The department of telecommunications (DoT) has projected state-owned Bharat Sanchar Nigam (BSNL) to turn profitable in FY27 with a profit of Rs 558 crore. The projections are based on the potential increase in revenues expected in the coming years with the launch of 4G and 5G services.
For FY27, DoT it has projected the company’s revenues at Rs 33,553 crore, an increase of 73.5% from the revenue of Rs 19,344 crore in FY24.
Besides focusing on the 4G and 5G launch, the government is also looking at modernisation and upgrading of infrastructure of BSNL to shore up its revenue, as per the information shared by DoT with the Standing Committee on communications and information technology.
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In FY24, BSNL narrowed its net loss to Rs 5,367 crore from Rs 8,161 crore in FY23 on the back of lower expenses, especially finance cost, and higher non-operating income.
For FY25 and FY26, the company’s losses are estimated at Rs 5,064 crore and Rs 3,154 crore, respectively, as per DoT’s estimates shared with the parliament panel.
For FY25 and FY26, the company has revenue targets of Rs 24,428 crore and Rs 28,476 crore, respectively. The financial targets have been set by the government as part of the Rs 3.2-lakh-crore revival package.
BSNL is deploying 4G and 5G networks using indigenous technology. So far, the company has deployed over 50,000 4G sites, which are upgradable to 5G.
Even as the government is expediting BSNL’s 4G and 5G launch, it also shared some of the challenges faced by the company. Stiff competition in the market, limited availability of 4G service on pan-India basis, decline in demand for landline telephones, and slow growth of enterprise business for BSNL have been highlighted by the DoT.
“Since indigenous 4G equipment are being used for the first time in BSNL’s network, stability and performance of the network in live environment with provision of all features on a par with the private operators with 5G services is a big challenge,” DoT said, adding that there are also challenges for land monetisation.
In its recommendations, the parliament committee said BSNL’s ability to successfully deploy 4G and transition to 5G will depend on the speed at which infrastructure is set up and operationalised.
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