Editorial – July 2023

Any operator launching services would belt out marketing lines informing one and all about its uniqueness, underscore superiority over competition and would use every fora and platform to campaign and publicize. We see this high-octane canvassing energy, every time a private operator launches even a new tariff plan or some interesting features. Not so with BSNL. The state telco is deploying the India stack (TCS-Tejas-C-DoT developed tech) for launching 4G services. But any attempt at conversation on this technology has BSNL top execs in flight. They say 4G services rollout will take another 18 months.

Telecom Minister, Ashwani Vaishnaw had announced at the Mobile World Congress that India is holding discussions with 18 countries that are planning to implement the 4G/5G technology stack. He made similar statements at a recent communication ministers’ conclave. First, they need a success story with BSNL’s deployment. But that isn’t happening anytime soon, as is evident from the sheepish responses of his officers in BSNL.

From October 2019 to June 2023, BSNL has been handed packages totaling Rs 304,069 crore. Though it could slash its losses, through a combination of measures – equity infusions, replacing high cost borrowings with low cost bonds and VRS – all with government support, BSNL now needs to get on with its job, launch services, add subscribers and make money.

Many are its advantages. BSNL did not acquire spectrum like other operators by spending huge amounts. Spectrum was given to it at no cost through equity infusions and yet it continues to lose subscribers. The active subscriber base, VLR has dipped from 6.14 crore in March 2021 to 5.27 crore in May 2023.

The VRS advantage that it enjoyed will also be over, as salary expenses have again started showing upward trend – from Rs 5,600 crore in FY21 to Rs 6,221 crore in FY23. And this is likely to continue for next seven years as the VRS opting personnel is off the rolls already. Also, wireline services of private operators have reached remotest areas of our country; there is no rationale in giving fund subsidies to BSNL for provisioning wireline connectivity in these areas. In any case, its wireline numbers are pitiful.