Pricing is an important component of the marketing mix. Companies decide the price of their products very carefully because Indian customers are price sensitive. Most of the Indian customers purchase the products by comparing their quality and price. Middle and low-class customers are more price-sensitive and easily switch their preference from one brand to another.  The same pattern has followed in the telecom sector as well. Customers like to use the telecom services of a low price telecom operator. If another telecom operator reduces the price then the customer shifts their preference accordingly. Although voice quality is important for customers but still they prefer those telecom operators which provide the services at a lower price. The price of the telecom services has fluctuated with value-added services as well. BSNL (Bharat Sanchar Nigam Limited) is India's largest and leading public sector company which provides a wide range of telecom services. BSNL offers a wide range of tariff plans. It is assumed that there is a positive correlation between the pricing strategy of BSNL and customer retention. To retain the customers BSNL should provide transparent and low price telecom services to fit the large customer segments.

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Keywords: Price Sensitive, Quality, Value-Added Services, Tariff, Customer Segment.