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Wednesday, May 22, 2024

BSNL’s 4G Delay Fosters Duopolistic Market

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In Short:

BSNL, a state-run Indian telecom operator, has been facing challenges in rolling out 4G using homegrown technology. With issues in their 4G tech, BSNL is struggling to compete with private telcos like Jio and Airtel who have already launched 5G and have a larger customer base. The government wants BSNL to serve areas where private telcos aren’t investing, but with Airtel and Jio expanding in rural areas, BSNL’s future is uncertain.

BSNL’s Struggle with 4G Rollout
lets talk bsnl delays in launching 4g

Bharat Sanchar Nigam Limited (BSNL), a state-run Indian telecom operator, has been facing challenges in rolling out 4G services. The company has been dealing with various obstacles, including the government’s requirement to use indigenous technology for 4G deployment and the need to find an Indian company capable of providing proof of concept (PoC) for 4G technology.

Reports suggest that BSNL is encountering technical issues with the homegrown 4G technology it is utilizing, leading to delays in the rollout process. While competitors like Jio and Airtel have already introduced 5G services in many parts of the country and offer extensive 4G coverage across India, BSNL is lagging behind in the race.

Challenges in Serving Underserved Areas

The government has urged BSNL to focus on providing network services in underserved areas where private operators have been reluctant to invest. However, private telcos are now also expanding their presence in rural regions, posing additional challenges for BSNL.

As BSNL struggles to attract new customers and retain existing ones, Airtel and Jio are steadily increasing their subscriber bases. With Jio surpassing 450 million customers and Airtel nearing 400 million, BSNL’s user count has dropped below 100 million, making it less competitive in the market.

The Need for a Strong Third Operator

India’s telecom market is currently dominated by Airtel and Jio, with both companies collectively holding over 80% market share. The presence of a viable third operator is crucial for fostering competition and ensuring consumer choice.

While Vi is making efforts to raise funds and improve its position, the potential risk of a duopoly in the telecom sector looms large if BSNL fails to address its challenges and compete effectively with its private counterparts.

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