BSNL seeks govt’s nod for upgrading 3G sites to 4G

Struggling to compete with non-public telcos within the absence of 4G companies, state-run BSNL has approached the federal government for upgrading its 2G/3G gear in south and west zones, in order that 4G companies in these areas could be launched in 3-Four months.

The corporate’s transfer in search of authorities’s nod comes after the proposal to improve the community was deferred by the federal government’s nominees on its board at its board assembly on July 23.

The federal government nominee administrators have raised issues concerning security-related points.

Majority of BSNL’s community has been rolled out by two distributors — Nokia and ZTE.

However since ZTE is a Chinese language firm and has not registered with the competent authority, BSNL can’t place an order on it for any upgradation.

BSNL being a state-run agency has to comply with the revised Basic Monetary Guidelines (GFR), which bar Chinese language companies’ participation in public tenders, except registered with the competent authority.

However an order could be positioned on Nokia for upgrading 13,533 websites in south and west zones, which can price Rs 567.35 crore.

The telco has additionally secured a one-time exemption from Nationwide Safety Council Secretariat (NSCS) for upgradation of 2G/3G websites to 4G by Nokia.

The approval from the federal government is essential for BSNL’s survival as its pan-India 4G community by home companies can’t be rolled out earlier than 18-20 months in the perfect case situation.

The rollout perhaps delayed additional if the trials by the home companies can’t be accomplished by October this 12 months.

Dealing with a grim scenario, BSNL CMD PK Purwar has written to telecom secretary Anshu Prakash requesting him to supply appropriate steering to the federal government administrators on its board to provide their consent to the upgradation proposal st the corporate’s subsequent board assembly, that’s prone to be held later this month.

“That is probably the most cost-effective approach of 4G companies growth and can save a whole bunch of crores of capex. All the train of upgradation could be accomplished inside a shortest timeframe of 3-Four months with out disturbance to the prevailing community and companies,” Purwar stated within the letter, a replica of which has been seen by Monetary Categorical.

It have to be talked about that BSNL has been mandated by the federal government to utilise ‘home core or Indian core’ in its community for increasing 4G companies.

Accordingly, BSNL floated a young for procurement of 50,000 websites with native core and letter of intent has already been issued to 5 distributors together with TCS, Tech Mahindra, HFCL, L&T and ITI. The trials for testing the home core are underneath progress.

However as rolling out community with home core will take a minimal of 18-20 months, the corporate needs to improve its websites in south and west zones, in order that 4G companies could be launched on the earliest.

“The proposed upgradation is sporadic in nature and that too restricted to south and west zones. South zone of BSNL alone is contributing about 40% to the income generated from cellular companies,” Purwar stated.

The CMD additional stated within the period of information companies, BSNL cellular subscribers are dealing with bandwidth points which has resulted in big churn of subscribers resulting from non-availability of 4G companies.

“In case upgradation to 4G doesn’t occur, it can trigger extreme and irreparable loss to BSNL’s buyer base completely,” the letter stated.

As a part of the revival plan, BSNL has been, in precept, allotted 5 MHz extra spectrum to launch 4G companies on pan-India foundation however resulting from lack of kit, BSNL couldn’t proceed past the 4G spectrum allotment. News Logged