Use only indigenous tech in 4G, 5G roll-outs: Vaishnaw to BSNL brass

Asks them to increase mobile subscriber base to 200 million

In a stern message to the Bharat Sanchar Nigam (BSNL) brass, Communciations Minister Ashwini Vaishnaw has made it clear that the public sector telecom firm will have no choice but to use “only and only technology developed in India” for its 4G and 5G rollouts, and anyone having “loyalty” for others should either forget them and move forward or leave the company.

Vaishnav, who last weekend had a no holds barred meeting with chief general managers and other employees of BSNL, according to sources, gave them a target to more than double BSNL’s mobile subscriber base to 200 million via both 4G and 5G services. He also made it clear that work on the 5G rollout should happen "parallel"   with the 4G rollout and once C-Dot is ready with 5G technology, the company should start integrating 5G radios on the network with 4G.

The meeting with BSNL executives was convened just days after the government announced a second turnaround package of Rs 1.64 trillion. The package includes an infusion of fresh capital, allocation of spectrum, and de-stressing the balance sheet, besides merging Bharat Broadband Nigam into BSNL to augment its fibre capacity. 

Vaishnaw justified the package by saying that BSNL has become a financially stable company and is making operational profits with a market share of 10 per cent.

Vaishnav’s big push towards “Atmanirbhar Bharat” has to be seen against the backdrop that in the 3G space, the bulk of the network contracts of BSNL went to ZTE of China, Nokia, and Ericsson. Many of these players have dues pending with the company even now.

While Chinese firms are not being allowed to be part of the Indian 5G equipment market, other telecom gearmakers, including Samsung, have very little or no exposure to BSNL now (as it did not give any 4G orders); they concentrated on the private sector market in 4G. The central government decision shall help domestic equipment companies, such as Tejas Network, VVDN, and HFCL, and software companies like TCS and Tech Mahindra as integrators to have a bigger role in the 5G play.

Vaishnaw has also set a stiff target for the BSNL brass on subscribers. As on May 31, 2022, BSNL had 72.3 million subscribers, accounting for 9.85 per cent of India’s total subscriber base. If MTNL is added, the count reaches around 100 million. With the overall mobile market growing slowly, achieving a 20 per cent market share, according to analysts, appears to be a tall order because BSNL is way behind the race at a time when others are looking to launch 5G services.

Vaishnaw made it clear to the 62,000 employees of the cash-strapped telco that the government is infusing money into BSNL because it is part of a strategic sector and it is a strategic PSU in which only “trusted make in India technology will be used”.

He said there could be challenges while using indigenous technologies but with a majority of BSNL employees being engineers, they will have to work on them and come up with better versions “This is how engineers are trained in their colleges,” he added.

Vaishnaw pointed out that key performance indicators (KPIs) would be reviewed by him every month. He suggested KPIs should not include three to four criteria, so that there is clarity and that seniors give clear targets to their team members.

The minister also made it clear that employees have now to either “perform or perish.” Employees who cannot perform can go for the voluntary retirement scheme and if they have any doubt, the government has the option of 56(J) of the Fundamental Rules via which a government can compulsory retire government officials prematurely. He pointed out that it has already been used in the Railways and now it will be implemented in BSNL, too.  

On Minister’s Agenda

• Launch 5G, alongside 4G, once C-Dot is ready with technology 
• KPIs and other targets should be spread down the line to teams who should also have clear targets 
• Minister to  review  KPIs once a month
• Non performers to be given VRS or compulsorily retired prematurely