Telecom Diary: Will BSNL bounce back with its 4G services?

 After much delay, mobile subscribers of state-run telecom player BSNL will soon be able to access 4G services as the country’s first indigenuous 4G network is ready to be launched.


BSNL has been lagging behind its peers because of delays in network expansion and is struggling to survive in an intense market.

Due to non availability of 4G services, BSNL has already lost huge market share to private telecom operators over the last few years. As per the latest subscriber data by telecom regulator Trai, BSNL and MTNL held a market share of only 10.24% while private telcos held 89.76% share at the end of January 2022. Will BSNL be able to bounce back once 4G kicks in? Experts are wary as private players have already taken a lead in 4G.

Though the struggling PSU has one big advantage. BSNL's 4G network will be upgradable to fifth generation or 5G non-standalone (NSA) by end of 2022, and 5G stand alone (SA) by 2023 with core network from CDoT.

The developments came at a time when private players are firming up plans for launching next generation technology 5G. BSNL’s 4G services rollout has been delayed by about two years as the telecom company has faced hurdles along the way.

For 4G, BSNL plans to install about 1.12 lakh towers across the country to make 4G a success. Along with 4G, the development of 5G technology is going on in parallel and will be ready in a few months. The plan is to announce the launch on August 15.

BSNL has awarded a Rs 550-crore contract to Tata Consultancy Services (TCS) for setting up 6,000 4G sites across India. 4G sites will be deployed initially at high revenue potential areas where infrastructure is 4G-ready, followed by a pan-India rollout.

In October 2019, the government had earlier approved the rescue plan for BSNL and MTNL for about Rs 70,000-crore that included a voluntary retirement scheme (VRS), monetisation of assets and allocation of fourth generation or 4G airwaves, and a merger between the two companies. Though the merger has been deferred due to financial reasons, including the high debt of MTNL.

Before India leaps into 5G technology, the Department of Telecommunications (DoT) has been working to resolve challenges relating to infrastructure deployment, which will be critical to the launch of 5G.

DoT is in the final stages of setting up a national portal for RoW so that there will be a central one-stop-shop for entry of applications, approvals etc. The portal will be launched around April-May. As per the DoT, state governments are fully on board with the RoW policy. In the next three to four months, the department expects to make significant progress on the RoW issue once this portal becomes live.

DOT is also working on a law tentatively titled the Wireless & Spectrum Act to replace the India Wireless Act, 1933, which will cover all issues regarding critical airwaves, including allotment, auction and reservation of the scarce natural resource, among other details.

The ministries of defence, home affairs and the Department of Space, along with the DoT, are currently working on the draft. The idea is to create a roadmap for all wireless communication such as mobile, satellite, even for defence purposes, in harmony with the global best practices and standards. The legislation aims to put to rest all disputes and debates on which spectrum is to be auctioned, allocated or reserved for defence and other government purposes.

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