BSNL Set for Major 4G Rollout as Govt Approves Fresh Funding

In a major push for telecom infrastructure, the Union Cabinet has approved an additional ₹6,000 crore in funding for state-run Bharat Sanchar Nigam Ltd. (BSNL) to speed up its 4G expansion. The pronouncement aims to channel a funding shortfall in BSNL’s strategic capital expenditures, including its Mahanagar Telephone Nigam Ltd. (MTNL) subsidiary.

With BSNL handling MTNL processes in Delhi and Mumbai, the lack of pan-India 4G facilities has resulted in major customer loss. Though the firm temporarily increased users following tariff hikes by private telecom companies last year, the drift has reversed, demanding urgent action. The fresh funding is projected to lessen customer attrition once 4G services roll out nationwide.

BSNL had previously issued a ₹19,000 crore advance purchase order for 100,000 4G sites, but the final order to Tata Consultancy Services (TCS) and state-run ITI was placed at ₹13,000 crore. The newly approved funds will cover the balance amount, allowing BSNL to complete its network expansion. As of now, 65,000 4G sites have been deployed.

The government has invested ₹3.22 lakh crore in BSNL and MTNL through three revival packages since 2019, with efforts leading to operational profits from FY 2020-21. The rollout of 4G is based on an indigenous stack developed by CDoT-TCS despite internal resistance favoring global vendors. With plans to introduce 5G in select locations, BSNL’s renewed efforts position it for competitiveness in India’s evolving telecom sector.