BSNL Turns Profitable After 17 Years: How India’s Telecom Giant Made a Stunning Comeback

Feb 16

5 min read

BSNL turns profitable after 17 Years — *BSNL*

Remember BSNL? That government-run telecom company your grandparents probably had a landline from? The one that almost faded into oblivion while Jio, Airtel, and Vi took center stage? Well, it’s back!

“From ₹ 100 crore daily losses to ₹ 262 crore quarterly profit—BSNL’s comeback is the stuff of corporate legends.”

BSNL (Bharat Sanchar Nigam Limited) has posted its first quarterly profit in 17 years, marking a significant milestone in its journey from near-collapse to revival. For the December 2024 quarter—its first quarterly profit since 2007.

But that’s not all. BSNL is now intensifying competition with private telecom players by launching affordable plans like its 90-day recharge pack for just ₹ 411 and a 365-day annual plan for ₹ 1,515. With these moves, BSNL is not just back in the game—it’s here to disrupt it.

So, how did BSNL pull off this miraculous turnaround? What’s the secret behind its newfound profitability? And what does this mean for India’s telecom landscape? Let’s dive into the details.

The Big News: BSNL’s Profitability and Aggressive Moves

1. Quarterly Profit After 17 Years

BSNL’s ₹ 262 crore profit in Q3 FY24 is a landmark achievement. Union Minister for Communications Jyotiraditya Scindia hailed it as a “significant turning point for the company,” attributing the revival to service expansion, cost-cutting measures, and a growing subscriber base.

Revenue Growth:
- Mobility services revenue grew by 15%.
- Fiber-to-the-Home (FTTH) revenue increased by 18%.
- Leased Line services revenue rose by 14%.
Cost Reduction:
- Finance costs and overall expenditure were slashed, reducing losses by over ₹1,800 crore compared to the previous year.
- EBITDA doubled in the last four years, reaching ₹ 2,100 crore in FY24.
Network Expansion:
- Out of 1,00,000 planned towers, 75,000 have been installed, with nearly 60,000 commissioned. The company aims to complete its 4G rollout by June 2025.

BSNL’s profitability is like a long-lost friend showing up at your door with a winning lottery ticket—unexpected but oh-so-welcome.

2. Affordable Plans to Shake Up the Market

BSNL is now turning up the heat on private players with its ultra-affordable plans:

90-Day Plan (₹ 411):
- Offers 2GB/day of data for 90 days, totaling 180GB.
- Perfect for data-heavy users who don’t need unlimited calling.
365-Day Plan (Rs 1,515):
- Provides uninterrupted connectivity for a full year.
- Ideal for users who prioritize data over calling.

Why this matters? These plans are significantly cheaper than what private players offer, putting pressure on competitors like Jio and Airtel to rethink their pricing strategies.

3. Government Support and Future Plans

The Union Cabinet recently approved a Rs 6,000 crore financial package to accelerate BSNL’s 4G expansion and improve connectivity. This includes setting up 1 lakh 4G sites across the country.

BSNL is also focusing on 5G preparedness and digital transformation, with innovations like:

National WiFi Roaming
BiTV (Free entertainment for mobile customers)
IFTV (For FTTH customers)

With these moves, BSNL is not just catching up—it’s gearing up to lead the next wave of India’s digital revolution.

The Backstory: BSNL’s Journey from Glory to Decline

To understand the significance of BSNL’s revival, let’s rewind to its early days.

1. The Golden Era (2000-2010)

Back in the early 2000s, BSNL (Bharat Sanchar Nigam Limited) a state-owned telecom provider, was the undisputed king of Indian telecom. It had the largest subscriber base, controlled the vast majority of landline services, and was a major player in mobile networks.

Here’s a snapshot of its golden era:

It held over 60% market share in landline services, among the top telecom operators, offering affordable plans and extensive rural connectivity.
It was the first to bring internet and broadband to rural India.
Its revenue touched Rs 40,000 crore in 2005-06.
In 2008, the company touched a revenue of over ₹38,000 crore, and its profits were soaring at ₹10,000+ crore.
In 2009, BSNL had over 90 million mobile subscribers and was a market leader in broadband services.

Private players like Airtel and Vodafone had to pay BSNL interconnection charges to use its network.

So what went wrong?

2. The Downfall (2010-2019)

Like an aging rock band that refused to evolve, BSNL struggled to keep up with the changing times.

Delayed 4G Rollout – While private telecom players jumped on the 4G bandwagon early, BSNL took years to even begin planning.
Bureaucratic Red Tape – As a state-owned entity, BSNL had to wade through government approvals, slowing its ability to innovate.
Financial Woes – By 2019, BSNL was in debt of ₹40,000 crore, and employees were facing salary delays (over 1.65 lakh employees).
Jio’s Market Disruption – The launch of Reliance Jio in 2016, with its dirt-cheap data plans, wiped out BSNL’s competitive edge.
Massive losses of Rs 100 crore per day by 2019.

At its worst, BSNL was losing ₹8,000-₹10,000 crore annually, and it seemed like only a matter of time before the government pulled the plug.

BSNL’s downfall was like a slow-motion train wreck—painful to watch but impossible to ignore.

The Revival Plan: How BSNL Turned the Tide

But then, something changed. BSNL refused to die.

In 2019, the government stepped in with a revival plan that included:

VRS (Voluntary Retirement Scheme):
- Over 90,000 employees opted for VRS, reducing employee costs by 50%.
Government’s Lifeline (2019-2023):
- The Indian government stepped in with a ₹69,000 crore revival package to help BSNL restructure its operations, clear debts, and upgrade infrastructure.
4G Rollout:
- The government allocated Rs 20,140 crore for BSNL’s 4G expansion.
Debt Restructuring:
- BSNL’s debt was restructured, and it received a sovereign guarantee to raise funds.
Strategic Partnerships:
- BSNL tied up with TCS and C-DoT to develop homegrown 4G and 5G technology, eliminating reliance on foreign vendors.
Asset Monetization:
- BSNL monetized its vast land bank and other assets to generate revenue.
Increased Rural Penetration:
- While private players focused on urban markets, BSNL doubled down on rural connectivity, securing government projects.

The revival plan was like a corporate version of ICU treatment—expensive but necessary.

What Does This Mean for India’s Telecom Sector?

BSNL’s revival has far-reaching implications:

Increased Competition: Private players like Jio and Airtel will face tougher competition, especially in rural areas.
Affordable Services: BSNL’s low-cost plans could force private players to lower their prices.
Indigenous Technology: BSNL’s focus on homegrown 5G technology aligns with India’s push for self-reliance.

BSNL’s comeback is like the return of an old friend—familiar, reliable, and full of surprises.

BSNL’s Second Innings

BSNL’s journey from near-collapse to profitability is nothing short of remarkable. With ₹6,000 crore in new government funding, BSNL is gearing up for: