Can BSNL’s Indigenous 4G and 5G Rollout Transform India’s Telecom Sector?

Bharat Sanchar Nigam Limited (BSNL) is undertaking significant measures to redefine India’s telecom sector with its focus on developing and deploying domestically-made 4G technology. BSNL aims to install 100,000 4G towers across India and has already made progress by successfully setting up over 62,000 towers. This initiative is noteworthy as it emphasizes the use of homegrown technology, placing India among an elite group of only five countries that have developed their own 4G technology stack. BSNL’s concerted effort to prioritize Indian technology over international solutions highlights the strategic importance of self-reliance in the rapidly evolving telecom landscape. Following the completion of its 4G target, BSNL plans to shift its focus towards implementing 5G technology, with the objective of commencing this deployment by April-May 2025.

Strategic Importance of Domestic Technology

Telecom Minister Jyotiraditya Scindia underscored the strategic importance of prioritizing Indian technology over foreign solutions despite the challenges this may entail. A consortium led by Tata Group, receiving an order in May 2023, is playing a crucial role in aiding this endeavor by providing necessary equipment along with Tejas Networks and the Center for Development of Telematics (C-DOT). This collaboration not only signifies a strong industry-government partnership but also serves as a testament to India’s growing confidence in its domestic technological capabilities. The push for domestically developed technology illustrates a broader effort on the part of the Indian government to establish India as a telecom manufacturing hub, ensuring the country’s competitiveness in the global telecom market.

BSNL’s ambition to capture a 20% market share of India’s mobile market by the end of 2024 is reflective of the company’s strategic targets, while the government hopes to see this number rise to 25% by the end of 2025. Currently, BSNL is contending with market dominance by giants like Reliance Jio and Bharti Airtel, which has led to its customer base dwindling to 88.06 million by April 2024. To combat the decline, the Indian government has announced plans to set up a project management unit (PMU) in collaboration with Tata Consultancy Services, Tejas Networks, and C-DOT. This PMU will support and monitor the ongoing deployment, ensuring BSNL’s ambitious targets are met in an organized and strategic manner. The establishment of the PMU emphasizes a strong focus on structured project management to facilitate the successful rollout of 4G and, subsequently, 5G infrastructure.

Impact on Market Share and Indigenous 5G Development

BSNL’s emphasis on domestic technology is key to bolstering India’s standing as a technology manufacturing hub. The government’s production-linked incentive (PLI) scheme underpins this objective, showing a clear commitment to building a self-reliant telecom infrastructure. Additionally, BSNL has started its indigenous 5G trials in New Delhi, illustrating a focused effort to keep up with global technological advancements despite tough competition from other major telecom players. The rollout of indigenous 5G is vital as it aims to position BSNL at the forefront of the domestic market while establishing a strong base for future technological innovations in India.

India’s quest to augment its technology infrastructure aligns with its goal to stay competitive globally in the telecom sector. By concentrating on the development and deployment of 4G and 5G technologies, India seeks to lessen its reliance on foreign solutions, fostering an environment of self-reliance and strategic technological growth. This initiative reflects a global trend where nations prioritize domestically developed technologies to ensure economic sovereignty and improved cybersecurity.

BSNL’s efforts, backed by government policies and strategic collaborations, highlight a shift towards self-reliance and strong technological progression. If BSNL meets its ambitious goals, it could not only regain lost market share but also lead a new era of telecom innovation in India. This transformation would be a significant milestone, demonstrating India’s capability to independently develop and deploy state-of-the-art telecom technologies.

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