BSNL News: August Telecom Subscriber Report and the Impact of Tariff Hikes

• In recent BSNL news, major telecom players lost subscribers after August tariff hikes,
• BSNL gained 2.5 million subscribers, maintaining lower tariffs.
• Jio, Airtel, and Vi see reductions in active and overall user bases.

The recent surge in telecom tariffs has noticeably impacted India’s leading mobile network operators, with major players Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) experiencing significant subscriber losses in August. Following an 11-25% rise in prices across various plans starting in July, data from the Telecom Regulatory Authority of India (TRAI) shows a continued decline in users for these private telecom giants. In a surprising shift, Bharat Sanchar Nigam Limited (BSNL), a state-run operator that held steady on pricing, was the only operator to see subscriber growth.

This trend marks BSNL’s strategic success in avoiding customer churn, gaining a notable 2.5 million subscribers in August alone, as customers seemed to prefer more economical options. As private operators adjust their pricing, BSNL’s consistent rates have allowed it to capture a larger market share.

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BSNL News Subscriber Data

In August, Reliance Jio lost approximately 4.01 million subscribers, reducing its base to 471.74 million. Airtel saw a 2.4 million reduction, bringing its user base down to 384.91 million, while Vi faced a 1.8 million drop, leaving it with 214 million subscribers. TRAI’s data reveals that this reduction is not limited to total users but also includes a decline in active user counts.

Key Subscriber Data (August 2024)

The total wireless subscriber count in India saw a slight dip from 1.169 billion in July to 1.163 billion in August, with urban users declining by 2.25 million and rural users dropping by 3.52 million. Notably, Jio continues as the top player with a 40.53% market share, albeit down from July’s 40.68%, while BSNL saw its market share increase to 7.84%, up from 7.59%.

Impact of Tariff Hikes on Active Users

The recent tariff hikes have influenced active user numbers, especially among private providers. Jio, Airtel, and Vi have all reported decreases in active subscriber bases, reflecting that some users may be switching to BSNL or are less engaged with the service. However, Jio managed a slight recovery in active users by adding 2.03 million subscribers, reaching 442.76 million.

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Active users are a crucial metric as they represent customers who consistently use their mobile networks, helping providers gauge customer loyalty and network load. This visitor location register (VLR) data, which TRAI publishes monthly, provides a snapshot of ongoing user trends within the industry.

Shifts in Market Share and 4G/5G Expansion

As the only telecom operators to add high-speed users in August, Airtel and BSNL contributed to growing 4G and 5G accessibility in India. Airtel’s 4G/5G user base increased by 0.38 million, while BSNL, focused on 3G, expanded by 6.58 million users. BSNL’s long-awaited 4G rollout is expected to be a significant advancement, with potential to drive further user engagement and expansion in upcoming months.

In addition to mobile services, the fixed wireless access segment saw notable growth of 9.39% in August, reaching 0.91 million users. As BSNL prepares to introduce 4G and eventually 5G services, its recent subscriber growth suggests that it may gain more ground amid increasing demand for data and affordable telecom services.

BSNL’s steady subscriber increase amid significant losses for competitors Jio, Airtel, and Vi points to shifting dynamics in India’s telecom landscape. While rising tariffs may pose challenges, BSNL’s decision to hold pricing has helped it gain momentum in market share and customer loyalty. As BSNL readies its network for broader 4G availability, its position in the Indian telecom sector seems ready to grow further.