BSNL Loses 344,473 Subscribers In 30 Days

Bharat Sanchar Nigam Limited (BSNL), the state-owned telecom operator, reported a loss of 344,473 mobile subscribers in a single month, reducing its total subscriber base to 92.05 million. This decline comes after a brief period of significant gains, during which BSNL capitalized on tariff hikes introduced by private telecom operators earlier this year.

BSNL experienced a surge in new subscribers between July and October, adding nearly 7 million mobile users. This growth was largely driven by its low tariffs, which attracted price-sensitive customers who sought affordable alternatives in the wake of rising tariffs from major private players like Reliance Jio, Airtel, and Vodafone Idea. The increase in BSNL’s user base highlighted the potential for public-sector operators to leverage price advantages during times of market shifts.

This decline comes after BSNL had attracted approximately 5.5 million new subscribers between July and October 2024, largely due to the price hikes implemented by private telecom operators during the same period.

In contrast, Reliance Jio gained 1.2 million subscribers in November, while Bharti Airtel and Vodafone Idea reported losses of 1.1 million and 1.5 million customers, respectively. The slowdown in customer migration to BSNL suggests that the price advantage, which had been a key driver of its recent growth, may no longer be sufficient to sustain the momentum.

Reasons Behind the Decline

Despite the earlier gains, BSNL’s subscriber base took a hit in subsequent months, revealing underlying challenges:

1.    Lagging Network Quality: BSNL’s limited 4G coverage compared to private competitors has been a major drawback. While private telecom operators offer high-speed 4G and 5G services, BSNL is still reliant on older 3G technology in several areas. This has affected its ability to retain users seeking faster and more reliable connectivity.

2.    Private Sector Competition: Major players such as Reliance Jio and Bharti Airtel have continued to expand their services with bundled offerings that include faster internet, competitive pricing, and access to value-added services like OTT platforms. BSNL has struggled to compete in this increasingly digitalized telecom market.

3.    Delayed 4G Rollout: Although the government announced a Rs 1.64 lakh crore revival package for BSNL earlier this year, delays in deploying 4G services have hampered the operator’s ability to compete effectively in the rapidly evolving telecom landscape.

The Challenge Ahead for BSNL

The loss of subscribers in November underscores the challenges BSNL faces in retaining its user base. While the state-owned operator had benefited from low tariffs during the private telcos' price hikes, the lack of a competitive 4G network and value-added services may have contributed to the recent subscriber losses.

To reverse the trend, BSNL will need to accelerate its 4G rollout and improve service quality. Additionally, the telecom operator must explore bundling offerings, such as high-speed internet and digital services, to compete with private players like Reliance Jio and Airtel, who continue to dominate the market with their bundled services and superior connectivity.

BSNL’s role remains crucial, especially in rural and underserved areas where private telecom operators have limited reach. However, reversing its subscriber losses will require the telecom operator to fast-track its 4G rollout and focus on network modernization. Additionally, diversifying its service offerings by bundling internet and value-added features could attract and retain more customers.

The government’s support through revival packages provides a vital opportunity for BSNL to regain its competitive edge. By addressing its network shortcomings and improving customer service, BSNL has the potential to grow its user base and solidify its place in India’s telecom ecosystem.