Now Reading: BSNL Q1 loss widens to Rs 1,280 crore on high costs
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BSNL Q1 loss widens to Rs 1,280 crore on high costs
BSNL's consolidated net loss for the April-June quarter widened to Rs 1,280 crore from Rs 1,007 crore a year ago, as expenses grew faster than revenue. Sequentially, the loss narrowed from Rs…
The Story in Brief
BSNL's consolidated net loss for the April-June quarter widened to Rs 1,280 crore from Rs 1,007 crore a year ago, as expenses grew faster than revenue. Sequentially, the loss narrowed from Rs 1,419 crore in the March quarter. Revenue from operations rose 4.2% year-on-year to Rs 5,306 crore, but total expenses climbed 5.5% to Rs 7,242.5 crore, driven by employee and network costs.
The state-owned operator's average revenue per user (Arpu) rose to Rs 102.7 from Rs 100 in the previous quarter, though its active subscriber base fell to 52.2 million at end-May. The consumer mobility business grew 12% year-on-year to Rs 2,282 crore but declined 7.5% sequentially. Trai drive tests show BSNL's mobile network often falls below quality benchmarks set by the regulator.
The Indian Opinion
BSNL's Arpu rise is often held up as a turnaround sign, but the widening loss and shrinking active user base tell a different story. The Arpu bump may owe more to churning low-value users than real pricing power. Meanwhile, the focus on 4G and 5G network expansion is welcome, but service quality must improve to retain subscribers. The next Trai quality report and the trend in active users will separate hype from reality.
Source: livemint.com
This story was synthesised by AI from the source linked above.
