Over the past decade, Bharat Sanchar Nigam Limited (BSNL), a government-owned telecom operator in India, has faced financial challenges, yet it has seen a consistent increase in its overall subscriber base. Since 2014, BSNL has added approximately 9 million mobile subscribers. As of March 31, 2014, BSNL had 94.6 million mobile subscribers, which rose to 103.6 million by March 31, 2023. With the imminent introduction of 4G and 5G technologies, BSNL is expected to attract more subscribers.
The fiscal year 2022-23 proved to be particularly challenging for BSNL. By the end of March 31, 2022, its overall subscriber base was 113 million, but within a year, it decreased to 103.6 million, indicating a loss of around 10 million users. The aggressive expansion of 4G by private telecom operators, coupled with the launch of 5G, may have contributed to BSNL’s subscriber loss to competitors like Airtel and Jio. Additionally, Vi’s 4G services could be more appealing to BSNL customers still relying on legacy network services.
While the total subscriber count is crucial, active subscribers are a more significant metric for assessing a company’s performance. As of March 31, 2014, BSNL had around 60 million active users. However, by March 31, 2023, the number of active users had decreased to 53.66 million. This decline is attributed to the absence of high-speed networks, as a majority of BSNL’s customers remain 2G/3G users.
Recognizing this trend, BSNL has strategic plans to launch 4G and 5G services across India soon. The decrease in total active subscribers has impacted BSNL’s overall revenues, affecting its Average Revenue Per User (ARPU) and, consequently, its bottom-line revenues.
