Bharat Sanchar Nigam Limited (BSNL) plans to provide its fixed and mobile phone services to hundreds of thousands of users in the metropolitan cities of Delhi and Mumbai, according to a report. The state-owned telecommunications company that has been facing the financial crisis for a long time is trying to get a new lease on life with the revenues it hopes to generate from metropolitan city customers as it could start services on January 1st. Currently, Mahanagar Telephone Nigam Limited (MTNL) is the government provider of mobile and fixed services in Delhi, Mumbai.
As reported by Business Standard, BSNL is working out a plan to enter these two markets in the country where it has been absent from the start. MTNL, which is also a government firm for telecommunication services, was the sole operator in Delhi and Mumbai, while BSNL is available to customers in the rest of India. BSNL will offer its services on a trial basis on behalf of MTNL for approximately five to six months in the Delhi and Mumbai circles, the report noted.
BSNL could work out the proof-of-concept for its 4G services in Delhi and Mumbai by mid-2021, according to the publication. The state-owned telecommunications company is likely to float the tender for telecommunications equipment and tools after the plan is ready and approved. BSNL services are rumored to begin on January 1, 2021. Rate details are unclear at the moment, but the subscription and top-up plans could likely be the same as those MTNL charges at this time.
The biggest opportunity here for BSNL is the expansion of its 4G network which has sadly not been updated with private players. While the first 4G network was launched in 2012 by Airtel, Reliance Jio has made the technology mainstream through its low-cost tariffs. It took BSNL a long time to launch its 4G services, which it rolled out in South Indian circles. As the Delhi and Mumbai circles have a huge fraction of 4G customers, BSNL has a treasure to leverage to create new revenue streams.
Additionally, BSNL will offer local equipment suppliers the opportunity to grow the business as the telecom company will need to procure 4G gear. The government has already introduced plans to give local producers a boost. BSNL’s new move would bring volumes for these manufacturers. BSNL is looking to upgrade to 49,300 sites to support 4G networks while the expansion plan in the Delhi and Mumbai circles has increased the load by approximately 7,000 sites.
BSNL is currently working on a plan on how to introduce its 4G services in the two metropolitan cities.
- BSNL may soon introduce its 4G services in the Delhi and Mumbai circles.
- MTNL is the only telecom service provider in these two circles.
- BSNL is said to begin trials on behalf of MTNL for 5-6 months.