BSNL Employees Allege Bias Towards Jio In Govt Projects

BSNL Employees Allege Bias Towards Jio In Govt Projects

SUMMARY

BSNL employees want the government to consider the state-run telco for mobile towers installation in Ladakh, border areas

Reliance Jio has been given the nod to set up seven towers in Nubra, 11 in Zanskar, 17 in Leh and 19 in Kargil

BSNL employees staged a nationwide protest last week demanding immediate rollout of 4G services

Employees of state-owned telco Bharat Sanchar Nigam Limited (BSNL) feel that the central government is favouring Mukesh Ambani-owned Reliance Jio in awarding state-funded projects to it, and denying opportunities to other players by creating an uneven playing field.

Jio was recently allocated INR 50K Cr worth government contract under the Universal Service Obligation Fund (USOF) to deploy 54 mobile towers in Ladakh’s rural areas. Moreover, impending restrictions on BSNL to extend telecom connectivity in the so-called left-wing extremism (LWE) affected villages are also denting the state-run telco’s already frail revenue numbers.

The BSNL employee union (BSNLEU) is asking the government to consider the public sector company for mobile towers installation in Ladakh and elsewhere in border areas.

BSNL, while having nearly 70K telecom towers and 7.6 Lakh Km of optical fibre (more than double of that of Jio) has less than half the customer base that Reliance Jio has. Jio has over 383 Mn telecom subscribers as per latest TRAI figures.

The state-owned BSNL might have superior reach in some remote parts of the country, but the cancellation of tenders coupled with lack of technological advancements has left the company years behind private players like Reliance Jio, Vodafone Idea and Airtel.

In terms of the regional breakdown, Reliance Jio has been given the nod to set up seven towers in Nubra, 11 in Zanskar, 17 in Leh and 19 in Kargil.

“It is important to note that the same government has blocked BSNL’s 4G tender, thus stopping BSNL from rolling out its 4G service. Everybody thinks that BSNL is a government service provider. Now, everyone has understood that Reliance Jio is the government service provider,” BSNLEU said in the release.

The BSNLEU staged a nationwide protest on June 26, 2020, demanding immediate rollout of 4G services and implementation of revival package along with other demands. In late 2019, the government announced an INR 69K Cr revival package for BSNL and MTNL, which also included the allotment of 4G spectrum to BSNL. However, even after months, the assurances offered in the package have not been granted. And since the company has been unable to launch 4G services for various reasons, it hasn’t been eligible for various bids such as the LWE project.

Also, following reports of clashes between the Indian and Chinese army, the telecom department was forced to impose a ban on Chinese telecom networking equipment company ZTE, which was one of the key equipment suppliers for BSNL, which has further added to the woes of the public-sector telecom carrier.

Since April this year, Reliance Jio Platforms has managed to raise over $15.2 Bn (INR 1.15 Lakh Cr) from a slew of global investors to prop up its multipronged digital services play. Jio Platforms raised investment from over nine other leading investors including Facebook, Silver Lake, General Atlantic, KKR, TPG Capital, Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, L Catterton and Vista Equity Partner

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

BSNL Employees Allege Bias Towards Jio In Govt Projects-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

BSNL Employees Allege Bias Towards Jio In Govt Projects-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

BSNL Employees Allege Bias Towards Jio In Govt Projects-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

BSNL Employees Allege Bias Towards Jio In Govt Projects-Inc42 Media
BSNL Employees Allege Bias Towards Jio In Govt Projects-Inc42 Media
You’re in Good company