Government approves Rs 6,982 crore for BSNL’s 4G, 5G expansion

The Government of India has approved an additional capital expenditure of Rs 6,982 crore for 2025 to support the network expansion of Bharat Sanchar Nigam Limited (BSNL), particularly for 4G rollout and preparatory 5G initiatives.

According to a recent statement in the Rajya Sabha by Minister of State for Communications Chandra Sekhar Pemmasani, the sanctioned capex will assist BSNL in expanding its 4G services across the country. The state-owned operator is also gearing up to launch 5G services in select markets, with New Delhi likely to be among the first locations. The company has already completed trials for both 5G Standalone (SA) and Non-Standalone (NSA) technologies.

The capex support of Rs 6,982 crore comes in addition to the Rs 3.22 lakh crore allocated to BSNL over the years through various government relief packages. These interventions have helped the telecom PSU stabilise operations and return to an operating profit trajectory.

The BSNL Revival Story

In the first quarter of FY26, BSNL reported an operating revenue of Rs 5,026.4 crore, marking a 14.51% increase year-on-year. The operator posted an EBITDA of Rs 1,501.9 crore for the quarter. Although BSNL still reported a net loss of Rs 1,049 crore for Q1 FY26, it was an improvement from the Rs 1,542 crore loss recorded in the same quarter of FY25. Notably, the company had reported net profits of Rs 260 crore and Rs 280 crore in the two preceding quarters.

The financial uptick and fresh capex signal BSNL’s strategic shift towards next-generation service readiness. With 5G testing underway, particularly in the National Capital Region, the operator is expected to begin selective deployment in the coming months.