10:54 pm - Friday 19 December 2014

BSNL needs Rs 40,000 crore in five years, says BSNL MD

By insightVAS - Thu Aug 08, 5:00 pm

In order to make the state-run telecom company, Bharat Sanchar Nigam Ltd. (BSNL), profitable the operator needs to invest an amount of Rs 40,000 crore approximately in coming five years, says Managing Director R K Upadhyay.

In order to retain its market share, BSNL is required to provide 182 million connections by 2017-18, around 14 percent of 1,300 million projected customer base. The BSNL by end of March last year had 121.65 million telecom customers, including mobile and landline users.

“We have prepared estimates where we need to invest aggressively on our network. The estimates project investment of Rs 40,000 crore over a period of next five years,” Upadhyay said. 

The loss making PSU hopes to register a profit Rs 35 crore before tax by 2017-18 if it is able to execute the estimates.

If the company manages to execute the estimate then it may record a profit of Rs 35 crore before tax by 2017-18

The Department of Telecom (DoT) has asked for financial support from a Group of Ministers, headed byFinance Minister P Chidambaram. BSNL has been logging losses since 2009-10. The company’s profits started declining after 2004-05, when it had made net gains of Rs 10,183 crore. The PSU was impacted heavily after it paid 3G and Wireless Broadband spectrum price in 2010 which cumulatively amounted to over Rs 18,500 crore.

The company expects its total income to grow to above Rs 44,000 crore by 2017-18 from Rs 26,396 crore it posted for last fiscal.

In the next five years, BSNL expects to add capacity of additional 40 million lines with focus on Internet business, generate around Rs 2,500 crore from its land and building assets monetisation and hive off some real estate assets after permission from government.

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