Long Distance Calls at Local Call Rates - BSNL's attempt to retain Land Line Customers in India: The Customer Really Benefits
Personally, I used to be facinated by the invention of the Telephone by Alexander Graham Bell, in 1876, which laid the foundation for telecommunications (communication over a distance). Since then, the last few generations have seen the rapid growth and advancements of the telecommunication networks, in the area of switching, transmission and end user devices.
The telecommunication network evolution started with the Land Line Telephone Neworks, where the telephones at home/offices used to be connected to the Local Telephone Exchange, through the Local Loop. The Land Line Telephones evolved from the Pick the Cradle and Speak type of telephones, to Rotary Dial Telephones to Push Button Telephones, which are still in use.
In the last 125+ years, the telecom service providers across the World, have invested heavily in building and operating their Land Line Telephone Network Infrastructure and have progressively grown a significant volume of Customer base. However, the tremendous growth of Mobile Phones, in the last few decades , has not only affected the growth of Land Line Phones, but also reduced the existing Land Line Customer Base, as Customers have progressively started to move towards mobile phone, due to the flexibility it offers, especially communication on the move.
As per the The Indian Telecom Services Performance Indicators Report (April - June 2010), published by Telecom Regulatory Authority of India (TRAI), as on June 30, the total number telephone subscribers, along with the distribution of Mobile and Land Line Subscribers, in India is as follows:-
• Total Telephone Subscribers (Mobile + Land Line) - 671.69 million
• Total Mobile (Wireless) Subscribers - 635.51 million (which is nearly 95% of the Total Subscriber Base)
• Total Land Line (Wireline) Subscribers - 36.18 million (which is only 5% of the Total Subscriber Base)
These statistics distinctly highlights the phenomenal growth of Mobile Subscription (which is continuing grow, with % of increase over the previous quarter at 8.76%), compared to the low volume of Land Line Subscribers (which is continuing to decline, with the % of decrease over the previous quarter at 2.10%). The web link to access the TRAI report, is provided at the end of this article, for your reference.
Hence, the biggest challenge for the incumbent Land Line Telephone Service Providers, is to retain their existing customers first and then see if they can also grow this market further. One of the approaches adapted was to offer Internet Services through Land Line (e.g. DSL based Internet Services) to their existing Land Line Customers. Another option was to reduce the call charges significantly, which is what Bharat Sanchar Nigan Limited (BSNL ) the incumbent Telecom Service Provider in India, has recently announced. BSNL is one of the largest & leading public sector unit in India, offering Land Line, Mobile and Internet Services to its Customers.
BSNL has a well established Land Line telephone network (Switching Systems, Local Loop for Transmission and Fixed Line Phones) with a good Land Line customer base. Now, with more than 15 Mobile Telecom Service Providers offering a variety of services (with a few of them offering land line services), in the Indian Telecom Market, the competition is really tough and the Customer churn is more, especially from Land Line to Mobile Services.
As an attempt to retain their existing Land Line Customers , BSNL has recently announced that they are offering Long Distance Call (or STD Calls as mentioned in India), at Local Call Rates, from BSNL Land Line to any other Land Line, across the country. They have also highlighted the advantages of Land Lines Phones (compared to mobile phones) such as - Excellent Voice Clarity and Uninterrupted Calls with no call drops, which are very true.
This is really a good move from BSNL. Earlier, we used to think and limit our conversation duration, when it comes to Long Distance Calls on Land Lines, as the call charges used to be high. Now the provision to make Long Distance Calls at Local Call Rates (which is significantly less), will not only benefit the Land Line Customers (to reduce their telephone call expenses), but it will also encourage them to speak to people (e.g. family, friends, employees), across the country (India), for a longer duration (as the cost is low), which would ultimately, contribute to increased revenue (to the service provider), through increased volume of talk time.
This is yet another example of how the incumbent telecom service providers (like BSNL) have understood the pulse of the Customer and have offered what they really want, in the process of handling the challenges of advancement in the technology (in this case from land line to mobile phones) and increased competition (with new service providers coming in through privatization), to sustain themselves in this cut throat market.
These attractive offers to Land Line Customers (e.g. Service Providers Offering Long Distance Calls at Local Call Rates to their Customers, Offering Good Quality of Service - Excellent Voice Clarity and Uninterrupted Calls with no call drops, Excellent Customer Service Support ), will certainly help the Telecom Service Providers, with the dual benefit of retaining their existing Land Line Customers and their Network Infratsructure, which was build progressively, over the last 100+ years. This is a Win-Win situation to both the Customers and the Telecom Service Providers.
