ACT Fiber net (Atria Convergence Technologies Pvt. Ltd.) has been an Internet Service Provider which was the first service provider (particularly in Bangalore) to offer internet access service through optical fiber network. In view of the high bandwidth provided by the technology and with no major competition, the Company expanded its business into several cities in India.

Now when Reliance Jio has started setting up its own optic fiber network which is already been introduced in some cities on an experimental basis, ACT appears to be responding to the threat strangely by degrading the existing service shutting out the competition with improved services.

It has modified its tariff plan to create a new revenue model for the company by stripping the existing service of some of the features.

The Company has implemented a new tariff plan without providing any notice to its customers which restricts its internet service to the basic level of “Browsing” and “E Mail”. It has de-linked some aspects of the “FTP access” which some experts say has been done by blocking some open ports used for FTP access. Any requirement of such service would now require a subscription to what the company calls as a “Static IP address” which may simply be a set of IP addresses in which full services are configured as against other customers.

As a result of this change, for the users of ACT broadband service, “Secure FTP Access” has now become a “Value Added Service” for which a separate fee needs to be paid.

While it is the prerogative of any company to price its products as per its own plans, there is a need to remember that a change in tariff plan needs to be notified to the customer. Unfortunately, customer service may not be the top of the agenda for the Company as it refuses to inform its customers and refuses to even raise a proper bill. It has unilaterally degraded the service hoping that most of the customers may not be able to understand why some if their services have stopped functioning.

It is interesting to note that a company which wants to lead in technology does not have the marketing acumen to take it to the next level where it will have to compete with the kinds of Reliance Jio.

Perhaps this gives a cue to Reliance Jio on how to enter the markets where ACT is now present by a service offering which would be able to face the competition with some ease. Reliance Jio in the recent days has demonstrated the marketing acumen that it possesses to penetrate a market which is already entrenched with established players and create a dent over night. ACT Fibernet would perhaps be an easy prey to the marketing giant called Jio.

I look forward to an interesting battle when Reliance Jio enters the Bangalore market with its optic fiber services.

Naavi