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Alarming erosion in BSNL's customer base

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Old 07-08-2006, 07:15 PM   #1
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Default Alarming erosion in BSNL's customer base

Over 1 crore of them surrendered basic phones in four years

The pace of surrenderhas accelerated each successive year
Andhra Pradesh heads the list with maximum surrenders
But, BSNL has gained many mobile phone subscribers

NEW DELHI: Despite efforts to make basic phones an attractive proposition, the Bharat Sanchar Nigam Limited (BSNL) has lost over one crore customers in the last four years, according to official figures. More worryingly, the pace of surrenderhas accelerated each successive year, especially in the three southern states of Andhra Pradesh, Tamil Nadu and Karnataka.

A survey conducted in 45 cities to study this trend found that nearly half of those who owned basic phones earlier did not support the BSNL's contention that the surrenders were due to the growing popularity of mobile phones or the improved reliability of services, which lead customers to give up one of the two phone lines in their homes.

Andhra Pradesh heads the list with maximum surrenders. In the last fiscal alone, over five lakh customers surrendered their basic phones in this State. Other states where customers returned the BSNL's fixed phones in large numbers include Tamil Nadu, Karnataka, Gujarat, Maharashtra and Gujarat. Last year, over two lakh customers surrendered their phones in each of these states while over one lakh BSNL phones disconnected their lines in Kerala, Chennai telecom district, Madhya Pradesh and Rajasthan.

High rentals

Nearly half of those who surrendered their basic phones either found the rentals too high or were dissatisfied with the service. Most of them were long-standing customers, who had availed of BSNL's services for over five years. The trend of surrendering phones was most prominent in 2002-03, with 18 lakh customers of the BSNL and the Mahanagar Telephone Nigam Limited (MTNL) giving up their basic phone lines. The next year, 32 lakh customers turned their back on both the State-owned companies. In 2004-05, 34 lakh BSNL customers followed suit and 36 lakh customers did so in 2005-06. Figures of MTNL were not available for these two years.

However, the BSNL has avoided a net loss in customers as it has gained many more mobile phone subscribers.
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