BSNL added 25.3 lakh subscribers in August 2024, marking the second consecutive month of subscriber growth for the state-owned telecom. Meanwhile, private telecom companies—Reliance Jio, Airtel, and Vodafone Idea—lost 83 lakh subscribers collectively, largely due to recent tariff hikes. BSNL’s approach of maintaining stable tariffs and focusing on 4G service expansion appeals to users, bolstering its growth amidst industry shifts.
BSNL Sees Continued Subscriber Growth Amid Industry Decline
For the second consecutive month, BSNL, India’s state-owned telecom provider, experienced significant subscriber growth, adding 25.3 lakh new users in August 2024. This comes as the private telecom giants—Reliance Jio, Bharti Airtel, and Vodafone Idea—reported a collective loss of 83 lakh users. Driven by the latest tariff hikes among private providers, this shift highlights a unique opportunity for BSNL to strengthen its presence in the market.
Private Telecom Giants Face Subscriber Loss
The latest data from the Telecom Regulatory Authority of India (TRAI) shows a notable net loss of 57.7 lakh mobile subscribers across India in August, following a loss of 9.2 lakh subscribers in July. Leading the decline, Reliance Jio lost 40.2 lakh subscribers, followed by Airtel with 24.1 lakh, and Vodafone Idea with 18.7 lakh. This decline aligns with the private sector’s mid-year tariff hikes, averaging a 12% increase in telecom charges. Although these private firms argue that higher tariffs are necessary to fund network upgrades and improve digital infrastructure, they appear to be losing subscribers seeking cost-effective alternatives.
BSNL’s Competitive Strategy: Stable Tariffs and 4G Expansion
BSNL has taken a contrasting approach, with Chairman Robert Ravi confirming that the company has no plans for immediate tariff hikes. By maintaining its current rates, BSNL appeals to price-sensitive users who are looking to avoid the high costs introduced by private providers. Additionally, BSNL’s ongoing 4G service tests signal an imminent commercial launch, expected later this year. This upgrade aims to improve service quality and customer satisfaction, positioning BSNL as a viable choice for users affected by the private sector’s recent price increases.
A Strategic Shift in India’s Telecom Landscape
As telecom prices increase among private players, BSNL’s stable tariffs and upcoming 4G services may continue to attract new subscribers. While leaders like Airtel’s Sunil Mittal advocate for further rate hikes to support India’s digital infrastructure, BSNL’s strategy resonates with users seeking affordability. This shift could lead to lasting changes in India’s telecom sector as consumers re-evaluate their options.
