BSNL to Launch 4G and 5G Ready SIM Platform, Enhancing User Flexibility

Team Finance Saathi

    10/Aug/2024

Key Points:

4G and 5G Ready SIM Platform: BSNL will soon introduce a new SIM platform that supports 4G and 5G, enabling users to select their mobile numbers and replace SIMs without geographical limits.

Government Revival Packages: The Indian government has provided three revival packages totaling ₹2.58 lakh crore to BSNL, aiming to stabilize and upgrade the telecom service provider.

Debt Reduction and Operational Profit: Following the revival packages, BSNL has reduced its total debt from ₹32,944 crore to ₹22,289 crore and started earning operating profits since FY 2021-22.

On August 10, 2024, the Department of Telecommunications announced that Bharat Sanchar Nigam Limited (BSNL) is set to roll out a 4G and 5G ready SIM platform. This new initiative will significantly enhance user experience by allowing subscribers to choose their mobile numbers and replace their SIM cards without any geographical restrictions. The platform will support both over-the-air (OTA) and Universal SIM (USIM) functionalities, aligning with the latest technological advancements in mobile communication.

The rollout of this new SIM platform is part of a broader effort to rejuvenate BSNL, a government-owned telecom provider that has faced significant financial challenges over recent years. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a substantial revival package for BSNL last year. This third revival package, valued at ₹89,047 crore, is aimed at stabilizing and modernizing BSNL's operations. It includes crucial elements such as the allocation of 4G/5G spectrum and an increase in authorized capital from ₹1,50,000 crore to ₹2,10,000 crore.

The government's support for BSNL has been multi-faceted, with three major revival packages approved to date. The first revival package, introduced in 2019, amounted to ₹69,000 crore. This package was designed to stabilize BSNL and MTNL, providing financial backing and operational support to improve their performance.

In 2022, the government approved a second revival package totaling ₹1.64 lakh crore. This package included provisions for capital expenditure (capex), viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of Adjusted Gross Revenue (AGR) dues, and the merger of Bharat Broadband Network Limited (BBNL) with BSNL. These measures were intended to strengthen BSNL's financial position and operational capacity.

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As a result of these revival efforts, BSNL has shown promising signs of recovery. The company has been earning operating profits since FY 2021-22, marking a significant turnaround from its previous financial struggles. Additionally, BSNL's total debt has been reduced from ₹32,944 crore to ₹22,289 crore, reflecting improved financial health and operational efficiency.

The introduction of the 4G and 5G ready SIM platform is expected to further bolster BSNL's market position and enhance its service offerings. The ability to offer advanced mobile connectivity options will likely attract more customers and improve overall user satisfaction. This move aligns with BSNL's strategy to stay competitive in the rapidly evolving telecom sector.

In summary, the rollout of BSNL's new SIM platform is a significant step in the company's ongoing efforts to modernize and revitalize its operations. Supported by substantial government intervention and revival packages, BSNL is working towards overcoming its financial challenges and enhancing its service capabilities. The introduction of 4G and 5G compatible SIMs is expected to play a crucial role in this revitalization process, offering users more flexibility and improved connectivity options.

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