Bharat Sanchar Nigam Limited (BSNL) has initiated the rollout of 4G services in India, approaching a large-scale deployment. Ashwini Vaishnaw, the Union Telecom Minister, confirmed that BSNL is poised to launch 4G on a significant scale during the upcoming Diwali festival. TCS (Tata Consultancy Services) also affirmed during its Q2 results that it has commenced the deployment of 4G services for BSNL. Notably, this technology is entirely homegrown and positions BSNL as the sole telecom operator to leverage an end-to-end ‘Made in India’ stack for offering 4G connectivity to its customers.
The pivotal question arises: will this development impact the lives of everyday consumers, particularly those with modest incomes? BSNL has confirmed its commitment to affordability, even as it advances its 4G network expansion. In contrast, private telecom companies are answerable to investors, implying that they may inevitably raise tariffs on mobile services. They have already done so multiple times since 2019, and the next round of tariff increases is anticipated after the general elections in 2024. However, there’s no assurance that these hikes won’t occur earlier. Given India’s significant rural population and urban residents with limited income, continuous tariff hikes by private operators may not be well-received.
BSNL stands to fill a substantial gap in the market once private telcos raise their prices one or two more times in the coming years. This could enable BSNL to attract low-paying customers currently subscribed to private telecom companies. However, BSNL must ensure one crucial aspect for this to materialize: the delivery of high-quality services. Efficient network services with seamless coverage and outstanding performance are paramount. Without such a foundation, BSNL may not benefit significantly, and private telcos could continue to dominate the wireless subscriber market, despite offering higher-priced services.
