What Does 700 MHz Band Mean for BSNL?

Bharat Sanchar Nigam Limited (BSNL) has access to the 700 MHz spectrum in India. Apart from Jio, BSNL is the only telco to have this access. However, what does this mean for BSNL? To understand what it means for BSNL, first let's understand why the 700 MHz band is so crucial!

If you don't understand frequencies, worry not; you don't need to. The 700 MHz band is good for coverage but not much for speeds; that's all you need to know. The higher the frequency, the better the speed capacity, but the poorer the coverage, and vice versa. The 700 MHz band falls in the lower end of the frequency spectrum, while the higher ones used for mobile communications are 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and 3.5 GHz in India.

Why is 700 MHz Good for BSNL?

The 700 MHz band spectrum was priced very expensively by the government, and thus, the private telecom operators have skipped acquiring the band until Jio went all in and acquired 10 MHz in the 700 MHz band for all the Licensed Service Areas (LSAs). BSNL, of course, did not need to pay for the 700 MHz band like Jio did. The government simply bundled the pricey band for BSNL at no cost in the relief package.

Government Reservation for BSNL

Why did the government reserve the 700 MHz band for BSNL? Well, the answer is simple: BSNL can use it to offer extensive coverage with 4G and 5G. BSNL will utilize the 700 MHz band to provide 4G at a lower cost to customers in rural India. With this band, the distance at which cells or towers operate can be increased, meaning the infrastructure cost for setting up mobile networks will reduce for BSNL compared to using the 900 MHz band for coverage.

4G Rollout and Customer Growth

However, the 700 MHz band is not great for 4G or 5G speeds. But that's fine. The priority for BSNL is to roll out 4G and provide maximum coverage to its customers. This strategy allows BSNL to add new customers, as its 4G plans are the cheapest in the country, making it a good option for secondary SIMs.

Many users have already ported to BSNL when private telcos increased tariffs. This trend enabled BSNL to gain new users in the months of July and August 2024. However, to sustain this momentum, BSNL must expedite the rollout of high-speed internet services throughout the country.

This article is based on factual information; it is recommended to verify specific details as required. Image Source: My Sandesh via Bing Images.