Bharat Sanchar Nigam Limited (BSNL) is struggling because of the simple fact that it doesn’t have 4G yet. The state-run telco is planning to launch 4G networks in multiple parts of the country by the end of 2022. On Tuesday, Ericsson said that 4G is still going to account for 55% of the mobile connections by 2027. This means that 4G is definitely going to be relevant at least till the end of this decade. BSNL will be very happy listening to that.
In a country such as India, where there are only three private telecom players (Airtel, Jio, and Vi), BSNL would become a fresh option for the consumers. The state-run telco can potentially snatch a major subscriber market share from the private telcos, which will intensify the competition. BSNL could offer unique plans which are nothing like what users get with the private players. Moreover, BSNL could position itself as the affordable 4G player in India, which would definitely attract millions of low-paying customers to go for BSNL’s services.
Will Private Players Expand 4G Networks or Focus on 5G?
Well, the answer to this would depend on the manner the company wants to scale its business. 5G networks would predominantly be required by the enterprises because of the automation it can enable. 4G networks are still more than enough for consumer applications, and they are definitely going to be the first choice for many, as 5G could be a tad bit more expensive.
However, companies such as Jio and Airtel, generating free cash flows, can definitely pump more for rolling out 5G for consumers at scale. Initially, only the major urban and metro cities are going to see 5G rollout, but in the following years, other parts of India will also be covered with 5G networks.
BSNL right now doesn’t scare the private telcos because it is a legacy network player. But in the near future, the entire dynamic of the telecom industry will change once BSNL has active 4G networks in multiple parts of the nation.
BSNL is also gearing up for 5G as it rolls out 4G. Hopefully, with 5G, there are no delays like what happened with 4G.
