BSNL 5G: A Billion-Dollar Boost for India’s Telecom Future: On Wednesday, the Indian cabinet approved a revival package worth Rs 890.47 billion ($10.79 billion) for Bharat Sanchar Nigam Ltd (BSNL), a state-owned telecom operator. The package aims to assist BSNL, which has been incurring losses, in deploying 4G and 5G services.
The government stated that this initiative would transform BSNL into a stable telecom service provider with a focus on extending connectivity to remote areas of India. BSNL recently partnered with Tata Consultancy Services to deploy a nationwide 4G network, while its larger competitors were introducing 5G networks. BSNL has struggled with financial difficulties and inadequate infrastructure, resulting in continuous losses over the past 12 years.
However, its losses decreased to 69.82 billion rupees in the fiscal year ending in March 2022 compared to 74.41 billion rupees in the previous year. The company has faced challenges in attracting customers due to fierce price competition from Reliance Jio Infocomm, owned by Reliance Industries, as well as Bharti Airtel and Vodafone Idea.
The entry of Reliance Jio in 2016 disrupted the Indian telecom market by offering free calls and discounted data plans, which led to reduced profits and revenues for other operators and subsequent consolidation. Following the announcement of the revival package for BSNL, shares of Mahanagar Telephone Nigam Ltd, another state-owned telecom firm, surged by 14.3%. We have several other news on this website, so you can read our other latest business with trending topics.
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