BSNL set to become No 1 in Indian telecom market with Tata’s help

A game-changing alliance of Tata and BSNL

Bharat Sanchar Nigam Limited (BSNL) is gearing up to distort the Indian telecom market by capitalizing on the synergies with its association with Tata Consultancy Services (TCS) and the Tata Group.

The tie-up will not only facilitate the deployment of next-generation 4G and 5G, but also raise BSNL’s stakes significantly in comparison to the private giants, such as Jio and Airtel.

BSNL is expanding its coverage and improving service quality with the Tata Group’s expertise in digital transformation combined with government-backed investment to the tune of ₹15,000 crore. In this context, it is an especially significant opportunity for BSNL with respect to building trust in a space dominated by private telecom operators.

Why BSNL Is Different

• Accessible Plans: A history of customer-centric pricing, paired with Tata’s technological advantage, is expected to attract millions of new users.
• 4G and 5G Rollout: The integration of Tata’s advanced telecom solutions will ensure BSNL offers cutting-edge mobile internet services.
• Rural Connectivity: With its extensive rural reach, BSNL is uniquely positioned to provide digital access to underserved areas, addressing India’s digital divide.
• Challenges and Opportunities

Although BSNL has lagged behind in the adoption of modern technologies in the past, this collaboration is likely to change the course of things.

The private companies that had successfully launched 5G services created a challenge before BSNL, but BSNL’s price war on 4G connectivity for the rural and semi-urban customer would give the company a sense of pride.

Future Projections

With this strategic revamp, BSNL can soon leave the private operators far behind in terms of user base. Market analysts estimate that due to competitive pricing and quality services, customer acquisition by BSNL is likely to increase with full pitch. If everything goes as expected with this partnership, BSNL is going to revolutionize the telecom landscape in India.

How High Recharge Costs by Jio and Airtel are Pushing Consumers to BSNL

Over the past few months, subscribers of India’s biggest private telecom companies Jio and Airtel complained that recharge prices are getting too expensive.

The dramatic price increases have prompted many users to switch to BSNL, India’s state-owned telecom firm, especially from rural and middle-class markets. This trend is changing the contours of competition in India’s telecom market.

Impact of Price Hikes on the Market Structure

Price Increases:

• Jio and Airtel have increased their tariff by 10% to 25%, with Jio’s premium 5G plans going up by 46%. These plans now charge much more while capping daily data usage​
• Airtel’s three straight price increases in July resulted in a loss of over 1.06 million subscribers, while Jio had lost about 750,000 customers in the same period​​

Migration to BSNL by Customers:

Contrastingly, BSNL added about more than 2 million new subscribers with the same time period. This was due to the cheap deals that BSNL provides its customers, which include unlimited calls and SMS along with long validity

BSNL’s Competitive Advantage

BSNL’s revival is based on low-cost, high-value propositions:

• Affordable Plans: The prepaid and post-paid BSNL plans are priced accordingly with budget-conscious users in mind
• Rural Connectivity: Expansion of the BSNL network, including rural locations, offers substantial connectivity where private operators often fail
• 4G and 5G Rollout: While lagging behind in the rollout of new technologies, BSNL accelerates its 4G upgradation work and gears itself up for 5G rollout 

Data and Trends

Market share analysis shows that BSNL is picking up users who are moving out of Jio and Airtel. The market share of Airtel declined from 33.23% to 33.12%. In contrast, BSNL witnessed an increase in its subscriber base by 20% during one month in the rural areas .

Social media discussions have, however, picked up on BSNL as the value for money alternative. Such positive talk is changing the consumer paradigm in the market. 

Challenges for Private Operators

Consumer Backlash:

The sharp tariff increases have alienated many existing customers, especially in low-income and rural segments, where affordability is a decisive factor.

Sustainability Challenges:

With BSNL gaining strength, the private operators now face challenges to maintain revenue and customer bases. This situation may likely turn into a price war and possibly some regulatory action to control price rises.

Future of India’s Telecom Market

Coming in, the clear message from the industry was that affordability matters. For Jio and Airtel to continue their lead, affordability means having a substantial response to consumer concerns by offering more reasonably priced plans. Meanwhile, BSNL has targeted inclusive and cost-effective services as a means of becoming a growing contender in the sector.

This marks a significant shift in Indian telecom consumer behavior-the priorities are shifting from offering premium services at premium prices toward value and access.