State-owned telecom operator BSNL is seeing a rise in subscribers after private companies like Reliance Jio, Airtel, and Vodafone Idea raised their tariffs MTNL Merger on the Cards. An Economic Times report says BSNL has added over 2.75 million new customers since the price increase, including many who switched from other providers.
BSNL Attracts Cost-Conscious Customers
This wave is attributed to BSNL‘s comparatively affordable plans, especially for budget-conscious users. However, analysts caution that this increase may be temporary as consumers adjust to the new pricing structure. Long-term success depends on improving BSNL‘s network quality and expanding 4G coverage.
In related news, the government is considering BSNL to acquire debt-ridden Mahanagar Telephone Nigam Limited (MTNL) through an agreement rather than a merger. The final decision is expected within a month. MTNL’s high debt makes the merger less favorable. The proposal will go to the Committee of Secretaries and then to the Cabinet for approval.
MTNL’s financial crisis continues. The company recently informed bondholders that it cannot make interest payments due to a lack of funds. The deficit has also increased, reaching Rs 3,267.5 crore in FY2024, from Rs 2,915.1 crore last year. Revenue also fell by nearly 15% to Rs 798.56 crore in FY24.
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