There is some significant news coming from the Indian Telecom Industry where the updates suggest that MTNL (Mahanagar Telephone Network Limited) is going to become de-functional, all the concerned operations of the organization are expected to be transferred to BSNL (Bhartiya Sanchar Nigam Limited).
On May 2023, it was reported that, BSNL will utilize a 4G stack from a TCS-led consortium (Tata Consultancy Services), which can be upgraded to 5G through a software rollout. TCS received an Advance Purchase Order (APO) valued at over Rs 15,000 crore (around $1.8 billion) from government-owned telco Bharat Sanchar Nigam Limited (BSNL), for the spread of 4G network throughout the country.
The government owned telecom company which was setup 37 years ago from today, i.e. in April 1986, setup for the upgradation of telecom services in the country and to spread telecom, is finally glimpsing an end to its operations, due to its current financial adversaries, there has been a significant decline in MTNL’s market share and the need for a strategic intervention. The increase in financial losses and increasing debts led to the succumbing of the veteran Indian company (Nearly 40k crores).
The reports where an official was stating clear-cut facts for the concern has erupted on the net which says,
It’s almost decided. MTNL would be shut down; the operations will be taken over by BSNL. BSNL is already executing operations in Delhi and Mumbai.
Government officials have raised concerns regarding the feasibility of revitalizing MTNL independently. They are skeptical about the potential revival of the company and believe that merging it with BSNL might exacerbate the financial challenges faced by the latter. This apprehension stems from the worry that such a merger could impede the revival prospects of both MTNL and BSNL, further hindering their path to recovery.
In FY report of 2022, it was seen that MTNL had reported a total loss of INR 2,602 Crores, which in FY23 has increased by INR 308 crores, and adding up to the figure which stands at INR 2,910 Crores now. Considering it as the last trick from the hat , the shifting of operations is done along with the issuing of INR 6,661 Crores as sovereign bonds for FY 2023-24.
This consolidation holds the potential to streamline operations, optimize resources, and improve service quality. However, it also presents challenges in terms of employee welfare, customer satisfaction, and market competition. As this crucial decision unfolds, industry stakeholders, employees, and users alike eagerly await the government’s roadmap to ensure a smooth transition and a thriving telecom sector in the years to come.
