BSNL encouraged to seek foreign partnerships to fill tech gap
By MYBRANDBOOK
A Parliamentary committee has recommended that Bharat Sanchar Nigam Limited (BSNL) consider forming partnerships with international technology providers to address challenges in deploying its indigenous 4G technology. BSNL had highlighted concerns in its submission to the Committee on Public Undertakings, noting that the technology it is using, while developed and manufactured locally, is still in the testing phase and faces hurdles due to its complexity and limited global availability.
In its report tabled in the Lok Sabha on December 18, the panel urged BSNL to adopt a multi-pronged approach. This includes strengthening collaborations with Indian tech developers and global experts to accelerate the testing and enhancement of the indigenous technology. Furthermore, the committee advised that BSNL explore temporary partnerships with foreign tech providers to integrate their solutions, bridging the technology gap until the domestic technology matures.
Regarding the disparity in investments, the panel was informed that while Reliance Jio has invested nearly Rs 4 lakh crore over the past five years, BSNL has only invested Rs 8,000 crore, highlighting a significant funding gap. BSNL explained that the government’s financial package has contributed largely in the form of assets rather than direct cash flow. The package, totalling over Rs 2 lakh crore, includes funds for spectrum purchases, dues settlement, and employee VRS, with only Rs 21,000 crore in cash disbursements.
The committee noted that BSNL’s survival and operations have heavily relied on government support, especially since 2020. It emphasized the need for BSNL to reduce its dependency on government aid by improving operational efficiency, diversifying revenue sources, and making strategic investments in infrastructure and technology for long-term sustainability.
To ensure the effective use of the funds, the panel recommended that BSNL closely track capital expenditure (CAPEX) and funding utilization. Additionally, it suggested implementing an audit mechanism through the controlling Ministry to ensure that the investments contribute to improving BSNL’s network infrastructure and service quality, ultimately helping the company achieve its long-term goals.
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