The Changing Face of Indian Telecom: Jio, Airtel, and the Rise of BSNL
In July, Jio added 39 lakh subscribers, reaching a total of 44.2 crore, while Airtel gained 15 lakh, with a subscriber base of 37 crore. Vodafone Idea, however, lost 13 lakh subscribers, decreasing its total base to 23 crore.
Examining the telecom market, once filled with numerous players, the emergence of Jio has reshaped the landscape, leading to mergers like Vodafone Idea. Now, Jio and Airtel dominate, potentially raising concerns about a duopoly.
Challenges Faced by Vodafone Idea
Vodafone Idea's struggle stems from its higher costs and slower 4G penetration compared to Jio and Airtel. The absence of official plans for 5G, coupled with financial constraints, positions it behind in the race.
Jio's strategic moves, including offering a basic 4G phone at an affordable price, have not only attracted new users but also enticed existing 2G users into the 4G network. This dual-market strategy keeps Jio on a growth trajectory.
The Duopoly Concern and BSNL's Resurgence
With over 80% of revenue already coming from Jio and Airtel, analysts predict a potential duopoly in the Indian telecom market by 2024. The looming concern is that 5G plans might become expensive without healthy competition.
BSNL, often overlooked, is making a strong comeback. Despite entering the 4G race later, BSNL is strategically deploying technology, planning to convert existing 4G towers into 5G, and aims to roll out 5G services by next year.
BSNL's commitment to expanding its 4G network, investing in technology, and its potential entry into the 5G arena could disrupt the anticipated duopoly. The government-backed BSNL might provide the competition needed for a balanced market.
While the future of India's telecom market remains uncertain, the ongoing technological advancements and the resurgence of BSNL hint at exciting possibilities beyond the expected duopoly.