Bharat Sanchar Nigam Limited (BSNL) has recently received an aid package from the government that also covers the capex for 4G rollout and site upgrades that the state-run telco will make to deliver faster connectivity to its users. Many wonder why BSNL is going for 4G while the other telcos are going for 5G. It is because if BSNL plans to launch 5G NSA, it will need a 4G core. Furthermore, if you think 4G will go out of fashion, here are some numbers for you. Ericsson’s June 2022 mobility report said that more than 55% of mobile subscriptions in India would represent 4G by 2027. This means that a majority of consumers, even in five years’ time, will be using 4G mobile services.
5G especially suitable for enterprises Initially, BSNL can focus on 4G and attract retail consumers
It’s no big surprise, as consumers may not want to pay higher rates for 5G when they can do most of their work over 4G networks. since fiber broadband As connections grow, users can rely on them with unlimited data for faster Internet connectivity. In the initial launch phase, 5G is most suitable for enterprises.
BSNL Launches 4G Networks Using Homegrown Stack
The Indian government ensures BSNL to ensure it can launch homegrown 4G as soon as possible. The state-run telco partnered with C-DoT (Centre for Development of Telematics) and TCS (Tata Consultancy Services) to develop a homegrown 4G stack. Jio, Airtel and Vi (Vodafone Idea) will focus on 5G, but they will still compete heavily in the 4G segment. The entry of BSNL would only fuel competition even more, which is actually good for consumers at the end of the day.
Lower rates with 4G could help BSNL attract new customers
BSNL can attract consumers by offering lower rates than private competitors. There are already some excellent prepaid plans in BSNL’s portfolio. With the power of 4G networks, these plans would only increase in value to consumers. BSNL is expected to do a soft launch of 4G networks on this Independence Day on August 15, 2022.
A wider launch is expected in late 2022. In the next two years, BSNL aims to cover the entire country with its 4G networks. The government also selects BSNL for USOF projects to provide connectivity in rural areas.
BSNL and BBNL merge an interesting development
The merger of BSNL and BBNL (Bharat Broadband Network Limited) would make things more pleasant for the telco. Since BBNL has a small team, it wouldn’t take much to merge them with BSNL. What will be interesting is to see how BSNL leverages the fiber network deployed by BBNL across India.
