Everything You Should Know About BSNL's Rise And Fall

Despite the fact that all the private telecom players are offering 4G services in the country, state-run operator BSNL is struggling to get the 4G spectrum. This means that BSNL is eight years behind in terms of offering 4G services to its customers, which is affecting its subscriber base.

On the other hand, a four-year-old telecom operator Reliance Jio is waiting for government approval to test 5G networks, while both Airtel and Vodafone-Idea are joining hands with Nokia, Ericsson, and Qualcomm for the same. This clearly shows that BSNL will miss the 5G bus too. So, now the question arises here that what exactly went wrong with Bharat Sanchar Nigam Limited and why its financial condition has been deteriorating.

BSNL Going Through Rough Times: Details

BSNL has started its operations on October 1st, 2020. It was the most profitable PSU until 2008, but it reported its first loss during the financial year 2009-2010. The downfall of the operator started in the same period due to intense competition and lack of network capacity.

In fact, telecom experts believe that Reliance Jio, Airtel, and Vodafone-Idea and rigid rules are actually affecting the BSNL financial health. "Every time a tender was floated; the tender was rejected by the government. If this was the position that you don't let the company play and when the company fails then you don't support the company and then the easiest way is to just kill the company," said SD Sinha was quoted by Financial Express Online.

This shows why BSNL is under a deep financial crisis and losing its market and subscriber base against private players. In fact, the company is sitting on Rs. 39,089 crore loss. "BSNL has informed that its total accumulated loss during the current financial year, that is, 2019-20 (up to December 31, 2019) is Rs. 39,089 crores," Minister of State for Telecommunications Sanjay Dhotre has said in a Parliament.

Additionally, there were reports that said that before announcing the revival package for the operator the government was planning to shut down the company as it is not making any profit. But last year in October the government has made several announcements to revive the sick PSU.