Bharat Sanchar Nigam Ltd (BSNL) goals to spice up its income by 20-30% within the present monetary yr, Union minister of state for communications Chandra Sekhar Pemmasani mentioned on Monday, at the same time as he reiterated that Elon Musk’s Starlink will not be a risk to home telecom operators as it might probably present solely 2 million connections in India on account of its restricted capability to serve the market.
BSNL seeks to extend its revenues by enhancing service high quality and increasing its shopper base, however doesn’t intend to boost tariffs to realize its goal, Pemmasani informed reporters on the sidelines of a strategic assessment and planning assembly of the state-run firm for 2025-26 in New Delhi.
The loss-making state-run telecom firm is actively rolling out 4G companies on 100,000 towers and is taking a look at steadily increasing the tower websites to bolster community connectivity and repair high quality.
“We wish to get the market first. We would like folks to expertise the BSNL companies first,” Pemmasani mentioned. The minister’s feedback come at a time when non-public telecom operators are taking a look at one other spherical of tariff improve, after elevating it in July final yr.
BSNL’s income from operations grew 8% to ₹20,841 crore in FY25. Its losses additionally narrowed to ₹2,247 crore from ₹5,371 crore in FY24.
As of Could-end, BSNL had 90.7 million cell subscribers, in accordance with information by the Telecom Regulatory Authority of India (Trai). The corporate’s market share was at 7.8%. Jio had 490 million clients as of June-end, whereas Airtel had 362 million as of March-end. Bharti Airtel has but to report its June quarter earnings.
Starlink not seen as a risk
In the meantime, he sought to reassure the home telecom service suppliers, saying that the upfront price for satellite tv for pc communication companies will likely be too excessive, and Starlink can have solely 2 million clients in India and provide as much as 200 Mbps pace. The month-to-month price for Starlink will likely be round ₹3,000. “Similar to putting in a DTH connection, every Starlink subscriber would require a standalone satellite tv for pc dish, which prices roughly ₹30,000 upfront. Month-to-month charges are additionally round ₹3,000,” Pemmasani mentioned, confirming analysts’ stories over Starlink’s pricing within the nation.
Starlink has obtained the ultimate regulatory clearance to start industrial satellite tv for pc web companies in India.
Govt assessment BSNL technique
On Monday, Union communications minister Jyotiraditya Scindia together with Pemmasani met the chief common managers (CGM) of all of the circles of BSNL. High quality of companies and plans to enhance the identical, development targets together with common income per person (Arpu) improve, expense discount, buyer grievances, and enterprise enterprise focus have been among the many key points that the ministers and the corporate officers mentioned.
Addressing the heads of the 32 circles of BSNL, Scindia mentioned there’s a must have a technique to enhance the service high quality and conduct surveys to know clients’ notion of BSNL’s companies. Scindia additionally informed officers from the division of telecommunications (DoT) to submit a marketing strategy, which can embrace the month-to-month income and expense goal. The circle heads have been additionally requested to type cross-sell and upsell technique to enhance income and in addition serve areas the place non-public operators aren’t serving.
“It isn’t necessary to take a look at working money flows or web revenue. It is necessary to take a look at buyer satisfaction. It is necessary to take a look at development of the client base, upselling and cross-selling of merchandise,” Scindia informed reporters. He added that the identical may even enhance Arpu of the corporate.
BSNL’s month-to-month Arpu varies from circle to circle. Scindia mentioned some circles have Arpus of ₹40-45 whereas others have Arpus of ₹175 monthly. Against this, India’s largest telecom operator Jio had an Arpu of ₹208.8 as of June-end, whereas the second-largest Airtel had ₹245 as of March-end.
Scindia additionally requested BSNL officers to intention for 50% development in its cell companies enterprise and 25–30% development within the enterprise phase subsequent yr.
Service high quality in focus
Notably, within the January-March quarter, BSNL posted its second straight quarterly revenue after 18 years, a milestone suggesting that the state-owned telecom operator’s fortunes could also be altering. But, this efficiency was largely pushed by accounting changes, one thing that its auditor has flagged. What additionally helped the corporate’s numbers is the sale of land, buildings and different infrastructure, and a change in the way it depreciates the price of airwaves.
Within the April-June quarter, BSNL grew its income by 20-30% year-on-year (YoY), Pemmasani mentioned, including that one of many issues which led to the expansion is that 4G is working nicely and is cheaper. Additional, the problems with batteries powering telecom towers have been resolved, he mentioned.
BSNL clients have typically complained of name drops or not with the ability to set up calls, points that authorities says have been addressed to a big extent. “Greater than 90% of those points have been mounted and it’s working nicely for the final couple of months,” Pemmasani mentioned.
In a letter dated 27 June to prime minister Narendra Modi, BSNL workers union mentioned that there had been a critical dissatisfaction amongst BSNL clients over the poor high quality of BSNL’s 4G companies.
“Clients throughout the nation are experiencing extreme difficulties with voice calls and information downloads on account of unsatisfactory high quality of the 4G service,” the staff union mentioned within the letter. A replica of the letter was seen by Mint.
BSNL is utilizing indigenous gear and software program for rolling out 4G and 5G companies developed by a consortium of TCS, Tejas Networks and Centre for Improvement of Telematics (CDOT).
When requested if instructions got to TCS and Tejas for enchancment in service high quality, Pemmasani mentioned, “that’s the entire objective of doing this. Once you deploy the know-how first which is utilized by tens of millions of consumers, not all the things may be recognized. However the concept is to establish it rapidly and proper it, which they’ve carried out.”