BRAND MATTERS:The good side of competition
The current
scenario playing out in the telecomm sector is a welcome development
for consumers. This is because the companies have for a long time
exploited consumers, who have been forced to part with their hard
earned money without getting the commensurate service delivery.
The recent slash in internet tariff and call rates are evidence of the intense competition among the telecomm companies.
To verify the claim
of poor service delivery, all you need do is to attempt to call the
customer care line of any network. You will meet frustration without
your enquiries being attended to. This has been the agony and painful
experience that consumers have had to cope with all these years. But I
believe with the stiff competition going on, telecom companies should
have a rethink and reposition their services for maximum impact.
I remember vividly
the statement credited to a former CEO of MTN who said per seconds
billing was not possible in Nigeria. He went further to say that as at
then, it would take five years for per seconds billing to happen in
Nigeria. It was immediately after this that Globacom crashed the call
rates and introduced per seconds billing in the country.
Through this,
consumers heaved a huge sigh of relief as this marked a dramatic change
in the telecomm industry. Globacom challenged the status quo to become
a formidable threat to competition then and it clearly won the heart of
Nigerians.
Competition is one
that is very critical to the survival of any industry. It needs to be
emphasised that never again will consumers be exploited for no just
cause. I have seen cases where consumers have dumped the sim cards of a
network for another.
The major issue
that informed this write-up is the 35 per cent and 40 per cent
reduction in the cost of internet connection. The telecomm companies
also reduced the tariff on Blackberry. The tariff reduction also
applies to the cost of voice call services.
The competition between the telecomm companies has been more pronounced as they outwit one another to win consumer loyalty.
One glaring fact
that should not be overlooked is that consumers now have a better
choice to abandon any network that does not serve their interest
better. The situation can no longer continue like this as the telecomm
companies should brace up for the challenges ahead.
Like I mentioned
last week, I foresee a consumer revolution sooner than expected. This
is due to the fact that despite the population of Nigeria and the size
of the market, there is no price advantage. Some other smaller African
countries pay less for telecomm tariffs.
Further tariff reduction is needed
I believe that just
like the recent crash in internet tariff and call voice rates, one of
the telecomm companies should take a bold step and embark on further
reduction in tariffs. This will send others napping while its gains the
upper hand in the market. This was the strategy adopted by Globacom on
the per seconds billing.
Without intense
competition, brands will not have a rethink of their strategy in line
with market realities. It places so much burden on the telecomm brands
to either feel the pulse of consumers or face the dire consequences.
Competition keeps brands on their toes, as any brand that slow paces
with the needs and aspirations of consumers will suffer in the market
place.
What is most
painful is that telecomm companies focus more on the profit without the
value and service quality. Despite all the huge profits being declared,
the interests of consumers are not adequately taken care of.
This is also a
wake-up call to telecomm consumers to be ready to challenge the
exploitation they suffer. Consumers can also utilise the competition as
a springboard to showcase the distinctive features of a network over
the other.
Whenever telecomm
companies are not responsive, consumers have the right to protest and
fight for their rights. The present competition can only be meaningful
when there is a strong focus on value and service delivery.
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