At a recent event, Union Minister of Communications, Electronics and Information Technology and Railways Ashwini Vaishnaw assured industry stakeholders that the telecom sector is not heading towards a monopoly or a duopoly as Bharat Sanchar Nigam Limited (BSNL) is emerging as a stable telecom operator.
This seems to be good news for the sector. BSNL’s 4G roll-out plans finally seem to be progressing with the Group of Ministers approving the deployment of 100,000 sites for 4G network roll-out by a Tata Consultancy Services (TCS)-led consortium on May 8, 2023. The move came after the BSNL board, in February 2023, recommended the deployment of 100,000 network sites for 4G commercial service launch by the telco.
Following approval from the Group of Ministers, BSNL has issued advance purchase orders worth Rs 150 billion for the construction of 100,000 4G sites to TCS and ITI Limited. A fifth of these sites will reportedly be deployed by ITI as the company has a 20 per cent reservation in BSNL’s next-generation 4G network deployment.
Now, the TCS-led consortium, which includes the Centre for Development of Telematics and Tejas Networks, will supply 4G equipment for these sites for a total sum of around Rs 245 billion, which includes network equipment costs of about Rs 130 billion as well as third-party items and a 10-year annual maintenance contract.
In another key development, BSNL has been tasked to provide 4G connectivity to around 120 villages in the tribal areas of Kinnaur, Lahaul and Spiti districts in Himachal Pradesh. Further, 450 km of optical fibre cable will be laid in the districts. To provide high speed digital connectivity powered by fibre in tribal areas, BSNL’s Himachal Pradesh circle is executing a state-funded project worth Rs 500 million allotted under the Special Assistance to States for Capex Scheme during 2022-23.
These network modernisation initiatives being undertaken by BSNL are ushering in stability for the telco. Financially, it has started making operating profits. However, with Bharti Airtel and Reliance Jio aggressively rolling out 5G networks across the country, it certainly has a lot of catching up to do.
