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4G Delays Drain BSNL’s Revenue: Is India’s Telecom Giant Losing the Race?

 


Bharat Sanchar Nigam Limited (BSNL), India’s state-owned telecom operator, has faced significant challenges in recent years, with its revenue taking a hit due to delays in the rollout of 4G services and fierce competition in the mobile segment. In a recent statement to the Rajya Sabha, Minister of State (MoS) for Telecom, Pemmasani Chandra Sekhar, shed light on the progress and hurdles BSNL is navigating as it strives to modernize its network infrastructure. This blog explores how these delays have affected BSNL’s financial performance, the steps being taken to address the issue, and what the future holds for the telecom giant.

BSNL’s 4G Rollout: Progress and Challenges

According to MoS Telecom Pemmasani Chandra Sekhar, BSNL has awarded purchase orders for 100,000 4G sites across India as part of its ambitious network expansion plan. As of March 8, 2025, 83,993 of these sites have been installed, with 74,521 currently operational. While this marks significant progress, the delays in completing the rollout have had a tangible impact on BSNL’s revenue.

The minister attributed these delays to challenges with indigenously developed equipment, a cornerstone of BSNL’s strategy to support India’s Aatmanirbhar Bharat (self-reliant India) initiative. The supply of this homegrown 4G equipment began in September 2023, but scaling it to a pan-India level has proven to be a complex and time-consuming process. Meanwhile, private telecom giants like Reliance Jio and Bharti Airtel have already rolled out 5G services, intensifying competition and leaving BSNL at a disadvantage in the fast-evolving mobile market.

Revenue Impact: A Double-Edged Sword

BSNL’s inability to offer 4G services on par with its competitors has directly affected its revenue stream. The telecom sector in India is highly competitive, with private players dominating the market through aggressive pricing, widespread 4G and 5G coverage, and innovative service offerings. As the minister noted in his Rajya Sabha reply, “The revenue of BSNL has been impacted due to delays in the rollout of 4G services as well as stiff competition in the mobile segment.”

Without a robust 4G network, BSNL has struggled to retain customers and attract new subscribers, many of whom prioritize high-speed internet and reliable connectivity. This revenue decline compounds the financial strain BSNL has faced for years, despite government efforts to revive the company through measures like the 2019 revival package, which included a voluntary retirement scheme (VRS) and debt restructuring via sovereign guarantee bonds.

Revival Efforts and Indigenous Technology

The government’s first revival package in 2019 aimed to reduce BSNL’s operating costs and improve its financial health. The VRS, in particular, was designed to streamline the workforce, while debt restructuring provided much-needed breathing room. However, the real game-changer for BSNL lies in its network modernization, particularly the shift to 4G and future-proof 5G capabilities.

BSNL’s decision to rely on indigenously developed 4G equipment is a bold step toward self-reliance, but it has come with teething problems. The minister highlighted that the equipment is 5G-upgradable, signaling BSNL’s intent to leapfrog into next-generation technology once the 4G rollout stabilizes. With 74,521 operational 4G sites as of March 8, 2025, BSNL is steadily closing the gap, but the pace of deployment remains a critical factor.

The Future of BSNL: Opportunities and Challenges

So, what does the future hold for BSNL? The answer lies in how effectively it can address its current challenges and capitalize on emerging opportunities.

  1. Accelerating 4G Deployment: Completing the installation and operationalization of the remaining 4G sites is BSNL’s top priority. A fully functional 4G network will allow BSNL to regain market share, particularly in rural and semi-urban areas where it has historically enjoyed a strong presence.
  2. Transition to 5G: With 5G-upgradable equipment already in place, BSNL has a clear pathway to join the 5G race. A timely upgrade could position it as a viable alternative to private players, especially if it leverages its government-backed status to offer affordable plans.
  3. Customer Retention and Growth: To boost revenue, BSNL must focus on improving service quality, expanding coverage, and rolling out competitive tariff plans. Marketing its indigenous technology as a point of national pride could also resonate with customers.
  4. Government Support: Continued financial and policy backing from the government will be crucial. The success of past revival packages suggests that sustained intervention could help BSNL turn the tide.

However, challenges remain. The telecom market is unforgiving, and BSNL’s competitors are not standing still. Delays in equipment supply, technical glitches, or funding issues could further derail its recovery. Moreover, BSNL must overcome its reputation for lagging behind private players in innovation and customer service.

Conclusion

BSNL’s revenue has undoubtedly suffered due to delays in its 4G rollout, compounded by stiff competition from private telecom operators. Yet, with over 74,000 operational 4G sites as of March 2025 and a clear roadmap for 5G, there’s hope on the horizon. The success of BSNL’s revival hinges on its ability to accelerate network deployment, leverage indigenous technology, and win back customer trust. As India’s telecom landscape evolves, BSNL has a unique opportunity to reclaim its relevance if it can act swiftly and strategically.

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