In July, state-owned telecom company BSNL experienced a significant turnaround, adding 2.9 million subscribers after private rivals increased their tariffs. This surge came after BSNL had lost 0.74 million users in June. Major players like Reliance Jio, Bharti Airtel, and Vodafone Idea raised their prices just days earlier, resulting in subscriber losses for all three. Jio lost 0.7 million users, while Airtel and Vi saw declines of 1.69 million and 1.41 million, respectively. BSNL, which has been struggling financially, chose not to raise its tariffs, allowing it to attract customers looking for more affordable options amidst rising costs in the industry. Analysts had expected some churn but noted increased Market consolidation.
BSNL’s Unexpected Subscriber Growth Amid Telecom Tariff Hikes
In a surprising turn of events, Bharat Sanchar Nigam Limited (BSNL) emerged as a significant winner following recent tariff hikes in the telecom industry. In July, the state-owned telecom provider added 2.9 million subscribers, marking its first gain after losing users for over two years. This boost came as its competitors, including Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi), raised their tariffs.
According to the Telecom Regulatory Authority of India (TRAI), BSNL had previously lost 740,000 subscribers in June. However, when Jio, Airtel, and Vi announced their price increases, many users opted for BSNL, which kept its rates unchanged. Jio experienced a loss of 700,000 users in July, while Airtel faced a significant hit, losing 1.69 million subscribers. V.I. also saw a decline, losing 1.41 million users, though it had previously held the title for the largest subscriber losses.
The tariff hikes began on July 3-4, with Airtel and Vi increasing tariffs by as much as 21%. Jio’s hikes ranged from 12-25%. Analysts had anticipated a modest customer churn, as the Market has become increasingly consolidated. The last major tariff hike in 2021 led to a similar shift, prompting users to seek more affordable plans.
BSNL’s recent subscriber growth showcases its potential to compete in a challenging Market, especially as customers reevaluate their options following the tariff increases from private operators.
Tags: BSNL, telecom industry, subscriber growth, tariff hikes, Reliance Jio, Bharti Airtel, Vodafone Idea, TRAI
Image:  "BSNL defied industry trends, gaining 2.9 million subscribers in July amid rivals’ tariff hikes, marking a dramatic turnaround.")
What does BSNL’s increase in users mean?
BSNL gained 2.9 million new users, showing that more people are choosing their services.
Why did BSNL gain more users?
Many users switched to BSNL after other companies like Vodafone, Airtel, and Jio raised their prices.
How does BSNL’s user growth compare to its competitors?
BSNL is seeing a rise in users while other companies are facing some customer losses due to higher prices.
What are the recent tariff hikes?
In July, major telecom companies increased their prices, which led some customers to look for cheaper options like BSNL.
Will BSNL continue to grow its user base?
It’s possible, especially if other companies continue to raise their prices and BSNL offers competitive plans.
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