Business Desk: Connecting India : You will be surprised to know the condition of the oldest and state-run telecom company in the country with the objective of connecting India with the mobile network. In the Corona era, many companies have lost losses, of which BSNL is also one. When the mobile service of BSNL started in 2002, everyone from government officials to general public had only SIM card of BSNL but what happened in the last few years that private companies have gone ahead and BSNL has been in loss.
On 19 October 2002, the then Prime Minister Atal Bihari Vajpayee started BSNL mobile service from Lucknow. BSNL became the number one mobile network company in the country only a few months after its launch.
When BSNL started, private operators used to charge Rs 16 per minute in addition to Rs 8 per minute incoming. At that time BSNL gave incoming free of cost and kept the price of outgoing calls too low.
2002 to 2005 was the golden time of BSNL when everyone wanted BSNL’s SIM and the company had a cash reserve of up to 35 thousand crores.
But after 2006, there was a phase of privatization in the mobile network and many mobile network companies overtook BSNL.
At such a time, it was necessary for BSNL to take quick decisions to increase its capacity in the market, but due to being a government company, it took months to complete the tender process for BSNL.
Between 2006 and 2012, BSNL’s market share declined. People left BSNL and switched to private companies due to network congestion and other problems.
From 2014 to 2017, the time was slightly right for BSNL. During this time BSNL earned “operating profits”. BSNL’s operating profit was Rs 67 crore in 2014-15, Rs 2,000 crore in 2015-16 and Rs 2,500 crore in 2016-17.
But meanwhile Reliance Jio entered the market in September 2016, affecting not only BSNL but also all the telecom companies in the market.
People are greatly affected by Jio’s plans and corporate services. This is the reason that BSNL has been at a loss for the last three years. At present, BSNL is not in a position to bear the losses.