BSNL adds 25 lakh new users, while Airtel Jio Vi lose 83 lakh users in August 2024

State-owned telecom provider Bharat Sanchar Nigam Limited (BSNL) added 25.3 lakh new subscribers in August 2024, marking its second consecutive month of subscriber growth.

This comes as private telecom companies, including Reliance Jio, Bharti Airtel, and Vodafone Idea, experienced significant declines in their user bases.

The latest data from the Telecom Regulatory Authority of India (TRAI) revealed that these private providers collectively lost around 83 lakh users in August.

Tariff hikes drive users away from private operators

The main factor contributing to this trend is the recent hike in tariffs by private telecom companies.

Starting from July 2024, Reliance Jio, Airtel, and Vodafone Idea increased charges across prepaid and postpaid plans by an average of 12%.

This move, they argue, is necessary to fund network upgrades, support 5G development, and sustain other digital infrastructure investments.

However, the increase has driven price-sensitive users to seek more affordable alternatives, with many turning to BSNL, which has kept its rates stable.

BSNL's stable pricing attracts cost-conscious users

BSNL's approach contrasts sharply with its private counterparts. The company has announced that it does not plan to raise tariffs in the near future.

"We can clearly say we are not going to increase our tariffs in the near future," said BSNL Chairman and Managing Director Robert Ravi.

He highlighted BSNL’s commitment to providing affordable service options, making it a preferred choice for subscribers impacted by rising prices in the private sector.

4G expansion fuels BSNL's market appeal

In addition to stable pricing, BSNL’s gradual rollout of 4G services has enhanced its appeal. The company has been conducting tests on its 4G network and is expected to launch commercially by the end of the year.

This expansion is intended to improve service quality and bring BSNL closer to competing with the offerings of private providers.

With its 4G services soon available nationwide, BSNL aims to improve customer satisfaction and offer a viable option for subscribers reconsidering their choices.

Telecom industry faces pressure to reduce license fees

The Cellular Operators Association of India (COAI) has advocated for reducing the license fees telecom providers pay to the government, which currently stand at 8% of adjusted gross revenue.

The association argues that a reduction to a rate between 0.5% and 1% could foster digital inclusion and ease the financial pressures on telecom companies. If granted, this change could potentially alter tariff strategies in the industry.