BSNL Under Pressure: Government Demands Service Overhaul in Four Key Circles

In a renewed push to revive Bharat Sanchar Nigam Limited’s (BSNL) competitive edge, the Ministry of Communications has directed the state-run telecom operator to urgently improve service quality across four major circles—Uttar Pradesh, Bihar, Madhya Pradesh, and West Bengal. The directive, issued by Minister of State for Communications Chandra Sekhar Pemmasani, comes amid persistent concerns over network reliability, tower power issues, and declining customer satisfaction.

The move follows a comprehensive review of BSNL’s performance and is part of a broader strategy to enhance its market presence and regain consumer trust in regions where service lapses have been most pronounced.

Key Directives From The Review Meeting

- Immediate resolution of mobile tower power issues to ensure uninterrupted connectivity  
- Timely rectification of fibre cuts affecting broadband and fixed-line services  
- Adoption of locally tailored sales and marketing strategies to boost subscriber engagement  
- Strengthening enterprise business by 25–30 percent and fixed-line operations by 15–20 percent  
- Expansion of mobile service business by 50 percent over the next fiscal year  

The government’s intervention reflects its growing impatience with BSNL’s sluggish turnaround, despite substantial financial support and infrastructure investments.

Performance Snapshot: Signs of Recovery Amid Challenges

BSNL has posted back-to-back quarterly profits for the first time in 18 years, signaling early signs of operational recovery:

- Profit of ₹280 crore in Q4 FY25, compared to a loss of ₹849 crore in the same period last year  
- Profit after tax of ₹262 crore in Q3 FY25  
- Over ₹3 lakh crore infused by the government over six years to support revival efforts  

However, the company continues to face a steady decline in its customer base, largely attributed to inconsistent service delivery and lack of competitive offerings in the 4G and 5G segments.

Infrastructure Push: 4G Rollout and Technology Upgrades

To bridge the technology gap with private players like Reliance Jio and Bharti Airtel, BSNL is deploying 1 lakh 4G sites through a consortium led by Tata Consultancy Services, Tejas Networks, and the Centre for Development of Telematics (C-DoT). As of June 30, 2025:

- 95,537 4G sites have been installed  
- 90,035 sites are operational  
- Equipment is 5G upgradable, offering future-ready capabilities  

This rollout is expected to improve network coverage and data speeds, especially in underserved regions.

Why These Four Circles Matter

The selected circles—UP, Bihar, MP, and West Bengal—are among BSNL’s largest markets in terms of population density and telecom demand. Service disruptions in these areas have a disproportionate impact on the company’s reputation and revenue potential.

The government’s focus on these regions suggests a targeted approach to maximize returns on infrastructure investments and restore consumer confidence.

Strategic Implications for BSNL

- Reinforces accountability across regional units and business heads  
- Signals a shift toward performance-based monitoring and localized execution  
- Aligns with broader digital inclusion goals under the Digital India initiative  
- Encourages innovation in customer acquisition and retention strategies  

Looking Ahead

BSNL’s ability to respond swiftly to the government’s directives will be critical in determining its future trajectory. With mounting pressure to deliver reliable services and expand its footprint, the telecom PSU must leverage its existing infrastructure, embrace agile marketing, and prioritize customer experience.

The next few quarters will be pivotal—not just for BSNL’s financial health, but for its relevance in India’s fast-evolving telecom landscape.

Sources: Moneycontrol, Economic Times Telecom, The Hindu Business Line, Rediff Money.