BSNL will soon be launching 4G services in 14 telecom circles. Previously, BSNL soft launched 4G services in Chandigarh. With its 20 MHz liberalized spectrum in 2,500 MHz band the Company is exploring the use of either the revenue sharing model or the capex model method for its 4G rollout.
However, there are higher chances of using the revenue share model according to a BSNL official who cited that the company will not incur expenditure because the vendor will endure much of the investment required. Besides, the installation of the 4G base tower stations (BTS) will be done in the existing GSM sites.
The capex model is somewhat costly regarding procurement and integration cost.
But what about the availability of the device ecosystem for 2,500 MHz band which the company says will enhance the roll out since it does not have licensing hurdles? Well, the justification of availability is that various reputable companies the likes of Apple, Motorola, Lenovo and Nokia are already availed a sufficient number of 4G handsets in the market.
BSNL becomes the latest entrant in the 4G space whose active action was previously in the hands of top mobile operators the likes of Bharti Airtel, Vodafone and Idea Cellular. The three are already giving services to various circles. And to intensify the already competitive market, word has it that Reliance Jio Infocomm also has plans to launch its 4G services soon.
Nevertheless, BSNL has not revealed its timeline for the launch which seems practicable and commercially remunerative. The company has already paid out a whopping Rs 8,313.80 crore for 2,500 MHz spectrum in all its intended service areas. It is now in its final analysis of decision making before taking a final call on the rollout.
But even with the immense consideration of using the revenue share model, BSNL says that the capex model could also be instigated but on an experimental basis and in select cities of one circle.