"Today there was meeting of all CGMs of the country. Government recognises that we have to improve overall functioning of BSNL. It is loss making as of now.
"For a fair competition BSNL being a public sector company also needs to become very focused and proper consumer centric initiatives must be taken," Prasad told reporters after the meeting.
BSNL operates across 20 out of 22 telecom service areas in the country.
The public sector telecom firm reported a net loss of Rs 7,085 crore for financial year 2013-14.
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The Minister said he has asked all the Chief General Managers to work on achieving targets given under the National Optical Fibre Network which aims to connect all 2.5 lakh panchayats.
Government has advanced the target to roll out NOFN by December 2016 under Digital India programme. This was set at March 2017 earlier.
"Digital India...Is the new vision of Prime Minister. In that also, digital connectivity process has to be achieved substantially by the activism of BSNL. All these things I have told them and they have assured me that they will do it," Prasad said.