How Airtel, Reliance Jio and Vodafone may be ‘behind’ this big increase in BSNL subscriber numbers in years

State-owned telecom operator BSNL has reportedly witnessed a surge in new subscribers following recent tariff hikes by private players Reliance Jio, Bharti Airtel and Vodafone Idea. According to a report in Economic Times, BSNL has added over 2.75 million customers since the price increases took effect, including a significant number of port-in users.
As per information shared by BSNL with ET, since July 3-4, when the hike by three private players—Reliance Jio, Bharti Airtel and Vodafone Idea—came into effect, some 250,000 customers have ported to the state-run firm from other operators by utilising mobile number portability (MNP).
BSNL’s relatively cheaper plans, particularly in the lower price brackets, have reportedly attracted cost-conscious consumers.
However, while the numbers look good for the company, experts caution that the long-term sustainability of this growth depends on the company’s ability to improve network quality and expand its 4G coverage. Analysts predict that the surge in BSNL customers may be temporary as consumers adjust to the new pricing structure.
BSNL’s employees union has expressed concerns about the impact of the tariff hikes on consumers, highlighting the company’s role as a price regulator in the past.

Government plans handing over MTNL operations to BSNL

In a related news, the government is reportedly considering the option of handing over operations of Mahanagar Telephone Nigam Ltd (MTNL) to BSNL through an agreement, instead of pursuing a merger route. A final call on this is likely to be taken in a month’s time.
Sources told ET that the option of handing over debt-laden MTNL’s operations to BSNL through an agreement is being looked into. The source said that given MTNL’s high debt, a merger with BSNL was not a favourable option.
Once the decision is taken, the proposal would be placed before the Committee of Secretaries, and thereafter taken to the Cabinet.
Amid mounting financial woes, MTNL this week informed in a statutory filing that it is unable to make interest payments to certain bondholders “due to insufficient funds”. MTNL’s losses mounted to Rs 3,267.5 crore in FY24 from Rs 2,915.1 crore in FY23. Revenue from operations in last fiscal year was Rs 798.56 crore, down 14.6 per cent from a year ago.