BSNL proposes ₹77,000cr capex for 4G, 5G expansion
What's the story
Bharat Sanchar Nigam Limited (BSNL) has proposed a massive ₹77,000 crore capital expenditure plan over the next five years. The plan aims to set up 200,000 additional 4G sites to strengthen BSNL's network. The proposal also includes plans for rolling out 5G in high-traffic areas and improving customer support services across India.
Future projections
DoT anticipates operational breakeven by FY29
The Department of Telecommunications (DoT) has said that with this capital infusion, BSNL is expected to achieve operational breakeven by FY29 and attain 98% nationwide coverage.
However, despite the increase in revenue from operations between FY23 and FY26, the company's overall financial position remains stressed.
Financial challenges
Parliamentary panel raises concerns over BSNL's financial position
BSNL's losses widened to ₹4,738 crore in FY26 from ₹2,247 crore a year earlier.
The state-run telco's revenue from operations rose by 1.7% to ₹21,199 crore but fell short of the ₹28,476 crore target set under an MoU between DoT and BSNL.
The parliamentary committee has recommended a comprehensive expenditure rationalization exercise focusing on controllable operational costs, increased sharing of mobile towers with other operators, network optimization, and prioritizing high-revenue service segments like 4G/5G rollout.
Network expansion
DoT explains reasons behind BSNL's net loss
DoT has clarified that BSNL's net loss widened due to depreciation and amortization expenses.
The company incurred its largest capital expenditure of ₹26,022 crore in FY25 for the 4G network rollout and network expansion, which led to losses in FY26.
However, this capex has also laid an infrastructure foundation for future revenue growth through network modernization, asset monetization, cost efficiency, and enterprise focus.
Network progress
Government has approved revival packages for BSNL worth ₹3.22 trillion
As of April-end, BSNL had installed 105,290 indigenous 4G sites and is currently rolling out its 5G network in Delhi.
The government has approved three revival packages for BSNL worth ₹3.22 trillion.
Former Telecom Regulatory Authority of India principal adviser Satya N Gupta said, "Any capex plan will help improve revenue, but this fresh capex should not be just like another capital infusion from the government, on which no accountability is set, and return on investment is not analyzed."
Infrastructure sharing
Infrastructure-sharing arrangements between BSNL and Vodafone Idea in progress
The government is working on infrastructure-sharing arrangements between BSNL and Vodafone Idea, a company it owns a 49% stake in.
"There are active discussions to further enhance the tenancy of Vodafone Idea Limited on BSNL tower infrastructure for 4G and 5G," DoT told the panel.
To generate additional revenue, BSNL leases out towers to private operators including Vodafone Idea.