BSNL has staged a resurgence of late and is posing a tough challenge for private telecom giants, including Mukesh Ambani-led Reliance Jio and Sunil Mittal’s Bharti Airtel, India’s first and second largest telecom providers, respectively. According to government data, the state-owned provider, that once stood on the brink of bankruptcy, has turned profitable after 17 years, earning a profit of Rs 262 crore in the October-December quarter of the current financial year.
In a statement on Friday, Union Communications Minister Jyotiraditya Scindia informed that BSNL has turned a profit after nearly 17 years, registering a net profit of Rs 262 crore in the October-December quarter of FY-25. Hailing BSNL’s fiscal performance as a turning point for the company, Scindia said the state-owned telecom provider is focused on expanding its service offerings and customer base.
The minister noted that BSNL has witnessed marked improvements in several key areas, and registered a growth of 14-18 percent in mobile, fiber to the home (FTTH) and leased line service offerings. Additionally, BSNL has also added another 60 lakh new users to its subscribers tally, which stood at around 9 crore in December 2024, against 8.4 crore in June.
The last time BSNL had turned a quarterly profit was way back in 2007. The state-owned provider netted a profit of Rs 262 crore in the December quarter, with revenue from mobile services growing by 15 percent, FTTH revenue up by 18 percent and leased-line services revenue witnessing a 14 percent growth, according to the company’s quarterly results.
BSNL took some important measures which experts believe are a key reason for its revival. The public sector firm cut its financial costs and overall expenditure, resulting in its net loss declining by over Rs 1,800 crore, in comparison to the last financial year. During the last four year’s BSNL’s income before tax (EBITDA) has doubled from Rs 1,100 crore to about Rs 2,100 crore by FY 23-24.
Notably, both Mukesh Ambani-owned Jio, and Sunil Mittal-led Airtel had good quarterly results, with the latter netting a profit of Rs 14,781.2 crore, compared to Rs 3,593.2 crore in the same quarter last year, an increase of over 4 times. Similarly, Jio registered a profit of Rs 6,861 crore, a increase of 26 percent, in the December quarter.
BSNL is also planning to roll out its 5G network in select cities by the end of 2025. In a recent statement, the state-owned telecom provider said work on its 5G network is advancing at a rapid pace and trial phases are nearly complete, adding that its 5G rollout is focused on self-reliance, embodying the spirit of Prime Minister Narendra Modi’s ‘Aatmanirbhar Bharat’ initiative.
BSNL stated that most of its 4G sites across the country are ready for operational use and all of them will be activated soon, providing users with improved connectivity and faster internet access. BSNL has hired the Boston Consulting Group (BCG) for the strategic rollout of its nationwide 4G network.
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