Let’s Talk: BSNL’s Delays in Launching 4G is Leading to a Duopolistic Market

Bharat Sanchar Nigam Limited (BSNL), a state-run Indian telecom operator, has been trying to roll out 4G for ages. The telco has faced many roadblocks along the way, such as the government demanding to only roll out 4G using homegrown tech, then finding an Indian company that can provide proof of concept (PoC) of 4G tech and more.

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According to reports online, the technology that BSNL is using for homegrown 4G is not working properly. There are some issues, and it would take time to resolve them. It is not a hidden fact that Jio and Airtel have already launched 5G in most parts of the country. They also have a PAN-India 4G coverage, while their private competitor Vodafone Idea (Vi), is losing subscribers at an alarming rate.

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The government wants BSNL to offer network services in areas where private competitors aren’t investing much due to concerns about low returns. However, now private telcos are also investing heavily in the rural parts. Airtel has been making continuous announcements regarding its network expansion in rural areas of major licensed service areas (LSAs).

So by the time BSNL comes with its 4G, whom will it serve?

All the customers are already shifting to the networks of Airtel and Jio. The overall customer base of Jio has crossed 450 million while for Airtel it is close to 400 million. Vi’s overall user base has declined to reach less than 220 million while for BSNL it has fallen below 100 million.