Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are set to receive Rs 6000 crore from the government for their 4G network expansion. The funds will be given to the state-run telecom companies to fulfil a shortfall in the planned capital expenditure, said an ET report. BSNL is trying to roll out 4G as fast as possible to avoid losing customers to the private telcos any further. The company has already installed 65,000 4G sites powered by indigenous technology. These sites are live, and more are expected to go live in the coming weeks.
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BSNL recently announced that it has installed over 5,000 4G sites in Kerala, a huge milestone for the company. This will ensure that its customers in the region are getting a decent 4G coverage and network experience. For a few consecutive months, BSNL managed to add new customers as the private telecom operators had hiked the tariffs and customers were porting out to the cheapest alternative, which was BSNL.
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MTNL shares rose about 10% on Monday morning upon the news that the union cabinet has approved Rs 6,000 crore of additional funding for the state-run telcos. However, at the time of writing, the share price has slid and the gains are about 2% for the day. For the unaware, BSNL manages the mobile networks of MTNL in Mumbai and Delhi. In the future, BSNL is expected to take over the entire operations of MTNL. After the launch of 4G services, BSNL is also planning to launch 5G for the customers in select circles to start with.
BSNL will likely take the help of the Tata Group for upgrading networks to 5G . The state-run telecom company is planning to test 5G SA (standalone) in New Delhi.
