Mega Telecom Expansion: BSNL Proposes ₹77,000 Crore Plan to Boost 4G Network and 5G Services

State-owned telecom provider BSNL has submitted a massive ₹77,000 crore capital expenditure proposal covering the next five years. The plan focuses on installing 200,000 new 4G towers, strengthening overall infrastructure, and deploying 5G networks across strategic and high-traffic sectors, according to Department of Telecommunications (DoT) submissions to the Parliamentary Committee on Communications and Information Technology.

The DoT’s response—detailed in a parliamentary report—indicates that this capital push aims to help BSNL achieve nationwide coverage of 98% and reach operational breakeven by FY2028-29.

Key Financial Infusions and Expansion Milestones

• ₹21,588 Crore Fresh Capital Request: DoT has requested an additional ₹21,588 crore capital infusion for FY2026-27 under the government’s approved BSNL revival package.
• Network Infrastructure Base: By April 2026, BSNL successfully deployed over 1.05 lakh indigenous 4G towers capable of seamless 5G upgrades. Early 5G-as-a-service initiatives have also commenced in Delhi.
• Historical Capex Context: This follows a record expenditure of ₹26,022 crore in FY2024-25 aimed at 4G deployment, power system upgrades, and BharatNet fibre integration.
• Short-Term Financial Impact: While heavy capital investments increased depreciation costs and broadened near-term losses for FY2025-26, officials emphasize these investments set the foundation for future top-line growth.

Operational Revenue and Loss Trends

Despite steady operational top-line growth, BSNL continues to navigate financial challenges:

Monetization and Cost Rationalization Strategy

To offset losses, the parliamentary committee recommended optimized network utilization, increased infrastructure sharing, and focused growth in high-margin enterprise and fibre markets.

DoT reported that BSNL is actively pursuing key revenue and efficiency initiatives:

• Tower Leasing Revenue: As of March 2026, BSNL leased 11,398 cellular towers to private operators, generating ₹1,019 crore in FY2025-26.
• Dark Fibre Leasing: Leasing roughly 300,000 route-kilometers of unused fibre yields an additional ₹410 crore annually.
• OPEX Reduction: Operational costs were trimmed from ₹9,460 crore in FY2024-25 down to ₹8,970 crore in FY2025-26 via energy management, streamlined maintenance, and tower contract renegotiations.