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Can BSNL Rescue Price-Sensitive Consumers from the Impact of Recent Data Price Hikes?

Empowering BSNL with the 800 MHz spectrum can provide affordable, high-quality mobile services and protect consumers from rising data prices.

Parag Kar by Parag Kar
9 Jul, 2024 - Updated On 28 Sep, 2024
in Mobile Business Strategy
Reading Time: 8 mins read
0
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Recently, India witnessed a series of data tariff hikes, sparking significant public discontent. Many feel that affordable data tariffs were initially employed to foster data dependence, and now, with rising tariffs, they find themselves with limited alternatives due to the reduced market competitiveness. This sentiment is particularly strong among the price-sensitive segments of society. However, there is a silver lining: BSNL, the state-owned telecommunications provider, is in the process of rolling out comprehensive 4G services in the 700 MHz band, a project supported by a series of government packages since 2019. This note aims to assess whether these revival packages have genuinely enabled BSNL to better serve the public interest, and if not, to identify the reasons behind the shortcomings despite substantial government support.

BSNL’s Revival Packages: A Comprehensive Overview

Since 2019, the central government has implemented a series of revival packages aimed at strengthening BSNL to enhance consumer services and fulfill its social objectives. These packages are detailed below, categorized by their key components: Spectrum Allocation, AGR Dues, Capital Expenditure (Capex), and Sovereign Guarantee (Reference – BSNL’s Annual Report dated 31st March 2024).

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Tags: 4G Services800 MHz SpectrumAffordable Mobile ServicesBSNL RevivalData Tariff HikeIndian Telecom MarketMobile BroadbandPrice-sensitive ConsumersSpectrum AllocationTelecom Regulation
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