Cabinet Approves ₹6,000 Cr Package for BSNL & MTNL 4G Expansion
In a significant move to accelerate the 4G network expansion of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), the Union Cabinet has approved a financial package of ₹6,000 crore. The package aims to improve connectivity and provide better network services for consumers across the country. As part of the expansion plan, around one lakh 4G sites will be set up, marking a significant step towards bridging the digital divide.
The approved package is a crucial step towards revitalizing the ailing state-owned telecom operators, which have been struggling to compete with private players in the Indian telecom market. The financial injection will enable BSNL and MTNL to upgrade their existing infrastructure, enhance their 4G coverage, and offer faster and more reliable services to their subscribers.
According to reports, the additional ₹6,000 crore will be required to fully fund the expansion plan, which is expected to be completed over the next two to three years. The funds will be utilized to set up new 4G sites, upgrade existing infrastructure, and purchase necessary equipment and technology.
The approval of the package is seen as a significant boost to the government’s efforts to promote digital literacy and bridge the digital divide in the country. With the majority of the population still relying on 2G networks, the expansion of 4G services will enable better communication, entertainment, and access to essential services such as healthcare, education, and banking.
The 4G expansion plan is also expected to create employment opportunities and stimulate economic growth in the country. The upgrade of infrastructure will require the hiring of skilled professionals, including engineers, technicians, and customer support staff, which will provide a much-needed boost to the job market.
The Cabinet’s approval of the package is also seen as a strategic move to counter the growing dominance of private telecom operators in the Indian market. With the competition intensifying, the government has been under pressure to support state-owned operators to ensure they remain viable and competitive.
BSNL and MTNL have been struggling to compete with private players such as Reliance Jio, Airtel, and Vodafone Idea, which have been aggressively expanding their 4G networks and offering attractive data plans to customers. The Cabinet’s approval of the package is seen as a much-needed lifeline for the state-owned operators, which have been facing significant financial challenges in recent years.
The 4G expansion plan is also expected to improve the financial health of BSNL and MTNL, which have been reporting significant losses in recent years. The improved financial performance will enable the operators to invest in new technologies, upgrade their infrastructure, and offer better services to customers.
In conclusion, the Cabinet’s approval of the ₹6,000 crore package for BSNL and MTNL 4G expansion is a significant step towards promoting digital literacy and bridging the digital divide in the country. The expansion plan will enable better connectivity, improve network services, and create employment opportunities, making it a crucial step towards revitalizing the ailing state-owned telecom operators.
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