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Home Lead Story

BSNL’s Downward Spiral: A State-Owned Giant’s Failure to Deliver on Digital India’s Promise

by NS
December 17, 2025
in Lead Story
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By Suresh Unnithan

Thiruvananthapuram: In the quiet village of Thalavoor in Kollam district, Kerala, a journalist working from home faces a daily battle that many rural Indians know all too well. Armed with a BSN L FTTH broadband connection and a BSNL mobile line, he logs in to file stories, only to be thwarted by relentless connectivity interruptions, dropped calls, and sluggish internet speeds. Despite a nearby rural exchange, complaints fall on deaf ears. Even escalating the issue to the Minister of Communications, Jyotiraditya Scindia, yields no response. This isn’t an isolated anecdote—it’s a symptom of a broader malaise plaguing Bharat Sanchar Nigam Limited (BSNL), the state-owned telecom behemoth that’s supposed to be a cornerstone of Prime Minister Narendra Modi’s ambitious Digital India initiative. Instead, BSNL’s chronic underperformance is not only frustrating millions of customers but also inadvertently bolstering private rivals like Airtel and Mukesh Ambai owned Jio, raising uncomfortable questions about the competence of its leadership and the government’s oversight.

Launched in 2015, Digital India aimed to transform the nation into a digitally empowered society, bridging the urban-rural divide through affordable, reliable connectivity. BSNL, as a public sector undertaking (PSU), was envisioned as a key player in this vision—providing low-cost services to underserved areas where private operators might hesitate to invest. Yet, a decade later, BSNL’s trajectory tells a story of missed opportunities, bureaucratic inertia, and outright neglect. Financially, the company has shown flickers of recovery: it posted a profit after 18 years in FY2025, with revenues climbing 8% to serve 90.7 million mobile users. Under Minister Scindia’s watch, BSNL achieved 93% of its Q2 FY2025-26 revenue target, raking in ₹5,347 crore, and its average revenue per user (ARPU) rose 12% to ₹91. The rollout of indigenous 4G technology, in partnership with firms like Tejas Networks, has seen over 97,000 sites installed, with plans for a swift upgrade to 5G. These milestones, often highlighted in government press releases and ministerial reviews, paint a picture of revival.

But scratch beneath the surface, and the reality is far grimmer. BSNL’s 4G network, touted as a “game-changer,” is riddled with technical glitches. Internal analyses reveal that over 132,000 cells are transmitting power below optimal levels (less than 35 dBm), leading to weak signals, frequent call drops, and abysmal data speeds. In rural areas, where BSNL should shine, coverage remains patchy. Take Kerala, for instance: despite claims of 98% 4G coverage, users report persistent outages and “no service” zones, even in areas with nearby towers. A Reddit user described their BSNL SIM ceasing to function entirely upon entering Kerala, with manual network selection yielding no results. Social media platforms like X (formerly Twitter) are flooded with similar grievances: “BSNL 4G services are very poor. Network is often down, call drops are frequent,” laments one user. Another from Bengaluru complains of unreliable service despite proximity to urban infrastructure. These aren’t anomalies; Downdetector reports consistent out ages across India, with users in places like Ernakulam, Kerala, facing total blackouts.

The human cost is palpable. In Thalavoor, the journalist’s productivity suffers, emblematic of how BSNL’s failures hinder remote work, online education, and e-governance—core pillars of Digital India. Farmers in rural Kerala rely on stable internet for market prices and subsidies; students need it for virtual classes. When BSNL falters, these essential services grind to a halt, widening the digital divide rather than closing it. A Quora discussion highlights BSNL’s outdated systems in rural Bastar, where it’s the sole provider but fails to upgrade, leaving communities isolated.

This poor performance has triggered a customer exodus, compelling users to migrate to private operators. While BSNL briefly gained traction after tariff hikes by Jio and Airtel in mid-2024—adding over 5 million subscribers through mobile number portability (MNP)—the tide has turned. By November 2025, BSNL lost 3.4 lakh users as migration slowed, with many returning to Jio and Airtel due to BSNL’s inferior network quality. Retailers report port-outs from BSNL, citing unresolved issues like slow speeds and call drops. In Saharsa, Bihar, BSNL’s broadband speeds hover below 2 Mbps on 100 Mbps plans, driving 25,000+ users to competitors. Jio, meanwhile, lost 7.9 lakh users in one month but retains dominance through superior reliability. BSNL’s aggressive pricing, like a ₹1 Diwali plan, has been labeled “predatory” by rivals, but it hasn’t stemmed the bleed. Publicly funded to serve the masses, BSNL’s mismanagement is effectively subsidising private players’ growth.

At the heart of this dysfunction lies the senior management, including Chairman and Managing Director (CMD) Pravin Kumar Purwar, and Minister Jyotiraditya Scindia. Scindia, who assumed the communications portfolio in 2024, has defended BSNL amid parliamentary criticism, touting its “tangible signs of recovery” and 4G progresses. He chairs quarterly reviews, stressing “daily monitoring of service quality” and a “seven-point roadmap” for efficiency. Yet, these pronouncements ring hollow against the backdrop of ignored customer pleas. Users on X report complaints being closed without resolution: “Closing complaints without resolution,” fumes one. Another: “Multiple complaints filed but BSNL closes docket without resolving”. In UP West, a user laments “no action despite multiple complaints”. Scindia’s ministry has been accused of “blatant disregard,” with BSNL’s customer service excelling only in ignoring issues.

This apathy borders on negligence. The CMD and senior executives seem detached from ground realities, prioritizing metrics like site installations over actual user experience. Scindia’s call for a “culture of execution” is undermined by persistent vendor issues with TCS and Tejas Networks, where weak transmission woes persist despite flags. Critics argue this leadership vacuum torpedoes Digital India, making a mockery of PM Modi’s “Sabka Saath, Sabka Vikas” slogan. How can a minister who urges “uncompromising focus on quality” oversee a system where rural exchanges in places like Thalavoor fail to act?

The public whispers a more sinister question: Are BSNL’s leaders acting as unwitting—or deliberate—agents for private operators? By allowing service quality to deteriorate, they’re paving the way for Airtel and Jio to dominate. BSNL’s market share has eroded from pre-2008 highs, as it lagged in upgrades while rivals surged. Government revival packages—infusing billions—have yielded mixed results, with indigenous tech fuelling some progress but not enough to compete. Conspiracy theories aside, the outcome is the same: public funds prop up a failing entity that funnels customers to profit-driven giants, undermining fair competition.

The ripple effects extend to PM Modi’s popularity. As the cabinet’s head, Modi is the ultimate guardian of PSUs like BSNL. Digital India, his flagship program, hinges on reliable telecom infrastructure. When BSNL falters, it erodes trust in government initiatives. Rural voters, key to Modi’s base, feel the pinch most acutely—frustrated by poor connectivity that hampers access to schemes like Skill India or e-governance portals. Opposition parties seize on this, as seen in parliamentary debates where Scindia faced heat over BSNL’s turnaround. A 2025 analysis notes BSNL’s decline impacts overall telecom growth, questioning the government’s ability to deliver on promises.

To salvage BSNL, urgent reforms are needed: transparent grievance redressal, accelerated 5G rollout, and accountability for executives. Scindia must move beyond reviews to enforce daily oversight. The CMD should prioritize customer feedback over vanity metrics. Without this, BSNL risks becoming a relic, dooming Digital India to remain a dream deferred.

In Thalavoor and beyond, customers deserve better. It’s time for BSNL’s leadership to wake up—or step aside.

NS

NS

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