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BSNL Plans 77,000 Crore Capex to Expand 4G and Roll Out 5G Amid Rising Losses
Bharat Sanchar Nigam Ltd (BSNL) announced a five‑year capital‑investment program worth ₹77,000 crore, presented to the parliamentary committee on communications and information technology on 6 August. The plan will add 200,000 new 4G sites, reinforce existing infrastructure, launch 5G in high‑traffic corridors, and bolster customer‑support capabilities.
The Department of Telecommunications (DoT) said the spending will help BSNL reach operational breakeven by fiscal 2029 and achieve 98 % nationwide coverage. The proposal comes after the state‑owned operator posted widening losses: net loss rose to ₹4,738 crore in FY26 from ₹2,247 crore in FY25, while revenue grew only 1.7 % to ₹21,199 crore—short of the ₹28,476 crore target set under the memorandum of understanding between DoT and BSNL.
DoT blamed the loss surge on higher depreciation and amortisation, which climbed to ₹10,350 crore in FY26 from ₹6,283 crore in FY25. It also cited a hefty FY25 capital‑expenditure of ₹26,022 crore for 4G rollout and network expansion, which fed into the FY26 loss.
By the end of April, BSNL had installed 105,290 4G sites and had begun 5G trials in Delhi. The government has approved three revival packages for the operator, totalling ₹3.22 trillion. In response to the committee, DoT said the capex would lay an infrastructure foundation for future revenue growth through network modernisation, asset monetisation, cost efficiency and an enterprise focus.
The parliamentary panel urged the government to conduct a comprehensive expenditure rationalisation exercise, focusing on controllable operational costs, tower sharing with other operators, network optimisation and prioritisation of high‑revenue service segments such as 4G/5G rollout, enterprise services and fibre connectivity.
Infrastructure sharing with Vodafone Idea has been a key element of the discussion. BSNL leases 1,441 towers to Vodafone Idea as of April, and the operator holds a 49 % share in the partnership. DoT said active discussions are underway to enhance Vodafone Idea’s tenancy on BSNL tower infrastructure for 4G and 5G. The two companies also have intra‑circle roaming agreements in Delhi and Mumbai on a revenue‑sharing basis, and share fibre links under the BharatNet project.
The committee asked for a structured, time‑bound decision on comprehensive infrastructure sharing between BSNL and Vodafone Idea, including an analysis of tower, fibre, spectrum and other network sharing and estimated financial savings within six months. It recommended that the proposed additional expenditure be reviewed and kept on hold until a clear decision on collaboration is finalised.
DoT objected to the suggestion, stating that BSNL already collaborates with Vodafone Idea in the areas mentioned and is rationalising its expenditure. It warned that keeping additional expenditure completely at abeyance could adversely affect the rollout of ongoing 4G projects.
In March, Mint reported that talks had begun between Vodafone Idea and BSNL on sharing towers, fibre and spectrum to cut costs, improve network reach and accelerate 5G rollout after the parliamentary panel’s intervention.
BSNL’s future strategy also includes potential land monetisation and real‑estate investment trusts to generate revenue from its buildings, as suggested by former Telecom Regulatory Authority of India adviser Satya N. Gupta. The operator is also exploring data‑centre and edge‑data infrastructure opportunities, 5G captive private networks, AI‑enabled use cases, cloud, Internet of Things and enterprise digital solutions.
The current situation remains that BSNL is pursuing a large capital investment while grappling with rising losses and a need for cost rationalisation. The parliamentary committee’s recommendations and DoT’s responses highlight a focus on infrastructure sharing and efficiency. Upcoming developments will include the outcome of the infrastructure‑sharing negotiations with Vodafone Idea, the implementation of the ₹77,000 crore capex plan, and the impact of the revival packages on BSNL’s financial trajectory.
The Department of Telecommunications (DoT) said the spending will help BSNL reach operational breakeven by fiscal 2029 and achieve 98 % nationwide coverage. The proposal comes after the state‑owned operator posted widening losses: net loss rose to ₹4,738 crore in FY26 from ₹2,247 crore in FY25, while revenue grew only 1.7 % to ₹21,199 crore—short of the ₹28,476 crore target set under the memorandum of understanding between DoT and BSNL.
DoT blamed the loss surge on higher depreciation and amortisation, which climbed to ₹10,350 crore in FY26 from ₹6,283 crore in FY25. It also cited a hefty FY25 capital‑expenditure of ₹26,022 crore for 4G rollout and network expansion, which fed into the FY26 loss.
By the end of April, BSNL had installed 105,290 4G sites and had begun 5G trials in Delhi. The government has approved three revival packages for the operator, totalling ₹3.22 trillion. In response to the committee, DoT said the capex would lay an infrastructure foundation for future revenue growth through network modernisation, asset monetisation, cost efficiency and an enterprise focus.
The parliamentary panel urged the government to conduct a comprehensive expenditure rationalisation exercise, focusing on controllable operational costs, tower sharing with other operators, network optimisation and prioritisation of high‑revenue service segments such as 4G/5G rollout, enterprise services and fibre connectivity.
Infrastructure sharing with Vodafone Idea has been a key element of the discussion. BSNL leases 1,441 towers to Vodafone Idea as of April, and the operator holds a 49 % share in the partnership. DoT said active discussions are underway to enhance Vodafone Idea’s tenancy on BSNL tower infrastructure for 4G and 5G. The two companies also have intra‑circle roaming agreements in Delhi and Mumbai on a revenue‑sharing basis, and share fibre links under the BharatNet project.
The committee asked for a structured, time‑bound decision on comprehensive infrastructure sharing between BSNL and Vodafone Idea, including an analysis of tower, fibre, spectrum and other network sharing and estimated financial savings within six months. It recommended that the proposed additional expenditure be reviewed and kept on hold until a clear decision on collaboration is finalised.
DoT objected to the suggestion, stating that BSNL already collaborates with Vodafone Idea in the areas mentioned and is rationalising its expenditure. It warned that keeping additional expenditure completely at abeyance could adversely affect the rollout of ongoing 4G projects.
In March, Mint reported that talks had begun between Vodafone Idea and BSNL on sharing towers, fibre and spectrum to cut costs, improve network reach and accelerate 5G rollout after the parliamentary panel’s intervention.
BSNL’s future strategy also includes potential land monetisation and real‑estate investment trusts to generate revenue from its buildings, as suggested by former Telecom Regulatory Authority of India adviser Satya N. Gupta. The operator is also exploring data‑centre and edge‑data infrastructure opportunities, 5G captive private networks, AI‑enabled use cases, cloud, Internet of Things and enterprise digital solutions.
The current situation remains that BSNL is pursuing a large capital investment while grappling with rising losses and a need for cost rationalisation. The parliamentary committee’s recommendations and DoT’s responses highlight a focus on infrastructure sharing and efficiency. Upcoming developments will include the outcome of the infrastructure‑sharing negotiations with Vodafone Idea, the implementation of the ₹77,000 crore capex plan, and the impact of the revival packages on BSNL’s financial trajectory.
