BSNL collaborates with Vodafone, to achieve 4G synergy

Since BSNL has no 4G, a collaboration with Vodafone Idea in a pan-India roaming act will prove to be beneficial for its customers as it will provide the users with a high-speed data network. This pact is regarded to be the first step towards a synergy between a government-owned network and a private operator.

BSNL is a state-owned mobile network, also known for directing Mahanagar Telephone Nigam Limited (MTNL) in Delhi and Mumbai metropolitans. It is said to achieve a 4G network, which by far has been dragged to a lot of controversies in its initial process of formulation and implementing resources.

In a report by ETTelecom Aftab Ahmed Khan, president of Sanchar Nigam Executives Association said, “There is a need to have a synergy between the two telecom service providers. Since BSNL have no 4G, it may be a better option to have a pan-India roaming agreement with Vodafone Idea so that our subscribers can latch onto its high-speed data network.” This pact is regarded to be the first step towards a synergy between a government-owned network and a private operator.

It has been reported that in June this year, industrialist Kumar Mangalam Birla stated in a letter to the Cabinet Secretary Rajiv Gauba to hand over the ABG’s 27.66% stake in Vodafone Idea (VIL) to a government sector, which shall help the company to overcome a collapse.

Commenting on this, Ravi Shil Verma said, “Collaboration between the two companies (BSNL and VIL) can be created at least to capture a sizable market share.”

Verma added that BSNL can act as a backbone for VIL, and cooperation between the two organisations will be of utmost importance to keep the companies up and running.

On the other hand, Khan raised concerns regarding the debt liabilities of both companies, adding further that support or a possible relief package by the government could be of great help for the companies.

BSNL has the accountability of about Rs 22,000 crores at while the Centre recently supplied a sovereign assure of Rs 8,500 crores to elevate the loan burden. It seems that Rs 1.5 lakh crore is owed to the authorities, by Vodafone Idea, which protected deferred spectrum payment and changed gross sales (AGR) dues.

During March this year, an intervention to expedite the Economic establishment of BSNL 4G services as requested by a BSNL institution to the PMO, through the ongoing network to facilitate up-gradation and accelerate the revival of the existing telecom.

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