Bharat Sanchar Nigam Limited (BSNL), a state-run telecom operator, has delayed a little too much when it comes to rolling out 4G. One can’t blame the organisation entirely, as the government’s decision to only use indigenous tech forced the telco to delay its 4G rollout. Indian tech companies didn’t have proven technology at the time. But since the rollout has started, the government expects BSNL to roll out 4G networks by June 2025.
BSNL’s 4G is late, that is correct, but it is still impactful. There are still millions of Indians who are using 2G/3G networks, and BSNL can serve these customers with its 4G networks at a lower price range. Private telecom operators charge customers more money than BSNL to keep their SIMs active.
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This has helped BSNL add more customers in the recent past. However, that is not going to be enough. BSNL needs to quickly rollout its 4G and 5G networks to be able to compete with the private telecom operators in the future.
However, the goal for BSNL should not be to fight the private telcos but to offer differentiated services at a slightly lower price point and reach profitability. The state-run telecom operator is already generating operating profits, and it was possible due to the relief package which was announced by the government thrice in the last five years.
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Now BSNL has the required technology and support and spectrum to offer 4G and 5G services in the country. Its 4G can still be impactful in rural and remote areas where the private telcos aren’t very interested in scaling their services. BSNL can make use of the Digital Bharat Nidhi (DBN), earlier known as the Universal Service Obligation Fund (USOF).
BSNL’s 4G can help people in backward areas of the country experience 4G connectivity if the private telecom operators are not up for it. At the same time, it is important to recognise the efforts made by private telcos to reach rural parts of India. Bharti Airtel and Reliance Jio are investing heavily to reach a wider audience in both urban cities and villages.