BSNL Receives Approval for 26000 New 4G Towers

Bharat Sanchar Nigam Limited (BSNL) has received approval for deploying 26,000 new 4G towers in India. These towers would be in addition to the 1 lakh sites deployed already. The state-run telecom company has been requesting the cabinet approval for additional towers for some time now. This will help BSNL in making services robust. The location or region of these towers is unspecified. The major part is not this though.

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BSNL is also in discussions with Vodafone Idea (Vi) for expanding the network infrastructure sharing deal across more circles. BSNL already has inter-circle roaming (ICR) agreement with Vi in two to three circles, and now this could expand to over 12 to 13 circles. This basically means that the companies will share infrastructure to keep users connected.

BSNL and Vi Both Benefit

On a surface level, this appears to benefit BSNL more than Vi, but it is a mutual win for the two companies. Both require to amp up infrastructure rollout speed to compete with the two giants Jio and Airtel. This would precisely position BSNL and Vi to do that. Vi would also be able to use BSNL’s infrastructure in areas where it does not see a big market, but still needs presence. BSNL, on the other hand, will be able to benefit from Vi’s expedited infra rollout which has been possible due to fundraising.

According to a PTI report, BSNL has received the approval for 26,000 new 4G towers. These are not remotely enough to cover the gaps. The telco needs about 1 lakh to 2 lakh more towers to even think about coming at par with the competition. Most people with a good earning capacity still look at the private telecom operators as the better option to stay connected to the high-speed internet. Vi is also trying to raise money through debt to fund further network rollout. The telco has an aim of raising Rs 45,000 crore through debt in the near future.