State-owned Indian telco Bharat Sanchar Nigam Ltd (BSNL) has reported its first ever yearly net loss in the ten years since it was created. The PSU, which was created in October 2000 as a result of the merger of India’s Department of Telecoms Services (DTS) and Department of Telecoms Operators (DTO), posted a net loss of INR18.23 billion (USD390 million) for the twelve months ended 31 March 2010, attributing the result to reduced revenues stemming from tariff reductions and higher expenditure resulting from wage revisions. By comparison in its 2008/09 financial year the telco reported a net profit of INR5.75 billion. Commenting on the revelation, Kuldeep Goyal, BSNL former chairman and managing director, noted: ‘The wage revision alone caused an additional expenditure of INR29 billion. If the wage revision had not been there, the company would have recorded a profit before tax of INR7.03 billion.’ Goyal, who last week stepped down from his post at the telco, said however that BSNL would return to profitability in 2010/11.