BSNL's 4G may help Indian telecom mobile market with its competition services. Now, while it costs Indian citizens a lot of money in taxes, there will also be benefits. BSNL is the only telecommunications operator that would go to an unprofitable market / place and provide services. The state-owned telecommunications company is also present in many places in India where it does not make a profit, but only provides basic connectivity services to the people who live there.
Synopsis
- Private telecom companies have dominated the Indian telecom market for years, and BSNL struggled because it doesn't have PAN-India 4G coverage.
- BSNL one of the genuine services for the Indian market of mobile.
- With this help from the government, BSNL is able to finance its capital expenditures for 4G.
Following comments from telecommunications minister Ashwini Vaishnaw on the extent of the arrival of a new player in the telecommunications sector, Indians should have more confidence in the future of the state-owned telecommunications operator - BSNL (Bharat Sanchar Nigam Limited). Private telecom companies have dominated the Indian telecom market for years, and BSNL struggled because it doesn't have PAN-India 4G coverage. Well, that could change pretty quickly. The government has announced an aid package worth Rs 1.64 crore for BSNL. Now, this is something we have already talked about and if you want to know more about the helper pack.
BSNL one of the genuine services for the Indian market of mobile. After what happened with the loss of Air India, many were hoping the government would stop wasting taxpayers' hard-earned money and privatize BSNL as well. Instead, the government went ahead and announced an aid package. Well, BSNL isn't making any money to expand its operations on its own. So the government is stepping in to help BSNL roll out 4G, followed by 5G and expand its business.
BSNL's 4G and 5G could be a good thing for India
BSNL's 4G may help Indian telecom mobile market with its competition services. Now, while it costs Indian citizens a lot of money in taxes, there will also be benefits. BSNL is the only telecommunications operator that would go to an unprofitable market / place and provide services. The state-owned telecommunications company is also present in many places in India where it does not make a profit, but only provides basic connectivity services to the people who live there. Against this, the government has granted BSNL feasibility gap funding. It is part of the aid package.
With this help from the government, BSNL is able to finance its capital expenditures for 4G. The faster BSNL can roll out 4G, the faster it can get out with 5G. Having been at the bottom of the market for so many years, BSNL is severely choking. If BSNL were a privately held telecommunications company, it would have already exited the market. But thanks to the help of the government, BSNL continues to provide services. There are many USOF (Universal Service Obligation Fund) projects that BSNL is a part of and the telecommunications company will take care of other projects of this type. After all, it is fruitful for the whole country and its economy.
Right now, BSNL's future looks pretty decent if it can launch local 4G networks followed by 5G networks. It will all depend on the type of services that BSNL's local 4G stack can offer. If that's not good enough, it will be a big blow to the company's business, as it's been a long time and private telecom companies have started to move towards 5G.
