Low-Cost Telecom Company is possible

The cost of Telecommunication is on the raise (as also is the cost of other commodities). The reason for the cost increase is attributed to the increase cost of providing the services. However, it can be established that by increasing organisation Efficiency, the operational cost of an organisation can be lowered without any compromise on the Human Factors and Social Factors; thus leading to low-cost of providing the commodity. The case can be illustrated and demonstrated with a case of setting up a Low Cost Telecom Company.

The following is 10 point charter which can make this happen. This is not an original idea as there is almost nothing in this world which is an original idea. Every idea will definitely find a trace somewhere in the history. A very instant reference to the below charter can be made to the setting up of Deccan Airlines.

Improved Process Efficiency leads to better products

Using different processes for areas of operations that are not the core business of a Telecom Company, the Telecom Company ends up with huge operational costs. By adopting a standard process, which is optimised, The Telecom Company can hugely lower its operational costs; while hugely increasing its efficiency. This will  lead to more time for focusing on the core business of providing Innovative Telecom Products.

Decision Engineering leads to better Management Time Utilisation

Every Telecom Company (as any other Company in any other Industry) needs Management staff focusing on the Innovation part for creating something unique to create the differentiator. However, Management time is generally used in routine operational tasks. Empirically, 80% of the Management tasks are routine operational tasks and 20% of the Management tasks need innovation. If 20% of each Manager’s time could be spent on 80% of the routine operational tasks, 80% of each Manager’s time would be available for innovation.

Better Asset Management leads to optimum Resource Utilisation

In the modern world, the key resource is knowledge. Empirically, it has been observed that knowledge assets are not adequately managed. This leads to risk of loss of assets and/or inadequate use of the assets and/or increased cost of retention of the assets. Better Asset Management can lead to better use of the resources and in turn lead to lowering of the cost of operations.

Increased spend on Quality lowers cost of service

With need for speed of launching products and services, the emphasis on Quality of the product and services takes a back seat. The greatest compromise in the process of product and/or service creation is in the process of conducting adequate Quality Checks. This leads to low quality products and services; and that in turn leads to revenue loss through tangible payments made to customer and/or intangible loss through churn.

Focusing on the essential leads to better products at lower costs

Information Technology (IT) as a function is essential for a Telecom Operations (as is the case with most other industries). However, IT is not the core business of a Telecom Operator. Spending huge amounts on IT in terms of resources and processes increases the cost of operations. Outsourcing IT intelligently can vastly reduce the cost of operations.

Modelling business around most essential needs improves revenues at best quality

As with any technologies; and as with any organisation, many possible services are possible through the available technologies. However, each technology and each service needs a deep understanding. This cannot be developed in a short period. To provide quality service, it is essential to specialise. Specialisation demands time as parameters keep changing. Thus, modelling around the core need from the Technology should be the best basis for creating quality product; while also creating a good ecosystem.

Customer Service needs setting up on a non-assumptory basis

Setting up Customer Services around assumptions restrains the Customer Base. Inadequate Customer Service leads to Customer Dissatisfaction. This in turn leads to lowered revenue from the Business.

Small Customer Base is better for Higher Returns

Calculating the Customer Base just the right size for the cost of Operations leads for better management of the Customer Base. This should lead to better service to the Customers; which in turn leads to higher Customer Satisfaction; leading to higher assured revenues from the Customers. It is the margin of profit that matters most in business and not the volume of the profit. If I spend Rs. 100 and earn Rs. 10000, it is better yield than spending Rs. 1000 and earning Rs. 30000.

Reducing Scrap leads to higher profits and leads to Employee Satisfaction

Producing enormous amount of products and either not launching them and/or withdrawing them from the market increases the scrap factor. Increased scrap factor leads to lowering of overall profits. Apart from the revenue, this leads to demoralising the Employees.

Innovate; Do not Compete

It is better for a Telecom Company to innovate and produce higher values for the Customers. This way the Telecom Company earns more and the Customers are hugely benefited. This changes the Corporate mind-set from running a rat race to ruling his/her own jungle.

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7 comments

    1. No Madam. I am from West Bengal. My father was posted in Jodhpur for about 2 years. I studied my class 8 and part of class 7 in Jodhpur. Much later I had taken our daughters on a trip to the Golden Triangle (Delhi, Agra and Jaipur). I yearn for going on a trip by “Palace on Wheel”. I had seen the train when it was initially introduced back in the 1980s.

      1. Wow, I just looked up Palace on Wheel. It is amazing. We did travel quite a bit on Indian trains but 2nd or 3rd class, bring our own food. Hope it happens for you ! Rajasthan is amazing!

      2. Dear Madam,

        As I have been travelling by trains in India since childhood, I can tell you authority that travelling by trains in India is very enjoyable.

        I am travelling by 2nd class next weekend to be on time for my elder daughter’s birthday.

        We will await welcoming you in India.

        Thanks and Regards,
        Partha

      3. Do you eat the food on the train? we were in India when the study was on the TV about poor sanitary conditions. I was very careful during the 4 months we were there and had only one night of Delhi Belly. I loved the sleeper cars, when were all together with the students. One great big sleep over party. I love to look out the windows at where I have been and where I am going.

      4. Dear Madam,

        You will definitely find hygiene conditions in Indian Railways and in general across India much improved. Also there are certain minimum guidelines to be abided by all vendors selling food. As more organised sectors have entered the business, there is reasonable accountability as well.

        Regards,
        Partha

      5. Good to hear. I am just very careful because I don’t like to get sick. Things are just different in India, and I love that, but there can be tummy problems.

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