Just when it seemed that BSNL was a relic of the past, the state-owned telecom company made an unexpected comeback.
In the third quarter of fiscal year 2025, BSNL reported an impressive profit of ₹262 crore, significantly reducing its financial burden by over ₹1,800 crore compared to the previous year.
This turnaround was not a matter of luck; it resulted from strategic cost-cutting, aggressive market positioning, and a timely advantage over its competitors.
As Jio and Airtel increased their tariffs, BSNL seized the opportunity to attract price-conscious customers with more affordable plans. However, the question remains: can BSNL sustain this momentum?
What Helped BSNL Win Customers
In July 2024, telecom giants Jio and Airtel increased their tariff prices, causing frustration among consumers in India’s highly price-sensitive market. BSNL saw an opening and positioned itself as the budget-friendly alternative. The move paid off massively.
As a result, over 3 million users switched to BSNL, while Jio and Airtel suffered subscriber losses of 750,000 and 1.69 million, respectively. This shift helped BSNL’s market share climb from 7.59% in July 2024 to 7.84% in August 2024, marking its first positive growth in years.
The Power Of Affordability
Price-sensitive consumers have found BSNL’s prepaid plans too good to ignore. The ₹249 prepaid pack has become a standout choice, offering 40 days of validity, 2GB of daily data, and unlimited calls—a deal that trumps the standard 28-day packs from Jio and Airtel.
By focusing on affordability and extended validity, BSNL has attracted users seeking greater value for their money. This strategy has been especially effective in rural areas, where affordability often outweighs advancements in high-speed networks, such as 5G. Although BSNL may not yet offer premium services, its pricing strategy is undeniably winning hearts.
Expanding Reach
BSNL is aggressively rolling out 4G infrastructure to ensure it can compete with private players in network coverage. The company recently installed 20 new towers in Ladakh, enhancing connectivity in remote regions and supporting Indian Army operations in difficult terrain.
Looking ahead, BSNL has ambitious plans for nationwide 4G expansion, with 100,000 towers in the pipeline—75,000 already installed and 60,000 operational. This expansion is expected to further strengthen its subscriber base, particularly in rural India, where affordable internet access remains a crucial need.
Revenue Growth Across Multiple Segments
BSNL’s strong financial turnaround isn’t just about mobile services. The company experienced significant revenue growth across multiple business segments. Mobility services revenue grew by 15%, while Fibre-to-the-Home (FTTH) revenue surged by 18%. Leased line services also saw a 14% increase.
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Its total subscriber base also increased from 8.4 crore in June 2024 to 9 crore in December 2024, a clear sign that consumer trust is returning. As more users see BSNL as a viable and affordable alternative, its financial stability is set to improve further.
The Role Of BCG And Workforce Restructuring
BSNL’s turnaround isn’t just about customer growth—it’s also about smarter operations. The company engaged the Boston Consulting Group (BCG) on a ₹132 crore contract to help streamline its processes and boost efficiency.
To further cut costs, BSNL is also considering a voluntary retirement scheme (VRS) for 18,000 to 19,000 employees. While this move is still under discussion, it aligns with its broader cost-cutting and restructuring strategy.
The impact of these initiatives is already visible—BSNL’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) has doubled in four years, from ₹1,100 crore to ₹2,100 crore, proving that its revival is not merely a short-term phenomenon.
Can BSNL Keep The Momentum Going?
BSNL’s resurgence is impressive, but the real battle is far from over. While Jio and Airtel are focusing on 5G and premium services, BSNL has a different game plan—affordable pricing and aggressive 4G expansion. However, if it can bridge the 5G gap in rural areas and continue offering unbeatable prepaid deals, it could become the go-to network for millions more.
The telecom industry is dynamic, and BSNL’s fate will depend on how well it balances affordability with technological advancement. Will it sustain this winning streak, or will Jio and Airtel’s 5G push leave it behind? Only time will tell, but for now, BSNL’s underdog comeback is nothing short of a corporate plot twist that no one saw coming.
Image Credits: Google Images
Sources: LiveMint, Moneycontrol, FinShots
Find the blogger: Katyayani Joshi
This post is tagged under: BSNL Comeback, Telecom Industry, Indian Telecom, BSNL 4G, Affordable Plans, Jio vs BSNL, Airtel vs BSNL, Mobile Network, Digital India, Budget Telecom, BSNL Growth, Telecom News, BSNL vs Private Telcos, Rural Connectivity, 5G India, Internet for All, BSNL Expansion, Telecom Market, India Mobile Network, BSNL Profit, Customer Shift, Mobile Data Plans, Government Telecom, Telecom Strategy, BSNL Success, Digital Revolution
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