BSNL spent about INR 250 billion over the past year to roll out 100,000 towers delivering 4G mobile services
In sum – what to know:
INR 470B crore capex lined up – The DoT plans new spending to enhance BSNL’s network, following its record INR 250B outlay in FY2024-25.
Growth targets set by minister – BSNL is expected to grow its mobile subscriber base by 50% and boost enterprise and fixed-line revenues significantly.
Lagging ARPU highlights gap – BSNL’s ARPU trails Jio and Airtel, underscoring the need for upgrades and customer acquisition.
India’s Department of Telecommunications (DoT) has announced plans for nearly INR 470 billion ($5.38 billion) of fresh capital expenditure to strengthen state-run telco Bharat Sanchar Nigam’s (BSNL) network after a record year of investment, Indian press reported.
The Indian telco spent about INR 250 billion over the past year to roll out 100,000 towers delivering 4G mobile services, marking its highest-ever annual capex. The new allocation will further accelerate BSNL’s coverage and service quality, according to the report.
The majority of the previous 4G project was awarded to Tata Consultancy Services (TCS) and a consortium led by the Center for Development of Telematics (C-DoT), which supplied telecom gear.
Union Telecom Minister Jyotiraditya Scindia has set ambitious targets for the state-owned operator, directing BSNL to expand its mobile subscriber base by 50% in the coming year. He also asked business units to raise enterprise revenues by 25–30% and fixed-line revenues by 15–20%.
Scindia urged the carrier to raise its average revenue per user (ARPU), which currently ranges from INR 40-175 depending on the circle, by focusing on customer satisfaction and adding new subscribers.
By comparison, private rivals Reliance Jio and Bharti Airtel reported ARPUs of INR 208 and INR 250 respectively for the second quarter of the year.
In June, the Indian government confirmed that BSNL was planning to deploy another 100,000 4G towers across the country, following the successful installation of nearly 100,000 towers.
In May 2023, BSNL awarded a contract to a TCS-led consortium, which includes Tejas Networks, the Center for Development of Telematics (C-DOT) — the developer of BSNL’s 4G core — and ITI Ltd. The agreement covered the supply of 4G equipment for 100,000 telecom towers. It also includes network components, along with third-party elements and a 10-year annual maintenance contract.
The state telco is preparing for a nationwide 5G rollout after reaching a stabilization of its ongoing 4G deployment, according to previous reports, which cited Scindia, as saying.
Scindia confirmed that BSNL will switch to 5G technology only after its 4G network is fully stabilized and meets service quality standards.
“Once the 100,000 towers [are] put up and the network is stabilized, once we see that the QoS is up to the mark… then we start switching. Moving from 4G to 5G is not that difficult,” the official said.
