BSNL gains subscribers in churn after tariff hikes by pvt telcos
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Synopsis
As per information shared by BSNL with ET, since July 3-4, when the hike by three private players-Reliance Jio, Bharti Airtel and Vodafone Idea-came into effect, some 250,000 customers have ported to the state-run firm from other operators by utilising mobile number portability (MNP).
Apart from the customers joining through MNP, BSNL has added around 2.5 million new connections to its network. BSNL has been able to get new subscribers as it still offers mobile tariffs that are affordable to low-income subscribers, said officials familiar with the development.
While the three private telcos have increased rates in the range of 11-25%, the tariffs of BSNL have not changed much. For instance, after the hikes, the minimum 28 days monthly plan having data and voice benefits starts at Rs 199 for Bharti Airtel and Vodafone Idea while for Reliance Jio, the plan starts at Rs 189.
In contrast, BSNL has a Rs 108 tariff plan with a similar set of benefits. In fact, the carrier has 4-5 monthly plans in the price range of Rs 107 to Rs 199. Reliance Jio also has kept the JioPhone rates unchanged. JioPhone has four plans in the range of Rs 91 to Rs 223 with validity of 28 days. BSNL is also offering a Rs 229 plan, which recharges on the same day of every month, which offers unlimited data and voice along with bundling of some OTT apps. The plans above have validity of more than a month.
“Some people might be joining BSNL due to the tariff hikes, but they would be only availing the lower denomination plans,” said an analyst, asking not to be named.
Another analyst said this movement of users to BSNL is likely to be a temporary development as after any tariff hike, some SIM consolidation is expected. “But there will be a negligible impact on private telcos' finances.”
In fact, after the tariff hikes, BSNL employees union had complained to telecom minister Jyotiraditya Scindia that this would result in the common man being fleeced by the private telcos. While BSNL earlier used to act as a true price “regulator” restricting private firms from increasing rates, lack of 4G and 5G has now handicapped it to compete with private players, the union wrote in a letter to the minister.
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