New Delhi: State-run BSNL cannot compete with private telecom operators in the absence of 4G and 5G services, so there are no restrictions on mobile service providers to increase tariffs, the BSNL Employees Union said on Tuesday.
The BSNL Employees Union, in a letter to union communications minister Jyotiraditya Scindia, said the recent tariff hike by private telecom operators Reliance Jio and Bharti Airtel is unjustified as they are profitable companies.
"Earlier, due to competition from BSNL, private telecom service providers could not increase their tariffs capriciously. However, now the scenario has changed. BSNL has not been able to launch its 4G and 5G services till date, as a result of which prevents it from competing with private operators and therefore limiting their arbitrary rate increases," the letter said.
Recently, the three private operators announced an increase in mobile service rates in the range of 10 to 27 percent.
While the new tariff plans announced by Jio and Airtel have come into effect, the Vi hike will come into effect from July 4.
Jio increased tariffs after a gap of about two and a half years, while Airtel and Vi increased entry-level tariffs within a year and a half.
The union said the telecom operators' claim that the tariff hike was made to increase average revenue per user (ARPU) is misleading.
"There is absolutely no reason for private companies to increase their tariffs so drastically. It is important to note that Reliance Jio made a net profit of Rs 20,607 crore in 2023-24 and Airtel made a net profit of Rs 7,467 crore. during the same period, therefore, such a steep tariff increase, which will hurt the common people, is totally unjustified.
The union said that in the absence of 4G and 5G service, the state-owned company has been losing customers while private operators, Reliance Jio and Airtel, are gaining new customers.
BSNL EU said the government's decision to not allow BSNL to upgrade its existing BTS 3G to BTS 4G, by upgrading the software, as well as prohibiting the public sector undertaking from procuring 4G equipment from global vendors, has hurt the company.
"BSNL is prohibited from procuring standard 4G equipment from global vendors like Nokia, Ericsson and Samsung, on par with Reliance Jio and Airtel. Instead, BSNL is forced to procure its 4G equipment only from local equipment manufacturers, which has delayed largely BSNL's 4G as well as the launch of 5G services," the letter said.
The union said former telecom minister Ashwini Vaishnaw had said in May 2023 that BSNL would launch its 4G service in a few weeks and the same would be upgraded to 5G in December, but still the state-run company has not been able to launch the 4G service. . .
"We would like to sincerely appeal to you, sir, to kindly take prompt steps to ensure BSNL's 4G launch without delay. Also, timely upgrade of this 4G service to 5G would enable BSNL to protect the interests of the common people of this country due to rate increases by profit-hungry private telecommunications service providers," the union said.
According to government sources, BSNL has rolled out 4G services in Punjab using indigenously developed technology by a consortium led by IT firm TCS and telecom research organization C-DoT and has onboarded 8 lakh subscribers.
In May, the source shared that BSNL is gearing up to launch its much-awaited 4G services across India from August.
The BSNL Employees Union, in a letter to union communications minister Jyotiraditya Scindia, said the recent tariff hike by private telecom operators Reliance Jio and Bharti Airtel is unjustified as they are profitable companies.
"Earlier, due to competition from BSNL, private telecom service providers could not increase their tariffs capriciously. However, now the scenario has changed. BSNL has not been able to launch its 4G and 5G services till date, as a result of which prevents it from competing with private operators and therefore limiting their arbitrary rate increases," the letter said.
Recently, the three private operators announced an increase in mobile service rates in the range of 10 to 27 percent.
While the new tariff plans announced by Jio and Airtel have come into effect, the Vi hike will come into effect from July 4.
Jio increased tariffs after a gap of about two and a half years, while Airtel and Vi increased entry-level tariffs within a year and a half.
The union said the telecom operators' claim that the tariff hike was made to increase average revenue per user (ARPU) is misleading.
"There is absolutely no reason for private companies to increase their tariffs so drastically. It is important to note that Reliance Jio made a net profit of Rs 20,607 crore in 2023-24 and Airtel made a net profit of Rs 7,467 crore. during the same period, therefore, such a steep tariff increase, which will hurt the common people, is totally unjustified.
The union said that in the absence of 4G and 5G service, the state-owned company has been losing customers while private operators, Reliance Jio and Airtel, are gaining new customers.
BSNL EU said the government's decision to not allow BSNL to upgrade its existing BTS 3G to BTS 4G, by upgrading the software, as well as prohibiting the public sector undertaking from procuring 4G equipment from global vendors, has hurt the company.
"BSNL is prohibited from procuring standard 4G equipment from global vendors like Nokia, Ericsson and Samsung, on par with Reliance Jio and Airtel. Instead, BSNL is forced to procure its 4G equipment only from local equipment manufacturers, which has delayed largely BSNL's 4G as well as the launch of 5G services," the letter said.
The union said former telecom minister Ashwini Vaishnaw had said in May 2023 that BSNL would launch its 4G service in a few weeks and the same would be upgraded to 5G in December, but still the state-run company has not been able to launch the 4G service. . .
"We would like to sincerely appeal to you, sir, to kindly take prompt steps to ensure BSNL's 4G launch without delay. Also, timely upgrade of this 4G service to 5G would enable BSNL to protect the interests of the common people of this country due to rate increases by profit-hungry private telecommunications service providers," the union said.
According to government sources, BSNL has rolled out 4G services in Punjab using indigenously developed technology by a consortium led by IT firm TCS and telecom research organization C-DoT and has onboarded 8 lakh subscribers.
In May, the source shared that BSNL is gearing up to launch its much-awaited 4G services across India from August.
