Tuesday, 30 October 2012

Telcos without flexible add-ons


Recently, John Nash had a talk in Istanbul Game Theory Society Event where he has been asked if there can be a situation where both parties lose. He stated that this can happen but quite rarely.

Well, I encountered two lose-lose conditions in a week where one of them was about a telco which I am going to mention in this post.

I bought a data package of 500MB. The package was monthly and it was actually “unlimited”. However, according to the fair usage amount policy, the speed of the connection decreases dramatically after 500MB but the package was unlimited until the end of monthly usage period.

After using the first 500MB, my connection got really slow and I called the customer contact centre. I told them that I want to buy an additional 500MB with the same speed and it was quite disappointing to hear that the customer representative told me that it was not possible. Then I told him that he can cancel the package (even though I had at least 10 days until the end of a month of usage) and I’m happy to pay the full monthly package fee one more time so that I can have a proper connection. The response was again no and the reason for that was even though they cancel the package it keeps valid until its end of usage period.

I realised that there was no way to speed up my connection but wait until the package expires! This was a condition where the operator lost easy and significant revenue from a “willing to pay” customer and where the customer was upset because he needs to use a very slow connection for around 10 days without being left with an option.

Flexible add-ons are key features of a telco product and lack of it can cause irritating conditions for customers and loss of potential revenue for the telco. Of course, telcos need to have flexible infrastructure to handle many add-on possibilities however doesn’t it worth investing when you have chances to double – triple sell a product where you planned to sell only once in a period?