India is considering a major policy shift in its approach to upgrading Bharat Sanchar Nigam Limited (BSNL) to 5G by allowing foreign vendors to participate in the ₹17,000 crore telecom equipment tender. This would mark a significant departure from the government’s previous stance, which mandated the use of only indigenous technology for BSNL’s network upgrades, including 4G and 5G services.
Until now, BSNL’s network expansion relied solely on domestic suppliers, with the most recent 5G tender in Delhi requiring bidders to use only Indian-made equipment. This restriction led to concerns from global vendors like Ericsson, who were excluded from the bidding process. In response, the government is now exploring a proposal to allocate 50% of BSNL’s 5G tender volume to domestic suppliers while allowing foreign vendors to compete for the remaining 50%. The move is aimed at expediting BSNL’s 5G rollout and strengthening its market competitiveness.
Potential Impacts
- Faster 5G Deployment: By involving global vendors such as Ericsson, and Samsung, BSNL could accelerate its nationwide 5G rollout. These companies bring advanced technology and experience, which could significantly enhance network quality and service reliability.
- Increased Competition & Innovation: Allowing foreign participation could push domestic vendors to innovate and improve their offerings, fostering a more competitive telecom ecosystem. This could lead to better pricing, improved technology, and enhanced service quality for BSNL and its users.
BSNL’s 5G Roadmap
BSNL is preparing to launch 5G Standalone (SA) services in Delhi, targeting 1,876 sites across the 900 MHz and 3.3 GHz bands. The rollout will follow a revenue-sharing model, where BSNL will handle marketing and sales, while selected vendors deploy and maintain the network infrastructure.
Challenges & Future Outlook
Despite the advantages, there are concerns about the financial burden on vendors, as they must bear both capital and operational costs for setting up the 5G infrastructure. This challenge has already led to limited participation in previous BSNL tenders.
The final decision on foreign vendor participation is still pending. However, if approved, it could have a transformative impact on BSNL’s ability to compete with private telecom giants like Reliance Jio, Bharti Airtel, and Vodafone Idea, all of whom already utilize global telecom equipment vendors for their networks.
