BSNL Expecting 20% Revenue Rise Post 4G Launch Says CMD: Report

BSNL’s enterprise services is growing at a CAGR (compounded annual growth rate) of 10% and currently accounts for 20% of the overall revenues. The 4G sites of BSNL will be deployed in a mix of rural as well as urban areas for testing the network robustness across locations

Highlights

  • Bharat Sanchar Nigam Limited (BSNL) is highly anticipated to launch 4G networks later this year.
  • The state-run telco is expecting a 20% rise in revenues in the short to medium-term post the launch of 4G services in India.
  • BSNL’s enterprise services is growing at a CAGR (compounded annual growth rate) of 10% and currently accounts for 20% of the overall revenues.

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Bharat Sanchar Nigam Limited (BSNL) is highly anticipated to launch 4G networks later this year. The state-run telco is expecting a 20% rise in revenues in the short to medium-term post the launch of 4G services in India, PK Purwar, Chairman and Managing Director (CMD), BSNL, told ET Telecom.

Purwar confirmed that BSNL’s revenues would bump up by 20% because a significant number of customers will be added to the telco’s subscriber base once 4G services are launched. Between March 2023 and 2024, Purwar said that BSNL is expecting to have 50,000 4G sites across India.

BSNL Enterprise Services Contribute 20% of Overall Revenues for Now

BSNL’s enterprise services are growing at a CAGR (compounded annual growth rate) of 10% and currently account for 20% of the overall revenues.

Purwar told ET Telecom that BSNL is currently able to pay salaries to employees on time, and once 4G arrives, the state-run telco will become a good organisation to work with.

The 4G sites of BSNL will be deployed in a mix of rural as well as urban areas for testing the network robustness across locations, added the BSNL CMD.

BSNL was expected to make the order for 4G network equipment by April 2022. Hearing Purwar hints that things might be on track for BSNL to launch 4G within the desired time.

Purwar said that BSNL has tested the 4G solution in a lab environment and is now looking to test it in live conditions, and the order for equipment has been made keeping that in mind.

Much recently, news surfaced that the government is planning a merger of BSNL and BBNL (Bharat Broadband Network). Commenting on this, Purwar said that BBNL has a workforce of less than 200 and thus can be absorbed inside BSNL, and all the contracts and the revenue share agreements will be honoured.

BSNL is also expected to test 4G networks in four districts of Kerala in August 2022 and then a statewide rollout in December 2022.

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