BSNL’s ₹77,000-Cr Turnaround Bet: 2 Lakh 4G Sites, 5G And FY29 Breakeven

Bharat Sanchar Nigam Ltd (BSNL) has proposed a ₹77,000-crore capital investment plan over the next five years to expand its 4G network, roll out 5G in strategic high-traffic areas and strengthen its telecom infrastructure.

According to a Department of Telecommunications (DoT) report submitted to the parliamentary committee on communications and information technology, the planned investment is expected to help BSNL reach operational breakeven by FY29 and achieve 98% nationwide coverage. The operator also plans to improve customer support as part of the expansion.

The proposed investment comes as BSNL continues to face financial pressure despite growth in revenue. The company’s loss widened to ₹4,738 crore in FY26 from ₹2,247 crore a year earlier, while revenue from operations rose 1.7% to ₹21,199 crore, below its ₹28,476-crore target.

BSNL’s Capex Push Comes With Cost Concerns

The parliamentary committee has asked the DoT and BSNL to undertake a comprehensive review of expenditure, with a focus on controllable operating costs, infrastructure sharing and network optimisation. It also called for greater focus on higher-revenue segments such as 4G and 5G, enterprise services and fibre connectivity.

DoT said BSNL’s higher loss was partly due to depreciation and amortisation expenses, which increased to ₹10,350 crore in FY26 from ₹6,283 crore in FY25. The operator had incurred its highest capital expenditure of ₹26,022 crore in FY25 for its 4G rollout and network expansion.

According to a Mint report, Satya N. Gupta, former principal adviser at the Telecom Regulatory Authority of India, cautioned that the fresh capex should not become another government-funded capital infusion without clear accountability and analysis of returns. He suggested that BSNL could raise funds through land monetisation and a real estate investment trust, including by converting some of its buildings into data centres.

BSNL had installed 1,05,290 indigenous 4G sites by the end of April and is currently rolling out 5G in Delhi. The government has approved three revival packages for the telecom operator amounting to ₹3.22 lakh crore.

BSNL, Vodafone Idea Explore Network Sharing

Infrastructure sharing with Vodafone Idea (Vi) is also being explored as a way to improve cost efficiency. DoT told the parliamentary panel that discussions are underway to increase Vi’s tenancy on BSNL’s tower infrastructure for 4G and 5G services.

BSNL had leased 1,441 towers to Vodafone Idea as of April. The two companies also have intra-circle roaming arrangements in Delhi and Mumbai, allowing BSNL subscribers to use Vi’s network. They share fibre links under the BharatNet project and have also fibreized nine base stations as part of a connectivity pilot.

The parliamentary committee has asked DoT to facilitate a structured and time-bound decision on broader infrastructure sharing between BSNL and Vi. This includes an assessment of sharing towers, fibre, spectrum and other network assets, along with potential financial savings within six months.

The committee has also recommended that the proposed additional expenditure be kept on hold until a clear decision on collaboration is reached. DoT, however, opposed a complete freeze, saying it could affect the ongoing 4G rollout.

BSNL and Vodafone Idea had begun discussions on sharing towers, fibre and spectrum in a bid to reduce costs and improve network reach, a development first reported by Mint in March.