Analysts say the road to BSNL's resurrection is difficult

17 Aug 2022 , 09:07 AM

With the Rs1.64 lakh crore package, the state-run Bharat Sanchar Nigam Ltd (BSNL) may have received a lift, but analysts and former business executives told ET that the road to its resuscitation is difficult because the loss-making telecom remains far behind rivals in the private sector.

The announcement of the rescue plan for struggling BSNL came as private telecom companies were getting ready to roll out next-generation 5G services, but BSNL was yet to introduce 4G mobile services.

Due to the lack of 4G services, BSNL has already lost a significant number of subscribers to private telecom carriers over the past few years. At the end of May, it owned less than 10% of the market, which was being led by Reliance Jio with about 36%. Bharti Airtel, which came in second, held close to 32% of the market, while cash-strapped Vodafone Idea held close to 23%.

However, the government has stated that BSNL must meet deadlines that would be strictly enforced. Ashwini Vaishnaw, the minister of communications, recently gave the company's employees the ultimatum to "perform or perish," signalling that the government would do everything in its power to ensure BSNL's survival.