Are state sector entities BSNL and Prasar Bharti (Doordarshan) finally getting their act together?

After decades of struggling to stay relevant in a fiercely competitive market dominated by private giants, state-owned entities like Bharat Sanchar Nigam Ltd (BSNL) and Prasar Bharati (Doordarshan) appear to be scripting a remarkable comeback, signaling a potential revival of public sector enterprises in the telecom and broadcasting space.

BSNL’s unexpected gain of 8.5 lakh wireless subscribers in September 2024 stands in stark contrast to private sector woes. Reliance Jio, Bharti Airtel, and Vodafone Idea collectively lost over one crore wireless subscribers during the same period, according to data from the Telecom Regulatory Authority of India (TRAI). Jio alone shed 79.69 lakh subscribers, a sharp downturn attributed to the tariff hikes implemented in July, which ranged from 10% to 27%.

In a calculated move, BSNL refrained from raising tariffs, positioning itself as the affordable alternative for price-sensitive users. Its Chairman and Managing Director Robert Ravi confirmed this strategy, stating, “We can clearly say we are not going to increase our tariffs in the near future.” Instead, BSNL has invested in enhancing customer experience with new offerings such as spam blockers, automated SIM kiosks, and direct-to-device services. These initiatives aim to not only retain existing users but also attract new ones, signaling BSNL’s intent to reclaim its lost market share.

While BSNL’s wireless subscriber base remains modest at 9.18 crore compared to Jio’s 46.37 crore and Airtel’s 38.34 crore, the September growth marks a significant shift. Its broadband presence, however, remains a challenge, with 3.7 crore subscribers placing it far behind Jio (47.7 crore) and Airtel (28.5 crore).

Prasar Bharati’s digital pivot with WAVES
Meanwhile, Prasar Bharati, the parent organization of Doordarshan and All India Radio, has embraced the digital revolution to stay relevant in a rapidly changing media landscape. Its newly launched OTT platform, WAVES, is a strategic bid to compete with private streaming giants while leveraging its rich archival content. The platform offers video-on-demand, live TV, radio streaming, gaming, and even e-commerce features, showcasing its ambition to become a one-stop entertainment destination.

In a nod to nostalgia and contemporary content preferences, WAVES is reimagining classics like “Fauji 2.0” and producing new series like “Kakbhushundi Ramayana.” These efforts reflect a shift in focus from mere broadcasting to audience engagement and monetization. The launch at the International Film Festival of India (IFFI) underscores Prasar Bharati’s efforts to position itself as a modern, competitive player in the entertainment industry.

Challenges ahead
Despite these positive signs, both BSNL and Prasar Bharati face significant challenges. BSNL’s infrastructure remains outdated compared to private competitors, and the rollout of 4G and 5G services has been delayed. Prasar Bharati’s success with WAVES hinges on its ability to market the platform effectively and compete with tech-savvy private OTT platforms like Netflix, Amazon Prime, and Disney+ Hotstar.

The bigger picture
The revival of these state-owned giants comes at a time when India’s telecom and media landscapes are witnessing consolidation and transformation. For BSNL, its resurgence coincides with rural connectivity initiatives and affordable offerings, aligning with government priorities of inclusive digital access. For Prasar Bharati, its digital-first approach is a long-overdue step towards relevance in a fragmented media market.

The broader question remains: Can these public sector entities sustain this momentum and compete with their nimbler and much bigger private counterparts? If September 2024’s data is any indication, both BSNL and Prasar Bharati might finally be getting their act together, signaling a potential resurgence of state-run brands in an era dominated by private players. MSN