Government Infuses ₹6,000 Crore Into BSNL to Boost Delayed 4G Rollout Amidst Fierce Airtel & Jio Competition

The Indian government is planning to give Bharat Sanchar Nigam Limited (BSNL) an extra ₹6,000 crore to support its delayed 4G rollout. The Department of Telecommunications (DoT) will soon seek approval from the Cabinet for this additional capital, which is intended to cover the shortfall in funds needed for 4G network equipment.

BSNL’s 4G Rollout Delays

BSNL has faced challenges in expanding its 4G services, leading to subscriber losses. Last year, BSNL issued an advance purchase order worth ₹19,000 crore to set up 100,000 4G sites. However, the actual order placed for network gear with Tata Consultancy Services (TCS) and state-run ITI Ltd was only about ₹13,000 crore, leaving a funding gap of over ₹6,000 crore.

Government’s Financial Support for BSNL

Since 2019, the government has invested around ₹3.22 lakh crore in BSNL and Mahanagar Telephone Nigam Ltd. (MTNL) as part of several revival packages, including for 4G services. These packages have helped BSNL-MTNL achieve operating profits since FY21. However, BSNL still lags behind private operators in offering 4G services, covering only a small number of users with about 22,000 base stations.

4G Rollout Targets and Delays

The government now expects BSNL to complete the nationwide rollout of 100,000 4G sites by mid-2025, a delay from the original deadline of Diwali 2024. BSNL’s market share has dropped to 7.33% as of June 2024, while competitors like Jio and Bharti Airtel have seen their shares increase significantly.

Local Technology Challenges

The government mandated BSNL to use a locally developed technology stack by the CDoT-TCS combine for its 4G rollout, despite internal opposition favoring tried-and-tested global vendors. This decision contributed to the delays, as the local stack required extensive testing before deployment.