Monday, February 8, 2010

For whom the bell tolls

Bell Canada (Bell) is among the most well-known and iconic Canadian telecommunications brands of all time. Regrettably, it appears that in spite of its massive size and significant presence, in Ontario Bell is competitively complacent. Despite all the company has to offer to customers in the mobile telephone, internet, television and home phone markets, it has yet to capitalize on its many strengths.

According to its 2009 4th Quarter Fact Sheet, Bell's mobile telephone division, Bell Mobility, is the "Second largest wireless operator in Canada with over 6.8 million subscribers...offering a full-range of wireless services through a portfolio of targeted brands including Bell Mobility, Solo Mobile, and Virgin Mobile Canada. Bell Mobility is Canada’s largest, fastest and reliable mobile network." If this is truly the case, then why is it often said that the two major players in the industry are Rogers Wireless and Telus Mobility? Why is Bell continually relegated to a distant third place? Why is Bell not doing more to combat this erroneous perception?

Similarly, although Bell's Wireline division is currently "the largest Internet service provider in Canada with 2.1 million customers and the largest digital television provider in Canada with over 1.9 million subscribers", Bell is either reluctant or unable to capitalize on this enviable market position. Right now, Rogers is perceived by many as the largest television service and internet service provider. Why is Bell not promoting their Sympatico and ExpressVu services more aggressively and asserting its position as the premiere market player?

Bell's apparent aversion to competition is consistent across all its operations. It is this apathy which has enabled Rogers to steal away customers and demean and denigrate Bell's land-line telecommunications platform. Why is Bell refusing to challenge assertions that on-net cable telephony is more reliable than land-line? Why does Bell not go on the offensive and explain to people that in an emergency, 9-1-1 does not work or in the event of a black-out, after 3 hours, on-net cable telephony (also known as Voice Over IP, or VoIP) will not work? It is this indifference that resulted in Rogers seeing on-net cable telephony subscriptions rise by approximately 22% in 2009, while Bell's local telephone subscriptions rose by only 6.1%. Bell should be doing more to promote the reliability of its service and land-line telecommunications.

I have heard it said that it is easier to gain a customer than it is to keep one. Although it has worked hard to become a market leader, Bell appears willing to abdicate this honour and the customer loyalty that comes with it to its rivals. In such a competitive environment and tumultuous economy, why would a company allow another to steal its thunder and potential customers? Not even the Ontario Teacher's Pension Plan members could understand the logic behind Bell's complacent attitude!

The good news is that it is not too late. The bell has not yet tolled for Bell Canada. With the right marketing messages, a little creativity, and a lot of determination Bell can defend its position in the television and internet markets and become the service provider of choice in all industries in which it chooses to compete.

Bell logo and financial information provided by Bell Canada (www.bell.ca). Rogers Communications financial information provided by Rogers Communications Incorporated (www.rogers.com).

1 comment:

  1. I believe Bell has shot itself in the foot by shying away from the customer service aspect of the company.

    Their Indian call centres do not and will never offer he level of service that a North American call centre can. They have lowered the cost of their customer service spending but have not lowered the price of their services or made them significantly better.

    I have all my services with Rogers. They are not significantly better with their actual service, but at least I know I will talk to someone in Canada when I have to call them.

    This is in no way a racist post. You just cannot expect a call centre in India to be completely English speaking.

    ReplyDelete