepted that BSNL has a much bigger social responsibility (than other telecom players), it is high time that it fulfills its mandate. With the entry of private telecom players it should remove its complacent attitude (particularly shown towards the NE region) as the dominant monopoly player. Failure to make this paradigm shift will be costly both in terms of the market as well as the goodwill of people. As such BSNL will have to go beyond its bonanza of cheap talk.