Bharat Sanchar Nigam Limited (BSNL) has posted a stupendous financial benchmark by achieving a profit of Rs 262 crore in the third quarter of the ongoing financial year. The achievement is the first profitable quarter by the state-run telecom operator after 2007, bringing to an end the 17-year losing streak.
The dramatic turnaround has been ascribed to effective customer acquisition campaigns, massive network expansion plans, and effective cost-cutting steps by the company management.
While making an official announcement, A. Robert J. Ravi, Chairman and Managing Director, of BSNL, was satisfied with the performance of the company and said, “We are pleased with our financial performance this quarter, which reflects our focus on innovation, customer satisfaction, and aggressive network expansion. With these efforts, we expect revenue growth to improve, exceeding 20% by the end of the financial year.”
BSNL Returns to Profitability, Demonstrating Long-Term Sustainability
Ravi pointed out that this Rs 262 crore profit is the comeback and long-term sustainability potential of BSNL in India’s competitive telecom landscape. He noted that the company has managed to cut its finance costs and total expenses, which led to a decline in losses by more than Rs 1,800 crore during the corresponding period last year.
The financial report shows spectacular growth in different service segments. Mobility services revenue grew by 15%, whereas Fiber-to-the-Home (FTTH) revenue grew by 18%. Leased Line services revenue grew by 14% as compared to the third quarter of the last financial year.
BSNL has been continuously augmenting its service offerings to refine customer experience and retention. Some of the recent additions include National WiFi Roaming, which makes WiFi networks across the country easily accessible to customers. The company has also launched “BiTV – Free Entertainment for All Mobile Customers” and “IFTV for All FTTH Customers,” augmenting the bouquet of digital content offerings.
“Our relentless drive for Quality of Service and Service Assurance has further strengthened customer confidence and re-established BSNL as a leading telecom service provider in India,” Ravi added in the release.
In the future, BSNL will continue to focus on maintaining its competitive edge through various strategy projects. The company continues to focus on service excellence as it readies itself for the inevitable transition to 5G technology. Ongoing digital transformation initiatives are expected to further enhance operational efficiency and customer satisfaction.
BSNL Returns to Profitability
The company released a statement announcing, “This financial turnaround is a testament to BSNL’s commitment to delivering high-quality, affordable telecom services while catalyzing India’s digital growth. The company remains committed to enhancing service delivery, expanding customers, and advancing the Digital India and Atmanirbhar Bharat vision.”
The positive financial performance coincides with BSNL being given increased government support. The Union Cabinet approved a financial package of around Rs 6,000 crore earlier this month to accelerate the 4G network rollout of both BSNL and MTNL. The investment will enable the deployment of around one lakh (100,000) 4G sites, significantly enhancing network quality and connectivity for customers across the nation.
Industry observers note that BSNL’s return to profitability is a milestone for the state-run telecommunication company, which had been hit hard by intense competition from private sector operators like Reliance Jio, Bharti Airtel, and Vodafone Idea over the past decade.
The ability of the company to keep up with evolving market trends on the strength of its huge infrastructure and government support has been key to this financial revival.
India’s telecommunication sector continues to grow at a rapid rate, with demand for high-speed data services increasing, particularly in semi-urban and rural segments where BSNL has traditionally had a strong market share.
By focusing on network roll-out in these segments and introducing competitive tariff offers, BSNL appears to be regaining its market share while facilitating the government’s digital inclusion goal.
As the company continues with its expansion drive and service offerings, industry analysts will closely watch if this quarter’s profit is the beginning of a long-term financial revival for one of India’s oldest telecommunication service providers.
