Bharat Sanchar Nigam Limited (BSNL), a state-owned telecom company in India, is gearing up for a strong comeback with a whopping investment of ₹61,000 crore from the Department of Telecom (DoT). The funds will be utilized to deploy 5G services across the country, starting with pilots in locations such as New Delhi. BSNL plans to use premium 700MHz and mid-band 3300MHz spectrum, which could potentially put pressure on its competitors, Jio, Airtel, and Vi (formerly Vodafone Idea).
The investment will enable BSNL to deploy 5G faster, with results expected as early as June. The company is already expanding its 4G network, with around 80,000 sites already functional, and plans to upgrade these towers to support 5G by June. BSNL’s 5G service is currently available through the Network-as-a-Service (NaaS) model, with a wider rollout expected to open the 5G sites to all users.
BSNL’s staggered plan for 5G deployment is expected to counter the services of Airtel and Jio, which rolled out 5G in 2022. The company’s appeal as a government-owned entity and its more affordable tariff structure are likely to attract new customers. In fact, BSNL recently recorded a ₹262 crore profit in the third quarter, its first profit in about 18 years, following an influx of new users after the leading players increased their average revenue per user (ARPU) last year.
With its expanded 4G network and 5G deployment, BSNL is poised to gain a significant portion of its competitors’ customer base. While Jio and Airtel have already rolled out their 5G services across the country, Vi has begun its rollout in Mumbai and plans to expand its network by the end of 2025, coinciding with BSNL’s roadmap. Overall, BSNL’s aggressive expansion plans and affordable tariffs are expected to drive revenue growth, with the company expecting revenue growth to exceed 20% by the end of the financial year.