Love and Hate in Airtel Land - A Romantic Realist

Love and Hate in Airtel Land

Raju Narisetti - Friday, August 15, 2008 8:31 PM

Ever been in that interesting situation where you love a company's ad but don't quite like its products or services? That is the state of my relationship with Airtel.

I have used Airtel as my mobile phone/blackberry/home wireless DSL service provider for just over two years now, ever since moving back to New Delhi. Since then, I have fallen in love with their ads, especially the ones airing now where a clearly in-love couple, actors Vidya Balan and R Madhavan, have verbal duels in a train from a taxi and in their apartment, the conversation centering around payments that can all be done through the Indian phone company's mChek mobile payments service. And I think Airtel's signature jingle, composed by A.R. Rehman, is ubiquitously catchy and they do use it well.

It is also tough to not admire entrepreneur Sunil Mittal's tremendous achievement: Airtel is not just India's largest mobile phone company in terms of subscribers but nowin the top five in-country mobile operators in the world.

But, the warm, fuzzy feeling I get toward Airtel on coming across their ad on television evaporates numerous times on any given day. Take Wednesday July 23 for example and the two Airtel SMS I got:

Airtel Jul 23, 2008 3:10:23 PM

Welcome to Airtel UP & Uttrakhand. Enjoy reduced Roaming rates with all incoming & local outgoing calls while roaming at Re1/min & all STD calls at Rs1.50/min.

Airtel Jul 23, 2008 3:18:57 PM

Welcome to Airtel Haryana. Enjoy reduced National Roaming rates with all incoming & local outgoing calls while roaming at Re1/min & all STD calls at Rs1.50/min.  For assistance kindly SMS or call 121.

No, I wasn't making a mad dash from state to state with my friendly Airtel mobile service keeping up with me when these messages showed up on my blackberry. I was simply sitting in my middle-of-New Delhi high-rise office. This isn't a freak occurrence either, by the way. Several times a week, Airtel decides I am in UP & Uttrakhand even when all I am doing is perhaps motoring around South or Central Delhi.

So, I have to ask myself. Would I trust my payments to a company that constantly misplaces me? And does this mean their billing systems are so messed up that maybe I am being charged for roaming even when I am not?

Meanwhile, unlike the romantic couple in the Airtel ad who, despite seemingly quite well off, still use pre-paid talk time (I didn't say all the ads made sense, I just said they push my buttons), I am, thanks to a lot of real life roaming though almost never in UP, Uttrakhand or Haryana, what I would venture to guess a pretty valuable customer for Airtel. Between November and June, for instance, my total mobile bill was at least Rs113,459, or on average about Rs14,000 a month. And, that too, not counting any of my personal calls. Guess what the average Airtel consumer spends? For the quarter ended July, Airtel's so-called ARPU, or average revenue per user, per month, was Rs350! 

Ok, I am not expecting red-carpet treatment but, would certainly like a few less dropped calls; a service that isn't abruptly turned off when I touch some pre-determined monthly limit (doesn't their computer show how much I pay and how regular my payments have been in the last two years?); and Airtel text messages that don't transport me across state lines when I am not really on the move.

Stop whining, just switch to, say, Vodafone India, you say?

Only problem is that at a recent lunch in Delhi, Vodafone Group Plc's outgoing CEO Arun Sarin noted how the average spectrum (the bandwidth that phone companies use to transmit signals) allocated to a company in US was 20 MHz while it was about 6 MHz in India. Stripped of the tech-speak, this means, Sarin explained, that the number of customers per MHz in India is now the highest in the world.

Basically, as he handed off the reins of Vodafone and headed into the Himalayas for some trekking, hopefully minus his cell phone, Sarin was essentially telling me it doesn't matter how much you spend in India, your general quality of service and dropped calls, and customer service snafus will be about the same as most of India's "missed call class" as Mint columnist S Mitra Kalita aptly dubbed those growing millions among us who can afford mobile phones but, really can't afford what the monthly service costs in a recent column.

What is even more daunting is that India remains one of the fastest growing mobile phone markets in the world and the government expects there will be 500 million mobile phone users by 2010 up from about 287 million now and going up by about 8.94 million subscribers in June 2008 alone.

The good news is some extra bandwidth is coming if India's telecom minister, the DMK's A. Raja, can figure out the most profitable way he can try and "sell" it. The bad news is that it doesn't look like customer service is really top of priority as all the phone companies rush to grab new users. Indeed, Indian consumer venting sites, such as Mouthshut.com, list a litany of woes against all the providers. For instance, Airtel gets an average of just two of five stars based on 530 reviews while Vodafone India does no better in 286 reviews.

Part of Airtel's mission and promise is that it would "deliver what we promise and go out of our way to delight the customer with a little bit more." Don't you think it would be great if they actually delight the customer with a little bit less: of dropped calls, weird text messages and better customer service? Of course, a little bit more of those great Airtel ads are always welcome.

What can I say? I guess I am still a sucker for great ads and lousy service.

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From Sandeep Khanna

August 17, 2008 8:23 AM
Hi Raju, Read this with great interest. Hope Aun has read it too:) When I compare this to Philippines, I find that India does lack behind...have not experienced any of those situations which seem amusing to a bystander like me but can be very exasperating to a user. The bandwidth issue explains only a part of the problem. The other things, like misplaced sms' or even the lack of a real Platinum program are marketing shortfalls for sure.I wonder if they have really segmented the market-- sometimes I actually wonder whether the marketing fundamentals are at all followed in this testosterone style marketing of today. Anyway, hope the ads continue to be the silver lining--seen only some....agree that they are quite nice in the way they build a definite brand character for the Airtel Brand. Ciao Sandy

From Raju Narisetti

August 17, 2008 9:33 AM

One hears a lot of talk of TG, segmentation, differentiation,customer delight...you know Kotler 101 from many of India's marketing execs (including at my own paper) but talk is cheap.

From Sandeep Khanna

August 17, 2008 4:32 PM
Touche. Talk IS cheap. I am staggered by the level of ignorance on the very basics of marketing among marketers today. Considering I moved to marketing from advertising, I was even more shocked by the amazing combination of arrogance and ignorance I have seen on these last 5 years as a marketer. And the rot runs right across industries and up the heirarchies.

From MEDIANAMA | Mint Editor Raju Narisetti Starts Blogging

August 18, 2008 6:46 PM

Pingback from  MEDIANAMA |   Mint Editor Raju Narisetti Starts Blogging

From Balaji

August 19, 2008 8:41 AM
Interesting insights but what it does go on to show is - billing system is not right enough to be transparent. Interestinf anecdote - I had gone to meet my journalist friend in the same building as yours. I called him on his cell and the message was subscriber was out of network reach. Luckily he came out i called him from my airtel number to his airtel number and the response was still the same..... We can boast of so many things in India and I am sure this not just one of those areas. We do spot a rickshaw puller with a handheld device -thats penetration and we do spot people shouting in their handheld device- thats network . Till the time more bandwidth comes in to play we will still keep wondering Where am I (as your case is good example) where is the network (in my case) Interesting aspect would be hand held devices - does it have bearing on reception of signals - higher the model is the signal that much more better.

From Manu

August 20, 2008 12:45 PM
Why just mobile service providers? After sales service is lousy almost everywhere today. The focus is on selling, and the the entire muddle class is busy consuming. Get market share. Forget after sales service. Along with Mr. Khanna's arrogance and stupidity, I would add calculated cynicism.

From Reji John

August 20, 2008 12:49 PM
I completely agree with you. The very first sentence mirrors my sentiments about the Airtel brand and its service. I use Airtel service and was frustrated with their service especially after a minor fire gutted one of their offices in Mumbai where their servers reside. While the company officials claimed disruption of service to the extent of 20 per cent and only in certain parts of Mumbai while the reality was far from it. I travel from the north to the south of Mumbai on the western line and I found no service for close to six days after the fire. Worse, the company did not even bother to apologise through an SMS. However, I used to get a minimum of three prerecorded Airtel promotional calls. Just hated the Airtel service and was praying for the speedy implementation of number portability.

From Raju Narisetti

August 24, 2008 10:28 AM

In case anyone thinks Airtel keeps an eye out for service criticism, here is what I got on 24 August morning when I was working in my office in Delhi:

------ SMS Text ------

From: Airtel

Sent: Aug 24, 2008 10:20 AM

Subject: Welcome to Airtel UP & Uttrakhand.

Welcome to Airtel UP & Uttrakhand. Enjoy reduced Roaming rates with all incoming & local outgoing calls while roaming at Re1/min & all STD calls at Rs1.50/min.

From Anjuli Bhargava

August 29, 2008 10:30 AM
I used to think Airtel's mobile, landline and broad band services were pretty bad till I recently had to deal with Vodafone's call center on behalf of my husband who was out of town and found his national roaming would not activate. Vodafone, which as Hutch was fine as far as dealing with customers went, sets news standards in poor service and even poorer customer handling. If I get down to it,I will try and send you a small piece on my experience with them. You may revise your opinion of Airtel.

From Malapati Raja Sekhar

October 9, 2008 6:56 PM
I think, you should look at their side story as well. Not being provided with enough spectrum, unbelievable growth in new additions, the lowest pricing model, too much regulated, etc make Airtel to loose track on existing customers!! Now you can understand the reason behind, when you call customer care they will try (their level best) to end your call irrespective of whether your problem is solved or not (unsurprisingly in most cases they don't understand your problem as they dont have time). For example, I am charged everyday TWICE for GPRS connectivity but I could not explain in the past 2 months over several calls to customer care. Thanks, Raja

From Veeresh

October 12, 2008 7:54 PM
Maybe you should use the landline a lot more? I mean, most places, it sits like a paperweight, nowadays.

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