Bharat Sanchar Nigam Limited (BSNL) is a state-owned telecommunications company in India. It was formed on October 1, 2000, as a result of the corporatization of the Department of Telecom (DoT) Services and the Department of Telecom Operations.
The History and Growth of BSNL
History of Telecommunications in India
The roots of BSNL can be traced back to the British era when the foundation of the telecom network in India was laid. The British East India Company established the first telegraph line in 1850 between Kolkata (erstwhile Calcutta) and Diamond Harbour.
Formation of BSNL
The formation of BSNL marked a significant milestone in the history of telecommunications in India. The company was incorporated on October 1, 2000, and took over the business of providing telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO).
Early Years
BSNL was initially known as CellOne for its GSM mobile services and Excel for its postpaid services. The company launched its consumer mobility business under the brand name BSNL Mobile in 2007.
Role in Telecom Sector
The formation of BSNL was a strategic move by the government to transform the telecom sector in India. The company was expected to play a vital role in the development of the telecom infrastructure in the country and provide affordable telecom services to the masses.
Challenges and Revival Efforts
Over the years, BSNL has faced several challenges, including intense competition from private players, financial difficulties, and technological obsolescence.
The government has taken several measures to revive the company, including the allocation of 4G spectrum, the initiation of a Voluntary Retirement Scheme (VRS) for employees, and the amalgamation of BSNL with Mahanagar Telephone Nigam Limited (MTNL) to enhance operational efficiency.
Bharat Sanchar Nigam Limited (BSNL) has been facing significant challenges in recent years. The company’s struggles can be attributed to several factors, including intense competition from private players, financial difficulties, and technological obsolescence.
- Intense Competition: BSNL has been facing intense competition from private telecom companies like Reliance Jio, Bharti Airtel, and Vodafone Idea. These companies have been able to offer competitive pricing and innovative services, which has led to a decline in BSNL’s market share. The entry of Reliance Jio in 2016, with its aggressive pricing strategy, has particularly affected BSNL’s subscriber base.
2. Financial Difficulties: BSNL has been facing financial difficulties for several years. The company has been posting losses since 2010, and its debt has been increasing. As of 2022, the company had a debt of Rs 13,000 crore. The financial situation has been exacerbated by the company’s inability to upgrade its network to 4G at a pace that could have allowed it to compete with private players.
3. Technological Obsolescence: BSNL has been slow to upgrade its network to 4G, which has put it at a disadvantage compared to private players who have already rolled out 4G services. The company has also been slow to adopt new technologies and innovations, which has affected its competitiveness.
BSNL Back in the Competition?
BSNL has been struggling to compete with private players due to its inability to launch 4G and 5G services. However, with the increase in tariffs by Jio and Airtel, BSNL’s more affordable plans could attract customers who are looking for cost-effective options.
For example, BSNL offers a Rs 139 plan with unlimited calling, which is significantly cheaper than the minimum recharge plans of Jio and Airtel, which are now priced at Rs 189 and Rs 155 respectively. This could make BSNL an attractive option for customers who are looking to save on their mobile bills.
However, for BSNL to make a successful comeback, it will need to address its other issues such as network quality and customer service. The company has been facing criticism for its poor network coverage and slow internet speeds. It will also need to improve its customer service to retain and attract customers.
Conclusion
In conclusion, BSNL was formed as a result of the corporatization of the Department of Telecom (DoT) Services and the Department of Telecom Operations. The company has played a significant role in the development of the telecom sector in India and has introduced several innovative services to cater to the needs of its customers.
However, BSNL has faced several challenges in recent years, and the government has taken several measures to revive the company.
