BSNL Makes Significant Strides in Q1 FY24, Trimming Loss to Rs 1,470 Crore

In a promising development, Bharat Sanchar Nigam Limited (BSNL) reported a substantial reduction in its loss, trimming it down to Rs 1,470 crore during the first quarter of FY24. However, this positive news comes with a noteworthy decline in the telco's overall revenues. BSNL witnessed a 33% sequential drop in its revenues from operations, amounting to Rs 4,290 crore during the initial quarter. Several factors contributed to this revenue decline, with the primary factor being the company's legacy wireless services business. While BSNL continues to provide legacy network services, private telcos have already ventured into offering 5G services nationwide.

According to reports, in the preceding quarter, Q4 FY23, BSNL reported a loss of Rs 2,696 crore. In comparison, the telco has significantly narrowed its losses in the first quarter, marking a positive trend. During Q1 FY24, BSNL managed to reduce its overall expenses by 15.3%, bringing them down to Rs 6,108 crore. However, the decline in revenues posed challenges in bolstering the telco's bottom line.

BSNL is actively progressing toward the deployment of its homegrown 4G/5G network. The telco has selected Tejas Networks, a Tata Group-owned company, to supply the necessary equipment. Additionally, Tata Consultancy Services (TCS), another entity within the Tata Group, is set to act as the systems integrator for BSNL. The rollout of BSNL's 4G network is on the horizon, with a successful beta launch already carried out in Punjab. Over 200 test sites are operational, gathering valuable feedback to ensure a seamless large-scale rollout in the near future.

BSNL has faced ongoing challenges in customer retention, which has inevitably impacted its ability to generate higher profits. The telco's upcoming 4G and 5G deployments will undoubtedly be closely watched to see if BSNL can regain lost market share and revitalize its position in the telecom industry in the years ahead.