Whalesbook
Bharat Sanchar Nigam Ltd (BSNL), India's state-owned telecom operator, is facing a critical issue with its newly deployed 4G towers. Thousands of these towers are transmitting signals at significantly lower power levels than required, leading to poor network performance such as frequent call drops and sluggish data speeds. BSNL's internal analysis reveals that over 132,000 cells are transmitting power below 35 dBm (approximately 3.16 watts), whereas the desired level is 46 dBm (40 watts). This discrepancy means the towers are emitting only a fraction of their intended signal strength, severely impacting coverage and service quality. The company has formally requested vendors Tata Consultancy Services (TCS) and Tejas Networks, responsible for the 4G network's indigenous technology stack, to investigate and rectify these signal strength problems. TCS and Tejas Networks stated that most of these issues have been resolved and do not impact the company's key performance indicators (KPIs). They also mentioned that the number of affected cells is very small and network optimization is a continuous process. Independent telecom analyst Parag Kar commented that if a significant number of sites are operating at substantially reduced power, it indicates a serious distress in the system, leading to a collapse in coverage and capacity. This problem arises at a crucial juncture for BSNL, which is undergoing a turnaround with substantial government support. The government has provided revival packages totaling ₹3.2 trillion since 2019, including ₹19,592 crore for 100,000 4G towers and ₹25,000 crore spent on their installation. Communications Minister Jyotiraditya Scindia has emphasized the non-negotiable aspect of service quality for BSNL. Despite improvements in subscriber numbers and revenue from its new 4G services, BSNL reported a wider net loss of ₹1,357 crore in the September quarter, attributed to increased operational and financial costs. BSNL lags significantly behind private competitors like Reliance Jio and Bharti Airtel in terms of network quality, speeds, and subscriber base. TRAI's drive tests have corroborated user complaints about BSNL's inferior performance.
Impact
This issue poses a significant challenge to BSNL's turnaround efforts and its ability to compete effectively with private players. It could erode customer trust and deter new subscribers if not resolved promptly and effectively. The government's investment in its revival is at risk if service quality remains poor. Rating: 8/10
Difficult Terms:
Transmission Signals: The waves or signals sent out by a mobile tower to communicate with mobile devices.
Call Drops: When a phone conversation is unexpectedly disconnected.
Data Speeds: How fast internet data can be downloaded or uploaded on a mobile device.
Turnaround: An effort to reverse a decline in a company's performance and make it profitable again.
Revival Packages: Financial aid or support provided by the government to help struggling state-owned companies recover.
Vendors: Companies that supply goods or services, in this case, the companies providing the 4G network equipment.
Key Performance Indicators (KPIs): Measurable values that demonstrate how effectively a company is achieving key business objectives.
Telecom Regulatory Authority of India (TRAI): The statutory body that regulates the telecommunications sector in India.
Tx (transmit) power levels: The strength of the signal being sent out by a transmitter, like a mobile tower. Lower power means a weaker signal.
Coverage footprint: The geographical area where a mobile network signal is available.
Latching difficulties: When a mobile device struggles to connect to the network signal.
Signal quality: The strength and clarity of the network signal received by a device.
Interference: Signals from other sources that disrupt or degrade the intended signal.
Data throughput: The amount of data that can be transmitted over a network connection in a given time.
Access: The ability to connect to and use a network or service.
Handover failure rates: When a mobile device fails to seamlessly transfer its connection from one cell tower to another as the user moves.
dBm (decibel-milliwatts): A logarithmic unit used to measure power levels, often used in telecommunications to express signal strength.
Watts: A standard unit of power. 1 watt = 1 joule per second. In telecom, higher watts generally mean a stronger signal.
Cell: A geographical area covered by a single mobile tower's transmission.
System Integrator: A company that combines sub-systems from different vendors into a larger system and ensures they work together.
Indigenous stack: Technology or equipment developed and manufactured within the country.
Ebitda (earnings before interest, taxes, depreciation, and amortization): A measure of a company's operating performance before accounting for non-operating expenses and non-cash charges.
Depreciation and amortization expenses: The costs associated with the decrease in value of tangible assets (depreciation) and intangible assets (amortization) over time.
Finance costs: The expenses incurred by a company for borrowing money, such as interest payments.