Reliance Jio Losing Track To Airtel And BSNL. The Turf War Just Got Hotter!

No one would have thought that Mukesh Ambani’s Reliance Jio, the telecom giant that once disrupted the Indian market with free voice calls and ultra-cheap data, would face an exodus of subscribers.

Yet, the unthinkable has happened. The country’s largest telecom provider is seeing its dominance challenged as the latest numbers suggest— Jio lost a staggering 7.9 million (79 lakh) subscribers in a single month—September 2024—according to data from the Telecom Regulatory Authority of India (TRAI).

Adding to the drama, state-owned Bharat Sanchar Nigam Limited (BSNL) is making a surprising steady comeback.
While Jio, Airtel, and Vi are busy struggling with subscriber churn caused by steep tariff hikes, BSNL has managed to attract a whopping 5.5 million (55 lakh) new customers between July and October 2024.

The Numbers That Shocked the Industry

In September 2024, Jio lost 79 lakh customers, Airtel saw 14 lakh users jump ship, and Vi (Vodafone Idea) suffered a similar fate with a loss of 15 lakh subscribers. Meanwhile, BSNL emerged as the unlikely victor, gaining momentum month by month. Department of Telecommunications (DoT) data reveals the migration trajectory:

–July 2024: 1.5 million switched to BSNL.
–August 2024: 2.1 million ported their numbers.
–September 2024: 1.1 million migrated to BSNL.
–October 2024: 0.7 million joined BSNL.

These numbers surely point to BSNL’s growing appeal, even as private giants falter under the weight of increased tariffs.

Why the Exodus?

The most significant factor driving this shift is the hike in mobile tariffs by private telecom companies, including Jio. While these hikes might make sense from a revenue perspective for the telcos, they’ve alienated a large chunk of budget-conscious Indian subscribers.

BSNL, in contrast, has strategically positioned itself as the affordable alternative, leveraging its existing infrastructure and attractive pricing to lure cost-sensitive customers. The state-run operator’s revamped 4G offerings and promise of an impending 5G rollout have only strengthened its appeal.

BSNL’s Rise Is More Than Just Pricing

BSNL’s resurgence isn’t merely about competitive pricing. Its focus on improving service quality and expanding coverage, especially in rural areas, has struck a chord with users who often feel underserved by private players.

Additionally, perhaps the nationalistic sentiment played a role? In a market dominated by private telecom giants, some subscribers see BSNL as a “people’s provider” that prioritizes accessibility over profit margins.

Airtel’s Quiet Resilience

While Jio faces the brunt of this churn, Airtel’s losses are comparatively lower. This can be attributed to its focus on premium services, enterprise solutions, and consistent network performance. Airtel’s strategy to target high-value customers seems to be cushioning it against a complete subscriber meltdown.

BSNL’s Turnaround How A Bold Gamble Paid Off

Until a few months ago, not many would have thought that Bharat Sanchar Nigam Limited (BSNL), the debt ridden state-owned telecom giant long overshadowed by private players, would script one of the most remarkable comebacks in the Indian telecom sector?

Yet here it stands, its subscriber base swelling by 50-60 lakh in the last quarter, as it leverages newfound profitability and a daring commitment to self-reliance.

Communications Minister Jyotiraditya Scindia had recently remarked about BSNL’s progress, calling it a “gamble that worked.”
Still, this resurgence marks a significant shift for a company that posted losses for 12 straight years and struggled with outdated infrastructure in a market dominated by private rich companies like Reliance Jio and Airtel.

The Turnaround Story

In the past two years, BSNL has recorded an operating profit, thanks in part to an ambitious Rs 89,047 crore revival package approved by the Union Cabinet in June 2023. This package was a lifeline for the debt-laden telecom firm, enabling it to roll out 4G and 5G services and invest in critical infrastructure upgrades.

Unlike its private competitors, BSNL took the bold—and arduous—route of deploying indigenous (atmanirbhar) equipment rather than relying on off-the-shelf solutions from global suppliers. This decision, lauded for its alignment with India’s self-reliance goals, was not without its challenges but has begun to yield dividends.

Minister Scindia had then explained that BSNL’s choice to use domestically developed equipment for its 4G rollout wasn’t just a business decision; it was a nationalistic gamble. While private telcos relied on established international vendors, BSNL opted to build its network with homegrown technology.

“It is very easy to take someone else’s equipment and set it up. But BSNL chose the hard route… Today, domestic 4G is a proven technology, and moving to 5G won’t be as challenging. We’re catching up today, but we hope to lead tomorrow,” Scindia had remarked.

Serving the Nation’s Remotest Corners

BSNL is one company that to continues to play a critical role in bridging India’s digital divide by providing telephone services in the remotest villages. Its network expansion, coupled with a significant upgrade in service quality, has resonated with millions of users, helping the telecom giant add subscribers in every single month of the last quarter.

In rural and semi-urban areas, where private players often hesitate to invest due to lower profit margins, BSNL’s commitment to accessibility has likely and strongly set it apart. This dual focus on affordability and inclusivity has been instrumental in its turnaround.

While BSNL’s resurgence is a story worth celebrating, its path forward remains challenging. The rollout of 5G services is critical for sustaining its momentum and staying competitive in a fast-evolving telecom market. Thanks to its successful deployment of domestic 4G technology, the leap to 5G is expected to be smoother.

Thus, the company is now in a position to not just catch up but potentially lead the telecom sector in the future.

The Turf War
The telecom battlefield is heating up, for Jio, retaining its crown will require more than tariff adjustments—it will need to focus on customer satisfaction, network reliability, and possibly revisiting its pricing strategy to retain its budget-friendly image.

As for BSNL, sustaining this momentum will depend on the timely rollout of 5G, continued network enhancements, and its ability to maintain affordable pricing. If BSNL manages to capitalize on this moment, it could redefine its position in the market, transforming from a perennial underdog to a formidable competitor.

For Airtel and Vi, this churn serves as a wake-up call to realign their strategies and prioritize subscriber retention in an increasingly volatile market.