BSNL giving Tough Competition to Jio and Airtel, Over 50 Lakh users join BSNL in two months

BSNL, the government-owned telecom company, is giving tough competition to Jio and Airtel. BSNL gained 2.5 million subscribers, while Jio, Airtel, and Vi lost customers, with Jio alone losing 4 million users. In this article, we will look at the latest trends in the telecom industry.

For the past decade, India’s telecom market has been led by private companies like Jio, Airtel, and Vodafone Idea (Vi). However, BSNL has recently been growing rapidly. According to the Telecom Regulatory Authority of India (TRAI), BSNL has been gaining new subscribers consistently, with this trend becoming stronger in recent months.

In July 2024, BSNL added nearly 3 million subscribers, while Airtel lost 1.7 million, Vi lost 1.4 million, and Jio lost 0.8 million. In August 2024, BSNL gained 2.5 million subscribers, while Jio lost 4 million, Airtel lost 2.4 million, and Vi lost 1.9 million.

BSNL offers Cheap Pricing and High Technology

Recently, phone calls and internet services in India were very affordable. However, with the arrival of 5G, things have changed. While 5G offers faster speeds, lower delays, and more features, it also comes with higher prices. Companies like Jio and Airtel have taken advantage of this, raising their average revenue per user (ARPU) by about 8.11% in just a few months, from ₹150.7 in March to ₹154.8 in June for prepaid services. Airtel’s ARPU now stands at ₹211, and Jio’s is ₹195. This increase in costs is putting a strain on consumers’ budgets.

Higher prices have made many consumers look for cheaper options, and Bharat Sanchar Nigam Limited (BSNL), the government-owned telecom company, has become a popular choice. With an ARPU of less than ₹100 (around ₹90), BSNL remains the most affordable option in the market, attracting users who want to save money. Besides being cheap, BSNL is also working on new technology that could let users make calls without needing a SIM card. This could make BSNL a strong competitor to Jio and Airtel, offering something the bigger companies don’t have right now.

Key Drivers Behind BSNL’s Subscriber Growth

There are two critical factors that have helped BSNL capture a growing share of the telecom market, even as private telecoms struggle to retain users:

1. Strategic Pricing: BSNL’s tariff rates are significantly lower than those of private telecoms. As Jio, Airtel, and Vi have raised prices, BSNL has kept its rates steady, making it an attractive option for budget-conscious consumers. This affordability, in an era of steep telecom bills, is a strong draw for subscribers seeking savings.
2. Expanding Network Coverage: Unlike Jio and Airtel, which are heavily focused on 5G, BSNL remains on a 4G network—a factor that keeps its operational costs lower, allowing it to offer affordable plans. Furthermore, BSNL has focused on expanding its network in under-served rural areas. While Jio and Airtel concentrate on urban markets, BSNL is aligning with the government’s mission to extend connectivity to remote areas, making it the only telecom provider in some rural regions.

These strategic decisions have helped BSNL increase its subscriber base, despite not offering 5G. Its low-cost structure and focus on rural connectivity have solidified its position as an alternative for cost-conscious users.

BSNL’s D2D Technology

BSNL is not just relying on lower prices and wider coverage; it is also making a technological leap with its new Direct-to-Device (D2D) technology. This development could give BSNL a unique edge in the market. Direct-to-Device technology allows users to make calls, send texts, and use data without a SIM card. The technology leverages satellite connectivity instead of traditional cellular networks. BSNL has partnered with Viasat, a satellite communication company, to test this technology in India.

• How it Works: D2D technology enables devices such as smartphones, smartwatches, and even cars to connect directly to satellites, bypassing the need for traditional telecom towers. BSNL and Viasat recently tested this system, successfully transmitting SOS messages from over 36,000 kilometers away using satellite connectivity on commercial Android devices.
• Advantages for Users: This D2D technology offers several potential benefits, especially in areas with limited cellular coverage. It ensures reliable communication during emergencies and could be especially beneficial in remote regions with unreliable telecom infrastructure. Users would no longer need a physical SIM card or proximity to cellular towers for connectivity, enhancing the accessibility and reliability of BSNL’s services.

For other telecom companies, this development could be a wake-up call. BSNL’s D2D technology represents a leap in connectivity options, and its success could prompt other providers to explore similar innovations.

The Indian Telecom Market

The Indian telecom industry is evolving rapidly. India has one of the largest telecommunications markets globally, with over 1.2 billion subscribers as of FY24, according to the India Brand Equity Foundation (IBEF). The industry’s gross revenue reached around ₹2.4 lakh crore in FY24, fueled by rising smartphone usage, decreasing data costs, and supportive government policies.

Several key trends are shaping the industry:

• Increasing Mobile Penetration: With mobile phones reaching even the most remote areas, telecom providers are expanding their reach. This trend supports the need for reliable, wide-coverage networks, an area where BSNL’s rural focus gives it an advantage.
• Declining Data Costs: Lower data costs have made it more affordable for millions of Indians to access the internet, which has contributed to high demand for telecom services.
• Government Support: Government policies aimed at boosting connectivity, foreign investment, and market competition have spurred growth and encouraged innovative technologies like BSNL’s D2D.

Conclusion

BSNL’s resurgence is a welcome change in India’s telecom sector. With affordable tariffs, a strong rural network, and cutting-edge D2D technology, BSNL is well-positioned to challenge private players like Jio and Airtel. This increased competition could lead to more choices and potentially better prices for consumers. The future of the telecom industry in India looks promising, with a continued focus on 5G advancements, enhanced network coverage, and revolutionary technologies like D2D to broaden connectivity and accessibility across the country.