BSNL is Facing Loss in Revenue Due to Delay in 4G Network, Government Informs Parliament, Reliance Jio, Bharti Airtel

Government telecom company Bharat Sanchar Nigam Limited (BSNL) is losing revenue due to delay in launch of 4G network and strict competition in the mobile segment. Private telecom companies Reliance Jio and Bharti Airtel’s 5G network exist in large parts of the country. BSNL is finding it difficult to compete with these companies.

Minister of State for Telecom Pemmasani Chandra Sekhar said in a written reply in the Rajya Sabha that BSNL has given purchase orders for one lakh sites of 4G. Of these, about 84,000 sites have been installed and 74,521 sites have started. He has said that the launch of 4G network has been delayed and strict competition in the mobile segment has affected the company’s revenue.

Recently, telecom minister Jyotiraditya Scindia had reported that BSNL’s 4G network will be upgraded to 5G from June. India has joined five such countries in the world that have developed their 4G technology. The government aims to expand this expertise up to 5G. Recently, BSNL was approved by the central government for a funding of Rs 6,000 crore for expansion of 4G network. This fund will also be used for the company’s 4G network of subsidiary metropolitan telephone corporations (MTNL). The control of MTNL, which provides telecom services in Delhi and Mumbai, is with BSNL.

BSNL’s network can also be allowed to be bid in a contract of about two billion dollars of telecom equipment for upgrade to 5G. If foreign telecom equipment companies are included for upgrade on the company’s 5G network, this will be a big change in the government’s stance. The responsibility of installing the company’s 4G network has been given to the Software Maker Tata Consultancy Services (TCS) led consortium. The government is considering a proposal to reserve half of the volume of the company’s 5G tender volume. Foreign companies can get permission to bid for the rest of this tender.