BSNL - A Service Transformation - Services Marketing Short Case Studies

Details

Case Code : CLSM007
Publication date : 2005
Subject : Services Marketing
Industry : Telecom
Length : 03 Pages
Price : Rs. 100

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Key words:

BSNL, Indian Telephony Market, Interactive Voice Response System (IVRS), 'eServices', Online Bill Payment, e-Seva, ICICI Bank, UTI Bank, HDFC Bank, Basic Phone Service, Mobile Services, Internet Services, Ex-cel, Cellone, Sancharnet, WebFone, Dataone, ADSL technology

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

BSNL was India's leading telecom service provider. However it faced tough competition from private players when the telephony market was opened up in late 1990's that eroded its market share and revenues. The caselet discusses the measures that BSNL undertook in order to meet the competition and regain the lost position. It explains BSNL's customer service initiatives aimed at speeding up the transactions and improving service levels. It describes BSNL's diversification into mobile and internet services to meet the changing needs of the customers.

Issues:

  » Services marketing mix in telecom services.
  » Customer service standards in telecom services.
  » Design of telecom service offerings.

Introduction

BSNL, a Rs 28500 bn company, is India's leading telecom service provider with 43.5 million basic telephony subscribers and 8.1 million cellular service subscribers (as in March 2004). Till the early 1990’s, BSNL enjoyed monopoly status by virtue of its being the only player in the Indian telephony market.

With the opening up of the telephony market and the entry of private players, BSNL began to face declining revenues and the erosion of its customer base. It realized that to stay on in the market, it would have to restructure its business. BSNL took various measures to sustain its position in the marketplace. It revamped its customer service functions, opened call centers, and developed an Interactive Voice Response System (IVRS) to provide immediate information to customer queries...

Questions for Discussion:

1. With the opening up of the telephony market and the entry of private players, BSNL began to face declining revenues and the erosion of its customer base. Discuss the basic measures adapted by BSNL to restructure and revive its business from the service quality gap model context.

2. BSNL plans to launch the broadband Internet service 'Dataone' in a big way. What kind of pricing strategy should BSNL adopt to attract customers and improve market share?