BSNL to spend big on mobile and broadband, but profits under pressure

23 Jun 2006

State-run Indian telco Bharat Sanchar Nigam Ltd (BSNL) expects net profit to fall to under INR100 billion (USD2.17 billion) in its 2006-07 financial year, down from ‘slightly over INR100 billion’ in the twelve months ended 31 March 2006, according to BSNL chairman AK Sinha. Gross revenues are projected to rise to from INR265 billion to INR395 billion, whilst capital expenditure will reach between INR160 billion and INR170 billion. Sinha said the bulk of investments will be made in the company’s mobile and broadband services; he expects BSNL to add two million broadband connections in 2006-07 and three million the year after.

India, Bharat Sanchar Nigam Limited (BSNL)