The Union Cabinet has approved an additional Rs 6,000 crore for Bharat Sanchar Nigam (BSNL) to support its 4G expansion. The funding, approved during Cabinet meeting on the 07 February, 2025 aims to address the shortfall in BSNL's planned capital expenditure, including for its subsidiary Mahanagar Telephone Nigam (MTNL).

BSNL plans to roll out 4G services nationwide, aiming to minimise user attrition. The company also intends to launch 5G services at select locations soon. In 2023, BSNL placed a Rs 19,000 crore advance purchase order for 1,00,000 4G sites. However, the actual order for network gear was reduced to Rs 13,000 crore when placed with Tata Consultancy Services and ITI. The additional Rs 6,000 crore funding approved now will cover the remaining cost.

BSNL has already deployed 65,000 4G sites. Since 2019, the government has invested approx. Rs 3.22 lakh crore in BSNL and MTNL through three revival packages, including funding for 4G rollout. As a result, BSNL-MTNL has started earning operating profits since FY 2020-21. The government mandated that BSNL deploy a locally developed 4G stack from the CDoT-TCS combine. 

The Union Cabinet has approved an additional funding support of Rs 6,000 crore for BSNL for its 4G expansion. The funds will be utilised to fulfil a shortfall in planned capital expenditure by BSNL and its Mahanagar Telephone Nigam subsidiary. BSNL plans to launch 5G soon at select locations.