BSNL's 1-rupee comeback plan with 4G rattles rivals

A 'one-rupee' storm is brewing in India's telecom sector.

- Jatin Grover

State-owned Bharat Sanchar Nigam Ltd's (BSNL) new 4G recharge plan for ₹1, seen as an attempt to draw new users to its long-awaited 4G network, has drawn fire from private telecom operators, who allege it violates regulatory rules, three people aware of the matter said.

Private operators have approached the telecom regulator, saying such near-free offers need prior approval, as directed in a past order by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

As part of the Diwali Bonanza Plan, BSNL on 15 October relaunched its ₹1 recharge plan with complimentary 4G mobile services, including unlimited voice calls, 2 GB data per day, and 100 SMS per day for 30 days at no extra cost to new users and those who port in from other operators.

On 1 August, BSNL had for the first time launched the ₹1 promotional recharge pack as Freedom Plan. The offer was originally available for activations up to 31 August, which was later extended to 15 September.

"In a communication to the Telecom Regulatory Authority of India (Trai) in August, private telecom operators represented by the Cellular Operators Association of India (COAI) alleged that BSNL's ₹1 plan was in violation of the TDSAT judgment dated 1 February, 2018," the first person cited above said.

The private telcos said the plan targeted customers of other telcos, violating Trai instructions prohibiting promotional tariffs for mobile number portability, the person said, adding that private telcos had asked the regulator to step in and cancel the offer and direct BSNL to withdraw such plans.