The increasing likelihood of many more dissatisfied customers switching services with the introduction of number portability, mobile phone firms are pushing executives to be more responsive to customers

How many times have you tried to get a mobile phone service problem resolved and ended up more disappointed? You might find this is changing now. Suddenly, customer service executives are taking a little more interest in such complaints. This is not from any change of heart; simply a new worry that many more disappointed customers might switch services conveniently through the soon-to-be-introduced number portability facility.

It has been observed over the past few weeks that customer service executives are scanning complaint sites on the web, replying to subscribers and trying to resolve the problems. It is understood that the pre-paid phone segment is already seeing a lot of shifting by subscribers who are influenced by frequently-changing call rates. Now, number portability will enable post-paid customers looking for better services, to shift. The new 3G services, which are to be also launched soon, would in all likelihood intensify the rush to change operators.

Fitch Ratings expects that pricing pressure, which so far had been more on the pre-paid segment, will spread to the post-paid segment after mobile number portability (MNP), although to a lesser extent. In addition, new entrants and smaller wireless telecoms will get a stronger chance to compete against incumbent leaders in the post-paid segment where the annual churn rate is only 12-24% compared to 50-70% in pre-paid, the ratings agency says.

Of the total number of mobile phone subscribers in India, only 5% are from the post-paid segment. Interestingly, it has been revealed that out of the estimated 70 crore subscribers, 70% are active users.

Mobile number portability was rolled out in the Haryana circle on 25th November and it is expected that it will be available across all circles in the country by January-end. The schedule is likely to be announced separately.

Currently there are seven to eight mobile service providers (MSPs) in each of the circles. Irrespective of the number of MSPs in a particular circle, the government has fixed the number of 3G-enabled service providers to three or four in each circle. In addition, more and more people are buying smartphones and want to explore the world through mobile Internet. This will create the space for faster and reliable data connection. Therefore, subscribers who find that their existing service provider does not offer 3G services would likely shift to another. Whether it is the basic voice plan or data charges, whoever offers better services and a good overall experience will catch the maximum number of subscribers.

So, to control the possible migration of subscribers, many service providers have directed their CSEs to respond quicker to subscriber queries. Tata Teleservices Ltd (TTSL), which had initiated the tariff war over the past few months, is believed to be at the forefront to provide a better experience to subscribers.

The Tata group company has committed to compensate subscribers if it fails to meet the pre-determined levels of service standards. The Customer Service Charter includes five customer commitments, namely the bill dispute commitment, the call drop commitment, the handset replacement commitment, the value added services (VAS) commitment and the call-cack commitment.

The ‘bill dispute commitment’ offers resolution of bill disputes within three working days, failing which TTSL will compensate its customers at the rate of Rs25 for every additional day taken to resolve the complaint. Similarly, other commitments also carry compensation in case the services are not according to what is guaranteed.

There is no doubt that each MSP is trying hard to retain subscribers by offering a better experience and solving their complaints at the earliest. However, given the huge number of subscribers, especially in the pre-paid segment, the CSEs will find it difficult to satisfy them all. Nevertheless, it is a good step in the right direction.  — Moneylife Digital Team