Telecom Consumer Complaints: Insight

Over-charging Mobile Operators–More common than you think!

If you are a mobile post-paid subscriber, I am sure you may have been surprised one time or the other, looking at your mobile bills. More often than not, they are more than you could have imagined. Most of the times you can’t figure out why the bill is so high, at other times you can spot discrepancies in your SMS charges or phone calls. Sometimes you are also charged for things like caller tunes without having even asked for them.

Yes, that’s the existing scenario and you are simply one of the thousands (or even millions) of victims being overcharged by mobile operators. Interestingly, some of us don’t even realize that we are being looted by the mobile companies.

So how does it work? Say you have asked for some schemes like free SMSs and cheaper call rates. You are really happy that you have made the best possible deals and talk to your girlfriend ( or boyfriend or wife or husband) day in and day out. Many mobile companies use this as the easiest way to fool you. They sometimes charge for SMSswhich have been paid for as FREE or charge a few paisa here and there for some calls which you can just call ‘BILLING MISTAKES’. But then what’s the big deal in a few paisa here and there, right? WRONG! With a few paisa here and there the mobile operators are making millions all the way to the bank. Just think, if each call is billed at just 1 second extra, with millions of calls daily, operators are making a killing!

But, the overcharging is not limited to just calls and SMSes -  Caller tunes and other value added services are also cash cows!

One could argue saying this is the way mobile operators encourage customers to use caller tunes. But isn’t charging them against ethics? Similarly, value added services are another big money spinner for mobile operators as they charge their customers even after the services have been cancelled. Every mobile operator asks you to deposit some money for the services they provide. All the while you are using the operator’s services, they are earning interest. Once you cancel and are late with your bill payment, you have to pay a fee. And only the money minus the interest is given back to you.

Although hundreds of thousands of users face this issue, only a few of them notice it and even less complain about it. Here are the number of complaints launched against Operators in last 2 years.

Consumer Complaints for overcharging

Operator	2008-09	2009-10	2010-11(Upto Dec’2010)
Airtel	773	1736	1062
Tata	232	678	329
Reliance	466	1000	685
Vodafone	477	881	538
Idea	129	425	371
Others	109	370	300
Total	2186	5090	3285

The biggest complaints of overcharging have been from Airtel and Reliance. The TRAI has notified the Telecom Consumer Grievances Regulations, 2007 regarding providing some protection to consumers from such errant operators. But no one has done anything and the consumer is left to fend for himself. From trying their best to reject the MNP because it makes it competitive for them to charging customers over the top, mobile operators have been ruling the roost.

How long can they really do this? Is there any way to stop consumers getting overcharged?

Reliance Brands limited strategies

Reliance gives its premium brands a ‘personal' push

Reliance Brands is banking on personalised service such as ‘outside-shop' purchases and customized services to push sales of its high-end branded apparel. The company, a fully-owned subsidiary of Reliance Industries, is into high-end retailing and has exclusive sales and distribution licences for six international apparel and footwear brands.

Currently, Reliance Brands offers personalised services on two premium brands that include casual wear maker Diesel and apparel maker Zegna. Nearly 10 per cent of the total sales value in Zegna and Diesel stores are through outside-shop sales (home delivery of apparel without the customer visiting the store), company sources said.

They are adding value to the brand through the concept of personalized services. over the next few years, the company was expecting nearly 20 per cent of its revenue through outside-shop sales.

VIP ROOM FACILITY

While outside-the-shop selling remains an option, the company currently has a VIP room facility in its Diesel store in Juhu, Mumbai. The room is booked exclusively for the customer, who will not have to go around the shop. The apparel and the latest designs will be brought to the customer by company-appointed personal managers.

VIP room facilities and home delivery of apparel is available at no extra charge. International brand Louis Vuitton's New Bond Street outlet is known to offer such lounge services for its high-end customers.

MADE TO ORDER

Another of the company's strategies has been the introduction of made-to-fit tailoring. Particularly available in Zegna stores, the concept involves having designer suits tailored to the customer's measurements by Italian designers. This is a premium service available at an extra cost. Made-to-order suits are priced at least 15 per cent higher than a normal Zegna suit.

Reliance Brands has associations with Diesel, Timberland, Zegna, Paul & Shark, Quiksilver and Steve Madden. The company operates through exclusive stores for each brand. It has 20 exclusive stores, of which Paul and Shark and Zegna have four stores each, while Diesel has seven such outlets. Reliance Brands has five Timberland stores and is yet to launch the Quiksilver and Steve Madden brands in India.

Perfetti's ‘Stop Not' chips

Perfetti plans to enter snacks market with ‘Stop Not' chips

Perfetti van Melle, a leading confectionery maker, is planning a foray into the Rs 3,000 crore Indian packaged snacks market with its own brand of chips called ‘Stop Not.'

This is the first time that the multinational company is diversifying into the snacks business.

The Italian-Dutch company is expected to launch two versions (shapes) of chips called ‘Golz' and ‘Diskets.' Across the two versions, it is targeting around eight flavours — ‘thai chilli', ‘tomato chutney' and ‘mad masala.' The launch is expected to be around April-May this year.

Perfetti, a Rs 1,200 crore (2010) company, has around 30 per cent share of the confectionery market.

It manufactures and markets popular gum, candy and mint brands such as Center Fresh, Center Shock, Fruitella, Happy Dent, Big Babol, Alpenliebe, Chocoliebe, Chlormint and Mentos.

Deloitte India said, For a company in the confectionary market, getting into chips is a natural fit. They can ride on the existing distribution as there is a lot of synergy with the market for its existing products.

The chips market is believed to be worth around Rs 1,500 crore (2010) and is part of the Rs 3,000 crore packaged snacks industry. This number represents only national and regional organised (branded) players, though a similar market exists in the unorganised sector as well. Among the former, Pepsico brand Lay's is believed to be market leader, followed by ITC's Bingo and Parle's Hippo.

On the snacks side, Lot of action happening as there is a trend of increasing out-of-home consumption due to the convenience it offers. Strong distribution through small shops also helps. Although there are a few organised players in the space, there is space for more. New players can ride on the volume growth of the category.