There was a time when Bharat Sanchar Nigam Limited (BSNL) was widely considered a sinking ship. The telecom giant had been grappling with financial troubles for over a decade. Since 2007, the company had consistently reported losses, leading to speculation about its potential privatization. Many believed that BSNL’s days were numbered. However, the latest financial results for the December quarter of the current fiscal year have proved the critics wrong. For the first time in 17 years, BSNL has posted a net profit of Rs 262 crore.
A Turning Point for BSNL
Union Communications Minister Jyotiraditya Scindia hailed this development as a pivotal moment for BSNL. He attributed the company’s turnaround to strategic expansion and enhanced service delivery. The minister noted that BSNL has achieved significant growth across its mobility, fiber-to-the-home (FTTH), and leased line services, recording an increase of 14-18% in these segments.
Scindia highlighted that the subscriber base also witnessed a notable rise. From 8.4 crore subscribers in June, the number surged to 9 crore by December. Reflecting on the achievement, he remarked, “BSNL has registered a quarterly profit for the first time since 2007. This marks a significant revival for the company.”
Key Factors Behind the Positive Shift
Revenue Growth and Cost Reduction
Several factors contributed to this financial revival. One of the primary drivers was an increase in revenue across BSNL’s core services:
- Mobility services revenue surged by 15%.
- FTTH services experienced an 18% revenue boost.
- Leased line services saw a 14% revenue rise.
Additionally, BSNL managed to cut down its financial expenses and overall operational costs. These cost-cutting measures resulted in a reduction of the company’s losses by Rs 1,800 crore compared to the previous year.
Introduction of New Services and 4G Expansion
BSNL also launched innovative services to attract customers and stay competitive in the rapidly evolving telecom market. Some of the notable initiatives include:
- National Wi-Fi roaming service
- BiTV, offering free entertainment for mobile subscribers
- IFTV, a new service tailored for FTTH users
- Introduction of private 5G connectivity in the mining sector
Focused Push for 4G Network Expansion
BSNL has also prioritized the expansion of its 4G network infrastructure. The company has made significant progress in this area:
- Out of a target of 1 lakh towers, 75,000 towers have already been installed.
- 60,000 of these towers are now operational.
- The company aims to make all 1 lakh towers fully functional by June 2025.
Future Outlook
Looking ahead, Minister Scindia expressed optimism about BSNL’s growth trajectory. He emphasized that the company is expected to further increase its annual revenue, maintain cost efficiency, and continue minimizing losses. Over the past four years, BSNL’s EBITDA has doubled to Rs 2,100 crore, signaling a robust financial recovery.
With its strengthened market position and expanding 4G network, BSNL is now charting a promising path toward future growth and improved service delivery. This turnaround story not only revitalizes the company but also reaffirms its critical role in India’s telecom sector.