Bharat Sanchar Nigam Limited (BSNL) has received tenders for providing 4G services in 14 circles where BSNL recently has a surplus bandwidth.
BSNL has divided 14 circles into 6 zones and is receiving bids for these zones on a non-exclusive and revenue-sharing franchise model. The minimum revenue share that they wish is 50% and no single party can control over more than 3 zones, according to the report. The last date decided by the company for the tender is June 28.
BSNL operates 20MHz in the 2.5GHz band and already provides WiMAX supported services in these zones. BSNL contends that they are making this in a bid to provide better and true services to their customers who uses their network for data connectivity. The second reason behind this is that many companies showed their interest for offering 4G services.
BSNL said that there were sown interests by companies to launch 4G on behalf of BSNL. The private companies will market the services while utilising BSNL network. The model will help them to decrease cost or capital expenditure and rise subscribers for them.
Analysts also said in an explanation that the switch to 4G is very important for the action of BSNL, which is already seeing behind the leading telecommunication providers. Last year, the revenue share of BSNL is recorded to have increment by 4.16% to Rs. 28.645 crore and BSNL wishes to get profitable till 2020. It had a profit of Rs. 672 crore during the last financial calculation through March 2015.
The company was established in 2000 and is recently the largest provider of fixed-line and broadband services. It also becomes the sixth largest telecom provider in India till date.
In January, the company calculated the speed of 35Mbps during the launch in Chandigarh. BSNL will be the most recent entrant in the 4G provider telcos, which has seemed in action currently with the top mobile operators starting services in the various circles.