Cabinet approves ₹6,000 cr package for BSNL & MTNL 4G expansion
The Union Cabinet has taken a significant step towards accelerating the 4G network expansion of two major public sector undertakings (PSUs) in the Indian telecommunications sector, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). The Cabinet has approved a financial package of ₹6,000 crore to support the 4G expansion of these two entities, which will lead to improved connectivity and better network services for consumers.
As per the report by CNBC Awaaz, the approved package will enable the setting up of around one lakh 4G sites across the country, thereby bridging the digital divide and providing better network services to consumers, especially in rural areas. The expansion of 4G network will not only improve the overall quality of services but also provide a competitive edge to BSNL and MTNL in the market.
The approval of the financial package is a significant boost to the efforts of BSNL and MTNL to modernize their network infrastructure and stay competitive in the rapidly evolving telecommunications market. The two PSU’s have been facing significant challenges in recent years, including declining revenues and increasing competition from private players.
The financial package will go a long way in helping BSNL and MTNL to overcome these challenges and regain their market share. The expansion of 4G network will also create new job opportunities and stimulate economic growth, especially in rural areas where connectivity is often a major challenge.
It is worth noting that the ₹6,000 crore package approved by the Cabinet is just the first installment, and an additional ₹6,000 crore will be required to fully fund the expansion. The total outlay of ₹12,000 crore will be used to set up the 4G sites, acquire necessary equipment, and cover other related expenses.
The approval of the financial package is a significant step forward for the Indian telecommunications sector, which has been facing significant challenges in recent years. The sector has been plagued by issues such as spectrum pricing, regulatory hurdles, and competition from private players, which have impacted the growth of the sector.
However, with the approval of the financial package, BSNL and MTNL are now better equipped to take on the challenges and stay competitive in the market. The expansion of 4G network will also provide a fillip to the digital economy, which is a key driver of economic growth and development.
In conclusion, the approval of the ₹6,000 crore financial package for BSNL and MTNL 4G expansion is a significant step forward for the Indian telecommunications sector. The package will help to accelerate the 4G network expansion of these two PSU’s, improve connectivity, and provide better network services to consumers. The expansion of 4G network will also create new job opportunities and stimulate economic growth, especially in rural areas.
