Is BSNL ready for a comeback? Rs 77,000 crore, 2 lakh 4G sites, 5G mega push

BSNL is planning a Rs 77,000 crore network expansion that could add 2 lakh 4G sites, bring 5G to strategic areas and push the state-owned telecom operator towards break-even by 2028-29.

The state-owned telecom company plans to use the investment to establish around 2 lakh new 4G sites and introduce 5G services in strategically important areas.

The expansion is expected to help BSNL provide coverage to around 98% of areas across the country, strengthening its network presence as it competes with private telecom operators.

Break-even target moved forward

The Department of Telecommunications has indicated that BSNL is aiming to become operationally profitable by the 2028-29 financial year.

The target would bring forward the company's earlier break-even expectation of 2031-32. The proposed Rs 77,000 crore investment is planned separately from BSNL's existing revival package.

Despite the planned turnaround, BSNL continues to face financial pressure.

The company's loss increased to Rs 4,738 crore in 2025-26, compared with Rs 2,247 crore in the previous financial year. Its loss in the current financial year is projected to cross Rs 5,000 crore.

Operating revenue has also fallen short of the target set by the Department of Telecommunications. Against a target of Rs 28,476 crore, BSNL recorded operating revenue of Rs 21,199 crore.

High capital expenditure associated with network expansion has contributed to the increase in losses, even as operating revenue has been rising.

Government support has crossed Rs 3 lakh crore

The proposed investment comes after years of government support for BSNL's revival and modernisation.

Since 2019, the government has spent nearly Rs 3.2 lakh crore on various requirements linked to BSNL's revival, including the voluntary retirement scheme, 4G and 5G spectrum dues and merger-related expenses.

The latest investment plan is therefore aimed at expanding network capacity while accelerating BSNL's path towards financial sustainability.

BSNL remains behind private operators

As of June 2026, BSNL had around 2.29 crore wireless subscribers, giving it a market share of 7.3%.

Reliance Jio and Bharti Airtel together account for around 77% of the market, while Vodafone Idea has a 15% share.

BSNL remains the country's fourth-largest telecom operator. The expansion of its 4G network and planned 5G deployment are central to its efforts to regain market share.

The Rs 77,000 crore plan represents another major attempt to turn around BSNL after years of financial difficulties and technological challenges.

The immediate focus is network expansion. Deploying 2 lakh additional 4G sites could improve BSNL's coverage and service availability, particularly in areas where private operators have stronger networks.

The planned 5G rollout is also significant because private operators have already established large-scale 5G networks. BSNL's ability to compete will depend not only on coverage but also on network quality, capacity, pricing and the speed of deployment.

At the same time, the rising losses underline the financial challenge. The government is effectively investing heavily in infrastructure while seeking to move BSNL towards break-even earlier than previously projected.

The proposed expansion will therefore be closely watched as a test of whether sustained public investment can help BSNL strengthen its market position and become financially sustainable.