Bharat Sanchar Nigam Limited (BSNL) is not exactly an underdog. It has been playing in the big leagues for a long time and there was a time when it was a formidable force in the market. At the moment, if you ask me, which is the most interesting telecom player in the market, I would say BSNL. Not because it uses homegrown technology to launch 4G and possibly 5G in the future, but because it could uproot the entire fabric of the industry.
It’s not the results that make for an interesting story, but the key lies in its narration. BSNL is just one step away from becoming a great storyteller. The state-run telecom company, afloat on the Rs 1.64 lakh crore revival package, could be the messiah for the people living in rural India. It has the power to change the Indian economy to an extent that is unimaginable.
Private telcos have the money to start investing in rural networks, but they don’t. It’s not a favorable move from a return standpoint, and it’s certainly something the investors wouldn’t support. Then comes BSNL. It is not backed by any private institution and does not have to give anyone really hard answers. Well, of course there’s the government, and lately IT and telecoms minister Ashwini Vaishnaw has been pretty strict about improving the work culture at BSNL.
But honestly, who’s going to question BSNL as a private company, even if it’s making investments that don’t really pay huge returns in the short term and might even make the company bleed money? That is what makes BSNL’s 4G so interesting. It doesn’t matter if it comes two years later or the next month, deep down it doesn’t matter if BSNL makes money from it or not. The telco will not be privatized and will not close.
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The intention is to roll out 4G in areas where fast broadband is not accessible. This would surely place BSNL in the hearts of rural India. The state-owned company is already benefiting from the merger with BBNL (Bharat Broadband Nigam Limited). It now has direct access to all of the investments BBNL has made for years in fiber optic infrastructure across India.
But there is still a long way to go before BSNL can become truly profitable. Yes, the government says it would be profitable in FY27, and that could very well be the reality. However, what I keep wondering these days is who would care, even if they don’t? It would be unfair to say that BSNL does not have dedicated employees working to take the company to the next level as there could be people doing that. Either way, no one cares, and no one wants to question these people.
Getting back to the original point. What is so interesting about BSNL’s 4G? The interesting thing is that it doesn’t really have to make a big impact for the government to announce another aid package for the state-run telco. As I said, BSNL is not going to close shop and the government is not going to privatize it.
