BSNL, in recent months, has experienced a rapid increase in its subscriber numbers. Following recent tariff hikes by Jio, Airtel, and Vodafone Idea.
After private telecom companies such as Jio, Airtel, and Vodafone Idea hiked their tariffs, the government-owned company BSNL, which has been lagging behind in competition, has witnessed a tremendous turnaround. In recent months, BSNL has seen a massive increase in its subscribers. Following the tariff hike by the major telecom giants, especially Jio, a significant number of customers have turned to BSNL.
As per telecom regulator TRAI’s latest data, the government-owned telecom company’s customer base has been increasing for the past two months, aided by pocket-friendly tariffs and the ‘soft launch’ of 4G services.
BSNL Adds 25 Lakh Users, While Jio Lost
In July, BSNL added around 30 lakh new customers, while user numbers for all other companies – Reliance Jio, Airtel, and Vodafone Idea –witnessed a decline. Vodafone Idea lost 14 lakh, Airtel lost 17 lakh and Jio lost approx. 8 lakh users. In August, BSNL was the only company to see a surge in its customer base, adding 25 lakh new customers. During the same period, Jio lost 4 lakh, Airtel lost 24 lakh, and Vodafone Idea lost 19 lakh users.
Market Share
BSNL is still on the trail of its private competitors when it comes to market share. According to statistics released in August, Jio currently dominates the market holding 40.5 percent , with Airtel nipping at their heels boasting a 33 percent share. Vodafone Idea also holds a commendable 18 percent chunk. Furthermore, TRAI reports indicate that BSNL’s contribution to the market lingers around 7.8 percent, but if you tack on MTNL’s slender 0.2 percent , they collectively hold 8 percent of the market.
BSNL’s Trump Card
BSNL has the lowest tariffs in the industry. This is also evident from the average revenue per user (ARPU) scores. Airtel’s ARPU is Rs 211, Jio’s is Rs 195, and Vodafone Idea’s is Rs 146. In contrast, BSNL’s ARPU is about Rs 90. Clearly, this government company is charging the lowest tariffs from consumers. One reason for the low tariffs is that the company has not yet officially launched high-speed 4G. In contrast, private operators like Jio and Airtel have transferred a large portion of their users to 5G.
Trust in Domestic Companies
Vodafone Idea stands as the only private company currently offering 4G services. With fresh funds they received recently, they’re quickly moving towards the implementation of 5G technology. The launch of BSNL’s 4G service is dependent on the government’s drive to bring about an “India Stack”. A nationwide consortium made up of the Tata Group’s TCS, Tejas Networks, and the government’s own C-DOT, is taking the lead in enhancing the network. Interestingly, the government chose not to involve international corporations like Nokia, Ericsson, and Samsung in this endeavor.