BSNL has Silently Hiked Tariffs, But Still Remains Affordable

bsnl has silently hiked tariffs but still

Bharat Sanchar Nigam Limited (BSNL) has slowly and silently engaged in indirect tariff hikes. The state-run telecom operator says that it won’t hike the prices. However, the company has been reducing the benefits. That too in a very silent manner. This shows that BSNL is indirectly making the tariffs more expensive, even if the fares don’t change. BSNL recently reduced the benefits of the Rs 99, Rs 107 and more such affordable plans. This shows that the company wants to improve its revenues and average revenue per user (ARPU) in the short-term. To be fair, no telecom operator would survive in the Indian market if it doesn’t hike tariffs, especially if they are offering services at the cost at which BSNL is offering them.

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BSNL has been trying to add new users. For that, if the telco directly moves the prices up, that will bring a negative connotation for it in the market. That’s not something BSNL would want in the near future. The government has pushed the state-run telco to deploy homegrown 4G for the Indians. The company has not only deployed homegrown 4G in 1 lakh sites across India, but will now also look to upgrade them to 5G using homegrown tech.

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Despite indirectly making the tariffs more expensive, BSNL’s tariffs are the lowest in the industry regardless of the tariffs indirectly going up. With improved networks, BSNL’s tariffs shouldn’t be an issue for the masses. But to improve, the telco needs continous revenue upticks and from time to time, government help. BSNL is unlikely to make any profits in the short-term. However, if there’s continous improvements in fundamentals, then things could look very different in the coming years.