Bharat Net -BSNL covers 26 000 Gram Panchayats with OFC

BSNL CMD Anupam Srivastava says that operating profit of Rs 672 crore in FY15 proves the company had already started on a revival path
Bharat Net -BSNL covers 26 000 Gram Panchayats with OFC

State-run Bharat Sanchar Nigam (BSNL) would soon offer fix-mobile convergence to its customers including its large number of customer based in Rural areas. The company is in the process of migration from old legacy TDM switches to IP based NGN technology.

“Shifting to new technology will provide fix mobile convergence and customers will get many value added services, Anupam Srivastava, Chairman and Managing Director(CMD) BSNL told reporters on Tuesday.

He said that Bharat Net – BSNL is laying Optical Fibre Cable (OFC) network for 70,000 Gram Panchayats (GPs) out of which 26000 GPs have already been covered. Wide network connecting all GPs would give a push to BSNL business, Srivastava said.

The company reported an operating profit of Rs 672 crore during fiscal 2014-15 on the back of reduced wage bill and higher revenues. It had posted an operating loss of Rs 691 crore during FY14. During FY15, the company posted a 4.16 percent increase in income from operations at Rs 27,242 crore. Shrivastava said that it is the highest in the last five years. Total revenues jumped 2.32 percent to Rs 28,645 crore.

Shrivastava said that the expansion of networks and various other measures including introducing new tariff plans, to revive the company have started showing results. “It had already started on a revival path,” he added. The CMD attributed the growth in revenue to network expansions.

Going forward, Shrivastava said that the company plans to spend Rs7,700 crore during the current fiscal through March 2016 on upgrading its fixed-line and broadband networks. The company also plans to roll out 4G services in at least two cities where it has spectrum by the end of the fiscal year, apart from giving out contracts to three companies to run 2500 Wi-Fi spots in the south, west and northern region on a revenue-sharing basis, he added. The Company has rolled out 450 Wi-Fi hot spots across country including all important tourists and public places. BSNL, under phase VII project would invest about Rs 5500 crore for improving its mobile network.

BSNL had bad financial results for last few years, but in year 2014-15 BSNL has been able to reverse the trend. Also it is a known fact that most of the telecom majors are having heavy debt burdens but BSNL still continues to be relatively better, showing a low debt equity ratio.

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