Winning Bizness Desk

Mumbai. State-owned telecom company Bharat Sanchar Nigam Limited (BSNL) has reported a profit of ₹262 crore for the third quarter of the fiscal year 2024-25, marking its first profitable quarter in 17 years. The last time BSNL recorded a quarterly profit was in 2007. Union Minister Jyotiraditya Scindia announced this development on February 14, 2025.

Revenue Growth Across Key Services

• In the October-December 2024 quarter, BSNL experienced significant revenue growth across its service segments:
• Mobility Services: Revenue increased by 15% compared to the same period last year.
• Fiber-to-the-Home (FTTH): Revenue saw an 18% rise year-over-year.
• Leased Line Services: Revenue grew by 14% from the corresponding quarter in the previous year.
• Over the past four years, BSNL's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) has doubled from ₹1,100 crore to approximately ₹2,100 crore.

Cost Reduction and Decreased Losses

Minister Scindia highlighted that BSNL has implemented measures to reduce financial costs and overall expenditures, leading to a reduction in losses by over ₹1,800 crore compared to the previous year. The company's customer base expanded to 90 million by the end of December 2024, up from 84 million in June 2024.

Progress in 4G Network Expansion

BSNL is advancing its efforts to provide 4G services nationwide. Out of the targeted 100,000 towers, approximately 75,000 have been installed, with around 60,000 already operational. The company aims to have all 100,000 towers active by June 2025.

Enhancing Customer Experience

To improve customer experience, BSNL has introduced several services:

• National Wi-Fi Roaming: Enables seamless connectivity across the country.
• BiTV: Offers free entertainment to all mobile subscribers.
• IFTV: Provides interactive services to all FTTH customers.
• Private 5G Connectivity: Introduced for the first time in the mining sector.

These initiatives reflect BSNL's commitment to enhancing its service offerings and customer satisfaction.

Understanding EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It represents a company's total earnings, excluding expenses related to interest payments, taxes, depreciation, and amortization. EBITDA provides insight into a company's operational performance by focusing on earnings from core business activities, omitting the effects of capital structure and non-cash expenses.

Historical Context of BSNL

Launched on October 19, 2002, by then-Prime Minister Atal Bihari Vajpayee, BSNL's mobile services quickly rose to prominence, becoming India's leading mobile service provider within a couple of years. During its early years, BSNL revolutionized the telecom industry by offering free incoming calls and reducing outgoing call charges, leading to widespread demand for its services.

Challenges Faced by BSNL

Despite its early success, BSNL encountered several challenges:

Delayed Approvals: Post-2000, BSNL officials sought to launch mobile services promptly but faced delays in obtaining necessary government approvals.

Capacity Constraints: Between 2006 and 2012, BSNL's capacity expansion was minimal, while private operators expanded rapidly.

Declining Landline Subscribers: With the mobile revolution, BSNL's landline subscriber base decreased from 38 million in 2006-07 to 16 million in 2014-15.

Spectrum Allocation Delays: BSNL faced delays in acquiring 3G and 4G spectrum, hindering its competitiveness against private players who had already rolled out advanced services.

These factors contributed to BSNL's financial struggles over the years.

The recent profit in Q3 FY2024-25 signifies a positive turnaround for BSNL, indicating the effectiveness of its strategic initiatives and cost management efforts.