MTL should also change business attitude

Before the arrival of mobile phone technology in the country in the mid-1990s, Malawi Telecommunications Limited (MTL)-then under Malawi Posts and Telecommunications Corporation (MPTC) or simply ‘Post Office’-meant communication.

No one would communicate to someone at a distant place without ‘Post Office’. Pay phone, using the then valuable tambala coins were planted in most street corners to facilitate communication.

That time, owning a telephone or landline in a home was the preserve of the privileged few. In fact, it was a symbol of status.

Getting connected was not for the faint-hearted. People seeking to get connected waited for years on end to have a landline fitted in their homes or offices. Many gave up.

My conclusion then was that MTL was not operating like a business providing a service. It was like it was doing customers a favour.

Then Telekom Networks Malawi (TNM) came on the scene with mobile phone technology using Global System for mobile communication (GSM). It was a joint venture between MTL and Telecom Malaysia.

TNM mostly focused on post-paid billing until Celtel Malawi, now trading as Airtel Malawi, joined the fray and became an instant hit with the pre-paid or pay-as-you-go billing. TNM later rolled out the pre-paid billing platform as well.

Pre-paid was the way to go in a country where utility bill default was the order of the day and choked many service providers, including Electricity Supply Corporation of Malawi (Escom) and the water boards.

The mobile phone network operators soon overtook MTL and reduced the former giant in the communications business to a sideshow.

MTL used to be the sole international gateway until the mobile players also opened their own gateways, depriving MTL of lucrative business.

In an attempt to keep going, MTL launched ‘mobile’ handsets using the code division multiple access (CDMA) technology which later proved unsustainable and expensive to run as admitted by chief executive officer Dr Harry Gombachika.

The company has since shifted its focus to corporate clients who are already hooked to its infrastructure, including for data services.

I have reservations on the failure of the CDMA technology. How did MTL settle for the ‘obsolete’ CDMA technology? Did the company conduct a market research? By investing in the ‘archaic’ technology, MTL dug its own grave. I am glad, though, that finally MTL management has seen sense by discontinuing the service and focusing on a niche market. Well done for that.

To survive and achieve its desired turnaround, MTL should also change the organisation culture. The organisation’s background where it was previously wholly-owned by government has haunted it despite its 80 percent stake being sold to private sector players. I have felt the difference when I walk into the TNM or Airtel customer service shop and the MTL one. In the MTL shop, customers are treated like aliens. In fact, no one cares why you are in there.

Even in terms of response to faults, MTL always has to be “begged” to rectify a problem whereas the other players are swift.

My take, therefore, is that while MTL is changing focus to grow its business, it should also look into other areas, especially frontline staff in the customer service and technical sections. They should value customers. They should value time. They should offer a service. MTL should discard the “zaboma” mentality, it is now more of a private company.

“Customer service is the new marketing,” says Derek Sivers. n