The central government has taken a big decision regarding the
decaying state-owned telecom companies BSNL and MTNL.
The central government has taken a big decision regarding the
decaying state-owned telecom companies BSNL and MTNL. All Ministries,
Government Departments and Public Sector Units (PSUs) i.e. public sector
companies will be mandated to use the telecom services of Bharat Sanchar Nigam
Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). This has been said
in a memorandum issued by the Telecom Department (DoT).
Only connection of BSNL, MTNL is mandatory
This memorandum or memorandum has been sent to all the
secretaries and departments on October 12, after consulting the finance
ministry on behalf of the central government. This memorandum issued by the
Telecom Department states that 'there is an appeal to all Ministries /
Departments to make CPSEs / Central Autonomous Institutions compulsory for the
needs of internet / broadband, landline and leased line of BSNL / MTNL network.
Issue the necessary guidelines for use.
BSNL, MTNL are in loss
This decision of the central government is a relief news for
both loss-making state-run BSNL and MTNL, which are constantly losing wireline
subscribers. BSNL had a loss of Rs 15,500 crore in FY 2019-20, while MTNL had
shown a loss of Rs 3,694 crore.
Since the competition in the telecom sector, BSNL's wireline
subscriber base has come down from 2.9 crore in November 2008 to just 8 million
by July 2020. Similarly, fixed line customers of MTNL were 35.4 lakh in
November 2008, which has come down to 30.7 lakh in July this year.
BSNL, MTNL to expand network
The state-run telecom company BSNL has raised Rs 8500 crore
through sovereign guarantee bonds, which it will use in its network expansion
and operational expenses. While MTNL was also approved to raise Rs 6500 crore
through Sovereign Gold Bond in October 2019, although the company has not yet
raised this amount.
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