BSNL's pricing srategy outguns rivals, customers back with a bang

BSNL has seen significant growth in its subscriber base, gaining around 30 lakh new users in July and August, according to the latest TRAI report. This surge appears to be linked to the recent 15% increase in mobile tariffs by major private operators like Jio, Airtel, and Vodafone Idea, prompting many consumers to seek out more affordable options.

The only telco to gain users

With rising costs making mobile plans less attractive, customers have been migrating to BSNL for its cheaper recharge alternatives. In August, BSNL was the only telecom provider to gain users, adding 25 lakh new subscribers, while its competitors faced notable losses—Jio lost 40 lakh, Airtel dropped by 24 lakh, and Vodafone Idea decreased by 19 lakh. This trend was evident in July too, when BSNL attracted nearly 3 million new subscribers, contrasting sharply with losses at other firms.

Despite this growth, BSNL's market share remains modest at 7.8%, which rises to 8% when accounting for MTNL’s share. Jio still leads the market with 40.5%, followed by Airtel at 33% and Vodafone Idea at 18%. 

Pricing strategy

BSNL’s appeal lies largely in its low tariffs, with an average revenue per user (ARPU) of around Rs 90—far lower than Airtel’s Rs 211, Jio’s Rs 195, and Vodafone Idea’s Rs 146. This pricing strategy positions BSNL as an attractive choice for cost-conscious consumers.

Looking ahead, the ongoing success of BSNL could pressure other telecom companies to rethink their pricing strategies. It remains to be seen whether they will respond by launching more competitive data plans to retain their subscribers. The current trend suggests that BSNL’s affordable offerings may continue to sway users away from pricier alternatives, potentially reshaping the competitive landscape. However, how effectively these companies adapt remains uncertain, leaving room for speculation on future market dynamics.