In Short:
BSNL has gained 250,000 customers through mobile number portability and added 2.5 million new connections since private telcos increased tariffs. BSNL’s affordable plans have attracted low-income subscribers despite the hikes. Experts believe BSNL needs to improve network quality to retain customers. The movement of users to BSNL is seen as temporary, with minimal impact on private telcos’ finances. Tariff hikes by private telcos may result in some subscribers switching to BSNL, but the impact is expected to be minimal.
BSNL Sees Increase in Subscribers After Tariff Hikes by Private Telcos
New Delhi: Bharat Sanchar Nigam Ltd (BSNL) is experiencing a surge in new subscribers following the recent tariff hikes implemented by private telecom companies. The state-run telecom operator has managed to attract around 250,000 customers who have switched from other operators using mobile number portability (MNP) since the tariff revisions came into effect on July 3-4.
Customer Growth and Tariff Comparison
In addition to MNP transfers, BSNL has also acquired approximately 2.5 million new connections. The company’s affordable mobile tariffs continue to appeal to low-income subscribers, leading to an influx of new customers.
While private telcos have raised rates by 11-25%, BSNL’s tariffs have remained relatively stable. For example, post-hike, the minimum 28-day plan with data and voice benefits starts at Rs 199 for Bharti Airtel and Vodafone Idea, while Reliance Jio offers a plan starting at Rs 189. In comparison, BSNL offers a Rs 108 plan with similar benefits, along with several other monthly plans priced between Rs 107 and Rs 199.
Challenges and Future Prospects
Experts emphasize that while BSNL’s tariffs are cost-effective, customer retention depends on network quality and service standards. The company’s incomplete 4G rollout poses challenges in acquiring and retaining new subscribers.
Analysts suggest that although some customers may switch to BSNL due to tariff increases, this movement is expected to be temporary as consolidation of SIM cards is likely post-hike. The impact on private telcos’ finances is projected to be minimal.
As per Ankit Jain, sector head at ICRA, the tariff revisions may lead to an increase in mobile bills for private telco customers, potentially prompting low-income subscribers to switch to BSNL. However, the overall financial impact on private telcos is expected to be insignificant.
Following the tariff adjustments, the BSNL employees’ union raised concerns to Telecom Minister Jyotiraditya Scindia about potential exploitation of consumers by private operators. The union highlighted BSNL’s inability to effectively compete due to the lack of 4G and 5G services.
