Focus on network not tariff: Study tells operators

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Mobile service operators and their customers are not on the same page, so says the latest study by market research firm Nielsen. Tanvi Shukla and Shruti Rajkumar report.

There seems to be a big disconnect between what mobile customers want, and what telecom service providers offer.

For telecom services providers, the tariff war and figuring out cheapest schemes has become the focus. But the latest survey conducted by the Nielsen Company across 18 circles in the country states that network quality is the most important consideration for Indians - something that is not even factored in to the brand communication of most of the telecom operators.

And this disconnect could cost companies dearly.

Says Shankari Panchapakesan, ED - Telecom Practice, Nielsen Company, "What we've found out is that while subscribers may choose because of tariff-related reasons they will leave or churn because of network. So network is very important to the subscriber."

The survey shows that in most circles, Reliance Communication's CDMA service is rated the best in network quality, followed by Tata Indicom. Vodafone shares top spot with one of these two CDMA players in just five circles. Interestingly, the market leader in each of these circles is not the one that has the strongest network - but that is only because of the price wars.

"That's because companies are talking about tariff plans and focusing on that. None of them is speaking about their claims in network quality," Panchapakesan said.

The report says low prices will only attract customers initially but will not hold them. It says there is huge potential for telecom operators to expand their customer base if the focus turns towards network performance and this shift is communicated in the ads.