Bsnlvis a Vis

8/2/2019 Bsnlvis a Vis

1/13

24 The Icfai Journal of Consumer Behavior, Vol. III, No. 1, 2008

R Ravi Kumar*, Vijaya Bhaskar Reddy** and P Surender***

Introduction

Food, clothing and shelter are the basic requirements to survive. But, in the 21st Century,

like many other technological facilities, without telecommunication, the common mans

life is incomplete. The telecom system has influenced the world a lot. Developments in

the telecom industry have taken place according to the customer requirements. It has

been modified and re-modified from the landline to modern cellular phone.

Earlier, the Indian telecom industry was monopolistic and operated only by the public

sector companies like Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone

Nigam Limited (MTNL). Later, private companies were also invited into the Indian telecom

industry. Presently, companies like Airtel, Hutch, Tata Indicom, Reliance and Idea are the

private operators providing services in India.

As time passed and situations changed, there arose a need for cost-effective and

result-oriented telecommunication system. As the demand increased, the number of service

providers also increased and they are trying to provide services with good features and

better tariffs.

The telecommunication organizations are marketing the services in such a way

that high level of efficiency generates high level of profit.

* Head, Department of Business Management, New Science PG College, W arangal, India.E-mail: [email protected]

** Customer Relations Manager, Bharat Sanchar Nigam Limited, Warangal, India.E-mail: [email protected]

*** Faculty Member, Department of Humanities, Kakatiya Institute of Technology and Science, Warangal,India. E-mail:[email protected]

At present, services marketing plays a major role in the national economy. In the service

sector, telecom industry is the most active and attractive. Though the telecom industry is

growing rapidly, Indias telecom density is less than the worlds average telecom density as

most of Indias market is yet to be covered. This attracts private operators to enter into the

Indian telecom industry, which makes the Bharat Sanchar Nigam Limited (BSNL) more

alert to run its business and survive in the market.

Customer Satisfaction and Discontentmentvis-a-vis BSNL Landline Service: A Study

2008 The Icfai University Press. All Rights Reserved.


2/13

25Customer Satisfaction and Discontentment

vis-a-vis BSNL Landline Service: A Study

Telecommunication organizations are focusing on the professional marketing

of services.

The rate of profitability is increased substantially to cycle the process of

development in tune with the changing expectations of users.

The tariff structure is rationalized, which makes it a systematic approach to

accomplish organizational goals.

Marketing is the king pin of all activities pertaining to business. Due to changes in the

political, social, legal, and international environment, there is a change and increase in

the number of sellers, which leads to competition in all areas of business, like product,

price, place, promotion, etc.

As part of the globalization process, Indian Telecom Industry was privatized. Thismade the BSNL more alert in running its business and survive in the market. The Indian

telecom network with 110.01 million connections is the 5 th largest in the world and the

second largest among the emerging economies of Asia. The total subscriber base, which

grew by 40% in 2005, is expected to reach 250 million in 2007.

BSNL is providing services like landline services, cellular phone services and broadband

services. Most of its earnings are from landline services and BSNL put major share of its

investment for providing landline service. Due to various reasons most of its landline

customers are disconnecting the service.

Objectives of the Study

To find out the reasons for disconnection.

What are the steps to be taken to retain and stop them?

What are the steps to be taken to attract new customers?

To know the level of customer satisfaction towards BSNL landline service.

To find out the reasons for their shifting to new service.

To know the level of customer satisfaction with the new service provider.

To know the reasons for disconnection of BSNL landline.

To know the technical problems that lead to disconnection.

To know the subscriber perception towards linemen.

To know the customer perception towards BSNL billing system.

To know the customer affordability of present BSNL rental plans.

Methodology

Primary and secondary data are collected for the purpose of the study. Following

the observational method, the ordinary data is collected and survey research method

is employed; while taking personal interviews of the stockist the observational method


3/13


is used. The survey research method is used to get the opinion of subscribers who have

disconnected the BSNL landline. The research instrument used for the survey is a

well-structured questionnaire consisting of both open-ended and closed-ended questions.

Oral interviews and observations have also been used to supplement and support the

primary data generated through the questionnaire method.

Research Design

The study was conducted in rural areas of Warangal District. The research describes the

attitudes, opinions, and views of subscribers who had disconnected the BSNL landline

service. The research employees statistical techniques, and simple bar diagrams and

percentages are used wherever necessary.

Sources of Data

The study is based on both primary and secondary sources of data.

Primary Data

The primary data is obtained from the survey conducted in the rural areas of Warangal

District.

Secondary Data

The secondary data is obtained from the business magazines and newspapers like

The Economic Times, The Indian Express, etc.

Sample Design

Sample design is a definite plan to obtain a sample from a given population. It refers to the

techniques or the procedures the researchers would adopt in selecting items for the

sample.

The research universally comprises of the customers of BSNL landline. The sampling

procedure adopted for the study is convenience sampling.

Sample Size

For ascertaining the views of ex-subscribers regarding various operational aspects of

BSNL landline, people were selected from various rural areas in Mahaboobabad Division,

Warangal District, on the basis of convenient random sampling technique. A sample size

consisting of 70 persons has been selected for the purpose of knowing the reasons for

their disconnecting the BSNL landlines.

Telecom Industry Profile

The telecom network of India is the 5 th largest network in the world, keeping up with the

global standards. Presently, the Indian telecom industry is slated to make an estimated

contribution of nearly 1% to Indias GDP.


4/13



The Indian telecom sector is the fastest growing sector in the world, which provides

unique opportunities to the US companies in the stagnant global economic scenario.

The total subscriber base, which grew by 40% in 2005, is expected to reach 250 million

in 2007. According to Broadband Policy 2004, the Government of India aims at 9 million

broadband connections and 18 million Internet connections by 2007. The wireless

subscriber base jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005.

During the last 3 years, two out of every three new telephone subscribers were wireless

subscribers. Consequently, wireless services accounts for 54.6% of the total telephone

subscriber base, as compared to only 40% in 2003. The wireless subscriber growth is

expected to increase at the rate of 2.5 million new subscribers per month by 2007.

The wireless technologies currently in use are Global System for Mobile Communications

(GSM) and Code Division Multiple Access (CDMA). There are primarily nine GSM and five

CDMA operators providing mobile services in 19 telecom circles and four metros, covering

2000 towns across the country.

Bharat Sanchar Nigam Ltd., formed in October 2000, is the worlds 7th largest telecom

company providing a comprehensive range of telecom services in India like Wireline CDMA

Mobile, GSM Mobile, Internet, Broadband, Carrier Service, MPLS-VPN, VSAT VoIP

Services, IN-Services, etc. It has now become one of the largest public sector units of

India within a period of five years.

BSNL has installed quality telecom network in the country and is now focusing on

improving and expanding the network, introducing new telecom services with ICT

applications in villages and winning customers confidence. Today, it has about 47.3 million

basic telephone line capacity, 4 million WLL capacity, 20.1 million GSM Capacity, more

than 37,382 fixed exchanges, 18000 Base Transceiver Stations (BTSs), 287 satellite

stations, 480,196 Rkm of OFC cable, and 63,730 Rkm of microwave network connecting

602 districts, 7,330 cities/towns and 550,000 villages.

BSNL is the only service provider, making focused efforts and planned initiatives to

bridge the Rural-Urban Digital Divide ICT Sector. In fact there is no telecom operator in the

country to beat its reach with its wide network providing services in every nook and corner

of the country except Delhi and Mumbai. Whether it is the area of Siachen glacier or the

Northeastern region of the country, BSNL serves its customers with its wide bouquet of

telecom services.

In India, BSNL has acquired first position in providing services in its license area.

It offers a wide range of services and most transparent tariff schemes, designed to suit

every customer.

BSNL cellular serviceCellOnehas more than 17.8 million cellular customers,

garnering 24% of all mobile users as its subscribers. That means that almost every


5/13


4th mobile user in the country has a BSNL connection. In basic services, BSNL is miles

ahead of its rivals, with 35.1 million basic phone subscribers, i.e., 85% share of the

subscriber base and 92% share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet customers

who access Internet through various modes viz., Dial-up, Leased Line, DIAS, CLI-based

Account Less Internet. BSNL has been declared as the number one Internet Service

Provider (ISP) of the country.

BSNL has set up a world-class multi-gigabit, multi-protocol convergent IP infrastructure

that provides convergent services like voice, data and video through the same Backbone

and Broadband Access Network. At present, there are 0.6 million Data One broadband

customers.

The company has vast experience in planning, installation, network integration and

maintenance of switching and transmission networks and also has a world class ISO

9000 certified telecom training institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs. 351,820

mn ($8 bn) with net profit to the tune of Rs. 99,390 mn ($2.26 bn) in the last financial year.

The infrastructure asset on telephone alone is about Rs. 630,000 mn

($14.37 bn).

BSNL plans to expand its customer base from present 47 millions lines to 125 million

lines by December 2007 and plans to investment in infrastructure to the tune of Rs. 733 cr($ 16.67 mn) in the next three years.

The turnover, nationwide coverage, comprehensive range of telecom services and the

desire to excel has made BSNL the No. 1 Telecom company of India.

Vision, Mission and Objectives

Vision

To become the largest telecom service provider in Southeast Asia.

Mission

To provide world class state-of-the-art technology telecom services on demandat affordable price.

To provide world-class telecom infrastructure to develop the countrys economy.

To be the lead telecom service provider.

To build customer confidence through quality and reliable service.

To provide additional bandwidth on demand.

To contribute towards:


6/13



National Plan Target of 250 million subscriber.

Broadband customer base of 20 mill ion in the country by 2010 as per

Broadband Policy 2004.

Telephone connections in all villages.

Implementation of triple play as a regular commercial proposition.

Analysis and Interpretation

Analysis of Data

Analysis refers to the computation of certain measures along with the patterns of relationship

that exist among data-groups. Analysis of data is a general way that involves a number of

closely related operations, which are performed with the purpose of summarizing so thatthey answer the research question.

Interpretation

Interpretation refers to the task of drawing inferences from the collected facts after an

analytical or experimental study. In fact, it is a search for the broader meaning of research

findings. The task of interpretation has two major aspects. They are:

1) To establish continuity in research by linking the results of a given study with those of

other; and

2) To establish some explanatory concepts. In one sense, interpretation is concerned

with relationship within the collected data partially overlapping the analysis. Interpretationalso extends beyond the data of the study to include the results of other research,

theory and hypothesis. Thus, interpretation is a device, which seems to explain what

has been observed by the researcher in the course of the study, so that they can be

understood in a better way. It also provides theoretical conception, which can serve as

a guide for future researchers.

Table 1 shows that 61.43% of ex-customers shifted to mobiles. It shows that the first

priority of such customers was mobile, remaining 28.57% customers shifted to landline

and 10% did not get any connection.

Table 1: Type of Connection Taken from Other Service Providers

Sl. No. Type of Service No. of Customers Percentage of Customers

1. Mobile 43 61.43

2. Landline 20 28.57

3. No Connection 07 10.00

Total 70 100.00


7/13


Table 2, Part A shows ex-customers motivating factors towards mobile service. From

the statistics, order of priority toward mobile service are low rentals (44.19%), convenience

(34.88%), lifetime incoming (13.95%) and E-recharge (06.98%).

Table 2, Part B, shows reasons for shifting to new service providers landline. Here,

most of the customers (50%) shifted to new service providers landline because of free

incoming calls, remaining (35%) shifted for prompt service and (15%) shifted for low tariff .

Table 2: Reasons for Shifting to New Services

Sl. No. Particulars No. of Customers Percentage of Customers

A. If the Shifted Service is Mobile

1. Low Rentals 19 44.19

2. Convenience 15 34.88

3. E-Recharge 03 06.98

4. Lifetime Incoming 06 13.95

Total 43 100.00

B. If the Shifted Service is Landline

1. Prompt Service 07 35.00

2. Free Incoming 10 50.00

3. Low Tariff 03 15.00

Total 20 100.00

Table 3 shows the type of

service and new service provider

adopted by the ex-customers.

Most of the customers shifted

from landline to mobile.

Table 4 presents the factors

that have motivated the ex-

customers towards other serviceproviders. Here, most of the

customers (30.16%) were

motivated through advertisement,

remaining customers (12, i.e.,

19.05%) through friends and

(4.76%) through door-to-door

campaign and (46.03%) through

existing users.

Table 3: Number of the Customers Shifted

to Type and Brand of New Service

Type of Service Landline Mobile

Service Provider

BSNL (Tarang) 02 21

Airtel - 7

Hutch - 8

Idea - 2

Reliance 13 3

Tata Indicom 05 2

Total 20 43


8/13



Table 5 shows that majority of the customers (63.50%) attracted towards the new

service, because of low tariff, remaining customers (33.33%) due to special offers, and

(3.17%) because of good service.

Table 4: Motivation Towards other Service Providers


1. Advertisement 19 30.16

2. Friends 12 19.05

3. Door-to-door Campaign 03 04.76

4. Existing Users 29 46.03

Total 63 100.00

Table 5: Features of the the New Service Provider that Attracted Customers


1. Low Tariff 40 63.50

2. Good Service 02 03.17

3. Special Offers 21 33.33

Total 63 100.00

Table 6 shows that only a small margin of customers think that services provided

by the new service providers are better than BSNL. Here most of the customers (66.67%)

feel that services provided by the new service providers are better than BSNL and remaining

customers feel that the new services are not better than BSNL.

Table 7 shows customer satisfaction about the new services. It is clear from the table

that majority of the customers (80.95%) are satisfied by the new service providers. Very

few of them (19.05%) are not satisfied.

Table 6: Services Provided by the New Service Provider Compared to BSNL


1. Excellent 42 66.67

2. Poor 21 33.33

Total 63 100.00


9/13


Table 8 shows that majority of the customers (32.8%) terminate connection due to

high tariffs of BSNL, 28.57% did so due to the frequent excess bills and 27.14% did it due

to the financial reasons and remaining (11.43%) disconnected due to poor service.

Table 7: Customer Satisfaction and the New Service Provider


1. Satisfied 51 80.95

2. Not Satisfied 12 19.05

Total 63 100.00

There are technical problems experienced by the customers, which lead to

disconnection. Table 9 shows that 41.43% disconnected due to frequent partial

disconnection, 17.14% disconnected due to disturbance and 10% customers disconnected

due to call jumping and no technical problems for the remaining customers (31.43%)

especially in semi-urban area.

Table 8: Reasons for Disconnection of BSNL Landline Service


1. Financial Reasons 19 27.14

2. BSNL Tariff are High 23 32.86

3. Frequently Getting Excess Bills 20 28.57

4. Poor Service 08 11.43

Total 70 100.00

Table 9: Technical Problems that Lead to Disconnection


1. Call Jumping 07 10.00

2. Disturbance 12 17.14

3. Frequent Partial Disconnection 29 41.43

4. No Problem 22 31.43

Total 70 100.00

Table 10 shows that the major problem is with the telephone linemen. In the given

sample 40% of the customers said telephone linemen were polite when answering their

complaints and remaining 60% of (majority) customers said that telephone linemen were

not polite while answering their complaints.


10/13



Table 10: Customer Responsiveness of Telephone Linemen


1. Polite 28 40.00

2. Not Polite 42 60.00

Total 70 100.00

Table 11: Observed Corruption in BSNL Offices


1. Observed 19 27.14

2. Not Observed 51 72.86

Total 70 100.00

Table 12: Is there any Hidden Cost Present in BSNL Billing System?


1. Yes 53 75.71

2. No 17 24.29

Total 70 100.00

Table 13: Customer Affordability of the Current BSNL Rental Plans


1. Affordable 33 47.14

2. Not Affordable 37 52.86

Total 70 100.00

Table 11 shows that 27.14% of the customers observed corruption in BSNL offices and

72.86% did not observe any corruption in BSNL offices while getting their services.

Table 12 shows that 75.71% customers were not satisfied with the billing system and

very few of them were satisfied with the BSNL billing system.

Table 13 shows that 52.86% customers are not satisfied with the current BSNL

rental plans and 47.14% customers are interested in plans like lifetime incoming and

other plans.

Table 14 presents an idea about customer satisfaction towards BSNL landline services.

Most of the customers (37.14%) gave good, 14.29% gave very poor, 11.43% gave

very good.


11/13


Table 14: Customer Satisfaction of BSNL Landline Service


1. Very Good 08 11.43

2. Good 26 37.14

3. Poor 26 37.14

4. Very Poor 10 14.29

Total 70 100.00

Findings

BSNL is one of the leading brands available with landline customers.

The complaints received from the customers are mostly regarding rental and

excess bills.

Most of the customers have shifted to mobile services.

Conveniences, E-recharge, lower rentals, lifetime incoming are the main reasons

for shifting to mobile services.

Advertisement is an important motivating factor for subscribers shifting to other

service providers.

Special offers made by the other brands are the other main factors that motivatecustomers to shift.

Most of the customers are satisfied with the services of new service providers.

Present BSNL rental plans are not affordable.

Frequent partial disconnection is also one of the technical problems leading to

disconnection.

Very few customers said telephone linemen were polite.

Many of the customers suffered from corruption present in the organization

while getting their services.

Most of customers were not satisfied with BSNL billing system.

Major percentage of customers rated services provided by the BSNL as poor.

Suggestions

Present rent per month should be reduced and free calls should be increased.

Special offers like lifetime incoming should be introduced.

Mechanism of customer service should be improved.


12/13



Special care should be taken on frequent excess bills.

Door-to-door phone booking and bill collection should be introduced.

It is suggested that the company should advertise the landline services more

through electronic media, as it is the most attractive aspect for many customers.

Special options like prepaid should be introduced in landline service also.

Limitations of the Study

The survey was limited to rural areasMahaboobabad Division of Warangal

District.

While calculating the percentages, approximations are made to the nearest

figures, which may not give a true picture of the study.

The quality of the data collected, entirely relies on the opinion of the

ex-subscribers.

Due to time constraint, the sample size was restricted to a limited number of

respondents.

As the study was conducted in the rural areas of Mahaboobabad Division of

Warangal District, findings may not be applicable to the entire BSNL landline

subscribers. qBibliography

1. Philip Kotler (2006), Marketing Management,12th Edition, Prentice Hall.

2. Kothari C R (19985), Research Methodology, 2nd Edition, John Wiley & Sons.

3. Philip Kotler (2005), Principles of Marketing, 11th Edition, Prentice Hall.

4. www.bsnl.co.in

5. www.trai.org

6. www.ap.bsnl.co.in

Reference # 46J-2008-03-02-01


13/13

Bsnlvis a Vis

Documents

Transcript of Bsnlvis a Vis