To address 4G rollout delays and equipment funding shortfalls, the Telecom Department is seeking Cabinet approval plans to grant ₹60 billion to BSNL.
The Indian government plans to allocate an additional ₹60 billion to Bharat Sanchar Nigam Limited (BSNL) to address its delays and support purchasing 4G network equipment.
This Department of Telecommunications (DoT) funding aims to address the shortfall in capital expenditures needed for the 4G equipment, which has worsened BSNL’s struggles to maintain existing and attract new customers.
DoT further aims to seek Cabinet approval for this input soon. BSNL previously issued a ₹190 billion advance purchase order for 100,000 4G sites, but the actual purchase order for the network gear to the Tata Consultancy Services (TCS) was only about ₹130 billion. This left a funding gap of over ₹60 billion, according to a source’s statement to the Economic Times.
Since 2019, the government has invested approximately ₹3.22 trillion in BSNL and Mahanagar Telephone Nigam Ltd (MTNL) as part of revival packages, including the 4G rollout. According to the government, both BSNL and MTNL began generating operating profits since fiscal 2021, due to this.
However, reports suggest that despite these efforts, BSNL has only deployed 22,000 base stations out of the planned 100,000. A new target is set for mid-2025, delayed from the previous deadline of Diwali 2024.
BSNL’s market share had also dropped to 7.33% as of June 2024, down from 10.72% in December 2020, while competitors like Jio and Bharti Airtel have increased their shares to 40.71% and 33.23% respectively.
The government mandated BSNL to use locally developed 4G technology by CDoT-TCS, which had to be tested before usage, thus, providing the reason behind the delay.
