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State-owned Bharat Sanchar Nigam Limited (BSNL) reported a ₹280 crore net profit in the January-March 2025 quarter. It is the telecom giant’s second consecutive profitable quarter. A major turnaround for a company once seen as a sinking ship in India’s telecom sector.
Is this revival purely strategic, or is it the government’s answer to the threat of a telecom monopoly?
The shift in BSNL's financial trajectory is undeniable:
Q4 FY25 Net Profit: ₹280 crore
Q4 FY24 Net Loss: ₹849 crore
Full FY25 Loss: ₹2,247 crore (down 58% from ₹5,370 crore in FY24)
EBITDA FY25: ₹5,396 crore (up from ₹2,164 crore in FY24)
EBITDA Margin: Increased to 23.01% from 10.15%
Total Income FY25: ₹23,427 crore (up 10% from ₹21,302 crore in FY24)
Total Expenditure FY25: Reduced to ₹25,841 crore (down 3% from ₹26,673 crore)
These gains follow another milestone, BSNL’s ₹262 crore profit in October–December 2024, its first profit in 17 years.
The following drivers helped BSNL turn into a success story:
Government Support: Revival or Rescue Mission?
Since 2019, the Indian government has infused over ₹3 lakh crore into BSNL and MTNL. The revival package approved in July 2022 included:
4G spectrum allocation
Capital for network expansion
Conversion of dues into equity
A merger with Bharat Broadband Network Limited (BBNL)
The authorized capital of BSNL was also increased from ₹40,000 crore to ₹1.5 lakh crore. These moves undeniably provided the financial and infrastructural muscle BSNL desperately needed. But this raises a question: is BSNL's profitability genuine, or is it a result of state cushioning to counterbalance Jio’s rising dominance?
Tariff Shock: Private Players Made BSNL Look Better
In July 2024, private telecom companies like Jio and Airtel hiked their tariffs. This opened a rare window of opportunity for BSNL, whose low-cost plans suddenly became highly attractive. Lakhs of new users flocked to BSNL, particularly in rural and semi-urban areas, where affordability and coverage often outweigh network speed.
Rural Dominance: Government’s Dominance over Private Network Prefernce
India’s vast geography, where nearly 65% of the population resides in rural areas, remains an untapped goldmine for telecom players. BSNL’s deep-rooted presence and wide fibre-optic backbone made it the most accessible option for these users, especially in tier-2 and tier-3 towns.
The Indigenous 4G Push: Strategic, but is it Enough?
BSNL developed its own indigenous 4G stack—a significant milestone for India’s Atmanirbhar Bharat mission. With an advance purchase order worth ₹19,000 crore, BSNL committed to roll out 1 lakh 4G sites. As of December 2024, it had already installed 62,000+ towers, and achieved the 1 lakh milestone by May 2025.
This move is commendable for national security and digital sovereignty. However, in a market rushing toward 5G and soon 6G, is 4G enough to compete?
Reliance Jio and Airtel are offering widespread 5G connectivity. Vodafone Idea, despite financial stress, is slowly rolling out 5G services. In this context, BSNL’s 4G edge feels both significant and short-lived, more a catch-up than a leap forward.
Airtel, considered one of India’s most efficient telecom companies, has seen declining ARPU (Average Revenue Per User) and increasing costs while competing with Jio. So, how is BSNL, with slower technology and bureaucratic hurdles, pulling in profits?
One possible answer: it is not competing on the same terms.
BSNL doesn’t chase premium urban users. It invests where others won’t, in rural towers, budget services, and national roaming infrastructure. It benefits from state subsidies and does not expect high-margin returns. The telecom giant’s model seems to be optimized for broad access over premium speed, an area where private players are less invested due to lower returns.
In the absence of a strong third player, India risks becoming a duopoly, led by Jio and Airtel. The revival of BSNL provides the government with leverage. It is a public sector alternative to keep prices in check and avoid total market dominance.
Union Minister G. Kishan Reddy went as far as to call BSNL ‘a symbol of Atmanirbharta and digital empowerment.’ This patriotic messaging not only appeals to the masses but also justifies ongoing government investment.
BSNL profit story is no longer just about telecom, it’s about sovereignty, strategy, and social equity. The company deserves credit for improving its financial performance. However, without state backing, would BSNL survive in a market dictated by 5G, private capital, and cut-throat pricing? The coming years will be the real test of whether it will remain a state-fueled counterbalance to prevent monopolistic pricing in India’s telecom sector.
Also Read: Top 10 Telecom Companies in India
