Team siliconindia

• Govt announces fresh Rs 47,000 crore capex plan to boost BSNL’s network after record Rs 25,000 crore spent last year on 4G expansion.
• BSNL tasked with growing mobile services by 50%, enterprise business by 25-30%, and fixed-line by 15-20% in a year.
• Focus on raising ARPU (Rs 40 - Rs 175) to compete with Reliance Jio (Rs 208) and Airtel (Rs 250).

The government has announced a fresh Rs 47,000 crore capital expenditure plan to enhance Bharat Sanchar Nigam Limited’s (BSNL) network, the Department of Telecommunications (DoT) revealed on Thursday via social media platform X.

Union Telecom Minister Jyotiraditya Scindia said BSNL achieved its highest-ever annual capital expenditure of Rs 25,000 crore last year, installing one lakh towers to expand 4G services. The bulk of this Rs 25,000 crore project was executed by IT major TCS and a C-DoT-led consortium, which supplied telecom equipment to the state-run operator.

Scindia has set an ambitious target for BSNL grow its mobile services business by 50% over the next year. In a recent review meeting with BSNL’s circle and business unit heads, the minister urged each unit to boost enterprise business by 25-30% and fixed-line operations by at least 15-20%.

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A key focus area is increasing the Average Revenue Per User (ARPU), which for BSNL currently ranges from about Rs 40 in some circles to over Rs 175 in others. Scindia stressed the need to improve customer satisfaction and expand the subscriber base to bridge the gap with private sector rivals. 

In comparison, Reliance Jio posted an ARPU of Rs 208 and Bharti Airtel Rs 250 for the June quarter, underscoring the competitive challenge for BSNL as it undertakes this significant network expansion and modernization drive.