BBA MBA and PostGraduate UnderGraduate Management Courses: BSNL banking on WiMax...

Monday, February 22, 2010

BSNL banking on WiMax...

Following closely on the heels of MTNL, now BSNL too has invited global bids for its WiMax foray. It is expected that WiMax would help in providing the last mile connectivity for the wired broadband and help in increasing its reach. The broadband penetration in India currently stands at a mere 5% of the total population and one of the major obstacles in its growth is considered to be its reach. With the help of WiMax technology, BSNL hopes to address this problem and get more customers in its kitty. However, the problem with BSNL lies in its service delivery and not in terms of reach and pricing. As it is this public sector has the maximum reach in the country as far as broadband is considered and the prices are also competitive. But, most people who have been using its service complain that it is good till the time one does not encounter a problem as the time taken to solve complaints and the slackened attitude is what gets on the nerves of most customers. Analysts believe that the future of the landline connections lie in the hands of popularity of broadband and it would give BSNL a very good opportunity to rectify its churn rate, but for that the company would have to be serious about its customer grievance solving system, especially when the private companies like Bharti Airtel, RComm and Tata Teleservices are going gung ho about their wireless broadband. And if these services pick up because of the convenience and their better offerings, then there would be no way that BSNL will be able to catch up with them.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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