BSNL Bounce Back? will it survive without 5G?

 

BSNL - Bharat Sanchar Nigam Limited is a govt. telecom company. BSNL was founded in 2000 and became operational on October 1, 2000. It was formed by the Government of India to provide telecom services across the country.

From 2001 to 2008, BSNL operated without losses, It was established in rural areas (village or mountains) These companies were planning to expand only in urban areas whereas BSNL looking in rural areas and hence they got very high reach to people.

But why they got very high downfall.

1. 2G Scam : 176k crore scam by telecom minister A Raja. : The company also dealt with scandals involving its leadership, which affected its reputation and operations.

2. No efficient customer service - BSNL faced challenges in later years, including issues related to management, competition from private telecom operators, and technological advancements.

People started to using other telecom network.

Why BSNL Still Alive?

Government Support: Being a government-owned enterprise, BSNL receives support from the government, allowing it to continue operations despite financial difficulties.

Rural Coverage: BSNL plays a crucial role in connecting remote areas, mountains, and villages where private operators might not find it economically viable to operate.

Will It Comeback?

Govt. Support : On 27 July 2022, the Government of India announced another revival package for the state-owned BSNL, for providing 4G and 5G services.

Current govt. provided fund 15,000 crore to TCS as a contract to update it.

Public support : Other telecom companies are increasing their RPU (Revenue Per User) each year. Getting bothered by hike of price, many are going to BSNL. 

Network Improvement: BSNL is saying by the year of 2025, will provide 5g Internet.

Cheap Plan : Compare to other telecom companies, unlike other companies BSNL have very cheap plans. You can have 4g internet 2Gb/day @1515 rupee for a year.