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

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

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.

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 Busines s Management, New Sc ience PG Col lege, W arangal , India. E-mail: ragiravi@gmail.com

Cus tomer Rel at ions Manager, Bharat Sanchar Nigam Limited, W arangal , India. E-mail: chvb_reddy@yahoo.com *** Faculty Member, Department of Humanities, Kakatiya Institute of Technology and Science, Warangal, India. E-mail:dr.surip@indiatimes.com

24 2008 The Icfai University Press. All RightsJournal of Consumer Behavior, Vol. III, No. 1, 2008 The Icfai Reserved.

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. This made 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
Customer Satisfaction and Discontentment vis-a-vis BSNL Landline Service: A Study 25

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 5th 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.
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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
Customer Satisfaction and Discontentment vis-a-vis BSNL Landline Service: A Study 27

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

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To provide world class state-of-the-art technology telecom services on demand at 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:
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 National Plan Target of 250 million subscriber. Broadband customer base of 20 million 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 that they 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. Interpretation also 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. 1. 2. 3. Type of Service Mobile Landline No Connection Total No. of Customers 43 20 07 70 Percentage of Customers 61.43 28.57 10.00 100.00

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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. 2. 3. 4. Low Rentals Convenience E-Recharge Lifetime Incoming Total 19 15 03 06 43 44.19 34.88 06.98 13.95 100.00

B. If the Shifted Service is Landline

1. 2. 3. Prompt Service Free Incoming Low Tariff Total 07 10 03 20 35.00 50.00 15.00 100.00

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 excustomers towards other service providers. 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.
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Table 3: Number of the Customers Shifted to Type and Brand of New Service
Type of Service Service Provider BSNL (Tarang) Airtel Hutch Idea Reliance Tata Indicom Total 02 13 05 20 21 7 8 2 3 2 43 Landline Mobile

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Table 4: Motivation Towards other Service Providers

Sl. No. 1. 2. 3. 4. Particulars Advertisement Friends Door-to-door Campaign Existing Users Total No. of Customers 19 12 03 29 63 Percentage of Customers 30.16 19.05 04.76 46.03 100.00

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 5: Features of the the New Service Provider that Attracted Customers
Sl. No. 1. 2. 3. Particulars Low Tariff Good Service Special Offers Total No. of Customers 40 02 21 63 Percentage of Customers 63.50 03.17 33.33 100.00

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

Sl. No. 1. 2. Particulars Excellent Poor Total No. of Customers 42 21 63 Percentage of Customers 66.67 33.33 100.00

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.
Customer Satisfaction and Discontentment vis-a-vis BSNL Landline Service: A Study 31

Table 7: Customer Satisfaction and the New Service Provider

Sl. No. 1. 2. Particulars Satisfied Not Satisfied Total No. of Customers 51 12 63 Percentage of Customers 80.95 19.05 100.00

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 8: Reasons for Disconnection of BSNL Landline Service

Sl. No. 1. 2. 3. 4. Particulars Financial Reasons BSNL Tariff are High Frequently Getting Excess Bills Poor Service Total No. of Customers 19 23 20 08 70 Percentage of Customers 27.14 32.86 28.57 11.43 100.00

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 9: Technical Problems that Lead to Disconnection

Sl. No. 1. 2. 3. 4. Particulars Call Jumping Disturbance Frequent Partial Disconnection No Problem Total No. of Customers 07 12 29 22 70 Percentage of Customers 10.00 17.14 41.43 31.43 100.00

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

Table 10: Customer Responsiveness of Telephone Linemen

Sl. No. 1. 2. Particulars Polite Not Polite Total No. of Customers 28 42 70 Percentage of Customers 40.00 60.00 100.00

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 11: Observed Corruption in BSNL Offices

Sl. No. 1. 2. Particulars Observed Not Observed Total No. of Customers 19 51 70 Percentage of Customers 27.14 72.86 100.00

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 12: Is there any Hidden Cost Present in BSNL Billing System?
Sl. No. 1. 2. Particulars Yes No Total No. of Customers 53 17 70 Percentage of Customers 75.71 24.29 100.00

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 13: Customer Affordability of the Current BSNL Rental Plans

Sl. No. 1. 2. Particulars Affordable Not Affordable Total No. of Customers 33 37 70 Percentage of Customers 47.14 52.86 100.00

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.
Customer Satisfaction and Discontentment vis-a-vis BSNL Landline Service: A Study 33

Table 14: Customer Satisfaction of BSNL Landline Service

Sl. No. 1. 2. 3. 4. Particulars Very Good Good Poor Very Poor Total No. of Customers 08 26 26 10 70 Percentage of Customers 11.43 37.14 37.14 14.29 100.00

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 motivate customers 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

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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.
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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. q

Bibliography
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

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