On July 3 and 4 the private telecom companies like Reliance and Jio planned to increase their tariffs together. As per the plan they raised their tariffs by 11-25 %. This made the customers of Reliance and Jio frustrated due to sudden increase in the telecom services therefore they started campaigns on Social media with hashtags like ‘BSNL ki ghar wapsi’ and ‘Boycott Jio’. BSNL customer demand sudden increases after this incident.
As a result they started demanding the services of Bharat Sanchar Nigam LTD also known as BSNL as they did not increase their prices like rest private telecom industries did. According to the report by the economic times, since these tariffs are introduced by JIo and Reliance 250000 have switched to BSNL from Jio, Reliance etc through mobile number portability.
BSNL gained about 2.5 million new connections as BSNL customer demand increases due to their affordable tariffs for low-income users. The highest price increase was in the annual data plans, rising by Rs 600. Airtel and Reliance’s annual packs with 365 days of validity are priced at Rs 3,599. In contrast, BSNL offers a plan with 395 days of validity and 2GB of data per day for Rs 2,395.
The new minimum 28-day plans from Bharti Airtel and Vodafone Idea cost Rs 199, while Reliance Jio’s plan costs Rs 189. BSNL on the other hand has similar plans starting at Rs 108. BSNL offers several monthly plans ranging from Rs 107 to Rs 199. They also have a Rs 229 plan that includes unlimited data, voice calls, and some OTT apps.
Although BSNL is the fourth biggest telecom company in the country, it is still struggling to compete with private players. The company has yet to complete its 4G rollout. Despite having better pricing, BSNL is lagging in 5G infrastructure. However, the company plans to start rolling out 5G next year.
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Why BSNL Customer Demand Increases?
The consumer demand changes in two ways. The first way is the price and the second way is the non-price factor. When a business increases their prices, their demand contracts as their goods or services are not affordable for people due to which they demand less of it but when price decreases the demand extends as the goods are affordable for customers due to decrease in price.
The second factor that affects the customer demand are non price factors. One of the non-price factors is the price of the substitute. As the price of substitute increases this causes the goods or service demand to be increased as the competitors goods have been expensive so now consumers will demand and buy our goods as it is cheaper therefore this is how BSNL customer demand increases and it is benefited without doing anything from increase in substitute price.
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