Union Minister Pemmasani Chandra Sekhar downplayed the danger to state-run BSNL and other telecom companies on July 28 by stating that billionaire Elon Musk’s satellite communication services business, Starlink, might only have 20 lakh connections in India. The Minister of State for Telecom was addressing a review meeting of BSNL.
Satellite Internet Expected to Serve Rural and Remote Regions
According to the minister, Starlink can only serve 20 lakh users in India while providing speeds of up to 200 Mbps. Telecom services will not be impacted. Rural and isolated locations, where BSNL is known to have a substantial presence, are anticipated to be the focus of satcom services.
High Cost May Limit Mass Adoption of Starlink
As per a government official, Starlink’s current capacity is the reason for the connection limit. According to the minister, satcom services will be too expensive up front and could cost up to INR 3,000 per month.
BSNL 4G Rollout Completed, Revenue Grows 30%
The minister added that the BSNL 4G rollout is finished and that there are currently no plans to raise pricing. “First, we want the market. “No tariff increases are planned,” he stated. According to the minister, BSNL’s revenue increased by 20–30% in the first quarter of the current fiscal year as a result of the rollout of 4G services and the stabilisation of technology.
More than 90% of the technical problems that existed before have been resolved, according to Pemmasani. Around power plants, there were problems. The replacement of 30,000 power plants cost between INR 600 and 700 crore. He went on to say that upgrades to power supplies had improved customer satisfaction and increased BSNL network uptime.
He stated that “each circle is being given individual targets in terms of increasing subscriber base,” and that BSNL is currently resolving numerous legacy issues.
India Pushes for Indigenous Tech, Phases Out Chinese Equipment
In response to a question regarding the state of Chinese equipment at BSNL, the minister stated that the government intends to keep utilising domestic technologies within the state-owned company and will progressively phase out 2G and 3G equipment, eliminating the need for maintenance. ZTE is one of the Chinese vendors that BSNL has used to install 2G and 3G technology.
What Exactly is Starlink?
The Starlink network is the first and biggest satellite internet provider in the world, according to the official website. The technique provides users with broadband (Wi-Fi) internet by using Earth’s lower orbit. By using their home setup or portable Starlink equipment to connect to the satellite network, people can use this broadband network to facilitate streaming, online gaming, and video calling.
Starlink’s global operations are owned and managed by SpaceX, a space technology business founded by billionaire Elon Musk. According to a previous Mint report, Starlink wants to use its satellite technology to boost the domestic telecom sector and solve connection problems in India’s rural and isolated areas.
The Indian National Space Promotion & Authorisation Centre, or IN-SPACe, granted the US-based business permission to use its Gen 1 constellation capability above India. The permission is valid for a period of five years, ending on July 7, 2030.
BSNL (Bharat Sanchar Nigam Limited) was incorporated on 1st October 2000 by the Government of India under the ownership of the Department of Telecommunications, Ministry of Communications. The largest government-owned wireless telecommunications service provider in India is headquartered in Delhi. The Chairman and Managing Director of BSNL is a government civil servant of the Indian Communication Finance Service or a central government engineer of the Indian Telecommunications Service.
As of February 2025, BSNL Mobile boasts a subscriber base of 91.01 million, ranking as the 4th largest mobile telecommunications network in India and the 25th largest globally. BSNL’s operating revenue grew by 7.8% in FY25, reaching INR 20,841 crore, compared to INR 19,330 crore in the previous year. Its total income also went up by 10% to INR 23,427 crore, up from INR 21,302 crore last year.
Although BSNL began strong and recorded profits for the first few years of its operations, it began recording losses after the year 2009. The company has recorded consistent losses in the last thirteen years of its operations. The company had reported a net loss of INR 5367 crore for the year ending March 31, 2024.
BSNL owes its emergence to British India. It was the British who laid the foundation of the telecom network in India in the 19th century, establishing the first telegraph line in 1850 between Kolkata (erstwhile Calcutta) and Diamond Harbour. Within the next four years, the British East India Company laid telegraph lines across the country and opened the service to the masses in 1854. A year later, the British Imperial Legislative Council passed the Indian Telegraph Act.
Post India’s independence in 1947, the Post and Telegraph departments were bifurcated in the 1980s, and the Department of Telecom was established. The history of BSNL shows its rise as a major telecom player in the early 2000s, followed by a long period of decline due to competition and internal challenges.This eventually led to the emergence of government-owned telegraph and telephone enterprises, culminating in the foundation of BSNL.
Market Share of Wireless Mobile Operators in India
Why BSNL Failed | BSNL Downfall
Why BSNL Failed | BSNL Downfall
Founded at the turn of the century, BSNL successfully grew and expanded to reach annual revenues of approximately INR 40,000 crore in March 2007, compared to Airtel’s at INR 18,420 crore. Within the next two years, however, the PSU’s profits nosedived by 81% and its revenues fell by 6%. Since then, BSNL continued ailing year after year and by 31st March 2022 had incurred losses of INR 57,671 crore according to Devusinh Chauhan, Minister of State for Communication. By the end of October 2023, BSNL had experienced a cumulative loss of 21.4 million subscribers over 22 consecutive months, reducing its total subscriber count to just 92.87 million. The BSNL profit loss history reflects a sharp decline after 2007, with consistent losses accumulating over the years due to high costs and stiff market competition. The primary reasons for the continued downfall of BSNL are:
Tough Competition
Commanding a 21% market share in 2005, similar to that of Bharti Airtel, BSNL began losing its ground in 2009 consistently, and by 2022, its market share had plummeted to a mere 7.9%. The rest 92% of the market was controlled by three major players – Jio, Vodafone Idea, and Bharti Airtel. The other major reason was the price war. Jio entered the telecom market with extremely cheap tariffs, forcing all private and public players to reduce their tariffs. BSNL, however, did not raise their tariffs with the subsequent increase by Jio and other players, resulting in a drop in their average revenue earned by users per month to INR 53 from INR 118. The BSNL failure is mainly due to slow decision-making, high employee costs, and tough competition from private telecom players.
Bureaucratic Function
Slow decision-making and a lot of red tape plagued the PSU. It eventually resulted in the company not being able to compete with private player competitors. Opposition from unions, failure to update equipment quickly, and repeated and unchecked government interference also played a significant role in BSNL’s decline.
High Employee Cost
While the company was battling the rising market competition, it was also plagued internally with high employee maintenance costs. This cost accounted for approximately 55% to 60% of the company’s expenditure.
The central government, in the past three years, has taken proactive steps to rescue the debt-ridden PSU from closing its doors permanently. Devusinh Chauhan, Minister of State for Communication, said that in October 2019, the Centre had approved a revival plan that included a reduction in employee costs through a Voluntary Retirement Scheme (VRS), debt restructuring by the raising of sovereign guarantee bonds, administrative allotment of spectrum for 4G services through capital infusion, monetization of core and non-core assets, and in-principle approval of the merger of BSNL and MTNL. He said, “As a result of these, BSNL and MTNL have become EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) positive since the financial year 2020-2021.” The merger of BSNL and MTNL, however, has been delayed due to the former’s high debt.
By July 2022, the Centre approved a second revival package for BSNL of INR 1.64 lakh crore,, worth INR 1.64 lakh crore, aiming to upgrade the PSU’s services, allocate spectrum, de-stress its balance sheet, and augment aiming to upgrade the PSU’s services, allocating spectrum, de-stressing its balance sheets, and augmenting its fiber network by merging BBNL with BSNL. The BSNL growth rate has shown signs of improvement recently, driven by government support and network upgrades.
On June 7, 2023, the Union Cabinet approved the long-awaited third revival package for BSNL, valued at over INR89,000 crore. With this approval, BSNL’s authorized capital has significantly increased from INR 1,50,000 crore to INR 2,10,000 crore. The Cabinet, chaired by PM Narendra Modi, has also granted BSNL a valuable allocation of 4G and 5G spectrum. These spectrum bands—700 MHz, 3,300 MHz, 26 GHz, and 2,500 MHz—are worth INR 46,338.60 crore, INR 26,184.20 crore, INR 6,564.93 crore, and INR 9,428.20 crore, respectively. BSNL’s goal is to expand 4G coverage to rural areas, offer high-speed internet through fixed wireless access (FWA) services, and support captive non-public networks (CNPN). This is indeed a major step forward for BSNL and the future of telecom services in our country.
“The first two packages brought BSNL out of a very difficult situation to a stable one. Now, BSNL should become a player that is able to bring connectivity to places where other commercial companies will not be able to go,” said Telecom Minister Ashwini Vaishnaw.
Examples of Revival
Rural Connectivity Improving: BSNL upgraded its network in Himachal Pradesh under the BharatNet project and brought high-speed broadband to over 1,000 villages. This helped people access online education and health services.
Strategic Partnerships: BSNL teamed up with tech companies like TCS to build its core 4G network. This shows its strong push toward modern technology. Despite past struggles, the BSNL growth rate is expected to rise with the rollout of 4G services and increased rural connectivity efforts.
Customer-Centric Initiatives: By launching affordable prepaid plans, unlimited data offers, and free OTT subscriptions, BSNL has started winning back some of its old customers.
Sustainable Operations: Through its VRS (Voluntary Retirement Scheme), BSNL reduced its staff by over 70,000 employees. This move greatly lowered its operating costs.
BSNL Growth | Financials
BSNL Profit Loss History
Bharat Sanchar Nigam Limited (BSNL) has reported a profit of INR 262 crore in the third quarter of the financial year, marking its first return to profitability since 2007. This milestone reflects the company’s focus on innovation, aggressive network expansion, cost optimization, and customer-centric service improvements.
Announcing the quarterly financial results, Shri A. Robert J. Ravi, CMD, BSNL, said:
“We are pleased with our financial performance this quarter, which reflects our focus on innovation, customer satisfaction, and aggressive network expansion. With these efforts, we expect revenue growth to improve further, exceeding 20% by the end of the financial year. Revenue from Mobility, FTTH, and Leased Lines has increased by 15%, 18%, and 14% respectively over Q3 of the previous year. Additionally, BSNL has successfully reduced its finance cost and overall expenditure, leading to a decline in losses by over INR 1,800 crore compared to last year.
To enhance our customer experience, we have introduced new innovations such as National WiFi Roaming, BiTV – Free Entertainment for All Mobile Customers, and IFTV for All FTTH Customers. Our continuous focus on Quality of Service and Service Assurance has further strengthened customer trust and reinforced BSNL’s position as a leading telecom service provider in India.”
The Department of Telecommunications (DoT) has forecasted that state-owned Bharat Sanchar Nigam (BSNL) will achieve profitability in FY27, with an expected profit of INR 558 crore. This projection is based on anticipated revenue growth driven by the launch of 4G and 5G services in the coming years.
BSNL is expected to achieve a growth rate of 73.5% in revenue, from INR 19,344 crore in FY24 to INR 33,553 crore in FY27.
Products and Services
The government-owned entity provides both fixed-line telephones and mobile services on the GSM platform operating under the brand name CellOne and BSNL across the country.
BSNL Mobile
Offering prepaid and postpaid mobile services, BSNL Mobile also provides value-added services like Free Phone Service, India Telephone Card, Account Card Calling, Virtual Private Networks, Tele-voting, Premium Rate Service, and IPTV for its customers to enjoy television through the internet and VVOIP (Voice & Video Over Internet Protocol).
BSNL Landline
It was the only fixed-line telephone service that was launched in the early 1990s in the country. Only BSNL and MTNL, the other government-owned entity, were allowed to provide landline phone services in the country. BSNL and MTNL held 37.4 percent of the landline market share as of August 31, 2022, and 6.14 million users of BSNL in December 2023.
Internet
With approximately 7.5 lakh km of fiber-based telecom network across the country, it is the fourth largest ISP (Internet Service Provider) in India.
Broadband
The company’s broadband services include fixed-line and landline services using CDMA technology, providing internet access services through dial-up connections as prepaid, NetOne as postpaid, and DataOne as broadband.
Bharat Fibre
Launched in February 2019, Bharat Fibre offers IPTV, VoD (Video on Demand), VoIP (Voice over Internet Protocol), AoD (Audio on Demand), BoD (Bandwidth on Demand), remote education, video conferencing services, interactive gaming, and Virtual Private LAN Services.
Bharat Net
In a revival effort, BSNL was merged with the government’s special purpose vehicle BBNL along with a package of INR 1.64 lakh crore. It gave the PSU an advantage of an additional 5.67 lakh km of optical fiber laid across 1.85 lakh village panchayats using the Universal Service Obligation Fund (USOF).
4G Service
In January 2019, the public sector unit started the 4G services in a few cities and towns in the states of Bihar, Jharkhand, and Uttar Pradesh.
5G Services
BSNL CMD PK Purwar said in an interview that BSNL would begin 5G operations by 2025. Adhering to the Government of India’s ‘Atmanirbhar Bharat’, its 4G and 5G networks are set to be completely home-grown Indigenous technology.
BSNL Future Plans
Here are the details of BSNL’s growth plan for network improvement:
Moving to 4G Network: As part of the ‘Atma Nirbhar Bharat’ mission, BSNL plans to set up 100,000 4G sites across India. The 4G equipment will be ready for a future 5G upgrade. BSNL is also working on providing 4G services to villages that currently lack coverage.
Network Upgrades: BSNL is upgrading its network with Super Edge Routers for its internet and 4G rollout. They are also planning improvements like a new Billing & Customer Care System, Universal SIM, Over The Air (OTA) updates, and Embedded SIM (eSIM). BSNL is also planning to install Remote Fiber Test Systems for better monitoring and testing of its network, as well as using All-Dielectric Self-Supporting Optical Fiber Cable. International long-distance connections will also be switched from TDM to IP.
Broadband Upgrades: BSNL aims to make use of the Bharatnet infrastructure to improve internet access across India. They have started the BNG project to provide faster internet and are planning a MPLS-IP based Access and Aggregation Network (MAAN) to increase bandwidth and meet traffic needs.
Cyber-Security: BSNL is implementing cyber-security solutions in its MPLS Gateway Network and secured web filtering to ensure a safer online environment.
Challenges Ahead
BSNL’s efforts to bounce back are commendable, but it still faces some challenges:
Funding Needs: It needs ongoing investment to launch 5G and upgrade its network.
Tough Competition: Competing with fast-moving private companies is not easy.
Winning Back Customers: To regain customer trust, BSNL must keep improving its service quality over time.
Conclusion
Chauhan infused confidence in the PSU by saying, “With the implementation of these measures, BSNL is expected to turn around and become a profit-earning entity.” BSNL’s journey, by no means, has been easy. Its profit-making operations quickly took a sharp downturn due to reasons that were, probably, avoidable. However, with the Central Government’s strong backing, the PSU is set to make a stronger comeback than before.
FAQs
Who is BSNL owner or founder?
BSNL (Bharat Sanchar Nigam Limited) was incorporated on 1st October 2000 by the Government of India under the ownership of the Department of Telecommunications, Ministry of Communications. BSNL is a 100% Govt. of India-owned Public Sector Undertaking with an authorized share capital of Rs. 1,50,000 crores. Government of India is the owner of BSNL.
What is the net worth of BSNL?
The net worth of BSNL as of 31 March 2024 is INR 106625 crore.
Is BSNL all over India?
BSNL Mobile has a pan-India presence with a presence in all 22 telecom circles in India. It is the fourth largest mobile network operator in India.
Who owns BSNL?
BSNL is owned by the Government of India.
Is BSNL planning to launch 5G?
BSNL CMD PK Purwar said in an interview that BSNL would begin 5G operations by 2025.
How does the revival package affect BSNL’s authorized capital?
The third revival package has increased BSNL’s authorized capital from Rs 1.50 lakh crore to Rs 2.10 lakh crore.
Which is the cheapest mobile recharge plan of BSNL?
The minimum BSNL validity recharge is 15 days at ₹36. This recharge plan will give you free calls, data, and SMS at the lowest cost.
What is BSNL growth in last 10 years?
BSNL has incurred significant losses over the last 10 years, with a cumulative loss exceeding ₹1,800 crore in FY23.
Why did BSNL fail?
BSNL failed due to slow upgrades, high costs, and strong competition from private telecom companies.
Telecommunication companies are entities that facilitate communication and connectivity without the need for physical interaction. Whether it’s making phone calls, accessing the internet, or exchanging written messages via emails and SMS, the telecom sector offers comprehensive solutions at our fingertips.
Through the use of cables, wires, waves, and wireless technology, telecommunication has enabled global communication. The companies operating in this sector encompass Internet Service Providers, wired and wireless telephone operators, cable companies, and satellite providers.
In the late 1990s, the telecom sector was predominantly controlled by major national operators. However, starting from the end of 2002, the sector began undergoing privatization, marking the advent of a new era in India.
Since then, numerous telecom companies have emerged in India, catering to the communication needs of the population. Yet, only a select few have managed to thrive amidst fierce competition and establish themselves in both our hearts and the market.
The Indian telecommunication market is largely dominated by a handful of providers, responsible for offering a wide range of telecommunication services, including internet provision and calling facilities.
In this blog, we will explore the top telecommunication companies that have not only survived fierce competition but have also excelled in delivering cutting-edge solutions and reliable connectivity. From offering high-speed internet to seamless mobile services, these companies have carved a niche for themselves in the Indian market.
So, let’s embark on this journey to discover the telecommunication leaders who are revolutionizing the way we connect, communicate, and experience the world of technology in India.
Top Telecom Companies in India by Users
Mobile Operator
Market Share
Jio
40.52%
Airtel
33.67%
Vodafone Idea
17.84%
BSNL
7.89%
MTNL
0.09%
Wireless Subscriber Market Share in India as of February 2025, by Service Provider
In India, Jio leads the telecom market with a 40.52% share, followed by Airtel with 33.67%. Vodafone Idea holds 17.8% of the market, while BSNL has 7.9%. MTNL, the smallest player, accounts for just 0.09% of the market share. The competition among these operators continues to shape the country’s telecom landscape, with Jio and Airtel dominating the industry. Despite the growth of private players, BSNL and MTNL still maintain a presence, albeit with significantly smaller shares.
Fixed-line telephone, Mobile telephony, Wireless broadband, Internet services, Mobile phones, OTT services
Top Telecommunication Companies in India – Jio
Reliance Jio is a subsidiary of Reliance Industries operating in the telecom industry, since 15th February 2007, founded by Mukesh Ambani with its headquarters at Navi Mumbai, Maharashtra, India. Jio is the business name for Reliance Infocom Limited and is the best telecom company in India.
The company offers multiple services including fixed-line telephone and mobile phones, wireless broadband with internet services, and OTT services. Right now Jio provides 4G, 4G+, and 5G services. However, furthermore, it is planning to expand its services to 6G. Reliance Jio is India’s biggest telecom company.
According to the reports of the Telecom Regulatory Authority of India, Reliance Jio is the telecom company that has the highest market share in terms of being a wireless service provider. It has held40.52% of the market share among the rest of the other companies. It is the largest mobile network operator in India with over 46.72 crore (467.2 million) subscribers.
Fixed-line telephone, Mobile telephony, Broadband, Satellite television, Payments bank, Digital television, Internet television, IPTV
Top Telecommunication Companies in India – Airtel
Bharti Airtel Limited, operating under the business name of Airtel, is a public company, in the telecommunication sector. It was founded by Sunil Bharti Mittal on 7th July 1995. It is headquartered in Delhi and is one of the top 3 telecom companies in India.
Airtel is also known to offer different services such as Fixed-line Telephones, Mobile Phones, Broadband, Satellite Television, Payment Bank, Digital Television, Internet television, and IPTV. Its revenue as of 2021 is 101,258 Crore INR. It is the top mobile network in India.
Airtel is known for providing 2G, 3G, 4G LTE, and 4G+ services. According to TRAI reports, Airtel has a 33.67% market share in the wireless subscriber market and is the second top telecom company in India after Jio.
Mobile telephony, Wireless broadband, Internet services
Biggest Telecom Company in India – Vodafone Idea
Vodafone Idea Limited, one of the top 3 telecom companies in India is also known as VI is a joint venture of Idea and Vodafone as the name suggests. It was founded in the year 2018 when two major telecommunication companies decided to merge their businesses with their headquarters in Mumbai and Gandhinagar respectively.
The telecom company deals with products like mobile Telephony, wireless broadband, and internet service. However, the company has seen a great increment since 31st October 2021. Vodafone Idea is one of the top 3 telecom companies in India.
The company was recorded to achieve a total of 269.03 million subscribers giving it the rank of the third largest telecommunication company in India after Jio and Airtel. VI’s market share is 17.84% of the total market share of telecommunication companies in the wireless subscriber market in India.
Bharat Sanchar Nigam Limited (BSNL) is a telecommunication company owned by the Ministry of Communication, the Government of India. It is a statutory corporation founded in the year 2000, with its headquarters in New Delhi.
BSNL offers a wide range of services, including landline and mobile telephony, broadband internet, and enterprise solutions. With its extensive network infrastructure and reach across the country, BSNL, one of the oldest telecom operators in India has played a pivotal role in connecting millions of people, especially in rural and remote areas where connectivity is essential for development and communication.
Despite facing stiff competition from private players, BSNL continues to adapt and evolve to meet the changing demands of the telecommunication industry. The company’s dedication to customer satisfaction and its vast network coverage have helped it maintain a significant market presence in India. BSNL has the greatest share in terms of telecom PSUs at 7.89%.
Mobile telephony, Fixed-line telephony, Digital television, Wired and Wireless Broadband, IPTV
Top Telecommunication Companies in India – MTNL
Mahanagar Telephone Nigam Limited or MTNL previously known as Bombay Telephone Limited is a subsidiary of BSNL owned by the Ministry of Communication, the government of India. It is a prominent telecommunications company that operates in the metropolitan cities of Delhi and Mumbai in India. Established in 1986, MTNL is a state-owned enterprise and provides a wide range of telecommunication services to its customers.
MTNL works and provides services in the fields of mobile telephony, fixed-line telephony, digital television, wired and wireless broadband, and IPTV. It was the first telecom operator in India to launch 3G mobile services, providing high-speed data and improved voice quality to its subscribers. The company continues to invest in upgrading its network infrastructure and introducing new services to meet the growing demands of its customers. MTNL has a market share of 0.09% among the other top telecommunications companies in India.
Telecom Sector Market Size
India is the world’s second-largest telecom market. As of May 2024:
Telecom Sector Market Size
Wireless users: 1.17 billion
Jio: 474.61 million
Airtel: 387.76 million
Vodafone Idea: 218.15 million
BSNL: 86.32 million
Wired broadband users: 41.31 million
Data Usage
From June to Sept 2024, total data use grew by 40.76%.
Wireless data rose 4.01% from Sept to Dec 2023.
4G used the most (86.66%), followed by 5G (12.59%), 3G (0.65%), and 2G (0.09%).
Telecom revenue: INR 91,426 crore (US$10.46 billion) in Q2 FY25.
Future
India will gain 500 million new internet users in 5 years.
By 2025, 22 million skilled workers will be needed in 5G-related fields like IoT, AI, robotics, and cloud computing.
The Indian Telecom sector is way ahead in the present time as of a few years back. India is considered the second-largest telecommunication market in the world. It has its shares of different firms involved in it. Irrespective of the number of firms working in the telecom sector, the Indian telecom industry is highly dominated by few telecommunication providers.
The top telecommunication companies in India have transformed the way we communicate, connect, and experience technology. They have not only expanded access to communication services but have also driven digital inclusion and economic growth. As we move forward, these companies will continue to redefine connectivity, enabling individuals, businesses, and the nation as a whole to thrive in an increasingly interconnected world.
FAQs
What is meant by telecommunication?
The term telecommunication stands for the transfer of information through different mediums such as wire, radio, or any other electromagnetic system.
Which firms provide telecommunication systems in India?
Firms like MTNL, Jio Reliance, Vodafone Idea, etc. are known to provide telecommunication services in India.
Which is the largest telecom company in India?
Based on current data, Reliance Jio is the largest telecom company in India.
What is the count of the total subscriber base in India for the telecommunication industry?
The total subscriber base count for the telecommunication industry in India is around 1170.38 million, calculated in December 2022.
What is the driving factor of the growth of telecom sector in India?
The proliferation of smartphones and the increasing demand for high-speed internet access have been key driving factors behind the growth of the telecom sector in India. Additionally, the government’s initiatives to promote digital connectivity and the rapid expansion of mobile network coverage have further fueled the industry’s growth.
What are the employment opportunities in telecom sector?
The telecom industry offers a wide range of employment opportunities, including roles in network engineering, telecommunications infrastructure, customer support, sales and marketing, research and development, and project management.
Which telecom company is best in India?
Reliance Jio is the best telecom company in India.
In accordance with their agreement on passive infrastructure sharing, Bharat Sanchar Nigam Limited (BSNL) has allegedly failed to bill Reliance Jio for ten years since May 2014. This has cost the government a loss of around INR 1757.56 crore. The Comptroller and Auditor General of India (CAG) said last week that BSNL’s invoicing issues caused the government to suffer this large financial loss. According to a news agency, the CAG audit also asserts that BSNL lost an extra INR 38.36 crore. This happened because it failed to deduct the licence fee portion from the money given to telecom infrastructure providers (TIPs).
CAG Report Highlighted BSNL’s Negligence
BSNL’s failure to enforce the Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) was brought to light in the CAG statement. According to the report, BSNL did not bill for the new technology used on BSNL’s shared passive infrastructure and did not enforce the Master Service Agreement (MSA) with M/s Reliance Jio Infocomm Ltd (RJIL). From May 2014 to March 2024, the government exchequer lost INR 1,757.76 crore as a result of this incompetence, plus penal interest. Additionally, BSNL’s billing errors for passive infrastructure sharing charges were brought to the attention of the CAG. The audit further stated that BSNL lost INR 29 crore (including GST) in revenue from infrastructure sharing costs. This is a result of its failure to apply the escalation clause and adhere to the terms and circumstances outlined in the MSA with RJIL.
Dilip Buildcon JV Gets Work Order Worth INR 2,631 Cr. from BSNL
An advanced work order of INR 2,631.14 crore was given to Dilip Buildcon’s joint venture, DBL-STL, by Bharat Sanchar Nigam Ltd (BSNL). The middle-mile network for the BSNL BharatNet Phase-III broadband connectivity project will be designed, supplied, built, installed, upgraded, operated, and maintained by the company. The Universal Service Obligation Fund (USOF), now known as Digital Bharat Nidhi (DBN), is providing funding for the initiative. The project, of which Dilip Buildcon is responsible for 70.23%, is to offer middle-mile and last-mile connectivity in the Jammu & Kashmir and Ladakh regions. The construction project will be completed in three years by the Bhopal-based company, and the maintenance contract will last for ten years.
In addition, Dilip Buildcon works on projects in a number of industries, such as urban development, irrigation, tunnels, roads, railroads, airports, and coal mining. With the support of earnings from its coal and hybrid annuity model (HAM) portfolio, Dilip Buildcon’s profit attributable to owners for the third quarter of the fiscal year 2025 (Q3 FY25) increased by 7.4% year over year to INR 115.3 crore. However, the company’s revenue dropped to INR 2,589.7 crore, a 9.98% year-over-year decrease. Its overall costs for the reviewed quarter were INR 2,519 crore, which was an 11.9% decrease from the previous year.
Price sensitivity seems to be higher among Indian consumers than private telecom corporations had anticipated. Following the announcement of rate increases in July, Reliance Jio, Airtel, and Vodafone have continued to lose customers. With the addition of new subscribers for the second consecutive month, state-owned BSNL, which had not hiked its tariffs, seems to be benefiting at their expense. A number of years of price battles came to an end in July when India’s telecom companies jointly announced price hikes.
With 79.7 lakh members lost in September, Jio experienced the most subscriber loss. In the meantime, Vodafone Idea lost 15.5 lakh customers, and Airtel lost 14.3 lakh. The customer base of state-owned BSNL increased by 8.5 lakh, in contrast.
BSNL Growing its Subscribers’ Network
These tendencies are consistent with August’s events. Airtel lost 24 lakh customers, Vodafone Idea lost 18 lakh customers, and Reliance Jio lost 40.1 lakh customers in August. During that time, BSNL added 25 lakh new customers. 2.5 lakh consumers were said to have switched from other providers to BSNL in July.
In September, 1.33 crore applications for mobile number portability (MNP) were submitted, representing a spike in demand. In the wake of increasing tariffs, the surge highlights growing customer unhappiness and shifting loyalties.
These actions come after Indian telecom firms announced pricing increases in June of this year, the first such action in about 30 months. Whereas Airtel had raised pricing by 10–21%, Jio had raised prices by 12–25% for its plans. VI’s various plans now have pricing that has increased by 11–24%. As a result, the most affordable 28-day monthly package with phone and data perks started at INR 189 for Jio and INR 199 for Bharti Airtel and Vodafone Idea. For just INR 108, state-owned BSNL was providing a plan with comparable benefits.
BSNL’s New Initiatives to Attract More Subscribers
BSNL has been searching for ways to leverage its price advantage since that time. Direct-to-device services, automated SIM kiosks, and spam blockers are some of the new initiatives that BSNL has introduced. Positive social media buzz has also been generated about it; a video of BSNL staff members revealing a SIM in a dilapidated government building has been contrasted favourably to the flashy debuts of private telecom firms. The advantages of having a state-run telecom operator are becoming clear in the era of privatisation; even if their service isn’t the best, it gives customers an alternative in the event that private companies decide to band together and raise prices at the same time.
Union Telecom Minister Jyotiraditya Scindia stated on September 14, 2024, that state-run telecom company BSNL will finish rolling out locally built 4G technology through 1 lakh base stations by May of next year and then transition to a 5G network by June of 2025. Speaking at the US-India Strategic Partnership Forum, Scindia asserted that India will lead the world in 6G technology, having marched with it in 5G and 4G.
According to the minister, Prime Minister Narendra Modi has made it quite clear that the government-owned business will not make use of other parties’ equipment.
“We now have a fully operational radio access network and a core. One lakh locations are planned by April or May of the next year. As of right now, 38,300 locations have been deployed. Our own 4G network will be launched and will transition to 5G by June 2025,” he said. According to Scindia, India will be the sixth nation in the world to be able to accomplish it.
India Among the Fastest Nations to Roll Out 5G Network
According to Scindia, India has implemented 5G technology at the fastest rate globally, having installed 4.5 lakh towers in 22 months to reach 80% of the nation’s population.
He said that the telecom industry in India has completely changed, with the number of broadband connections having increased to 940 million from about 60 million a decade ago.
“Ten years ago, a voice call cost 50 paisa; today, it just costs three paisa. The price per voice call has decreased by 96%. Ten years ago, the cost of one gigabyte of data was INR 289, which is about equivalent to three and a half dollars now, or 12 cents. Consequently, exponential penetration and acceptance have been observed,” the minister stated.
He claimed that the Prime Minister consistently advocates for the construction of quality service rather than merely building towers. India should establish itself as a product nation and reposition its telecommunications as a means to a service rather than an end product.
India-US Strategic Ties
Regarding strategic relations between the US and India, the minister stated that both nations are taking steps to ensure that their partnership transcends technological advancements.
“This was a historic visit for the prime minister to the US. For the first time, we have reached a consensus to establish a fabrication unit (fab) in India to provide chips for US defence,” he commented. According to Scindia, it would have profound effects on both the US and India.
Telecom Ministry of India has taken a major step against the boycotting of Chinese goods movement. They have given orders to the MTNL, BSNL and other big private companies to ban all the Chinese based deals and all the equipment they have been using. This has been a major economic decision that has been taken by the government after the India China standoff which led to killing of 20 Indian soldiers being an act of deceit by China.
Telecom Ministry orders MTNL BSNL to Ban Chinese Equipments
The Telecom Industry has told the service providers to make changes in their condition accordingly. They have also told them to cut off all the previous tenders and to rework on that too.
This critical decision which has been taken by the Indian government can also play a very major role in the 4G upgradation which has been done and the industry which was looking forward for the introduction of 5G networks can be also affected too. While Huawei was asked to perform a 5G rollout in India, but due to these changes this thing looks unlikely to happen.
Indian telecom market has been dependent on China based providers since the beginning. This has been a very crucial step and a very important one too. This can cause harm to the Chinese market a bit more. While, this being a first economical step between two countries, the relation is worsening.
The government has also said that any new brand deals will also be banned and all the equipment will be stopped in our country.
India and China relations worsening day by day
This step is clearly taken by the government as an answer to the killing of 20 Indian soldiers who were martyred at the LAC in Galwan Valley in Ladakh. The Indio-China relations have been in very bad terms for quite a while and has worsen after this incident.
This is the first time government has taken any major step regarding the India China conflict and providing them with a major setback. At a hard time like this, the step taken came immediately after a month long protest of banning of the Chinese based application in our country.
CAIT Generated a List of 500 Items Should be Banned Immediately
Also, the CAIT(Confederation of All India Traders) has also asked the people to boycott all the China based goods in our country. They have listed around items 500 which includes bags, textiles, furniture, watches, footware apparel and kitchen item too. The CAIT said in a statement, “By calling for the boycott of these Chinese products, the objective is to reduce import of Chinese finished goods by $13 billion or about Rs 1 lakh crore, by December 2021”.
They have also asked the Indian celebrities who endorse the Chinese products should also come forward and support this cause as the soldiers of our country are dying fighting against a cruel country like China.
A Very Tense Situation At the Ladakh Border
The situation at the Ladakh border is very much tensed after the Chinese soldiers crossed the borders even after the talk of not harming each other. They took a coward step against the us as it was “pre-meditated and planned action” by China.
People Also Breaking The China made Television
People in India have also shown their anger by throwing away the television sets which were made in China and breaking them. Effigies are also being burned of the Chinese leader Xi Jinping in many of the Indian cities.
These steps are very important to show the Chinese government our solidarity against the use of any of their products and what harm can be done to them without even picking up any weapons. It is high time now and taking these important decisions should be necessary. China has created a very big impact in the Indian market and it will be very difficult to abolish all their products but at the same time it has become very important for us to take these kind of steps.
Can Pave The Way For Atmanirbhar India
Well, some positives can also be taken from this step taken by government as people will start working inside India more and the dependency will lower for sure. It will be a tough road but the results can be fruitful. Atmanirbhar campaign will get more of the support through this and now Indian based services can boom up helping India to become a strong economy.
The telecom industry will shortly require some different alternative and then these industries will start to look up to the Indian based startups and the millennial of our country. Indians are working on them and this could be a big help in terms of economic front.
