The employee union of state-run telecommunications firm BSNL has urged the government to leverage Vodafone Idea’s infrastructure to offer 4G services in India, aiming to enhance competitiveness against private counterparts.
In a letter dated February 13 addressed to Telecom Minister Ashwini Vaishnaw, P Abhimanyu, General Secretary of the Bharat Sanchar Nigam Limited Employee Union (BSNLEU), highlighted the significant customer churn BSNL is experiencing due to the absence of high-speed 4G data services.
Abhimanyu emphasized the government’s role as the largest shareholder in Vi, proposing that BSNL should be granted immediate access to Vi’s 4G network to cater to its customers. He stressed that this arrangement should be temporary until BSNL’s own 4G network, being commissioned by TCS, becomes operational, which, according to him, would help prevent further customer losses and contribute to BSNL’s prompt revival.
Following the conversion of Vi’s AGR arrears into equity in February 2023, the Government of India holds a 33.1 percent stake in Vodafone Idea Limited. Vi is jointly owned by the UK’s Vodafone Plc and India’s Aditya Birla Group, with a combined ownership of 50.4 percent.
Despite financial challenges, Vodafone Idea is yet to introduce its 5G services in India. The telco announced on January 30 that it would require 6-7 months to roll out 5G services post securing funding, with ongoing discussions with potential investors.
As of October 31, 2023, BSNL held an 8.08 percent share in the mobile subscriber market, but it witnessed a consistent decline, losing 21.4 million subscribers over 22 consecutive months, reducing its user base to 92.87 million.
Previously, BSNL had projected the launch of its pan-India 4G service by October 2024. However, the employee union secretary disclosed a recent meeting with BSNL’s management in Ahmedabad, indicating a revised launch date of December 2024. Delays in the delivery and installation of 4G equipment by TCS were cited as the primary reason behind this setback, with concerns raised about further potential delays in the commissioning of BSNL’s 4G network.
