Even as India's top telcos began testing their 5G network, the government-owned telecom brand Bharat Sanchar Nigam Limited (BSNL) is announcing that they would launch pan-India 4G services by September 2022. What's more, they have set an ambitious revenue target of Rs.900 crore from this service expansion.
It was India's communications minister Devusinh Chauhan who gave these figures to the Parliament while also clearing the air about the possibility of government selling its majority stake in BSNL to a private entity.
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The current status of BSNL
The audited financial statement of BSNL suggests that, as of September 30, the entity's has a net worth of Rs 1,33,952 crore, and its subsidiary MTNL is worth 3,556 crore.
The net worth of property held by BSNL, including the plant, equipment, and property, is Rs 89,878 crore and the same valuation for MTNL is Rs3,252 crore. Furthermore, the liabilities over BSNL in terms of value are Rs 85,721 crore, and for MTNL, it is Rs 30,159 crore.
Wire agency PTI had reported recently that BSNL has provided a timeline of September 2022 for the pan-India 4G launch. The company invited 5 companies for 4G services trial. Previously, the government proposed a revival plan for both BSNL and MTNL that consisted of allotting 4G services to them with central funds allocated to expand operations.
The revival plan for BSNL and MTNL also received approval as the National Security Council Secretariat (NSCS) gave the go-ahead on the 4G services rollout. However, things went downhill thereafter with government nominees on the BSNL board rejecting the plans due to the association with Nokia. The officials reportedly felt that telecom equipment should be sourced indigenously.
Why is BSNL interested in 4G services?
While experts may question the logic behind BSNL taking up 4G connectivity when telecom giants are going after 5G and the government itself stating that it was on the road towards launching 6G within the next couple of years.
The Telecom Equipment Manufacturers' Association (TEMA), an apex body operating in India around telecom equipment makers has spoken about issues around the ongoing 5G deployment. The association has brought up the fact that expansion to 5G services would require major infrastructure upgrades, which private telcos aren't exploring, given the squeeze on their profitability.
Some association representatives with whom we spoke also questioned the number of use cases that 5G as an industry can claim. More importantly, they expect that the service providers would have charge substantially higher from customers wanting to use the 5G networks.
Given this scenario, BSNL could be eyeing a jackpot, especially as the vast majority of smartphone users reside in the hinterland where the big telcos may not consider making an entry in the near future.
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