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BSNL Gains Subscribers as Private Telecom Giants Face User Losses Amid Tariff Hikes

  • 25 Oct 2024 09:15 AM
  • BSNL, TRAI, telecom tariffs

BSNL, the state-owned telecommunications provider, has reported a significant increase in subscribers for the second consecutive month, defying industry trends as private telecom giants face user losses due to recent tariff hikes. According to the latest data from the Telecom Regulatory Authority of India (TRAI), India saw a net loss of 57.7 lakh mobile subscribers in August, a sharp increase from the 9.2 lakh lost in July.

BSNL added 25.3 lakh new users in August, building on a strong gain of 29.3 lakh subscribers in July. In stark contrast, the three major private players—Reliance Jio, Bharti Airtel, and Vodafone Idea—collectively lost 83 lakh subscribers. Reliance Jio reported a loss of 40.2 lakh users, followed by Bharti Airtel with 24.1 lakh, and Vodafone Idea with 18.7 lakh, worsening from a loss of 38.6 lakh users in July.

BSNL’s chairman and managing director, Robert Ravi, announced that the company would not raise its telecom tariffs in the near future, diverging from the practices of its private competitors. "We can clearly say we are not going to increase our tariffs in the near future," he stated. Ravi emphasized that BSNL is currently focused on customer satisfaction and has begun offering 4G services in test mode, with a full commercial launch anticipated later this year.

This position is at odds with larger rivals like Airtel, whose chairman, Sunil Bharti Mittal, has called for further tariff increases to improve India’s digital infrastructure and ensure adequate investments in connectivity. Earlier this year, Reliance Jio, Airtel, and Vodafone Idea hiked their charges by an average of 12%, arguing that higher rates are necessary to fund infrastructure upgrades and spectrum acquisitions. Analysts at Jefferies predict an additional 10% tariff increase in the second quarters of fiscal years 2026 and 2027.

As BSNL continues to gain ground, the shifting dynamics in the telecom sector may signal a changing landscape where state-owned providers can leverage their position amid challenges faced by private companies.