BSNL Wins Big as Rivals Raise Prices
Gains Millions of Subscribers Amidst Tariff Hikes
State-owned telecom provider BSNL has emerged as a surprising winner in the wake of recent tariff hikes by private telecom giants. While Reliance Jio, Airtel, and Vodafone Idea saw significant subscriber losses in July, BSNL gained a momentum of new customers. This surge in popularity comes as the private operators implemented tariff increases ranging from 10% to 25%, making BSNL the only major provider with unchanged pricing.
Tariff Hikes Drive Customers to BSNL
Data from the Telecom Regulatory Authority of India (TRAI) reveals the impact of these price increases. Jio, Airtel, and Vodafone Idea lost a large number of subscribers respectively in July. Analysts suggest that many customers, especially those on entry-level plans, opted to switch to BSNL to avoid the higher costs. This shift highlights the price sensitivity of the Indian telecom market and demonstrates the potential for competitive advantage through strategic pricing.
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BSNL's 4G Expansion and Future Outlook
While BSNL currently offers 4G services in limited areas on a trial basis, the company is planning a wider rollout by mid-2025. BSNL is rapidly expanding its 4G network with a goal of reaching 100,000 operational sites by mid-2025, according to India's Union Telecom Minister Jyotiraditya Scindia. With 35,000 sites already deployed, the state-run operator is aggressively pursuing its goal of nationwide 4G coverage.
To accelerate this rollout, BSNL is receiving a significant boost from the Indian government. A fresh infusion of Rs 6,000 crore will enable the state-run telecom operator to acquire essential 4G network equipment, according to a report in The Economic Times.
This expansion, coupled with its competitive pricing, could further solidify its position in the market. However, it remains to be seen whether BSNL can sustain this growth and effectively compete with the established players in the long run, especially as the private operators continue to invest heavily in their 5G networks and service offerings.