The government of India under the budget 2025-26 has allocated the state-run Bhartiya Sanchar Nigam Limited (BSNL) INR 33,757 Crore as compared to INR 72,027 Crore in FY 2025 & INR 56,785 in FY 2024. The current capital infusion is nearly 53% down from INR 72,027 crore in the revised final allocation for FY25. 

After the infusion of the previous two turnaround budgets allowing BSNL to deploy its 4G infrastructure on the ground. The entire 4G network by BSNL is expected to get to work by the end of this fiscal and in turn start generating some good key figures in revenue, from this year onwards. This might be a potential reason behind cutting down the budget allocated to BSNL in the fiscal year. 

BSNL: Is it Good or Bad for the Telco?

Considering the revenue prospects of BSNL is this move by the Government of India to prove anyway beneficial for the PSU itself and in turn for its customers?   

Experts claim that the government’s reduced capital outlay for the PSU signifies an effort toward rendering some accountability and business consideration into its operations. The government seems of the opinion that reduced financial assistance yet with sufficient and desired infrastructure in place might push the telco to regain its lost glory as also evident in telecom subscriptions data released by TRAI, recently. 

Read about it here: BSNL records over 5 percent subscriber growth in the September 2024 quarter as rivals struggle

BSNL: Will it Regain its Glory? 

Since June, the operator’s efforts to establish its own 4G network have largely paid off. According to subscriber reports from the Telecom Regulatory Authority of India (TRAI) as of January 22, it added a net 6.5 million users to its network. This includes a dip of 340,000 users in November last year, following four consecutive months of growth.

Read about BSNL's new line of offerings at: State-owned BSNL Pioneers New Logo and 7 New Offerings to Revamp Its Image

Even keeping apart the government expectations, the telco should build a significant target market through its services and offerings such as 4G Network Connectivity, Broadband, and 5G among other innovations. This might put the telco among the top players in the industry, enabling it to regain the lost glory.