BSNL’s Rs 17,000 Crore Revenue Is Encouraging! Merger With BBNL By March-End
The state-owned telecom major Bharat Sanchar Nigam has a series of announcements lined up for this financial year and the next.
Firstly, the company expects to land a revenue of over Rs 17,000 crore from its services in FY22, which is slightly lower than its figure reported in FY21 because of the removal of call connect charges in the year.
We will be covering it further in the article.
Secondly, the government has plans to flush in Rs 44,720 crore into the company in the upcoming financial year.
Moreover, BSNL plans to launch its 4G services in the upcoming months, even though it is way behind its peers in the private telecom space.
Lastly, the government plans to merge the Bharat Broadband Nigam Ltd (BBNL) with BSNL, given the loss-making state of the latter.
BSNL’s Revenue Set to Lower in FY22
The state-owned telco removed the call connect charges in the ongoing financial year, which contributed to about Rs 600-800 crore to its revenues.
Scrapping off the service will surely dent the company’s revenue by a bit, and the company stated that it will sum up over Rs 17,000 crore, compared to Rs 17,452 crore in FY21.
BSNL To Launch 4G Services Soon
The telco has also announced that it will launch quality 4G services in the upcoming months, and works on the same is currently going on.
“The start of 5G offerings by private operators will not place BSNL at an immediate disadvantage, as the device ecosystem for the new-age services is still evolving,” stated the telco’s Chairman and MD PK Purwar.
Govt to Infuse Money in BSNL
As per Union Govt papers, the government will be flushing in Rs 44,720 crore into BSNL in the upcoming FY.
The proceeds will be used in 4G spectrum, technology up-gradation and restructuring initiatives in the company, stated news reports.
Govt to Merge BSNL & BBNL in FY22
According to Purwar, the government plans to merge BBNL with the loss-making telco BSNL in March 2022, as intimated by Trak.in in January 2022.
“The government has taken a policy decision that BBNL is going to be merged into BSNL. This means all work of BBNL at the pan-India level is going to come to BSNL,” stated Purwar.