In an unexpected twist in India’s telecom sector, government-owned BSNL (Bharat Sanchar Nigam Limited) has recorded remarkable growth in subscribers over the past two months, emerging as a strong competitor against major private players like Reliance Jio, Airtel, and Vodafone Idea (Vi). With recent price hikes by these private operators, many customers are opting for BSNL’s budget-friendly plans.
Massive Growth in BSNL Subscribers
According to recent data from the Telecom Regulatory Authority of India (TRAI), BSNL gained approximately 30 lakh new subscribers in July alone. This trend continued into August, with another 25 lakh users joining BSNL. The sharp growth was accompanied by a simultaneous drop in user bases for Reliance Jio, Airtel, and Vodafone Idea.
In July, Reliance Jio lost nearly 8 lakh users, Airtel saw a reduction of 17 lakh users, and Vi lost 14 lakh users. The subscriber losses continued in August, with Jio losing around 40 lakh users, Airtel losing 24 lakh, and Vi losing 19 lakh users. This shift shows the significant impact of BSNL’s low tariffs and recent soft launch of 4G services.
Why Users are Switching to BSNL
One of the biggest draws to BSNL has been its affordable tariffs. While private telecom companies have been steadily increasing their prices, BSNL has maintained some of the lowest tariffs in the industry. The Average Revenue Per User (ARPU) — an indicator of customer expenditure on telecom services — clearly illustrates this gap. Currently, Airtel’s ARPU is Rs 211, Jio’s stands at Rs 195, and Vi’s is Rs 146, while BSNL offers services at a much lower ARPU of just Rs 90. For budget-conscious users, these prices are hard to beat.
BSNL has also gained new customers with the rollout of its 4G services. Although it’s not officially launched nationwide yet, the initial 4G coverage has shown promise and attracted users looking for high-quality, affordable connectivity.
Market Share Snapshot: BSNL’s Steady Rise
Despite the recent surge in subscribers, BSNL’s market share remains lower compared to the big three players. As of August, Reliance Jio leads with a 40.5% market share, followed by Airtel with 33% and Vi with 18%. BSNL holds 7.8% of the market, with an additional 0.2% coming from MTNL (Mahanagar Telephone Nigam Limited), giving the combined entity an 8% market share. While BSNL is still far behind its competitors, this growth signals a positive shift that could eventually give it a larger role in India’s telecom industry.
BSNL’s Strategy: A Domestic Network Expansion
BSNL’s low-cost 4G expansion is supported by a government-backed, all-Indian network upgrade plan. The company has partnered with Tata Group’s TCS, Tejas Networks, and the government-owned C-DOT to develop and expand its network infrastructure domestically. This approach aligns with India’s ‘Atmanirbhar Bharat’ mission, avoiding reliance on international telecom giants like Nokia, Ericsson, or Samsung.
With the backing of this local consortium, BSNL’s 4G rollout is expected to cover more areas, with plans for 5G also on the horizon.
