Net profitability is ultimate measure of turnaround for BSNL: Panel on PSUs

Business Standard

a day ago

The committee on public undertakings has asked Bharat Sanchar Nigam Limited (BSNL) and the ministry of communications to speed up the pace of achieving profitability at the net level, while also ensuring that the target of setting up 100,000 4G sites by June 2025 and subsequent 5G launch are met.
'While BSNL has made progress in operational efficiency and revenue stabilisation, it continues to post substantial net losses. The committee, therefore, strongly recommends that BSNL, with active oversight from DoT, establish a clear and time-bound roadmap to convert its operational gains and positive Ebitda into net profit,' the committee said, adding that the ultimate measure of a successful turnaround was achieving net profitability.
BSNL's revenue from operations has shown a declining trend from ₹22,668 crore in 2017-18 to ₹16,809 crore in 2021-22, with a slight recovery to ₹19,128 crore in 2022-23. However, losses continued with a net loss of ₹8,162 crore in 2022-23.
BSNL had informed the committee that 83,993 4G sites had been deployed as of March 2025, of which 74,521 were live. Another 22,215 4G sites were planned under the expansion phase.
In response to the committee's suggestion of having a clear roadmap for 5G launch, the ministry said that the number four telco by customers was considering non-standalone architecture or NSA as well as standalone architecture or SA, for providing 5G services and had issued a tender for 5G as a service in Delhi zone in December 2024. The decision to change from NSA with upgradation of existing 4G core to 5G SA was taken considering the maturity of 5G related specifications.
The committee suggested that DoT should seek a one-time exemption or a phased implementation plan from the Ministry of Finance, for BSNL employees, since the CPSE did not qualify for the third pay revision guidelines as per Department of Public Enterprises (DPE) guidelines since it was a loss making CPSE since 2009-10.
This was the reason that superannuation contribution was not increased, but the government said that revision of allowances can be examined after revision of pay under 3rd PRC based on affordability.
The committee noted that prolonged stagnation in pay and benefits can severely impact employee morale and motivation, which was counterproductive to BSNL's revival efforts.
As a means to increase customer retention and reduce customer complaints, the committee sought a detailed action plan, including specific timelines and technological upgrades, aimed at proactively reducing complaint volumes and significantly improving the average resolution time to meet higher benchmarks.
The government apprised the committee that monetisation target assigned by Cabinet was ₹ 1,000 crore per year effective from 2026-27 which includes sale of land parcels and rental income, which the telco was aiming to achieve.
'BSNL is having its agreements with all TSPS viz. RJIL, Airtel and Vi. BSNL is further approaching entities like Prasar Bharti and other service providers like ISPs, PMRTS etc. for leasing out the BSNL towers infrastructure for extension of their services and testing new technologies etc. to increase number of leased out towers,' the government said in the response to suggestions for monetisation of assets at a wider level and faster clip.
'BSNL has already signed an agreement for 5G commercials with Reliance Jio and is in process of reaching an agreement with Airtel and Vodafone Idea for extending 5G services through leased towers of BSNL,' the ministry of communications said.