Cabinet Approves ₹6,000 Crore Package for BSNL & MTNL 4G Expansion
In a major move to accelerate the 4G network expansion of the country’s two largest telecom PSU’s, the Union Cabinet has approved a financial package of ₹6,000 crores for Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). This significant development is expected to improve connectivity and provide better network services for consumers across the country.
As per the reports, around one lakh 4G sites will be set up under this package to enhance the 4G network coverage and capacity. With this expansion, BSNL and MTNL will be able to provide seamless and high-speed internet services to their subscribers, thereby reducing the digital divide and increasing the overall competitiveness of the Indian telecom sector.
The approved package is a significant step forward in the government’s efforts to revive the fortunes of BSNL and MTNL, which have been facing financial challenges in recent years. The two PSU’s have been struggling to compete with private telecom operators, who have been offering better services and tariffs to their customers.
The ₹6,000 crore financial package will be used to fund the 4G network expansion, which includes the deployment of new 4G equipment, setting up of new towers, and upgrading of existing infrastructure. The package also includes the costs associated with the hiring of skilled manpower and the provision of necessary training to ensure that the network is operational and maintained efficiently.
While the ₹6,000 crore package is a significant step in the right direction, it is not the end of the story. According to reports, an additional ₹6,000 crore will be required to fully fund the 4G network expansion. This additional funding will be required to cover the costs associated with the deployment of new technologies, such as 5G, and the provision of additional services, such as IoT and smart city solutions.
The approval of the financial package comes at a time when the Indian telecom sector is facing intense competition and shrinking margins. The sector has been experiencing a decline in revenue growth rates, driven by the intense competition and the low tariffs offered by private telecom operators. The sector is also facing significant challenges in terms of the high costs associated with the maintenance and upgrading of infrastructure, the high dependence on foreign technology and equipment, and the lack of skilled manpower.
In recent years, BSNL and MTNL have been trying to revamp their operations and improve their competitiveness. They have been offering competitive tariffs and services to their customers, and have been investing heavily in the development of new technologies and services. However, despite their efforts, they have been struggling to gain market share and improve their financial performance.
The approval of the financial package is expected to provide a much-needed boost to the morale of the employees of BSNL and MTNL, who have been facing significant challenges in recent years. The package is also expected to improve the overall competitiveness of the Indian telecom sector, by providing better services and tariffs to consumers and creating new opportunities for the growth of the sector.
In conclusion, the approval of the ₹6,000 crore financial package for the 4G network expansion of BSNL and MTNL is a significant development that is expected to improve connectivity and provide better network services for consumers across the country. The package is a significant step forward in the government’s efforts to revive the fortunes of the two PSU’s and improve the overall competitiveness of the Indian telecom sector.
