BSNL's Loss Estimated At Rs 14,202 Crore FY 2018-19: Fall In Revenue At Rs 19,308 Crore

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The State-run telecom operator Bharat Sanchar Nigam Limited (BSNL) is expected to post loss over Rs. 14,000 crores for the financial year 2018-19, with a decline in revenue to Rs. 19,308 crores during the same period.

BSNL's Loss Estimated At Rs 14,202 Crore FY 2018-19

 

According to a written reply by Telecom Minister Ravi Shankar Prasad in Lok Sabha, the provisional loss of BSNL in 2015-16 was Rs 4,859 crore-Rs 4,793 crores in 2016-17, Rs 7,993 crore in 2017-18.

"Low tariffs due to fierce competition in the mobile segment, high staff cost and absence of 4G services (except in few places) in the data-centric telecom market are the main reasons for losses of BSNL, Prasad said.

The telco has seen a dip in its revenue ever since Reliance Jio forayed into the market.

The company's revenue is pegged around Rs 19,308 crore for 2018-19, compared to Rs 25,071 crores in 2017-18 and Rs 31,533 crores in 2016-17.

Meanwhile, there is a report which says that the Government is considering an Rs. 74,000 crores bailout package for revival of both BSNL and MTNL.

The Government would be offering a higher exit package to employees, including an additional 5 percent compensation to make the Voluntary Retirement Scheme (VRS) attractive, TOI reported.

BSNL Might Survive

The telco has recently dismissed many reports which suggested that the company is planning to close down its operations due to the financial crisis.

In fact, BSNL has issued a statement on July 2nd, where the company said: "There is no proposal to close down BSNL as wrongly reported in a section of the press. Due to stiff competition and the lowering of the tariff, BSNL is facing a funds crisis for the last few months."

According to the statement, the Central government is actively preparing a revival plan for BSNL.

Our Take On BSNL Revenue Loss

 

There is no doubt that ever since Reliance Jio has entered into the sector almost all telecom players are facing financial crisis, as the company is offering free voice calls since it started its operations. But still, telcos are trying their level best to give a tough fight to Jio.

If this rough patch continues for BSNL, there is a possibility that the telco will opt for a merger or may shut down its operations.

However, the company claims that the government is looking for revival plans but we have to wait and watch what exactly happens.

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