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The government is hopeful that Bharat Sanchar Nigam (BSNL) will report a healthy operating cash flow in the coming quarters, as the state-run telecommunications (telecom) firm continues to strengthen its offerings and expand its 4G services, Union Minister for Communications Jyotiraditya Scindia said.
“The important thing is to look at the cash flows of the business, and not necessarily the bottom line. The bottom line also includes depreciation and amortisation. This year, we’ve had the highest capital expenditure in BSNL’s history at ₹25,000 crore. So you’re looking at a ₹2,500 crore direct non-cash hit on the bottom line,” Scindia said.
The minister was speaking after the evening session of a day-long strategic review of BSNL. Going forward, monthly reviews will be conducted and chaired by Union Minister of State for Communications Chandra Sekhar Pemmasani, while quarterly review meetings will be chaired by Scindia.
Earlier, during the meeting, Scindia urged BSNL officers to raise the weighted average revenue per user (Arpu) by at least 50 per cent and to grow the enterprise business by 25–30 per cent per strategic business unit over the next year.
The state-run telecom company, which posted a net profit of ₹262 crore in the July–September quarter and ₹280 crore in the October–December quarter of 2024 — its first back-to-back profitable quarters in 18 years — is aiming for full 4G coverage across its network before launching 5G services, Pemmasani said earlier in the day.
Scindia also directed BSNL’s circle general managers to reconnect with customers across rural, urban, enterprise, and retail segments; improve service quality and customer relationship management; and expand enterprise offerings such as connectivity, virtual private network solutions, leased line services, and other new business opportunities.
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