PAN India Bharat Sanchar Nigam Limited (BSNL) has witnessed a significant surge in prepaid connections during October 2024, marking a milestone in its efforts to reclaim its market share in India’s competitive telecom sector.
Despite intense competition from private players, BSNL added over 1.81 million prepaid connections in October alone, as highlighted in its latest internal bulletin. The growth was primarily driven by affordable tariffs, strategic marketing, and increased adoption of mobile number portability (MNP).
Key Drivers Behind the BSNL Prepaid Connections Surge
1. Affordable Tariff Plans
BSNL’s prepaid plans remain highly competitive, offering cost-effective Affordable Tariff Plans for voice, data, and bundled services. Popular plans like the Rs 107 plan (35 days validity with 200 minutes of calls and 3GB data) and the Rs 199 plan (30 days validity with unlimited calls and 2GB daily data) have attracted budget-conscious users.
Compared to private operators who raised tariffs by up to 25%, BSNL’s stable pricing has been a key differentiator.
2. Mobile Number Portability (MNP) Gains
BSNL recorded a net positive Mobile Number Portability (MNP) Gains ratio of 0.69 in October 2024, with 686,301 users porting into BSNL from other networks. This growth reflects public dissatisfaction with rising tariffs from private operators and the appeal of BSNL’s affordable offerings.
3. Regional Performance
- North Zone: Added over 1.25 million prepaid connections, with Uttar Pradesh East (UPE) leading at 758,809 new connections.
- East Zone: Contributed significantly with 489,453 new prepaid users, driven by strong performances in Bihar and West Bengal.
- South Zone: Despite challenges, regions like Andhra Pradesh and Telangana added substantial numbers.
- West Zone: Gujarat and Maharashtra were standout performers, collectively adding over 423,670 prepaid connections.
4. Strategic Promotions
BSNL’s focus on first recharge coupons (FRCs) and BSNL’s new STV plans for prepaid users has played a pivotal role. Plans like the Rs 249 FRC offering unlimited calls and data for 45 days have been particularly popular among new subscribers.
Impact of BSNL Competitive Edge
1. Network Expansion
BSNL’s ongoing rollout of 4G services has enhanced its network quality, enabling better customer retention and attracting new users. The operator is also preparing for a phased upgrade to 5G by June 2025.
2. Customer Retention
The churn rate has significantly reduced due to improved service quality and attractive plans. For instance, Tamil Nadu reported a drop in churn from 6.29% to just 0.4%, alongside an influx of over 40,000 new subscribers within a month.
BSNL Challenges and Opportunities
While BSNL’s growth trajectory is commendable, it faces challenges such as:
- Limited pan-India availability of 4G services.
- Competition from private operators offering superior network speeds.
However, with plans to expand its fiberized towers and launch affordable 5G services soon, BSNL is well-positioned to sustain its growth momentum.
Conclusion:
BSNL’s remarkable prepaid connection + in October 2024 underscores its ability to capitalize on market dynamics through affordable pricing and customer-centric offerings. As it continues to expand its network infrastructure and introduce innovative plans, BSNL is poised to strengthen its position as a formidable player in India’s telecom landscape.
