Bharat Sanchar Nigam Limited (BSNL) is unable to compete with private telecom operators in the absence of 4G and 5G services due to which there is no restraint on mobile service providers from raising tariff.
In a letter to the Jyotiraditya Scindia, Union Minister of Communications and Development of North Eastern Region, the BSNL Employees Union (BSNLEU) stated that the recent tariff hike by Reliance Jio and Bharti Airtel is unwarranted as they are profitable companies.
It added that the claim by telecom operators that the tariff hike has been done to increase average revenue per user (ARPU) is misleading. It also added that in the absence of 4G and 5G service, the telco has been losing customers while Jio and Airtel have been gaining new customers.
As per BSNLEU, the government’s decision of not allowing BSNL to upgrade its existing 3G base transceiver station (BTSs) into 4G BTSs, through software upgradation as well as barring the public sector firm from procuring 4G equipment from global vendors has handicapped the company. The BSNL EU further mentioned that the telco has still not been able to launch 4G services.
