The Indian government has unveiled a ₹47,000 crore capital expenditure (capex) plan to bolster Bharat Sanchar Nigam Limited’s (BSNL) network, aiming to position the state-run telecom as a formidable competitor to Reliance Jio and Bharti Airtel. The Department of Telecom (DoT) announced the initiative on X, signaling a transformative phase for BSNL’s role in India’s digital ecosystem.

This follows BSNL’s record-breaking ₹25,000 crore investment last year, which facilitated the installation of 100,000 4G towers nationwide, a key milestone in its indigenous 4G rollout under the Atmanirbhar Bharat initiative. Union Telecom Minister Jyotiraditya Scindia, quoted by the DoT, highlighted that the new ₹47,000 crore plan will expand 4G coverage, enhance rural connectivity, and lay the foundation for 5G services, aligning with India’s vision for a self-reliant telecom sector.

The previous ₹25,000 crore project, executed primarily by Tata Consultancy Services (TCS) and a C-DoT-led consortium, showcased India’s capability to deploy homegrown telecom technology. This effort positioned India among a select few nations with an indigenous 4G network, reducing reliance on foreign vendors.

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During a recent review meeting, Scindia directed BSNL’s circle and business unit heads to drive aggressive growth, targeting a 50% increase in mobile service subscribers, a 25-30% rise in enterprise business, and a 15-20% growth in fixed-line services over the next year. He also emphasized boosting BSNL’s Average Revenue Per User (ARPU), which currently ranges from ₹40 to ₹175 across circles, significantly trailing Jio’s ₹208 and Airtel’s ₹250 for the June 2025 quarter. Improving customer satisfaction and expanding the subscriber base are key to closing this gap.

The ₹47,000 crore infusion will focus on modernizing infrastructure, enhancing service quality, and rolling out competitive offerings to attract customers in urban and rural markets. With private players dominating the telecom sector, BSNL’s revival is critical to ensuring affordable, accessible connectivity across India, particularly in underserved regions. This ambitious plan underscores the government’s commitment to strengthening BSNL as a pillar of India’s digital future.

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