When MTNL invited bids for outsourcing its 3G services in the two metros of New Delhi and Mumbai (In-Fact MTNL only operates in these two cities.), none would have thought that only two bidders will came forward to stake a claim.
MTNL, being the State’s own company, was allowed to have the privilege of operating the 3G services six months before the other private players could start their services. Given the first mover advantage and all the government gods on its side, the market watchers expected MTNL to become the market leader. But, even after six months, MTNL has only (ONLY) 1000 subscribers for 3 G services.
And, now when MTNL tried to outsource its 3G services, only two bidders have come forward to bid. That’s a disastrous icing on the disaster cake!
Why? What happened?
I have worked as a Process Consultant to MTNL for implementing PeopleSoft CRM and know a lot about the infrastructure and the working on MTNL.
The biggest problem is the customer base. The segment who would use the 3G services are not the customers of MTNL. This segment would be the “moving forward” type customers expecting high performing networks, strict adherence to SLAs and backup. To list a few: High Net Worth Individuals, young and rich professionals, niche SMEs and big corporates.
Given the standard of MTNL customer service and the pathetic supporting infrastructure, none of these customers will be willing to go for MTNL services.
Now, when MTNL does not even have the segment of customers to whom will the Franchisee cater the 3 G services?
In my point of view, this is the problem (or fact) that kept away a majority of the private players from bidding for the 3 G outsourcing deal of MTNL.
And, I wonder: For how long the Government will keep supporting such white elephants? The day is not far when BSNL and MTNL will got the Air India way!
The right course of action would have been to reach out to the right segments who would go for 3G services through advertisements . Classical case of the saying that you can take the horse to the water , but you cant make it drink water . MTNL could have gained significant subscriber base by the time rest of players made their foray .