BSNL's 4G Delays and Competitive Pressures Impact Revenue

BSNL's revenue is affected due to delays in 4G rollout and tough competition. Minister Pemmasani Chandra Sekhar informed Parliament of this and noted that many 4G sites are already operational. The government previously approved a revival strategy in 2019, reducing employee costs significantly, yet no current VRS proposals are active.

The revenue of Bharat Sanchar Nigam Limited (BSNL) has been hit by delays in the roll-out of its 4G services and intensified competition within the mobile sector, Parliament was informed on Thursday.

In a written address to the Rajya Sabha, the Minister of State for Telecommunications, Pemmasani Chandra Sekhar, revealed that BSNL has issued purchase orders for 100,000 4G sites, with 83,993 sites already installed and 74,521 on air as of March 8.

In answer to a question on the voluntary retirement scheme (VRS), Sekhar explained that the government sanctioned the initial revival package in 2019 to lower BSNL's operational expenses through debt restructuring with sovereign guarantee bonds and the introduction of VRS. Following the 2019 VRS implementation, BSNL's employee costs plummeted by 51%, ushering in operating profits from 2020-21 onwards. Currently, no VRS proposals are under consideration.

(With inputs from agencies.)