BSNL’s Rs 17,000 Crore Revenue Is Encouraged! Merger With BBNL By March-End

Bharat Sanchar Nigam has a number of announcements planned for this and next financial years.

Due to the removal of call connect charges in FY21, the company anticipates revenues of over Rs 17,000 crore from its services in FY22, which is slightly lower than the figure for FY21.

We will discuss it further in the article.

The government plans to inject Rs 44,720 crore into the company in the upcoming fiscal year. Further, BSNL plans to launch 4G services within the next few months, despite being far behind its peers in the private telecom space.

Due to the loss-making status of BSNL, the government plans to merge it with Bharat Broadband Nigam Ltd (BBNL).

BSNL’s Revenue Set to Lower in FY22

In the ongoing fiscal year, the state-owned telco removed the call connect charges, which contributed around Rs 600-800 crore to its revenues.

As a result, scrapping the service will certainly make a dent in the company’s revenue. The company stated that it is expected to total 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 upcoming months, and work on the project is already underway.  “BSNL will not be negatively affected by the launch of 5G services by private operators, as the device ecosystem for the new-age services is still evolving,” said PK Purwar, BSNL’s Chairman and MD.

Govt to Infuse Money in BSNL

In line with Union Government papers, the government will inject Rs 44,720 crore into BSNL in the upcoming fiscal year.

According to news reports, the proceeds will be used for 4G spectrum, technology upgrades, and reorganizing initiatives within the company.

Govt to Merge BSNL & BBNL in FY22

Purwar said that the government plans to merge BBNL with the loss-making telco BSNL in March 2022.

It has been decided that BBNL will be merged into BSNL by the government. BSNL will now handle all BBNL business on a pan-India basis,” Purwar explained.