BSNL’s Surprising Subscriber Surge
In a notable shift within India’s telecom landscape, the state-owned Bharat Sanchar Nigam Limited (BSNL) saw significant subscriber gains for the second consecutive month, even as private telecom giants Reliance Jio, Bharti Airtel, and Vodafone Idea experienced declines. According to the latest Telecom Regulatory Authority of India (TRAI) report, BSNL added 25.3 lakh new subscribers in August, building on a gain of 29.3 lakh in July. Meanwhile, India’s net mobile subscriber base saw a drop of 57.7 lakh users in August, a steeper loss compared to July’s 9.2 lakh.
Private Telecoms Feel the Impact of Tariff Hikes
While BSNL recorded growth, the three private telecom majors collectively lost 83 lakh subscribers. Reliance Jio lost 40.2 lakh users, Airtel followed with a 24.1 lakh decline, and Vodafone Idea shed 18.7 lakh subscribers. This marks the second consecutive month of losses for private operators, who collectively lost 38.6 lakh users in July. Industry experts attribute these losses to recent tariff hikes implemented by the private operators, which raised telecom rates by an average of 12% in June to support infrastructure and spectrum investment.
BSNL Holds Firm on Tariffs
BSNL has publicly committed to maintaining its current tariff structure, even as its private-sector counterparts signal further increases. Robert Ravi, BSNL’s Chairman and Managing Director, confirmed that the state-run operator has no immediate plans to raise rates. “We can clearly say we are not going to increase our tariffs in the near future,” Ravi stated, emphasizing that BSNL’s current priority is enhancing customer satisfaction through its upcoming 4G rollout. BSNL is currently testing 4G services, with a full commercial launch expected before year-end.
A Contrast in Strategy: Airtel Calls for More Increases
In contrast to BSNL’s approach, Sunil Bharti Mittal, Chairman of Bharti Airtel, has advocated for additional tariff increases to bolster the country’s digital infrastructure. Mittal argues that sustained investment is essential for building reliable connectivity that benefits Indian citizens. Financial analysts at Jefferies have projected an additional 10% tariff hike in each of the second quarters of fiscal years 2026 and 2027, reflecting industry expectations for continued cost increases.
Telecom Operators Push for OTT Regulation
Amid these subscriber and pricing shifts, India’s telecom operators are also urging regulatory changes. At a recent meeting with Union Minister Jyotiraditya Scindia, executives from Jio, Airtel, Vodafone Idea, and BSNL expressed frustration with TRAI’s exclusion of over-the-top (OTT) messaging and calling apps, like WhatsApp and Telegram, from telecom licensing regulations. The operators argue that these OTT platforms provide similar messaging and calling services to traditional telecoms and should therefore be subject to comparable licensing requirements.
Adjusted Gross Revenue Concerns
The private telecoms also raised issues related to adjusted gross revenue (AGR) payments, which have long affected the financial stability of India’s telecom sector. Vodafone Idea, already facing challenges due to AGR liabilities, voiced its concerns, backed by Bharti Airtel. The recent Supreme Court dismissal of Vodafone Idea’s petition to review its AGR dues has intensified these concerns, leaving the company with limited options for relief.
Shifting Trends in India’s Telecom Sector
As BSNL gains momentum with a user-friendly approach and stable tariffs, private players face the dual challenges of subscriber loss and increased regulatory pressure. BSNL’s resilience and strategic pricing could see it capturing more of the market, especially as private players continue adjusting their models to meet both financial and regulatory demands. The ongoing debate over OTT regulation and AGR payments highlights the evolving regulatory landscape, suggesting more shifts ahead for India’s telecom sector.
