Operating profit: BSNL sees a ray of hope

Pathanamthitta: Bharat Sanchar Nigam Limited (BSNL), the public sector company which had been incurring losses for years, has managed to report operating profits for two consecutive years. Although this year's financial data has not yet been released by the company, reports suggest improved financial performance compared to the previous two years.

In 2021–22, BSNL posted an operating profit of Rs 944 crore, followed by Rs 1559 crore in 2022–23.

The three revival packages introduced by the central government played a crucial role in BSNL's turnaround.

Out of the 1.63 lakh employees, 78559 opted for the voluntary retirement scheme (VRS), facilitated by the Rs 69000 crore allocation from the Centre. This led to significant expense reduction for BSNL, with salary expenses alone contributing to a 60 percent profit.

The second package provided Rs 1.64 lakh crore, which was utilized for acquiring 4G spectrum and renewing expired 2G licenses.

Under the third package, Rs 89047 crore was approved, enabling the acquisition of additional spectrums. BSNL has commenced offering 4G services using domestically developed technology and aims to provide 5G services in the near future.

Similarly, the introduction of the revolutionary FTTH (Fibre To the Home) has helped BSNL to revive from the financial losses it experienced until 2020–21.

Currently, the country has approximately 37 lakh connections. In Kerala, there are around 6 lakh connections, but every three months, a dip of 1 lakh mobile connections is observed.

With the introduction of 4G and 5G services, the company believes it can enhance the situation. With an increase in FTTH connections this year, it is estimated to achieve an operating profit of Rs 2000 crore.