State-run telecom operator Bharat Sanchar Nigam Limited plans to unveil cheaper tariff plans by the end of this year and launch full-fledged 4G services by March 2016 to take on private players including Mukesh Ambani-owned Reliance Jio Infocomm.
"We will launch competitive tariff plans to match Reliance Jio and other private telecom service providers' pricing, be it 4G or 3G, by the end of this year," BSNL chairman-cum-managing director Anupam Shrivastava told ET.
BSNL will close watch Jio, which has announced launch of 4G services by the end of the year, and it will use airwaves in 2500 Mhz band to launch competitively priced 4G services at select locations before the end of current fiscal, Shrivastava said.
Jio, in addition to pan-India BWA spectrum in 2300 MHz band, has acquired airwaves in 800MHz and 1800MHz in the recently-concluded auctions. Ambani had earlier announced that the company will launch services around December at tariffs ranging from Rs 300 to Rs 500 per month.
Shrivastava further said, "We are taking Wi-Fi route for our 4G services and also talking to telecom operators for spectrum sharing."
Wi-Fi technology connects through 2G or 3G network and acts as a 4G hotspot to delivers high-speed data services to consumers.
"We have spectrum in 2.5 Ghz across 15 Licensed Service Areas (LSAs) in the country and we are planning to launch 4G services by the end of the current fiscal year," the BSNL top executive said.
BSNL's discussions with Russia's MTS India arm, which has spectrum in 800 MHz band, have however not materialized, Shrivastava said.
The state-run operator is also evaluating device-bundling options for 4G services and is currently in talks with various device manufacturers for consumer-friendly schemes.
"We compete with each other and share infrastructure with Reliance Jio as well. In today's scenario, it should not be seen as a competition as the objective is to serve consumers," Shrivastava said.
In 2014, Jio had entered into a pact with BSNL for telecom infrastructure sharing and is currently using the state-run operator's 4,000 mobile towers.
As a part of its revival strategy, BSNL, which has the largest 3G footprint in the country, is looking at aggressive marketing plans and also boosting broadband internet speed of all data plans staring at Rs 545 to 2 Mbps from October 1.
It has recently started free night calling facility between 9 pm and 7 am to all operators and free incoming on roaming, which, according to the company, is helping in growing its subscriber base.
BSNL is the only operator to offer free incoming calls while roaming, Shrivastava said.
He said the company added 16 lakh new customers in July and 15 lakh in August due to mobile number portability.