BSNL cuts debt by 42 per cent in three years, grows user base; yet to roll out 4G, 5G services

As per the official data, BSNL’s debt has decreased from Rs 40,400 crore as of March 31, 2022, to Rs 23,297 crore by March 31, 2024.
BSNL cuts debt by 42 per cent in three years, grows user base; yet to roll out 4G, 5G services
Updated on
2 min read

NEW DELHI: State-owned telecom service provider Bharat Sanchar Nigam Limited (BSNL) has made a significant progress in reducing its debt over the past three years.

As per the official data, BSNL’s debt has decreased from Rs 40,400 crore as of March 31, 2022, to Rs 23,297 crore by March 31, 2024. In the previous year, the company’s debt stood at Rs 28,092 crore as of March 31, 2023. On the financial front, BSNL has narrowed its net loss to Rs 2,785 crore for the April-September 2024 period, compared to a loss of Rs 2,951 crore in the same period the previous year. For FY25 and FY26, BSNL has set revenue targets of Rs 24,428 crore and Rs 28,476 crore, respectively.

In addition to reducing its debt, for the first time in years, the company has seen an increase in its subscriber base. According to the Telecom Regulatory Authority of India (TRAI), BSNL added 8 lakh new subscribers in September 2024, bringing its total subscriber base to 91.89 million, with a market share of 7.98%. The telco added 2.5 million new subscribers in August 2024 and 2.94 million in July 2024.

However, BSNL is yet to fully roll out its commercial 4G and 5G services. As per the company, it had placed orders for indigenously developed 4G sites for nationwide deployment. The supply of 4G equipment began in September 2023, and as of October 31, 2024, a total of 50,708 4G sites have been installed, with 41,957 sites already operational. The 4G equipment is also designed to be upgradable to 5G.

For its 5G rollout, BSNL has issued a tender inviting original equipment manufacturers (OEMs) to deploy indigenous fifth-generation (5G) services in the Delhi circle, covering 1,876 sites. BSNL plans to implement 5G services under a “Network as a Service” model, with a revenue-sharing arrangement in place for the selected bidder.

BSNL’s recovery has been supported by multiple government-backed revival packages. In 2019, a Rs 69,000 crore package was announced to reduce operating costs of BSNL/MTNL.

Debt fell to Rs 23,297 crore in March 2024

BSNL’s debt fell from Rs 40,400 crore as of March 31, 2022, to Rs 23,297 crore by March 31, 2024. In the previous year, debt stood at Rs 28,092 crore as of March 31, 2023. BSNL narrowed net loss to Rs 2,785 crore for Q2FY25 against a loss of Rs 2,951 crore in Q2FY24.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com