New Delhi: State-owned telecom giant Bharat Sanchar Nigam Limited (BSNL) has reported a net profit of Rs 262 crore in the October-December quarter—the first time in 18 years. Minister of Communications Jyotiraditya Scindia informed the Rajya Sabha on Thursday that the company has also added 55 lakh new users in the past six months.

The minister highlighted that BSNL's turnaround is due to increased revenue and cost-cutting measures. In the October-December quarter of 2023-24, BSNL had recorded a loss of Rs 1,262 crore. However, this year, the same quarter showed a net profit of Rs 262 crore. Additionally, the company registered an operating profit of Rs 1,500 crore.

Strong customer growth in recent months

BSNL has seen a steady increase in its customer base, adding 55 lakh subscribers since June 2024. Scindia stated that the company’s total number of users has grown from 8.55 crore to 9.1 crore between June 2024 and February 2025.

What measures helped BSNL improve its performance?

The company’s revenue grew by 9 percent in the last quarter, while operational costs were reduced by 18 percent. These measures contributed to the telecom firm's EBITDA (earnings before interest, taxes, depreciation, and amortisation) tripling during this period. Scindia assured that BSNL is on the right track towards becoming a profitable and customer-focused company.

Rapid progress in 4G and 5G expansion

India has witnessed the fastest 5G rollout in the world, covering 99 percent of districts and 82 percent of the population within the past year. The prime minister has emphasised that BSNL’s 5G network will be developed using only indigenous technology. Scindia noted that India has joined Finland, Sweden, China, and South Korea as one of the few countries capable of manufacturing a complete 4G telecom network.

Why is BSNL still losing market share?

Despite improvements, BSNL continues to face challenges in maintaining market share. The minister explained that the company has not yet completed its target of deploying 1 lakh 4G towers. Currently, 73,326 towers are operational, covering approximately 73 percent of the target. The remaining towers are expected to be installed soon.

Upgrading telecom infrastructure in key regions

Scindia denied reports that militant groups in Manipur were using satellite equipment, stating that the devices found were non-functional. He also addressed the efforts to upgrade telecom infrastructure in Left-Wing Extremism (LWE) areas, mentioning that 2,343 towers have been earmarked for these regions, with work progressing rapidly. So far, 510 towers have been upgraded.

The Union Cabinet approved a Rs 26,316 crore project for expanding 4G services in uncovered villages. BSNL is executing the plan, which also includes upgrading existing 2G BTS sites to 4G. In addition, another project under LWE Phase-I aims to upgrade 2,343 existing 2G towers to 4G at an estimated cost of Rs 1,884.59 crore.

PTI