- BSNL has proposed a capital investment plan of around ₹77,000 crore over the next five years to set up 200,000 additional 4G sites and roll out 5G in strategic areas.
- The Department of Telecommunications (DoT) informed the parliamentary committee that BSNL is projected to achieve operational breakeven by FY29 and 98% nationwide coverage.
- A parliamentary panel has recommended pausing additional expenditure until a decision on infrastructure-sharing with Vodafone Idea is finalized, but DoT has objected, stating it could slow down necessary upgrades.
- In FY2024-25, BSNL incurred its largest capital expenditure of ₹26,022 crore, primarily focused on 4G network rollout and network expansion.
- BSNL's losses widened to ₹4,738 crore in FY26, attributed to increased depreciation from the large capital expenditure.
BSNL has unveiled a ₹77,000 crore investment plan over the next five years, targeting the establishment of 200,000 new 4G sites and the rollout of 5G services in high-traffic areas. This ambitious initiative aims to achieve 98% nationwide coverage and operational breakeven by FY29.2
Despite the potential for growth, BSNL faces significant financial challenges. The company's losses escalated to ₹4,738 crore in FY26, prompting a parliamentary panel to urge the operator to prioritize cost control and focus on high-revenue services such as enterprise solutions. The panel suggested that BSNL pause its large spending until partnerships with other telecom operators, like Vodafone Idea, are finalized to share infrastructure costs.34
The Department of Telecommunications (DoT) has indicated that the proposed capital infusion will also enhance customer support systems and is part of a broader revival strategy that has already seen ₹26,022 crore spent in FY25, marking the largest capex in BSNL's history. This investment primarily focused on 4G network expansion and infrastructure modernization.
While revenue from operations has shown a gradual increase—from ₹19,131 crore in FY23 to a projected ₹26,407 crore in FY27—the overall financial health of BSNL remains precarious, with losses expected to widen to ₹5,946 crore in FY27. The DoT has emphasized the need for BSNL to undertake a comprehensive expenditure rationalization exercise to ensure sustainable growth and profitability.
In light of these challenges, experts like Satya N. Gupta have suggested that BSNL explore alternative funding avenues, such as land monetization and converting its properties into data centers, to enhance accountability and maximize returns on investment.
“The plan follows BSNL's largest-ever capex of ₹26,022 crore in FY25, which widened losses to ₹4,738 crore in FY26 due to higher depreciation. DoT also informed the panel of a ₹21,588 crore capital infusion increase for FY2026-27 under the revival package.”
Communications Today
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