BSNL, the public sector telecom giant under the Department of Telecommunications (DoT), has been struggling to keep pace with private competitors. Despite being left behind in the race for technological advancements, the company’s much-awaited 4G launch, now set to be completed by March next year, may offer a glimmer of hope. Yet, the question remains: Will it be enough to revive the once-dominant PSU? The launch of BSNL’s 4G services has faced multiple delays over the past 18 months, with several internal deadlines proving to be overly optimistic. However, recent indications from DoT suggest that the government is keen on rolling out the service by December, with a final deadline set for March if further delays occur. This push comes as the company attempts to regain relevance in a market dominated by private giants like Reliance Jio, Airtel, and Vodafone Idea (VI). BSNL’s reliance on Tata Consultancy Services (TCS) for the software and Tejas Networks for hardware, along with the involvement of DoT-administered ITI and C-DoT, adds layers of complexity to the project. The implementation of one lakh 4G/5G Radio Access Network (RAN) sites across the country is a massive undertaking, and BSNL must ensure that its vendors meet the ambitious deadlines.
Despite the challenges, there are some positive signs. BSNL has reported a steady increase in users porting to its network under the Mobile Number Portability (MNP) scheme. Since July, when private telecom companies raised their tariffs by 10-25%, BSNL has seen over 2.5 lakh new subscribers. By the end of 2023, the company had gained around 8 lakh subscribers, bringing its total new user base to an estimated 25 lakh in regions like Punjab, Haryana, Himachal Pradesh, and parts of South India. The company’s competitive tariff strategy, aimed at being “rational, affordable, and user-inducing,” could play a key role in attracting more users, particularly in rural areas. However, whether this will be enough to stabilize the company’s financial position remains uncertain. BSNL’s market share currently stands at a mere 8%, a distant fourth behind its private sector rivals. Achieving even a modest 15% market share over the next three to four years will require sustained efforts and strategic initiatives. One potential area for growth is the tourism sector, where BSNL’s network coverage in remote areas gives it a competitive edge. Tourists often prefer BSNL SIM cards as a secondary option due to the availability of its towers in far-flung locations.
However, BSNL faces an uphill battle. The company’s decline over the past decade has been steep, and even with the 4G rollout, regaining a significant market position will be challenging. To achieve this, BSNL must also focus on revitalizing its landline services, which have seen a significant decline due to customer defections to private competitors. The company’s weak financial position has hindered its ability to refund deposits to former landline customers, further eroding its reputation. The road ahead is difficult, but BSNL’s survival may hinge on its ability to adapt and innovate in a rapidly changing telecom landscape. The upcoming 4G launch, if executed well, could mark the beginning of a turnaround. However, the company must remain vigilant and committed to ensuring that this opportunity does not slip through its fingers once again. As BSNL approaches the five-year anniversary of its revival package approval, the stakes have never been higher.
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