BSNL to Receive Additional ₹6,000 Crore from Government for 4G Rollout

The Indian government is set to allocate an additional ₹6,000 crore to Bharat Sanchar Nigam Limited (BSNL) to address its capital expenditure needs for the much-delayed 4G network rollout. This move comes as BSNL struggles to retain and attract customers due to the absence of 4G services, which has significantly impacted its subscriber base.

The Department of Telecommunications (DoT) is planning this capital infusion to bridge the gap in funding required for 4G gear, which is being rolled out using a locally developed technology stack. Officials familiar with the matter have indicated that the DoT will soon seek Cabinet approval for this additional funding.

Last year, BSNL issued an advance purchase order worth ₹19,000 crore to roll out 100,000 4G sites. However, the actual purchase order placed with Tata Consultancy Services (TCS) and state-run telecom equipment maker ITI was only for about ₹13,000 crore, leaving a funding shortfall of over ₹6,000 crore.

To date, the government has invested approximately ₹3.22 lakh crore into BSNL and Mahanagar Telephone Nigam Ltd. (MTNL) through three revival packages since 2019, which also included funding for the 4G rollout. These investments have enabled BSNL and MTNL to achieve operating profits since FY21, according to government reports.

Despite this, BSNL has been lagging behind private telecom operators in offering 4G services. The state-run telco has only managed to provide 4G coverage through about 22,000 base stations, far fewer than its private counterparts. The government now expects BSNL to complete the installation of 100,000 4G sites nationwide by mid-2025, a delay from the earlier deadline of Diwali 2024.

BSNL's market share has declined significantly over the years, dropping to 7.33% as of June 2024, down from 10.72% in December 2020, according to data from the Telecom Regulatory Authority of India (TRAI). In contrast, Reliance Jio's market share has increased to 40.71% from 35.06%, and Bharti Airtel's share has grown to 33.23% from 29.24% during the same period.

READ| Google Unveils Android 15: Pixel Devices to Receive Updates in Coming Weeks

The government has mandated that BSNL roll out 4G services using a locally developed stack created by a collaboration between the Centre for Development of Telematics (CDOT) and TCS, despite some internal opposition from BSNL executives. This decision is part of the government's broader strategy to promote indigenous technology in critical sectors.

[Disclaimer: The information provided in this article is based on the latest available details and is subject to change. Readers are advised to consult official sources and stay updated for the most accurate and timely information regarding government policies and telecom industry developments.]