BSNL, MTNL lose more customers

by p b    Aug 08, 2011

According to the Government, Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have lost over 584,261 and 55,605 customers respectively as on June 30 after MNP was introduced in the country.

BSNL lost 9,33,750 subscribers to private players due to MNP, while only 3,49,489 users joined it. In case of MTNL that operates in Delhi and Mumbai circles, 67,198 of its subscribers opted for private players, while only 11,593 switched to its services under MNP, said Milind Deora, minister of state for communications and IT, in a written reply to the Rajya Sabha.

The Government launched the MNP services in Haryana in November last year and in January this year in the rest of the country.

BSNL has been gradually losing its position in the Indian mobile market that is seen adding around 1.5-crore subscribers each month. With 9.28 crore subscribers, BSNL is currently placed at fifth position with just over 11 per cent market share. MTNL also seems to be losing the race in the two metros where it has 55-lakh subscribers and is adding just over 25,000 new subscribers every month.

Bharti Airtel, in comparison has almost 20 percent market share with 16.70 crore subscribers and is adding almost 25-lakh new subscribers every month.

As a measure to arrest the erosion in their customer base, both these operators have introduced competitive tariff plans, launched a special cell to contact customers and address their grievances on a war footing; all 2G connections have become 3G enabled, the letter said.

Mobile number portability (MNP) seems to have hit the state owned telecom players hard.