BSNL Will Deploy More Than 60,000 4G Mobile Sites In the Coming Year

BSNL has received a revival package from the government with bond raise worth Rs 15,000 crore, VRS scheme and 4G spectrum allocation

By October 24th, 2019 AT 1:54 PM
Highlights
  • BSNL has already deployed 10,000 mobile 4G sites
  • The telco will deploy 60,000 sites in coming 12-15 months
  • The estimated cost for these sites would be Rs 72,000 crore

The major hurdle for the state-led telecom operator, Bharat Sanchar Nigam Limited (BSNL) has been its lack of 4G sites all throughout the country. The government-led telecom operator has been lagging behind the private telcos whilst dragging its financially burdened balance sheet in the industry, and the major reason for its troubles has been the sparse 4G network. But, slowly things are about to change as the revival plan for MTNL and BSNL has been set in motion. With the help from the government, and new VRS schemes and other attempts, BSNL will get back on its track and most importantly will start deploying 4G network throughout the country. As per a PTI report, a top BSNL official remarked that the telecom operator has planned to install 60,000 4G mobile sites throughout the country with an estimated cost of up to Rs 72,000 crore. When this goes through, BSNL will have a massive 4G presence which it has been missing since long.

bsnl-600004g-mobile-sites

BSNL to Deploy 4G Sites Across Country

It is worth noting that BSNL has already deployed 10,000 4G mobile sites across many states including Kerala, Rajasthan and Uttar Pradesh. BSNL now also plans to activate all of these sites in one and a half month. To recall, before the telco had received the revival package from the government, BSNL was slowly working on converting its 3G spectrum for usage on the 4G network by refarming it. The telco had deployed around 7,500 mobile sites and was slowly extending the number of these sites by phasing out the 3G network and introducing 4G mobile sites in these regions. BSNL Chairman and Managing Director, PK Purwar said that in the first phase, BSNL would roll out 60,000 mobile sites for 4G services across India in the next 12 to 15 months. He also noted that these sites would be set up in cities where there are a lot of 4G phone users, and the customer base of BSNL is also appreciable.

MTNL and BSNL to Undergo Merger

It is also crucial to note that the government, on Wednesday, approved the revival package for the two government-led ailing telecom companies, BSNL and MTNL. Both the companies will undergo a merger, and they will raise Rs 15,000 crore in sovereign bonds. This capital raise would help the two companies in meeting their immediate capital requirements. But, this is not the only thing that the two companies would be getting as part of their revival plan. The telco would also get 4G spectrum which would be administratively allocated and would be worth Rs 20,140 crore, along with a VRS package which would amount to Rs 29,937 crore with Rs 3,674 crore for goods and services tax that will be levied on the allocation of radio waves. Telecom Secretary, Anshu Prakash has said that MTNL and BSNL would get the 4G spectrum within a month to kickstart their 4G plans.

MTNL to be Delisted First

Prakash also added that out of all the telecom operators, BSNL has the lowest debt and it could ask for credit from banks to fund its capex. As for 4G, Purwar has said that the company would float tender for 4G network within two months. It is also notable that BSNL is the only company besides Reliance Jio to add subscribers in the October 2018 to July 2019 period. Speaking about the merger of the two telecom companies, the telecom minister has said that since MTNL is a listed entity and it would have to be delisted first to make the merger happen with required regulatory approvals.

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NikhilAniruddha Dhar|Santragachi|West BengalAnonymouskarthikBsnl's sherlock Recent comment authors
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Aniruddha Dhar|Santragachi|West Bengal
Aniruddha Dhar|Santragachi|West Bengal

Whatever they do they need to maintain 2g network and everything else can be converted to 4g. BSNL is a public sector company and it’s main aim is to give services to masses without concerning about profits. It’s this compulsion from government that is the main reason of BSNL’s loss. Ofcourse other issues like lack of approvals and corruption is there, but BSNL can’t close 2g connection overnight like other pvt operators. It’s the 2g connectivity that is the minimum govt company is providing in very rural areas like Andaman and Nicobar Islands, Lakshadweep and north-east territories. BSNL will be… Read more »

City
Howrah
Operator
Reliance Jio Infocom Limited
DTH
Thop TV
Anonymous
Anonymous

The way Jio/airtel is expanding, BSNL would never be able to match the telcos in terms of 4G coverage and capacity. Instead BSNL should provide 4G through a roaming agreement with any other operator like airtel/Voda to ensure efficient utilization of resources and to remain competitive in the market. The govt just wants to waste taxpayers money.

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