How Modi govt's Atmanirbhar policy could have hobbled BSNL's efforts to catch up in 4G race

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New Delhi:Public sector telecom services provider BSNL has been unable to hold its ground against the private operators Reliance Jio, Bharti Airtel and Vodafone Idea despite the Centre pumping in over Rs 3 lakh crore into the telco since 2019 in the form of three revival packages...

However, this was mainly on account of the three private operators losing subscribers following tariff hikes..

Given the delays in the companys 4G launch, the Rashtriya Swayamsevak Sangh (RSS)-linked Bharatiya Mazdoor Sangh (BMS), which most BSNL employee unions are part of, had written a letter to Prime Minister Narendra Modi seeking a relaxation in the Atmanirbhar norms so that the company can launch 4G and 5G services by upgrading the current infrastructure using whatever hardware is available until swadeshi technology is developed...

Though we do understand the significance of Atmanirbhar Bharat in telecom and firmly support the idea but [sic] at the same time, we consider it paramount to allow BSNL to launch the services by allowing it to upgrade its existing infra till the time swadeshi technology is developed, the letter said, adding that the presence of BSNL as a full-fledged 4G and 5G telecom player is a must, not only in the interest of the nation and BSNL but also for the people...

Our expectation is that customers who are used to using a good coverage and experience of 4G, probably the current offering of BSNL may not be to that extent and people who may have taken a quick decision in terms of the tariffsmay most likely come back, he said.. Jefferies equity research also noted that while BSNL has made market share gains among both voice and data subscribers due to lower tariffs, it was unlikely to pose material risks given limited network investments..