BSNL to shut down 3G, end legacy vendor contracts for better 4G

As part of a broader effort to cut costs, Bharat Sanchar Nigam Ltd (BSNL) will shut down its 3G mobile services nationwide. The state-owned telecom operator also plans to terminate annual maintenance contracts (AMCs) with vendors such as Nokia and Chinese equipment maker ZTE for the 3G sites, according to two officials familiar with the matter and letters seen by Mint.The move comes as the state-run telecom operator focuses on its 4G network, having currently installed 97,481 4G towers across the country.

“Keeping in view the above progress on 4G Network, circle heads are hereby authorized to shut down the 3G services wherever feasible in their areas,” the telecom operator said in a letter on 10 December to chief general managers of all circles. A copy of the letter was also marked to Tata Consultancy Services (TCS), which has rolled out indigenous 4G for the telecom operator.Analysts believe the move could impact BSNL users who currently have 3G SIM cards and rely on the older handsets.BSNL currently has 58,919 3G sites out of a total 229,278 tower sites across the country as of March end, according to its FY25 annual report.

The company serves around 5,863 towns and cities under 3G, as per the report. As of September-end, BSNL has 92.2 million total mobile subscribers, according to data from the Telecom Regulatory Authority of India.

Of these, 22 million users are on 4G, while the remaining users are on 2G and 3G, according to a government release in September. Notably, a large number of the remaining users are on 2G, which remains BSNL's mainstay and is expected to be maintained alongside newer technologies.One of the reasons for BSNL to move away from 3G is to use the existing 2100 MHz spectrum completely for 4G.