Chairman's Statement

On behalf of the Board of Directors and Management, I extend a warm welcome to you all at the 24th Annual General Meeting of our esteemed company. It is my privilege to address you as we review our performance for the financial year ended March 31, 2024.

Performance Overview

This year has presented both challenges and opportunities. Our company continues to operate in the dynamic and competitive Telecom sector, which remains a cornerstone of long-term sustainable business in our country. Despite the ongoing challenges, our performance for FY 2023-24 reflects resilience and strategic progress. I am pleased to report that our revenue from operations has shown a modest increase, rising from ₹19,128 crore in FY 2022-23 to ₹19,331 crore in FY 2023-24. Our Other Income has also seen a significant rise, increasing from ₹1,571 crore to ₹1,972 crore. Despite a decrease in revenue from landline, broadband, and mobile services, we have seen growth in FTTH, Infra Leasing, and Leased Circuits. Our operational expenses have been effectively managed, with a reduction in Operating and Administration expenses from ₹9,834 crore to ₹9,402 crore. This, combined with our increased EBITDA of ₹2,164 crore, up from ₹1,558 crore, showcases our focus on operational efficiency and cost control.

The company incurred a loss of ₹5,371 crore this year, compared to ₹8,162 crore in the previous year, reflecting significant improvements in our financial performance. However, our current ratio stands at 1.48:1, below the ideal 2:1. We are committed to correcting this ratio and are implementing measures to enhance our liquidity and financial health.

The Authorized Capital of our Company has increased from Rs. 1,50,000 crore to Rs. 2,10,000 crore. We have successfully issued Rs. 46,380.38 Crore equity shares through the Ministry of Telecommunications on a rights basis. This capital infusion, along with other measures, has been crucial in stabilizing and advancing our operations. We have also completed the settlement of AGR dues up to FY 2022-23. Additionally, our bond issuance activities have been significant this year. We successfully raised the second tranche of bonds amounting to INR 2,059 crore with a Sovereign Guarantee in March 2024, and our bond ratings continue to reflect the highest degree of safety.

Asset Monetization and Technological Advancements

Our focus on asset monetization has yielded positive results, with ₹633 crore earned through renting of built-up space and land monetization. We are actively pursuing further monetization of tower and fibre assets and are collaborating with the National Land Monetization Corporation (NLMC) for larger asset sales. Additionally, your company has launched a website, www.assetmonetization.bsnl.co.in, where various land parcels, buildings, and vacant spaces owned by BSNL are available for sale or rent. This platform is open to all Central and State Government entities, PSUs, and autonomous bodies interested in purchasing or renting these properties.

In terms of technological advancements, we are making significant strides with the rollout of our 4G network. We have issued tenders for 4G equipment and are in the process of deploying 4G services across multiple regions. Our commitment to domestic technologies is exemplified by our partnership with TCS and other vendors to support the Make in India initiative.

Network Expansion and Technological Advancements

This year has marked a significant milestone in our network expansion and technological upgradation. We have substantially increased our network capacity and footprint. Our 2G, 3G, and 4G networks now comprise 23,246 2G BTS, including 4,237 redeployed sites, 37,703 3G Node-Bs, including 12,529 redeployed sites, and 8,637 4G e-NodeBs. Our 4G services, launched using existing 3G spectrum, are operational across the country, except in Rajasthan.

Aligned with the AtmaNirbhar Bharat Abhiyaan, we invited Expressions of Interest (EoI) for developing an indigenous 4G/5G telecom stack. M/s TCS and M/s ITI participated in the Proof of Concept (PoC), and M/s ITI was selected for the Reservation Quota (RQ). We have issued purchase orders for 100,000 e-NodeBs, with deployment underway and expected to complete by June 2025. As of March 31, 2024, we have installed 7,005 e-NodeBs, with 5,066 already operational. These 4G e-NodeBs are also upgradable to 5G, ensuring our network’s future readiness.

Innovations and Customer Experience

We have introduced several initiatives to enhance customer experience and streamline operations. Our new “BSNL Self-Care App” has gained over 5 million users and is highly rated, providing a user friendly platform for managing services. We have also launched a unified BSNL Selfcare App for both mobile and landline services, incorporating UCC complaint booking features.

To simplify SIM acquisition and increase market share, we have rolled out an Online SIM Distribution Policy, currently being tested in Ghaziabad, Gurgaon, and Kerala. Our new Sales & Distribution policy includes online SIM selling agents and universal distributors, aligning with market dynamics.

Infrastructure Development and Operational Efficiency

Our commitment to infrastructure development is evident in the addition of 209 new tower tenancies and renegotiations to reduce operational expenditures on leased towers. We have developed the “CM Reporting Portal” for centralized reporting and the BTS Inspection Module for infrastructure maintenance.

The modernization of our Broadband Network Gateways (BNGs) with advanced CUPS BNGs has enhanced our network’s capacity and efficiency. We have installed 123 CUPS BNGs this year and have procured additional units for MTNL’s FTTH network.. Our Lawful Interception Monitoring (LIM) systems have been upgraded with high-capacity equipment, and we have placed orders for seven new LIMs, enhancing our interception capabilities.

Major Projects and International Presence

Our strategic projects include the Chennai Andaman & Nicobar Islands (CANI) and Kochi Lakshadweep Island (KLI) submarine cable projects, which significantly enhance connectivity across critical regions. These projects, along with our international gateway operations, reinforce our global presence.

We are advancing the BharatNet Phase-I and Phase-II projects, extending optical fiber networks to Gram Panchayats and remote areas. Our efforts in upgrading 2G/3G sites to 4G and expanding services to uncovered villages are supported by Union Cabinet approvals. As of March 31, 2024, we have erected 9,356 new towers, with 147 4G saturation towers in operation.

Future Outlook and Strategic Goals

Looking ahead, we remain focused on driving technological innovation, expanding our network infrastructure, and enhancing customer experiences. Our open policy for empanelment of M2M and Captive Non-Public Network (CNPN) partners, along with our commitment to domestic manufacturing, positions us for continued success.

We are dedicated to leveraging our strengths to navigate the evolving telecom landscape, ensuring we meet the demands of our customers and contribute to the nation’s digital progress.

Acknowledgments

I would like to express our deepest gratitude to the Government of India, Ministry of Communications, and other relevant authorities for their continued support and guidance. Your unwavering backing has been instrumental in our progress.

I extend my sincere appreciation to all our Shareholders, Vendors, Customers, Dealers, and Business Associates. A special thank you to our dedicated employees, whose hard work and commitment are the driving force behind our achievements.

we move forward, our focus remains on strengthening our operational efficiencies, enhancing customer experiences, and embracing technological advancements. Together, we will continue to navigate the challenges and seize the opportunities ahead.