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Does Competition Improve Service Quality?

BY: Vivek SHARMA | Category: Others | Submitted: 2011-03-14 18:26:57
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Article Summary: "The article analyses the relationship between service quality and competition in context of Indian market. There is a cut throat competition in India in several areas of business like mobile phone services, airlines, banking etc. Has this indeed benefited customers? The article analyses mobile number portability effectiveness..."

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The Indian government introduced,'Mobile Number Portability' (MNP) recently. The idea behind MNP was to ensure that customers, who are not satisfied with services of Telecom Company, can switch to another service provider without changing their mobile number. It was hailed as a great step in improving customer satisfaction. However till date very few have used this service, though there are more than 50 crores cell phone users in India. Why did this happen? If you ask a cell phone use in India, the common complaints that you get is high call drops, weak signals, incorrect and inflated bills. However, it is important to note that this complaint is against almost all service providers. If all service providers have same level of efficiency how can you expect the service quality to improve.

The government should have rather come out with measures to ensure that the service quality of cell phone companies. If you visit service center of a mobile company, you will be surprised to find that no escalation matrix is displayed on these centers. As per TRAI, every mobile company is expected to have a Nodal officer and an Appellate Officer. However, no mobile phone service provider displays these details. Also government should have directed every mobile company to add service executives for ,'X' number of mobile connections issued by it. This would have ensured that the service quality is maintained. In the current scenario, you get an impression that mobile companies have bitten more than what they can chew.

They are adding new subscribers and making money out of it. The service quality is secondary for them. They have an assurance that a customer won't leave them because you cannot choose between devil and the deep sea. Hence, they continue to exploit the customers. A kind of cartel has been created which is disguised in nature and is difficult to analyze for an ordinary customer. The government of India and TRAI can do little for these petty issues as they have to sort out 1.76 lakh crores scam. May GOD save the mobile phone customers!

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