TRAI Chairman: BSNL and Vodafone Idea Showing Positive Signs
BSNL and Vodafone Idea Show Positive Signs: TRAI Chairman
NEW DELHI: Bharat Sanchar Nigam Limited (BSNL) and Vodafone Idea (Vi) have begun showing positive developments after resolving infrastructure and financial issues, stated a senior official from the Telecom Regulatory Authority of India (TRAI) on Friday.
During a panel discussion at an industry event, TRAI Chairman Anil Kumar Lahoti highlighted that Reliance Jio and Bharti Airtel have successfully rolled out their 5G networks across all licensed service areas (LSAs).
“We currently have almost four telecom players in the country. Two of them, Reliance Jio and Bharti Airtel, have deployed 5G in nearly all LSAs. The other two, BSNL and Vodafone Idea, despite facing infrastructure and financial challenges, are also showing positive signs,” said Lahoti.
The Chairman noted that the government has provided financial support of nearly Rs 3.2 lakh crore to BSNL in various tranches to help revive the telecom PSU and position it as a competitive industry player. This funding is in addition to previous revival packages, which included Rs 1.64 lakh crore in 2022 and Rs 69,000 crore in 2019.
BSNL is expected to start rolling out its nationwide 4G network from August, with a Tata Consultancy Services (TCS)-led consortium deploying the indigenous telecom stack, making the network upgradable to 5G in the future. Last year, BSNL implemented the Centre for Development of Telematics (C-DoT)’s 4G Core in Punjab.
Regarding Vodafone Idea’s recent Rs 18,000 crore follow-on public offer (FPO), Lahoti noted that the industry and public have shown confidence in the company, which is now on a recovery path. “This is a good sign for India. Having four healthy players benefits consumers and the industry’s overall health,” he added.
In a recent meeting with analysts, Vi’s leadership mentioned that proceeds from the FPO and a proposed Rs 25,000 crore debt funding will be used to upgrade its network and reduce subscriber losses. Vi plans to allocate over 70% of the Rs 45,000 crore it aims to raise for capital expenditure, with more than Rs 12,000 crore from the FPO dedicated to 4G expansion and 5G rollout, including Rs 5,720 crore specifically for 5G.
