Pacific Bangladesh Telecom Limited

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Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service provider in the Indian subcontinent. In spite of this, PBTL could not be the market leader in the telecom industry, as of now. The growth rate of the company is slow. The subscriber base suggests the company is already in the 5th position among the 6 active mobile operators. There are already 100 million mobile users in Bangladesh and the market is saturated. Switching of customers from one operator to another has become a major problem in the industry. Retain existing customers and wingback the lapsers are major challenge to all the operators.

Loyalty program initiation and competitive product offerings and better customer service is the key to retain valued customers. It has been more cost effective to retain existing customers and return back the lapsers. In the competitive world of telecommunications, customer churn remains a pressing concern – and an expensive one. Global competition has raised the cost of acquiring new customers, making it imperative to determine which customers are likely to churn, and which you’d like to keep, so you can take the necessary steps to prevent them from leaving.

There are 3-5% churn rate in the market. Bangladeshi cellular circles today have five GSM operators and only one CDMA operator—up to six mobile telephony offerings. In this highly competitive scenario, it is natural that almost everybody is switching cellular providers. While teenagers are attracted by goodies such as free SMS, for executives it could be the free long distance minutes, internet connections and value-adds. But while gaining new customers is good news for any telecom, the flip side is the loss of customers—or churn, in industry parlance.

So mobile elecommunication service providers are putting churn management systems in place, which can almost accurately predict the behavior of fickle customers. Churn is a widely-recognized problem today for most mobile telecommunications providers. In simple terms churn refers to customers canceling their existing contract only to embark on a relationship with a competing mobile service providers. Many subscribers shift to another vendor due to brand image. Beyond the brand image, higher churn is generally attributed to the numerous tariff options available to customers.

A customer may also churn due to billing disputes with a particular vendor—billing fraud also comes into play. More than tariff plans it is the quality of customer service that prompts a customer to churn or remain loyal. In the current market scenario there is hardly any difference in offerings, prices and quality of service offered by different operators. Cut-throat competition has ensured that there is not much difference between the tariff plans offered by different vendors.

This is where customer service and value-added services come into play. If an operator does not anticipate market needs or does not provide value-added services offered by the competitors, then the customer is likely to churn. The CityCell subscribers are primarily dissatisfied with some aspects of the company, such as, network quality, network coverage, standard of handsets, etc. There are some factors which are greatly valued by all subscribers such as BTTB connectivity, lower call rates, quality customer care.

Out of these CityCell has scored well in the first two and having a mixed reaction for the third. The Value Added Services also falls into this category with some calling for more useful services. The privilege service (discount services) for its loyal/high-end users has some disparities with expectations and should work on it, while the some of the privilege benefits intended for the target subscribers have received a good applause from the sample.

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