Subscriber churn remains a significant challenge for Bharat Sanchar Nigam Limited as it competes with private telecom giants like Jio, Airtel, and Vodafone Idea (Vi).
This article explores the strategies BSNL is employing to address subscriber churn and sustain its growth in an increasingly competitive market.
Despite gaining over 5.5 million customers in 2024 with new market share following tariff hikes by private operators, BSNL has struggled to retain subscribers due to network quality issues and competitive pressures.
Key Factors Contributing to Subscriber Churn
1. Network Quality Issues
- BSNL’s limited 4G coverage and lack of 5G services have led to dissatisfaction among data-heavy users.
- Rural areas, where BSNL initially gained traction, are experiencing port-outs due to inconsistent network performance.
2. Retailer Incentives
- BSNL offers lower commissions to retailers compared to private operators, discouraging them from promoting BSNL plans.
- Reduced payouts for Mobile Number Portability (MNP) port-ins have further impacted retailer engagement.
3. Competitive Pricing from Private Operators
- While BSNL’s plans are affordable, competitors like Jio and Airtel offer better network quality alongside bundled services like OTT subscriptions.
Strategies Implemented by BSNL
1. Network Expansion and Upgrades
- BSNL has committed to deploying 100,000 4G sites by mid-2025 and transitioning to 5G shortly thereafter.
- Advanced RF optimization projects are underway to improve coverage in urban centers and along highways.
2. Affordable Pricing and Plan Customization
- Plans like the Rs 199 prepaid recharge (2GB/day for 28 days) offer significant cost savings compared to similar plans from Jio and Airtel.
- Special Tariff Vouchers (STVs) such as Rs 107 (voice + data) cater to rural and budget-conscious users.
3. Enhanced Retailer Engagement
- To boost retailer participation:
- BSNL has introduced deferred commissions for retaining new connections beyond three months.
- Retailers are incentivized for promoting First Recharge Coupons (FRCs) like the Rs 249 plan.
4. Digital Marketing Initiatives
- Leveraging digital platforms like BSNL Whatsapp support helpline to enhance its brand visibility through targeted online promotions and social media campaigns.
- The company’s marketing strategy focuses on engaging younger demographics through digital channels.
5. Customer-Centric Policies
- Loyalty programs offering cashback and bonus data aim to retain existing subscribers.
- Simplified activation processes for international roaming and value-added services enhance customer satisfaction.
Circle-Wise Insights on Churn Management
| Circle | Key Challenges | BSNL’s Response |
|---|---|---|
| Uttar Pradesh East (UPE) | High port-outs due to network gaps | Accelerated deployment of additional BTS |
| Kerala | Competition from private operators | Promoting data-heavy plans like Rs 199 |
| Bihar | Rural connectivity issues | Focus on expanding fiberized towers in rural areas |
| Maharashtra | Urban customer dissatisfaction | RF optimization in cities like Mumbai and Pune2 |
Results Achieved
- Reduction in Churn Rates:
- Monthly port-outs decreased from 0.51 million in October 2024 compared to higher figures earlier in the year.
- Subscriber Retention:
- Improved retention rates in circles with enhanced network performance, such as Punjab and Kerala.
- Increased MNP Gains:
- Net MNP ratio improved to 0.69, reflecting more customers porting into BSNL than out.
Conclusion:
BSNL’s strategies to address subscriber churn focus on improving network quality, offering affordable plans, enhancing retailer engagement, and leveraging digital marketing.
While challenges persist, particularly in network reliability and competition from private operators, these initiatives have shown promise in retaining subscribers and sustaining growth in competitive markets.
With continued investment in infrastructure and customer-centric policies, BSNL is poised to strengthen its position in India’s telecom sector.
