The central government has boosted financial support for the public telecom operator BSNL, allocating ₹82,916 crore in the 2024-25 Budget, compared to ₹52,937 crore in the previous fiscal year.
Purpose of Capital Infusion
Experts believe that a significant portion of the ₹82,916 crore will likely be directed towards the allocation of 4G and 5G spectrum, enhancing BSNL’s network capabilities.
Previous Revival Package and Spectrum Allotment
In the previous year, the Cabinet approved a ₹89,000 crore revival package for BSNL, with the primary focus on allotting 4G and 5G spectrum through equity infusion. This approval paved the way for BSNL to introduce 4G services, with a possible contribution from the current budget.
Positive Response from Former BSNL Chief
Former BSNL Chairman and MD, RK Upadhay, welcomed the increased capital infusion, emphasizing the importance of indigenous products and networks. He highlighted that the allocation for network and spectrum costs aligns with the country’s goal of reducing dependency on foreign manufacturers.
Divergent Views on Impact
While the capital infusion is seen as a positive step, some experts caution that the increased funding does not guarantee the completion of the 4G network rollout or substantial progress in providing 4G telephony access to Indians. Concerns arise as there is perceived saturation in the demand for 4G services at the onset of BSNL’s 4G network rollout.
