The government has given a green signal to a massive package of Rs 89,047 crore for the revival of Bharat Sanchar Nigam Ltd (BSNL), the state-owned telecom operator that has been struggling to survive in a competitive market. The package will enable BSNL to upgrade its network and offer 4G and 5G services across the country.

The Cabinet Committee on Economic Affairs (CCEA) approved the package on Wednesday, which includes allotment of spectrum for 4G and 5G services through equity infusion, increasing the authorised capital of BSNL from Rs 1,50,000 crore to Rs 2,10,000 crore, and providing financial support for capex, viability gap funding, and settlement of adjusted gross revenue (AGR) dues. The government said that the package will help BSNL to emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.

It will also support the government’s initiatives of indigenisation and self-reliance in the telecom sector. The package comes days after BSNL partnered with Tata Consultancy Services (TCS), the leading software company, to deploy 4G network across the country. The contract, worth Rs 13,334 crore, is expected to help BSNL improve its service quality and customer experience. BSNL has been posting losses for the past 12 years due to poor infrastructure, high debt, and stiff competition from private players like Reliance Jio, Bharti Airtel, and Vodafone Idea. The company has also been losing market share and subscribers in the face of aggressive pricing and innovation by its rivals. The government had earlier approved two revival packages for BSNL in 2019 and 2022, totalling Rs 3.22 lakh crore.

These packages included voluntary retirement scheme (VRS) for employees, monetisation of assets, merger of BBNL with BSNL, and allocation of 4G spectrum. The latest package is expected to give a much-needed boost to BSNL’s prospects and enable it to compete effectively in the telecom market. The company will be able to provide pan-India 4G and 5G services, expand its rural coverage, offer fixed wireless access (FWA) services, and cater to the demand for captive non-public networks (CNPN).

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