BSNL Faces Revenue Challenges in Multiple Circles

The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore, as per an official statement. The Cabinet's decision reflects its commitment to transforming BSNL into a stable telecom service provider focused on delivering seamless connectivity to even the most remote corners of India.

Highlights

  • State-owned telecom giant Bharat Sanchar Nigam Limited (BSNL) has encountered a setback in its revenue across several circles.
  • The revenue decline was most pronounced in Uttar Pradesh (West), with a substantial drop of 19% to Rs 327 crore.
  • BSNL's CMD PK Purwar has urged the chief general managers (CGMs) of the respective circles to take immediate action to reverse the trend.

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State-owned telecom giant Bharat Sanchar Nigam Limited (BSNL) has encountered a setback in its revenue across several circles, according to a report from by Financial Express. Despite witnessing a 14% growth in revenue from operations during the fiscal year 2022-23, BSNL experienced a decline in nine out of its 30 circles, including Andaman & Nicobar, Kerala, Gujarat, Chennai, Telangana, Karnataka, Jammu and Kashmir, Punjab, and Uttar Pradesh (West).




Among these circles, the revenue decline was most pronounced in Uttar Pradesh (West), with a substantial drop of 19% to Rs 327 crore. Punjab also saw a significant decrease of 12.5% to Rs 857 crore, while Kerala, known for its robust revenue generation, experienced a modest 2% decline to Rs 1,656 crore.

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To address the revenue slump, BSNL's CMD PK Purwar has urged the chief general managers (CGMs) of the respective circles to take immediate action to reverse the trend. The decline in revenue can be attributed to the loss of subscribers, primarily due to the unavailability of BSNL's 4G services.

In a significant development, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, recently approved a comprehensive third revival package for BSNL. With a total outlay of Rs 89,047 crore, this package includes the allocation of 4G/5G spectrum to BSNL through equity infusion.

The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore, as per an official statement. The Cabinet's decision reflects its commitment to transforming BSNL into a stable telecom service provider focused on delivering seamless connectivity to even the most remote corners of India.

As part of the revival plan, BSNL has secured spectrum in various bands, including the 700 MHz, 3300 MHz, 800 MHz, 26 GHz, and 2500 MHz bands. This spectrum allocation will enable BSNL to provide comprehensive 4G and 5G services across the nation, extend 4G coverage to rural and underserved areas, offer fixed wireless access (FWA) services, and support captive non-public networks (CNPN).

In addition, BSNL has taken a proactive step by issuing purchase orders to Tata Consultancy Services (TCS) and ITI Limited for the establishment of 1 lakh 4G sites. This move highlights BSNL's commitment to enhancing its infrastructure and expanding its network capabilities.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

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