BSNL Gains Significant Attention Following Tariff Hikes by Private Telecom Companies: Are You Switching to BSNL?

Approximately 250,000 customers have ported to BSNL using mobile number portability (MNP).

Bharat Sanchar Nigam Ltd (BSNL) appears to be capitalizing on the recent tariff increases implemented by major private telecom operators. The state-run telecom company has become an initial beneficiary of these hikes, which have led many low-income and prepaid subscribers to switch their allegiance to BSNL. This shift has helped the company mitigate the persistent net loss of customers it has faced over recent months.

According to the source, since the implementation of the tariff hikes by Reliance Jio, Bharti Airtel, and Vodafone Idea on July 3-4, BSNL has experienced a notable surge in customer acquisitions. Approximately 250,000 customers have ported to BSNL using mobile number portability (MNP). In addition to these MNP customers, BSNL has also added around 2.5 million new connections to its network. This influx is attributed to BSNL’s ability to offer affordable mobile tariffs for low-income subscribers, as highlighted by officials familiar with the development.

While the private telcos have increased their rates by 11 per cent to 25 per cent, BSNL has maintained relatively stable pricing. For instance, post-hike, the minimum 28-day monthly plan for Bharti Airtel and Vodafone Idea starts at Rs 199, while Reliance Jio's plan begins at Rs 189. In contrast, BSNL offers a similar plan for Rs 108, and it has several other plans ranging from Rs 107 to Rs 199. This pricing strategy has positioned BSNL as a cost-effective alternative for budget-conscious consumers.

Challenges for BSNL

Despite the initial surge in customer numbers, experts caution that the retention of these new subscribers will hinge on the quality of BSNL's network and services. The state-run firm is still in the process of rolling out its 4G services, and the absence of widespread 4G coverage could pose challenges in retaining customers. Analysts note that while the tariff hikes have driven some users to BSNL, the impact may be temporary. SIM consolidation typically occurs following tariff increases, and this movement might not significantly affect the finances of private telcos.

In conclusion, while BSNL has successfully attracted a considerable number of new subscribers due to its competitive pricing in the wake of private telcos’ tariff hikes, the company’s long-term success will depend on its ability to enhance network quality and complete its 4G rollout. As the telecom landscape continues to evolve, BSNL's ability to compete effectively with private operators will hinge on both pricing strategies and service quality.

Disclaimer: The article is for informational purposes only and not investment advice.