PSU BSNL plunged into red in the fiscal year, 2009-10 with net loss of Rs.1822.65 crore and dip in yearly revenues by 10.4%.

The company attributed the fall in revenues to Rs.32,045.41 crore to factors such as drastic reduction in tariff, fierce competition as well as decline in fixed wire line connection due to preference of the subscribers for mobile.

The only silver lining for the firm came from Broadband services with the vertical witnessing rise in revenues from Rs.1690 crore to Rs.2485 crore at a yearly growth rate of 47%.

“The current year expenditure has been increased on account of wage revision of the employees with effect from 01.01.2007 as well as amortization of one time spectrum fee for 3G & BWA service. The wage revision has alone caused an additional expenditure of Rs.2900 crore over the previous year on account of payment of arrears for the period from 01.01.2007 to 31.03.2010. Had the wage revision expenditure not been there, the company would have recorded a Profit Before Tax to the tune of Rs.703 Crore,” said BSNL.