BSNL is expected to turn profitable by FY27, says the government. Now, compared to the revenue target in FY23, the government has increased the revenue targets for the coming financial years significantly. The state-run telco is expected to leave FY23 with revenues of about Rs 17,000 crore. But in the coming financial years, the government has set a revenue target of Rs 20,008 crore (FY24), Rs 24,428 crore (FY25) and Rs 28,746 crore (FY26), respectively.
According to a Financial Express report, in a letter to all the CGMs, BSNL CMD P K Purwar wrote, "The financial year 2022-23 is drawing to a close and even while we carry out all year-end activities, I urge you to start preparing on a war footing for the year that lies ahead. FY 2023-24 will be a challenging year as there is a 17% jump in the revenue targets in the MoU (memorandum of understanding) with DoT (Department of Telecommunications)."
Read More - India’s 5G Rollout is Super Impressive
BSNL is expecting a rise in revenues as it launches 4G in several parts of the country in the coming years. The state-run telco is still majorly providing legacy network services to consumers. BSNL could become an attractive option for consumers as it would offer more affordable 4G data services once the telcos increase the tariffs.
BSNL is riding on the Rs 1.64 lakh crore revival package announced by the centre in 2022. The revival package is meant to help the company get back on track and be able to turn profitable within the next five years. BSNL will be using homegrown technology to roll out 4G. The state-run telco is using the kind of technology that can also be upgraded to 5G in the future. If BSNL's 4G is a hit, BSNL would definitely be able to improve financial performance and give competition to the private telecom operators in the country.