The Centre has increased capital infusion in public owned telecom operator BSNL to ₹82,916 crore in the 2024-25 Budget. The capital infusion in the 2023-24 period was ₹52,937 crore.

Experts said that most of the ₹82,916 crore of capital expenditure could be in the form of allocation of 4G and 5G spectrum.

Last year the Cabinet approved a third revival package for BSNL with an outlay of ₹89,000 crore for allotment of 4G and 5G spectrum through equity infusion. The approval set the stage for the struggling telecom operator to launch 4G and eventually, 5G services. Part of this outlay is likely accounted for in the interim Budget.

Former BSNL Chairman and MD RK Upadhay welcomed this increase in capital infusion by the Centre: “Every year what allocation the government is for specific purposes. This years allocation is for network and spectrum costs. Broadly speaking, are we as a country to remain dependent foreign manufacturers, we also need to have our indigenous products. We need homegrown networks, and BSNL’s 4G rollout with TCS provides us that.”

Another expert noted however that increase in capital infusion does not necessarily mean that the rollout for the 4G network will be completed in the 2023-24 period or any tangible gains in giving Indians access to 4G telephony. “Such a large allocation of expenditure is bringing forth only notional gains, especially as there is a saturation in the demand for 4G services just as BSNL commences rolling out its 4G network.”

comment COMMENT NOW