Government telecom company Bharat Sanchar Nigam Limited (BSNL) is set to upgrade its 4G network to 5G starting June this year.
The company aims to roll out around one lakh 4G sites by then, with 89,000 sites already installed. Notably, BSNL has developed its 4G network using entirely indigenous technology.
Government Support and Funding
Telecom Minister Jyotiraditya Scindia announced that the process of upgrading BSNL’s 4G network to 5G will commence in June.
India is now among the five countries that have developed their own 4G technology. The government is now focusing on advancing this expertise to 5G.
Recently, the central government approved funding of Rs 6,000 crore to expand BSNL’s 4G network.
A portion of this amount will also be used to strengthen the 4G network of BSNL’s subsidiary, Mahanagar Telephone Nigam Limited (MTNL), which provides telecom services in Delhi and Mumbai.
Foreign Companies May Join the 5G Upgrade
The government is considering allowing foreign companies to bid for a telecom equipment contract worth about two billion dollars for BSNL’s 5G upgrade.
If approved, this would mark a shift from the current policy. BSNL is currently struggling to compete with private telecom companies due to the lack of 5G services.
Tata Consultancy Services (TCS) is leading the consortium responsible for setting up BSNL’s 4G network.
Additionally, the government is reviewing a proposal to reserve half of BSNL’s 5G tenders for Indian companies, while foreign companies may be allowed to bid for the rest.
BSNL Reports Profit After 17 Years
In the third quarter of the current financial year, BSNL recorded a profit of approximately Rs 262 crore, marking its first quarterly profit in nearly 17 years.
In recent months, the company has introduced new services, leading to a 15% increase in revenue from mobile services in the December quarter.
