BSNL wakes up to subscriber loss

Concerned with the loss of one crore basic phone subscribers, telecom PSU Bharat Sanchar Nigam Limited (BSNL) is planning to launch a series of measures to make basic telephony attractive.

This move follows several reports on the loss in subscriber numbers.

“The officials had convened a high-level meeting to discuss the loss on the subscriber numbers and is taking strict measures to improve its services. However, the reason stated on high rental by most of the subscribers was objected by most of the officials in the meeting. AK Sinha, chairman and managing director, BSNL stressed on making the services more attractive to meet the competition and arrest subscriber loss,” a source said on condition of anonymity.

According to a survey, since 2002, BSNL has failed to retain its subscriber base. Phone surrenders including both of BSNL and MTNL in 2002-`03 totalled 18 lakh, which further increased 32 lakh in 2003-`04. In 2004-`05, 34 lakh BSNL customers followed suit and 36 lakh customers in 2005-`06, leading to a significant decrease in its customer numbers.

“BSNL has been concentrating more on expanding its mobile services in the interior locations of the country which has affected the growth of basic telephony. But we are taking a different strategy this time. We will also be concentrating on improving the services of basic telephones,” the source added.

However, in order to attract its subscribers to its network, the operator has finalised a brand building of its entire services portfolio to hold on to customers in the face of intense competition from rivals. The company has already roped in some of the biggest agencies like Grey Worldwide, Euro RSCG and Media Direction (the media arm of RK Swamy BBDO) to strengthen its mobile, landline, WLL and broadband services brands in all telecom circles.

The advertising agency Euro RSCG will take care of the re-branding of landline and broadband services. It is planning to spend Rs 450-500 crore over the next two years on advertising and image building campaigns.