BSNL Set for Big Return With 5G Push: Should Jio, Airtel, And Vi Watch Out?

Bharat Sanchar Nigam Limited (BSNL) is bullish on a strong comeback, riding high on a ₹61,000 crore infusion from the Department of Telecom (DoT). The state-owned telecom company will utilise the investment to deploy its 5G services across India. It has begun piloting 5G in locations such as New Delhi and plans to use premium 700MHz and mid-band 3300MHz spectrum — a move that could potentially put pressure on Jio, Airtel, and Vi (formerly Vodafone Idea).

DoT’s investment will help BSNL deploy 5G faster, expected to yield results as early as June. BSNL is expanding its 4G network sites across the country, of which about 80,000 are already functional. The company will then upgrade these towers to support 5G by June. The company’s 5G service is currently available through the Network-as-a-Service (NaaS) model, but a wider rollout will open the 5G sites for everyone.

BSNL’s staggered plan for 5G deployment is expected to counter the services from Airtel and Jio, both of which rolled out 5G back in 2022. Its anticipated success relies heavily on its appeal in the market as a government-owned company. BSNL also has a more affordable tariff structure, causing the recent influx of users after the leading players announced an industry-wide hike last year to increase the ARPU (average revenue per user). The addition of new users helped BSNL record a ₹262 crore profit in the third quarter — its first milestone in about 18 years.

According to A. Robert J. Ravi, CMD of BSNL, revenue from mobility, FTTH (Fibre to the Home), and leased lines increased by up to 18 per cent year-over-year. He said BSNL now expects “revenue growth to improve further, exceeding 20 per cent by the end of the financial year.” With an expanded 4G network and 5G deployment, BSNL could wrest a sizable portion of its competition’s customer base. While Jio and Airtel’s 5G services are now available across the country, Vi has begun the rollout of its 5G network in Mumbai. Vi previously said it seeks to expand its 5G network by the end of 2025, coinciding with BSNL’s roadmap to offer 5G coverage.

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