PTA tries to ignore its responsibility

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Mudassar J Mufti

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Nov 25, 2009, 12:22:04 PM11/25/09
to Telecom Grid Pakistan
How come Pakistan Telecommunication Authority (PTA) can call the
service “un-regulated and optional”, I ask Mr. Dogar that the whole
industry is going to rely on this very basic service in the future and
I remind him of Mobile Banking and the services like EasyPaisa which
are not possible without SMS. If the SMS service is un-regulated then
I doubt the whole banking and transaction system that operator is
talking about going to be implemented in Pakistan will be “un-
regulated.........


Recently, Number of national newspaper published this news that
certain mobile phone companies including have stopped their Bundle SMS
offer on the occasion of Eid ul Adha.

After the media reports PTA conducted a meeting with all the
operators. The meeting was conducted and headed by Mr. Talib Dogar, DG
PTA and it was attended by representatives of the operators. According
to sources, Mr. Dogar was worried about media reports and authority
wanted to clear itself due to very same reason. From the Telenor it
was told that company was not stopping any sort of SMS offer whereas
Mobilink’s representative expressed his views by stating that the
company could stop and start any offer/package as per its own
decision. At the end of this meeting PTA asked the operators to the
following;

* Ensure quality of their services during Eid and other such
occasions
* Inform their subscribers adequately about withdrawal of any
packages and SMS bundle offers prior to their suspension
* Operators shall intimate the Authority well in advance whether
the SMS bundle package has been withdrawn during the occasions such as
Eids/New year etc
* Inclusion of adequate information in media campaign with regard
to validity period of the SMS bundle package offer

As we are writing these lines it is still mentioned on the Telenor’s
website that “All Bundle/Discount/Bonus Offer subscriptions shall not
be valid for Special Occasions. Special Occasions include 6 Days of
Eid ul Fitr and Eid Ul Adha along with their respective Chand Raats
and 1 day of New Year”.

But official correspondence with Telenor’s spokesman confirms that all
kind of bundle offers including Stand Alone SMS package and Voice+SMS
will be active on Eid ul Adha. As per their response through email
“Telenor Pakistan is continuing its SMS bundle offer on Eid ul Adha
that includes Stand alone as well as voice package”.

Mobilink media representative was not available to respond. When
called at Mobilink’s call center, it was told that Mobilink is
stopping it’s per day SMS bundle offer on Eid ul Adha which will be
resumed after December 2, 2009 whereas, Voice+SMS is still available.
In above mentioned meeting it was directed by authority that operator
will issue adverts to let the consumer know about suspension of any
service. So far there is not public notice from the Mobilink. All the
other operators are continuing their SMS packages on the coming Eid.

In its press release authority says, “Value-added services offered by
mobile operators such as SMS are un-regulated services in terms of
pricing and validity. Further, the bundled packages are optional
services offered by the operators which require consumers to opt-in
and agreeing to the terms and conditions offered by the operators.
Since SMS bundle packages are not mandatory packages, PTA is only
regulating quality of services whereby the operators are required to
conform to the quality parameters as per the license terms and
conditions“

There seems to be a big confusion and lack of understanding on
everyone’s end. Operators find it its own right to decide what to stop
and what to start and authority declares this very basic service as
“un-regulated and optional”. After the cut throat competition in the
industry, lucrative SMS packages turned out to be a major reason for
the fresh sales which the companies are offering. Existing customers
in the prepaid category are also choosing to remain onboard on the
basis of bundle offers, especially the youth. The question is, how can
a seller decide himself to deprive the buyer of anything later that
was actually a charm at the time of sale and without any notice?

On the occasions like Eid, consumers rely mostly on SMS packages to
send their wishes to loved ones. The service is like a “Dear Virtual
Friend” to a customer which is available to convey or transfer the
sentiments and wishes among people. But what if the friend goes away
at the time of need? Isn’t it a deception without any notice? On what
grounds a communication service is started, I think the purpose is to
help people communicate when they need OR is it when the service
provider allow?

Secondly, how come PTA can call the service “un-regulated and
optional”, I ask Mr. Dogar that the whole industry is going to rely on
this very basic service in the future and I remind him of Mobile
Banking and the services like EasyPaisa which are not possible without
SMS. If the SMS service is un-regulated then I doubt the whole banking
and transaction system that operator is talking about will and going
to be implemented in Pakistan will be “un-regulated”. How people are
going to believe on the authority and its action becomes a real
concern.

We tried to get the version of PTA by calling Mr. Talib Dogar but he
refused to give any comment on the issue of consumer rights and asked
us to wait for the call from PR person, which we are still waiting.

Authority says, it took serious notice when certain operators stopped
the SMS service at the time of Eid ul Fitr after several customers
complained about this and it was published in the media as well. The
results of PTA’s actions are still not made public and the practice
continues.

PTA also declares that “it is only regulating quality of services”. I
think they forgot to mention that pricing and fair competition is also
its responsibility besides dozens of others. If it is the case, then,
it shouldn’t be worried about the illegal sales of SIMs because that
doesn’t involve the quality of services. One may also ask how many
“quality of service (QoS) surveys PTA has conducted so far during the
past 10 years. Isn’t it ridiculous that the top most authority tries
to avoid the reality?

Telenor had planned to stop the service but changed its mind just
today after the media reports and PTA’s resultant meeting. We are
still waiting a public notice or an advert from the Mobilink.



Source:
http://www.apnatime.com/?p=2490

Afzal Anwar

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Nov 26, 2009, 1:44:28 AM11/26/09
to telecom-gr...@googlegroups.com
Very well written and i agree 100% to the observations. The term "Serious notice" has been coined every now and then by the authorities and the local industry treats it like a major joke.

As long as the government is sleeping (or being kept in that state), any company in Pakistan can do anything they like. There is no concept of customer satisfaction and more importantly "Value and Quality of service" in any of our local industry let alone telecommunication.

I believe the most able bodies of pakistan serve the telecommunication sector, but seeing such a sorry state I am disheartened to say educated or non-educated, we are all after blood!

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Zarrar Khan

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Nov 26, 2009, 2:58:54 AM11/26/09
to telecom-gr...@googlegroups.com
There is a very old saying, "only poor marketeers manipulate prices, only poor regulators regulate tarriffs."

Why do we single out only telecom companies, when they try to make ends meet and be profitable? The primary purpose of any company is to create value for its shareholders. This is the first lesson taught in any school dealing with business and money. Have we not had enough of free ride already in terms of ever lowering cost to the subscribers? Mobile service has become a commodity, and which other commodity has consistantly beaten the inflation?

I have seen some report and I will try to find them and share it with you. The price of telecom equipment is same for all the countries in the world. Same can be said for most of the other infrastructure elements (Opex and Capex) barring labour costs. Over the last 5 years, prices have erroded in all the countries but no where as much as Pakistan and Bangladesh. Is this sustainable? I have worked in the mobile industry in Pakistan long enough to tell you that it has not.

The meager revenues coupled with every growing cost of operation is making operators very weary of investing in CAPEX and network upgrades. There was a time three or four years back when the mobile operators were on the cutting edge of 2G technology. But not much upgradation has been done since then.

And lastly, people who talk of customer satisfaction of mobile companies. Can you please tell me what benchmark are you comparing it to? Utopia? Can someone give me an expample of any other company/corporation (having more than 10 Million customers) with such levels of satisfaction? National Bank? Wapda? Railways? Police? Goverment? Sugar Mills?

The telecom industry is undergoing a self realization phase right now. At a time when the revenues are stagnant, costs are soaring and the every single money man is crying not to even look at Pakistan, the companies are at a crossroad. My personal opinion is that the next two to three years will be tough for all of us.

This post was not directed towards anyone, yet it was meant for everyone!!!

Cheers,

bmug...@gmail.com

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Nov 27, 2009, 11:35:05 AM11/27/09
to telecom-gr...@googlegroups.com
Adding to the below; this is one of the few industries where consumer demands change rapidly in terms of pricing, product innovation, packaging whereas this is not seen at that much of a greater speed in other industries. So from dealing with real estate issues to end-user interfaces, its a rolling tug of war for these operators to survive.

Zarrar has summed up with by giving good examples; that even though NBP, PR, KESC, PSP, GOP or SSM/PSM have static end products but still they're unable to meet the base-line customer satisfaction index.

Thanks.



On Thu, Nov 26, 2009 at 12:58 PM, Zarrar Khan <zarra...@gmail.com> wrote:
There is a very old saying, "only poor marketeers manipulate prices, only poor regulators regulate tarriffs."

Why do we single out only telecom companies, when they try to make ends meet and be profitable? The primary purpose of any company is to create value for its shareholders. This is the first lesson taught in any school dealing with business and money. Have we not had enough of free ride already in terms of ever lowering cost to the subscribers? Mobile service has become a commodity, and which other commodity has consistently beaten the inflation?

Babar

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Nov 27, 2009, 3:54:36 PM11/27/09
to Telecom Grid Pakistan
Good points by Zarrar and liveunplugged. Over-regulation (or the
expectation thereof) is as harmful as regulation below optimal levels.
Consumer expect and deserve a decent QoS and PTA has a critical role
there. But we shouldn't expect PTA to be the police for everything.
Like any other competitive business, market force should be allowed to
determine what works and whats acceptable. After all we invested in
MNP for a reason.

The companies who withdrew their sms packages before last Eid have
gotten an earful about it. Public opinion and pressure from consumers
can be quite effective.

Babar

On Nov 27, 10:35 am, "liveunplug...@hotmail.com" <bmugh...@gmail.com>
wrote:
> Adding to the below; this is one of the few industries where consumer
> demands change rapidly in terms of pricing, product innovation, packaging
> whereas this is not seen at that much of a greater speed in other
> industries. So from dealing with real estate issues to end-user interfaces,
> its a rolling tug of war for these operators to survive.
>
> Zarrar has summed up with by giving good examples; that even though NBP, PR,
> KESC, PSP, GOP or SSM/PSM have static end products but still they're unable
> to meet the base-line customer satisfaction index.
>
> Thanks. *
> *
> > On Thu, Nov 26, 2009 at 9:44 AM, Afzal Anwar <afzalan...@gmail.com> wrote:
>
> >> Very well written and i agree 100% to the observations. The term "Serious
> >> notice" has been coined every now and then by the authorities and the local
> >> industry treats it like a major joke.
>
> >> As long as the government is sleeping (or being kept in that state), any
> >> company in Pakistan can do anything they like. There is no concept of
> >> customer satisfaction and more importantly "Value and Quality of service" in
> >> any of our local industry let alone telecommunication.
>
> >> I believe the most able bodies of pakistan serve the telecommunication
> >> sector, but seeing such a sorry state I am disheartened to say educated or
> >> non-educated, we are all after blood!
>
> >> --
> >> *Afzal Anwar*
> ...
>
> read more »

Tee Emm

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Nov 28, 2009, 10:57:32 AM11/28/09
to telecom-grid-pakistan
So would it be correct to credit bad marketeers with 'creating a pro consumer industry'. If/when the cartels are formed, I would like to see how much of this 'customer goodness' (that is not there in the rotten lot of NBPs, PR, Sugar Mills, GoP etc) remains. 

-T


And lastly, people who talk of customer satisfaction of mobile companies. Can you please tell me what benchmark are you comparing it to? Utopia? Can someone give me an expample of any other company/corporation (having more than 10 Million customers) with such levels of satisfaction? National Bank? Wapda? Railways? Police? Goverment? Sugar Mills?
Tariq Mustafa MSN:t...@hotmail.com | Follow me: http://friendfeed.com/abunet
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Muhammed Nasrullah

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Nov 29, 2009, 3:15:35 AM11/29/09
to telecom-gr...@googlegroups.com
My 4 cents:

  1. If the telecoms are killing each other in an unsustainable pricewars, they have no one but themselves to blame. It is their lack of creativity and choosing to fight on just one parameter: price. I am happy to note the excpetion of Telenor with its EasyPaisa initiative that shows what is possible by a Telecom provider. So lets not feel bad for the telecoms for their own lack of foresight.
  2. You asked how do you benchmark satisfaction. If there is no benchmark available in the industry, it shows how little they are focused around customer satisfaction and how much they are focused around profitability. Great business always satisfy the customer first, the money always follows (Google, Skype, Facebook etc). Great companies actually do measure satisfaction. They do so by complaints per 1000 customers, adaption, customer recommendations etc. PTA does issue figures, they boil down to:

Mobilink

Ufone

Telenor

Warid

CMPak

 

 

 

 

 

 

 

 

 

2851

2681

3528

1349

679

Complaints

2008

32,032,363

18,100,440

18,125,189

15,489,858

3,950,758

Subscribers

 

8.90

14.81

19.46

8.71

17.19

Complaints/100,000

 

 

 

 

 

 

 

 

1100

861

542

766

249

Complaints

2007

26,466,451

14,014,044

10,701,332

10,620,386

1,024,563

Subscribers

 

4.16

6.14

5.06

7.21

24.30

Complaints/100,000

 


As you can see above, other than CMPak, there has been a 1-3x growth in complaints

3. You've compared satisfaction with National Bank, Wapda, Railways, Police, Goverment, Sugar Mills etc. If this is what the Telecom industry is 'benchmarking' against, it is shameful. Telecoms should be benchmarking themsleves against Vodafone, AT&T etc.

4. We've all seen they way the telecom industry is run and it is about time a moment for "self-reflection", "self-actualization" or "rationalization" is finally taking place. All those pointlessly exorbant and pricey dance numbers on TVCs, operational inefficincies and me-too behaviour is finally catching up with the telecoms.

5. Where's the innovation? Is pricing the only way telecoms think they bring value? What happened to providing more content via international partners, becoming micro-financers, credit-issuing authorities, market-data research providing (like gallop data from all your subscribers), what about smart mobile marketing? What about data-mining & micro-segmentation?

This recent move by the telecoms to take away the SMS bundles during Eid just shows plain greed and is shameful. This greed is obvious to consumers who realize that the company does not 'care' about them. What they don't understand is the brand damage they have taken for a few bucks. Very short-sighted indeed!

WS
-Nash

On Thu, Nov 26, 2009 at 12:58 PM, Zarrar Khan <zarra...@gmail.com> wrote:

Adnan Quddus Malik

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Nov 29, 2009, 3:31:48 AM11/29/09
to Telecom Grid Pakistan


PTA being an authority, in my opinion, requires more; rather enhanced
vision, hands-on market view/review, latest product knowledge, latest
& innovative product impact over the marketing strategies instead of
declaring something as “un-regulated and optional”.

It is a need of time that “The Authority” should not only control and
regulate the matters but should also keep a deep insight over the
latest package deals of all operators including Cell Phone Operators.

The latest products of Cell Phone Operators like:
1- Bundle SMS packages.
2- Mobile banking.
3- Money Transfer.
….Are some apparently old and conventional SMS usage items but
technically these does require a lot more attention than is perceived
so; i.e. “un-regulated and optional”. Instead proper regulations are
required to handle the complexity of these products mentioned in this
discussion and otherwise.


Precisely saying, The Authority may not identify things like “un-
regulated and optional” but may consider suggestions in a wider sense
with respect to their impact over market to yield a balance between
the benefit of consumers and industry as well.

Regards

Adnan

Afzal Anwar

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Dec 1, 2009, 12:23:26 AM12/1/09
to telecom-gr...@googlegroups.com
There is no doubt about the fact that the companies are built to make profit and they should charge whatever they want for the services. At the end of the day its all business!

However, discussion point was the withdrawal of SMS packages without informing the subscribers. That's not a viable means of making profit by keeping customers in the dark. Yes they sure can increase the rate of SMS to even 10 Rs if they think its not profiting them, but they should do it in a proper manner by informing the customers. It's then the choice of the subscriber to use the service or not.

A very simple benchmark of "Customer Satisfaction" would be not to Rob them with an open hand.

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