The central government has mandated All ministries, public departments and public sector units have to use telecom services of state-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). A memorandum issued by the Department of Telecommunication (DoT) announces the Government of India’s inter-alia approval of mandatory utilisation of capacities of BSNL and MTNL by all ministries/ departments of Govt. Of India, CPSEs and Central autonomous bodies. This decision regarding mandatory use of BSNL and MTNL telecom service was taken by the Cabinet.
The order comes as a relief for the loss making state-run telecom firms who have been losing their wireline subscriber base. BSNL recorded a loss of Rs 15,500 crore and MTNL posted a loss of Rs 3,694 crore in 2019-20.
BSNL’s wireline subscriber base has eroded from 2.9 crore in November 2008, to around 80 lakh in July this year. MTNL’s fixed line customers have come down from 35.4 lakh in November 2008, to 30.7 lakh in July this year.
State-run telecom firm BSNL has raised more than Rs 8,500 crore through sovereign guarantee bonds to expand its network and manage operational expenses. MTNL is yet to raise Rs 6,500 crore through sovereign bonds which was approved by the Cabinet in October 2019, as part of its revival package.
