Telcos Tarrif War in India

Hello and Namaste Everyone

India is a big market for multiple industries and telecom is another bigger segment in the country. If we are talking about the mobile phone handset then all leading mobile phone brands are available in the country. Be it Samsung or Apple even one etc are available in the country and trying to grow their market share. The user base is used in the country and the growth rate is also very nice which is why these companies are trying to do more business in the country and prioritise their product launch in India.

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There was a time when India had so many telecom operators in the country but now only four companies are operating. Out of these four companies, one is government-owned and it is called BSNL. There are other three companies from the private sector: Jio, Airtel, and VI. Jio is one of the biggest companies in terms of market share as it owns more than 40% user base across the country. I would like to mention here that this is the company that was started in 2016 with aggressive marketing and it is the first company in India that started its telecom services through 4G. The company provided free telecom services for over a year and later they started charging but by their time they disrupted the market.

Many small companies could not survive in this competitive environment and they had to shut their operations as they were facing continuous losses. Only three companies could survive including the government entity and they are still providing the services. Jio has become the leading mobile operator in the country because of the advanced 4G and 5G services and aggressive pricing however now they have started increasing their prices to become more profitable. They were also profitable in the beginning after they started charging the customers once the free time was over. Now their profit ratios are way better because the company is growing and many users are adopting this brand for telecom needs. Around 8 the company is offering a bunch of products and services which is why users prefer this brand and other private companies are struggling after Jio Airtel is the second-ranked mobile service provider in the country.

Bsnl which is a government-owned entity is struggling in the market but recently things have started turning better for them. Apart from this government-owned company other three companies have increased their mobile tariffs by more than 20% this month but BSNL did not increase any tariff across the country. Often BSNL operates mostly on the 3G network but now they see that a lot of users have started porting from other companies to the BSNL network. Now they have started expanding their 4G and 5G infrastructure and for that, they have collaborated with Tata Group. Tata is a very well-known brand in India and they are trustable and reliable because whatever they commit they make sure to deliver it on time. With the support of Tata BSNL has started expanding 4G infrastructure and this is helping the company to grow.

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Every day lack of users is joining BSNL and the company is trying to provide the best services to the maximum users possible. Undoubtedly the company is also doing great on the 4G expansion because they are planning to install more than 10,000 four G towers in the next few months which will help the users to get better services. They are also planning to upgrade to a 5G network as early as possible and I believe that this should be done. Since the company is also offering the lowest tariff in the country they are getting so many new users who are porting from other companies and joining BSNL because of the low pricing.

It's like a war in India where 3 companies are on the same page whereas BSNL is gaining momentum as they have not increased the prices. They are not in the situation to increase the price and since they are getting more users they are ARPU is also going to improve and this will help the company revive its business. The government has invested a lot of money in BSNL and looks like this way BSNL will be another leading brand in India providing advanced telecom services to users at affordable prices. Surely this is the need of time to have such a company that can give competition to the private players as they are playing it like a game of monopoly which I think should not be in the market.

Thank you so much
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