In a bold move to reshape its position in the telecommunications industry, Bharat Sanchar Nigam Limited (BSNL) is aiming for a 25% subscriber market share by the end of 2025 as it launches its 4G services. With a current market share of 7.4% and 86.3 million mobile subscribers, this target reflects BSNL’s ambitious revival strategy.
Government Support and Financial Backing
The government has recognized the importance of BSNL’s revival, allocating a staggering Rs 3.2 trillion in revival packages. A significant portion of this, Rs 83,416 crore, is earmarked in the 2024-25 Budget specifically for technological upgrades and restructuring. This financial support is crucial for BSNL’s efforts to enhance its infrastructure and service quality.
Key Takeaway: Understanding the financial and strategic support for state-owned enterprises like BSNL is vital for competitive exams focusing on current affairs and economic policies.
4G Rollout and Infrastructure Development
BSNL is expediting the rollout of its 4G services, having awarded contracts worth Rs 19,000 crore to Tata Consultancy Services (TCS), Tejas Networks, and ITI. Over 9,000 towers for 4G services have already been installed in Punjab, Himachal Pradesh, UP West, and Haryana. A Project Management Unit (PMU) will be established for daily monitoring of 4G deployment in collaboration with TCS, Tejas Networks, and C-DOT.
Exam Insight: Knowing the key players and regions involved in major infrastructure projects like BSNL’s 4G rollout can be crucial for general knowledge sections in exams.
Leadership and Strategic Focus
Robert Jerard Ravi has taken charge as the new Chairman and Managing Director (CMD) of BSNL for a six-month term. His focus areas include:
- Fast-tracking the 4G rollout
- Initiating 5G trials
- Reducing subscriber churn
- Improving service quality
Real-Life Application: Leadership changes and strategic focuses in major companies are important topics for current affairs and business sections in competitive exams.
Financial Performance
BSNL has shown signs of financial improvement, narrowing its net loss to Rs 5,367 crore in FY24 from Rs 8,161 crore in FY23. Revenue from operations grew by 1% to Rs 19,343.6 crore, although it missed the target of Rs 20,008 crore. Looking ahead, BSNL targets Rs 35,960 crore in revenue from operations by 2027-28, with an ambitious goal of achieving 20% year-on-year growth from FY25 to FY27.
Key Points:
- Net Loss Reduction: Rs 5,367 crore in FY24 from Rs 8,161 crore in FY23
- Revenue Growth: 1% increase to Rs 19,343.6 crore in FY24
- Future Targets: Rs 35,960 crore revenue by 2027-28 with 20% annual growth from FY25 to FY27
Study Tip: Financial performance metrics of major companies, especially state-owned ones, are often tested in competitive exams. Understanding these metrics helps in analyzing the company’s growth and challenges.
Conclusion
BSNL’s ambitious targets amid its 4G launch and revival efforts signify a crucial phase in its transformation. With substantial government support, strategic leadership, and a clear focus on technological advancements, BSNL is poised to significantly enhance its market position. For students preparing for competitive exams, staying updated on such developments is essential, as they reflect broader economic trends and government policies.
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