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Subscriber Migration to BSNL Significantly Slowed Over Network Quality Issues: IIFL
- Customer churn to BSNL observed in the wake of the July 2024 tariff hikes by the top 3 telcos has significantly slowed down, IIFL Securities said in its report on December 6.
- Most subscribers have absorbed the tariff hikes without downgrading their plans, and any future hikes may also be absorbed.
- However, such increases could potentially impact spending on other consumer items, the report noted.
- The report highlighted that the shift to BSNL, which had initially gained traction after the July 2024 tariff hikes, has slowed down considerably.
- BSNL, which did not raise prices, had attracted customers with its Rs 199 plan offering 2GB of daily data for 28 days—a 43 percent discount compared to Jio’s Rs 349 plan and a 47 percent discount compared to Bharti’s Rs 379 plan.
- The churn to BSNL has significantly slowed down recently due to its network quality issues.
- During their third-quarter FY24 rural visit, retailers reported that telcos were paying Rs 250-280 per port-in.
- Another tariff hike could impact spending capacity, particularly among rural and lower-income users, many of whom already consider the Rs 299 plan (28 days) unaffordable.
- Most retailers reported that Jio and Bharti offer the best network quality, followed by Vi. BSNL apparently has the weakest network.
- According to the report, the Jio Bharat Phone has decent demand but is facing supply constraints.
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