The company reported a loss of Rs 8,161. 56 crore for the financial year 2022-2023 due to an increase in operating and management costs from Rs 9,499 to Rs 9,834.
State-owned telecommunications provider Bharat Sanchar Nigam Limited (BSNL) remains a challenge for the company, according to its annual report for FY23. Despite the provision of more connections, BSNL reported a loss of profit due to declining telecommunications service costs.
In its FY23 annual report, BSNL stated, “Telecom rates are falling day by day. As a result, profits decline despite offering a giant number of new connections. BSNL aims to generate a consistent average return on user (ARPU) by offering innovative added value to its consumers through wired and wireless networks. To increase its profits, BSNL has undertaken several new projects, such as infrastructure exchange, advertising use of constant assets, exploration of foreign industries, corporate and constant business. Mobile convergence.
By offering its consumers state-of-the-art, value-added facilities through fixed and wireless networks, BSNL claims that it strives to generate a consistent average user benefit (ARPU). On the contrary, its constant competition in the personal sector raised its costs in November 2021 in order to ARPU. Bharti Airtel has the highest Consistent Average Profit with User (ARPU) in the industry at Rs 200.
According to BSNL’s financial results, business, FTTH and mobile revenues increased, while constant telephony and internet revenues decreased. The company reported a loss of Rs 8,161. 56 crore for the FY2022-2023 due to rising operating and management costs. from Rs 9,499 Cr to Rs 9,834. The company’s EBITDA turned positive at Rs 1,558. 79 crore despite those challenges.
“A 14 per cent adds up in steady profits. The constant environment remains a challenge. The company lost Rs 8,161. 56 crore in 2022-2023 (compared to Rs 6,981. 62 crore last year). Service profit Rs 19,127. 79 crore (compared to Rs 16,809. 22 crore last year) and other earnings of Rs 1,571. 11 crore (compared to Rs 2,243. 7 crore last year). During this monetary year, the company recorded a positive EBITDA of Rs 1,558. 79 crore (last year: Rs 944 crore). ) BSNL continued.
According to BSNL’s annual report: “The very immediate technological obsolescence and immediate emergence of next-generation platforms through competition make the sector vulnerable to maximum exposure to capital loads. Dynamic adjustments at the point of competition, especially on installations such as data, VAS, content, etc. , require BSNL to offer a corresponding rate for broadband and FTTH installations (ignoring the charge and margin) in order to remain competitive, applicable in the market/service, and to maintain the existing visitor base. It is conceivable that making cellular communications more affordable will affect the fixed access communications sector.
As reported in the past via VnD, Bharat Sanchar Nigam Limited (BSNL) this month became the first telecommunications provider to install a base transceiver station (BTS) on Ladakh’s Siachen glacier. Ashwini Vaishnaw, India’s telecommunications minister, has said in the past that BSNL will start rolling out 4G en masse in the run-up to the upcoming Diwali festival. By early 2025, BSNL is expected to offer 4G nationwide.
BSNL is guilty of ensuring connectivity in any and all remote locations as per the government’s 4G saturation plan. In 2022, the Union Cabinet approved a task to provide 4G cellular connections to all disconnected villages in the country.
According to TCS, it will take 12-18 months to deploy 4G for BSNL at 1 lakh sites. This indicates that BSNL will have 4G at 1 lakh sites in India until early 2025. TCS recently verified that it would be deploying 4G for BSNL at 1 lakh sites in about 12 to 18 months.
Tejas Networks announced in September that it had won an advance of Rs 750 crore from Tata Consultancy Services (TCS) for the supply of 4G/5G handsets to BSNL (Bharat Sanchar Nigam Limited). Tejas will take care of the additional maintenance to offer the appliance.
The Union Cabinet, in June this year, approved the third stimulus package of Bharat Sanchar Nigam Limited (BSNL), this comprehensive package, charges the government a total of Rs 89,047 crore, which aims to revive BSNL and make it a reliable telecom service provider. with a specific and focused interest in connectivity in rural India.
The first stimulus package, totalling Rs 69 billion, was passed in 2019, marking the graduation of the revival procedure of BSNL and Mahanagar Telephone Nigam Limited (MTNL). This package has aimed to control the operations of both parties.
The government then approved the second rejuvenation plan in 2022, totaling Rs 1. 64 crore lakh. This comprehensive package included a number of must-haves, such as capital expenditure financing, a budget to close the rural fixed telephony sustainability gap, debt restructuring, payment of adjusted gross revenue source (AGR) contributions, and the merger of BBNL and BSNL.
These relief schemes have in particular reduced BSNL’s overall debt from Rs 32,944 crore to Rs 22,289 crore and helped the company regain operating profitability from FY2021-2022 (FY2021-2022).