The Union Cabinet has allocated an extra ₹6,000 crore to Bharat Sanchar Nigam Limited (BSNL) for its 4G expansion. This funding will cover a shortfall in capital expenditure, allowing BSNL and its subsidiary Mahanagar Telephone Nigam Limited (MTNL) to speed up their network expansion efforts.
Officials confirmed that the decision was made during the February 7 Cabinet meeting. The additional funds will support BSNL’s 4G rollout, ensuring better connectivity and reducing customer losses due to delays in upgrading its services.
4G Expansion and Plans for 5G
BSNL, which also manages MTNL’s operations in Delhi and Mumbai, has struggled to retain users due to limited 4G availability. After experiencing a brief increase in customer numbers when private telecom operators hiked tariffs in 2023, the company has again started losing subscribers.
With the ₹6,000 crore funding, BSNL aims to complete the rollout of nationwide 4G services and prepare for a 5G launch in select locations.
- BSNL had earlier placed a ₹19,000 crore purchase order for 100,000 4G sites.
- The actual order with Tata Consultancy Services (TCS) and ITI was ₹13,000 crore, leading to a ₹6,000 crore gap.
- With this additional funding, BSNL will complete its 4G deployment across India.
Government’s ₹3.22 Lakh Crore Investment in BSNL and MTNL
Since 2019, the government has invested ₹3.22 lakh crore in BSNL and MTNL under three revival packages, including funds for 4G expansion. These efforts helped BSNL and MTNL achieve operating profits from fiscal year 2020-21.
The government had directed BSNL to deploy 4G networks using locally developed technology from the CDoT-TCS partnership, despite internal opposition favoring global vendors. This move aligns with India’s push for self-reliance in telecom infrastructure.
Conclusion
With ₹6,000 crore additional funding, BSNL is set to expand its 4G network and prepare for 5G trials. This investment reflects the government’s commitment to strengthening public telecom infrastructure, ensuring better services, and reducing reliance on private players in India’s telecom sector.
