BSNL bailout: On revival and 4G launch, employees have fingers crossed

The first question Mahadev Adasul would often hear from new acquaintances was about his salary: did he receive it on time? Nowadays that query is not on people’s mind. Salary delays, too, are no longer an issue with Bharat Sanchar Nigam Limited (BSNL).

“Tough times are behind us,” says Adasul, general secretary in the Sanchar Nigam Executives Association (SNEA).

But a turnaround has proved elusive, prompting the Union cabinet to unveil a second revival package in three years.

The Rs 1.64 trillion package, unveiled on Wednesday, includes a mix of financial support, debt restructuring, viability gap funding and administrative allotment of spectrum that will help the telecom service firm to de-stress its balance sheet, improve landline network and launch 4G service. The government hopes with these measures BSNL will turn profitable on a net basis in 2026-27.

Employees of BSNL are happy that the government is supporting the organisation. But they have their apprehensions, too.

“On paper the new package looks very good. The viability gap funding will also help the company to clear vendor payments and use revenue for maintenance,” says K Sebastin, former general secretary of SNEA. “But we know that the 2019 revival plan (of Rs 69,000 crore) could not be fully implemented. Asset monetisation for clearing debts is stuck and 4G spectrum allocation and roll out of 4G service has not happened till now,” he adds.

Under the latest revival plan, the government will allot BSNL 900/1800 MHz of spectrum on an administrative basis at a cost of Rs 44,993 crore. “With this spectrum, BSNL will be able to compete in the market and provide high-speed data using their vast network including in the rural areas,” the Department of Telecommunications said in its press release.

BSNL will commission home-grown 4G technology that is being developed by the Tata Consultancy Services. Several rounds of testing have been done and indigenous 4G stack has been integrated with BSNL network during trials. Discussions are on between the two sides for its commercial deployment.

The government has thrown its weight behind the development and launch of indigenous 4G network. A limited 4G launch, too, has been proposed on August 15.

But employee associations have their fears. “Indigenous 4G technology is still in a proof of concept stage. It is not yet fully tested. Our fear is that 4G implementation will be delayed. A successful 4G rollout is crucial for BSNL’s revival as it will lead to business and revenue growth,” Sebastin says.

The government’s intention in promoting indigenous 4G technology for domestic and export purposes is good, says Adasul, while adding, “We welcome it but the government should ensure that the development is fast-tracked. BSNL should not be made to pay the price for delays.”

The government, he says, has realised the vital importance of the telecom sector after the Covid-19 pandemic. “Both the government and employees want to save BSNL,” Adasul adds. While BSNL is still in 3G mode and rivals are preparing to launch the latest 5G services, employees fear the company has missed the bus the second time.

BSNL Employees Union General Secretary P Abhimanyu says it is disappointing that the government has disallowed BSNL to upgrade its existing equipment for the launch of the 4G service. “Had this upgradation been allowed, BSNL could have launched 4G on a pan-India basis two years back,” the employees union said in a press release. Abhimanyu also questions why BSNL has been singled out to purchase indigenously developed equipment when no such mandate has been imposed on the telecom sector as a whole.