BSNL Secures 5G Spectrum Worth ₹61,000 Crore: Trials Begin Ahead of Full Rollout

According to a media report, in a significant development for India’s state-owned telecom sector, the Department of Telecommunications (DoT) has allocated ₹61,000 crore worth of 5G spectrum to Bharat Sanchar Nigam Limited (BSNL). This allocation includes both premium 700MHz and mid-band 3300MHz spectrum, positioning BSNL to join the 5G race alongside private operators.

This move is seen as a major push by the government to revitalise BSNL and ensure broader access to next-generation telecom services across the country, particularly in underserved and rural regions.

BSNL Begins 5G Trials in Select Locations

Following the spectrum allocation, BSNL has commenced trial runs of its 5G network in select cities, including New Delhi. These trials are part of the company’s preparation for a broader commercial rollout, expected to begin with operational towers by June 2025.

The trial phase allows BSNL to test its infrastructure, address technical challenges, and fine-tune its service offerings before full-scale deployment.

Upgrade Path: From 4G to 5G

As part of its ongoing telecom infrastructure expansion, BSNL is in the process of installing over one lakh 4G towers nationwide. Of these, around 80,000 towers are already functional. These 4G sites are being prepared for an upgrade path to 5G, allowing for a smoother and cost-efficient transition once the 5G rollout commences.

This dual-layer strategy ensures that BSNL can quickly scale its 5G presence using its existing 4G footprint as a foundation.

Network-as-a-Service Model and Private Deployments

BSNL’s 5G rollout is being implemented through the Network-as-a-Service (NaaS) model, which allows it to collaborate with technology providers for deploying and managing the network efficiently. This model reduces the burden of owning and maintaining expensive infrastructure while speeding up deployment timelines.

Separately, private entities are also pushing forward with 5G deployments. For instance, Tidal Wave recently implemented a private 5G network for Coal India using the 3500MHz band. Such deployments highlight the growing demand for dedicated 5G solutions in enterprise and industrial settings.

Market Context: Competitive Landscape and User Trends

Currently, private telecom operators Airtel and Jio which is an integral part of Reliance Industries offer 5G services across most parts of the country, while Vodafone Idea (Vi) has started limited rollouts in cities like Mumbai, Bengaluru, and Delhi.

BSNL has reportedly witnessed a growth in user base, especially after tariff hikes by the three private operators in 2024. Offering competitively priced recharge plans with higher data allowances, BSNL continues to appeal to value-conscious consumers—a segment that may further expand as 5G services become more accessible.

Conclusion

The allocation of 5G spectrum to BSNL aligns with the broader vision of digital inclusivity and infrastructure modernisation. By enabling BSNL to enter the 5G space, the government ensures that telecom advancements are not confined to urban areas or dominated solely by private players.

As BSNL progresses with its trials and upgrades, the telecom sector may witness increased competition and innovation, potentially benefiting end-users through wider access and better pricing.

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