Public sector telecom company Bharat Sanchar Nigam Ltd (BSNL)’s losses have come down sharply in the last financial year (2023-24). The company’s records stated that it has come down from Rs 8,161.56 crore in 2022-23 to Rs 5,370.73 crore.

The loss for the last January-March quarter also narrowed to Rs 848.89 crore from Rs 2,696.13 crore in the corresponding quarter last year.

The figures submitted to Parliament by the central government also stated that profit after tax and interest etc. (EBITDA/EBITDA) was Rs 2,164 crore last year. This is 38.8 percent more than the previous year.

Union Minister of State for Telecom Pemmasani Chandrasekhar said in the Lok Sabha that BSNL and MTNL have started earning operating profit on the strength of the rescue package granted by the Center from 2020-21.

Soon to 4G

A year has passed since private companies Jio and Airtel introduced 5G services. Vodafone Idea (Vee), which currently offers 4G services, is also preparing to enter 5G.

BSNL is still providing 3G service. Non-availability of 4G and 5G services also led to user churn. However, BSNL has been blessed with a recent steep hike in recharge rates by private companies up to 25 percent.

After the rate hike, two and a half lakh people switched to BSNL from other companies using the Mobile Number Portability (MNP) system.

BSNL is in progress to provide 4G service across the country. Indigenous 4G technology will be used as part of Atmanirbhar campaign. It can also be upgraded to 5G technology later.

Central government as rescuers

The Center announced the rescue package in 2019 to revive the public sector telecom companies that were in crisis due to user churn, lack of capital and mounting losses. It was a Rs 69,000 crore revival package for BSNL and MTNL.

A rescue package of Rs 1.64 lakh crore has also been sanctioned in 2022. It was aimed at securing capital and debt restructuring. In 2023, 4G and 5G spectrum worth Rs 89,000 crore has also been allotted.

In the Union Budget presented by Union Finance Minister Nirmala Sitharaman yesterday, out of the total allocation of Rs 1.28 lakh crore for the Telecom Ministry, Rs 82,916 crore has been allocated to BSNL and MTNL. This amount is for technology upgradation and operational restructuring. The government is in the process of handing over the operations of MTNL to BSNL soon.

MTNL is a public sector telecom company serving Mumbai and Delhi. And BSNL elsewhere in the country. With the takeover of MTNL’s operations, BSNL will also have presence in Mumbai and Delhi.

With this, MTNL may fall. MTNL employees may be given Self Retirement Benefit (VRS) or transferred as employees of BSNL.