The public telecom company Bharat Sanchar Nigam Limited (BSNL) is otherwise good when it comes to data plans and offers on its prepaid plans. However, the Achilles heel for BSNL is its 4G network. The public telco is scrapping together a plan to launch its 4G network as soon as possible so that it can have the edge over the other private telecom companies. Along the same lines, BSNL had floated a letter of Intent on the first day of the ear, i.e. January 1, 2021, to five telecom equipment companies to test the quality of the gear for 4G services. Minister of State Devusinh Chauhan informed of this development to Lok Sabha on Wednesday. He also informed the Members of Parliament that Rs 24,084 crore for spectrum for 4G services had been set apart in the financial year 2021-22.
BSNL 4G Missing Catalyst For Telco
The revival plan of BSNL has been in the works for the last few years. Apart from states like Kerala, some parts of Chhattisgarh and Karnataka, BSNL has failed to establish a heavy 4G coverage which is the deal-breaker whenever a consumer wants to use data and voice services. This is also the reason why BSNL’s churn rate has been in the negative, meaning that subscribers are leaving it faster than they are joining the telco’s network.
Revival Plan Prepared by IIM-A
Talking about the revival plan of BSNL, Devusinh Chauhan said that the plan had been recommended by the board of MTNL and BSNL. It was prepared by the Indian Institute of Management, Ahmedabad and a consultant hired by MTNL for this very purpose. After further consultation with organisations, BSNL unions and other bodies, the plan has been set in action. From the government’s side, a Sovereign Guarantee of Rs 8,500 crores and Rs 6,500 crores has been given to BSNL and MTNL, respectively. The minister of state further added that the money provided by the government had been used to retire the existing debt of BSNL, which is adding to its financial woes.