A few days back, BSNL Board in a shocking decision hasapproved layoff proposal which will see over 54000 employees out of theorganization. The employees will get hit through reduction in retirement age to58 from present 60 years and voluntary retirement scheme (VRS) for allemployees aged 50 and above. In bothe cases, it’s not actually VRS, but acompulsory retirement scheme (CRS).
Fall of a giant brand like BSNL having a strong work forceof 1.75 lakh employees in length and breadth of the country, is a perfect casestudy to strategize future successful brands. When I look at theperformance of this once powerful brand,I am reminded of it as a status symbol. A BSNL landline connection at homewould define the socio-economic status of the people.
But it also quickly flashes in my mind about the misuse ofpower of this brand by its own employees.
The employees, of course, not all of them, treated customerslike disposable objects. Their service always made their customers to feelundervalued. For instance, they were habitual of not responding to thecustomers’ requests for help in a timely manner. Besides, replying to customersin a way that is arrogant, patronizing and dismissive has remained hallmark oftheir service. Precisely, they were ignoring customers outrightly.
Ironically, whenever customers’ complaint reached to thehigher authorities, they most of the times took the side of their employeesrather than customers’ viewpoints. It was a common sight to see customers beingpushed from pillar to post and keeping them on hold for hours on end. With allthis arrogance, they made their customers to suffer and customers were helplessas there was no alternative available.
In the initial years when private telecom players likeAirtel etc emerged on the scene, BSNL continued to remain most preferred choiceof people. But the continued fall in service finally triggered customerdefection and this started hitting the bottomline of this powerful brand.
Finally, it was the Jio factor which sank the brand BSNLlike titanic ship. Financial stress has gripped now this state-run corporation.Its revenues has dipped by 20% during 2017-18. The revenue witnessed fallduring as it fell from Rs 31,533 crore in 2016-17 to Rs 25,071 crore during2017-18. Currently, the company is carrying a loss of Rs 7,993 crore during2017-18, up 66% over the previous year.
One of the worst things that happened with BSNL after theadvent of Jio is that the prime ministerNarendra Modi endorsed Jio at the cost of his own state-run BSNL’s business.Full front-page advertisements of Prime Minister Narendra Modi in what appearedto be endorsing Jio were carried by all major national newspaper across thecountry. This was enchanting as Modi magic was capitalized by the RelianceIndustries.
“Jio is dedicated to realising our Prime Minister’s DigitalIndia vision for 1.2 billion Indians. Jio Digital Life will give the power ofdata to each Indian, to fulfil every dream and collectively take India to theglobal digital leadership.”
These lines in the ad just below the image of Prime Ministerwere actually ‘catch & kill’ lines for the state run BSNL and endorsement of the Jio brand in a most subtleway.
Precisely, marrying the Jio to prime minister Modi’s DigitalIndia has proved detrimental to the interests of BSNL. This was perhaps firstin the history of advertising that a giant conglomerate the day after itsproduct launch had carried out dedications to the prime minister in the form ofa brand and advertising campaign. It was absolutely improper, if not illegal tosee prime minister in a product ad.
Why the prime minister allowed ‘Modi magic’ to drive Jiowhen his own state-run telecom company was reeling under stress and losing itsbusiness fast? The kind of support Prasar Bharati received from the primeminister Modi, was also due to the ailing BSNL. It could have revitalized theservice pattern of the telecom to meet the competitive environment of privateplayers and saved it falling from grace.
(The views are of the author & not the institution he works for)