India government owned Telecommunication Company Bharat Sanchar Nigam Limited (BSNL) is offering a new plan on its landline phones. BSNL’s new plan will offer free calling to any landline or mobile phone in India. This plan is BSNL’s final effort to revive its failing landline business. The new plan will come into effect from night of May 1.
BSNL is offering free calling for night time as of now starting from 9 pm to 7 am. This new plan will cover all types of telecom channels and connections. The company has not set any last date for this plan and would offer this plan for 6 months to start with review after 6 months to decide its fate. BSNL offers its services to all towns and villages in India except in metros of New Delhi and Mumbai. Mahanagar Telephone Nigam Limited (MTNL) sister company of BSNL is not planning to offer similar plans to its consumers.
Fixed-line business has been a failing business in India with less than 25 million connections left in comparison to over 950 million mobile connections. BSNL has 1.66 crores fixed-lines connections as of now, which still account for 62% of the total fixed line phones in country.
Proliferation of smartphones and cheap call rates has moved consumers to mobile. Mobile offers the advantage of mobility which is limited by fixed line phones.
According to Chairman and Managing Director of BSNL by offering this plan BSNL hope to resurrect its fixed-line business. They hope to attract customers back to fixed line business. The attractiveness of this offer may attract new customers to join back state run company. Though BSNL will lose revenues on free calls the addition of new customers will offset the cost.