BSNL’s Q2 review highlights progress but underscores need for faster reforms

State-run telecom operator Bharat Sanchar Nigam Limited (BSNL) is showing early signs of a turnaround, even as it continues to trail far behind private rivals in India’s fiercely competitive telecom sector.

At its Q2 FY2025–26 strategic review meeting, chaired by Union Minister of Communications Jyotiraditya M. Scindia, BSNL reported total revenues of ₹11,134 crore in the first half of the fiscal year. The company achieved 93% of its Q2 target, with Average Revenue Per User (ARPU) rising 12% from ₹81 to ₹91 a notable improvement though still well below industry leaders. In Q1 of FY 2025-26, Bharat Sanchar Nigam Limited (BSNL) reported a net loss of ₹1,049 crore (i.e., ₹10.49 billion).

The review highlighted strong performances from Maharashtra, Kerala, and UP (West) circles, while Madhya Pradesh, Jharkhand, and Kolkata lagged behind. Minister Scindia praised BSNL’s progress but reminded officials that service quality is “non-negotiable”, urging daily monitoring of uptime, mean repair time, and customer satisfaction.

Enterprise and Broadband Lead the Growth

Much of BSNL’s recent revenue growth came from Enterprise Business (EB), which exceeded its quarterly target with ₹1,272 crore in revenue accounting for over a quarter of total earnings. This segment includes network and communication services for government departments, PSUs, and corporate clients, where BSNL remains a trusted provider.

The Consumer Fixed Access (broadband/FTTH) segment also performed well, achieving 90% of its target (₹722 crore) with a 2% increase in subscribers, mainly in tier-2 and rural markets. The Consumer Mobility segment, contributing ₹1,700 crore, saw 5.4 lakh new mobile users but continues to generate lower revenue per customer.

Competition and Challenges

Despite improvement, BSNL’s market share remains in the single digits, while Reliance Jio commands over 50%, followed by Bharti Airtel’s 30–33%. Jio and Airtel attract younger, urban users with 5G networks, bundled OTT content, and faster data speeds, whereas BSNL’s user base is largely rural and price-sensitive.

BSNL’s late entry into 4G, bureaucratic delays, and limited marketing have hurt its image as a modern telecom provider. Experts suggest it must accelerate 4G/5G rollouts, introduce competitive digital plans, and modernize its infrastructure to regain relevance.

The Road Ahead

Minister Scindia’s seven-point agenda urges circles to treat quality of service as top priority, cut costs, and explore new revenue streams. As he noted, “Everything in life is execution-driven; our CGMs are BSNL’s execution artists.”

For BSNL, the challenge now is clear: transform from a legacy telecom operator into a future-ready, customer-focused network that can stand shoulder to shoulder with India’s private telecom giants.