BSNL to Raise Tariffs in FY27

Bharat Sanchar Nigam Limited (BSNL), a state-run Indian telecom operator, is expected to raise prices for prepaid plans soon. BSNL has always avoided direct tariff hikes. While the private telecom operators have cycles where they raise tariffs across portfolio, BSNL has a different way of doing it. The state-run telco indirectly raises tariffs by reducing benefits of several plans over a period of time instead of directly raising the tariffs and keeping the benefits same. This usually makes users feel like they are still paying the same amount of money for the services. It is not a bad strategy for BSNL given it doesn’t have the resources or the network backing/infrastructure the private telcos do. Now, BSNL is expected to raise tariffs in FY27.

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BSNL Wants to Raise ARPU by 50% in FY27

BSNL has a current ARPU of Rs 101. This was at the end of FY26. In FY27, the state-run telecom operator has to reach an ARPU of Rs 150. The target was set in a review meeting taken by the telecom minister Scindia. This is a 50% increase in ARPU, for which a major tariff hike across all category of plans will be required. The telco would also require to keep upgrading its network infrastructure and coverage to justify the price raise.

Even the private telecom operators would think twice before going for a 50% hike in ARPU target within one financial year. The thing with BSNL is that it doesn’t only have lower tariffs for customers, it also has low-paying customers. It is a very rare scenario where the consumer has kept the BSNL SIM as a primary SIM in their device. It is mostly the second-SIM card for most consumers in the country.