The Bharat Sanchar Nigam Ltd. (BSNL) will get a revitalization package that has been authorized by the Cabinet and would cost 89,047 crores. Today, the Union Cabinet, which is chaired by Prime Minister Narendra Modi, granted its approval for the third revival package for BSNL, which has a total budget of Rs. 89,047 crores. The Union Cabinet is headed by Prime Minister Narendra Modi. As a result of this transaction, BSNL will get an allotment of 4G/5G spectrum and more equity will be contributed to the firm.
BSNL, which is suffering from poor infrastructure, has been battered by strong competition from Jio, the wireless unit of Reliance Industries, Bharti Airtel, and Vodafone Idea, all of whom have put out 4G services at affordable prices on voice calls and data. This rivalry has caused BSNL to lose a lot of customers and revenue. The cheap pricing that these other firms provide has rendered BSNL incapable of competing with these other businesses.
Following the publication of the competing package for BSNL, the share price of the state-owned telecom operator Mahanagar Telephone Nigam Ltd climbed by more than 12%. This gain occurred after the announcement of the competing package.
Earlier, it was reported that the government was mulling over the prospect of closing down the financially struggling telecommunications company Mahanagar Telephone Nigam Ltd. (MTNL), also known by its initials MTNL. As a result of this, there are plans to transfer the employees and operations of MTNL to BSNL. As a result, the previous aim to combine the two state-owned telecom firms into a single organization would no longer be carried out.
The fact that MTNL has been experiencing constant losses and is burdened with a substantial amount of debt is what led to the decision to study the potential of closing down the firm. MTNL has been in business since 1996 and has accumulated over $1 billion in total debt.
Earlier, BSNL handed out a substantial advance purchase order (APO) to ITI, a central public sector body, for the purpose of the installation of its 4G network. The astounding number 3,889 crore was assigned as the value of the APO. ITI is the party that will be in charge of the duty of manufacturing the equipment for the Radio Access Network (RAN) in line with the terms of the agreement.
The APOs that were distributed by BSNL are connected to the Reservation Quota (RQ) Orders that were positioned only in the West Zone. This new accomplishment marks a key milestone in BSNL’s efforts to upgrade its network infrastructure and to give its customers better 4G services. BSNL has been working towards these goals over the course of the last few years.
Residents in border states, who have been contending with limited mobile and broadband access, have found some solace in the news that BSNL has started installing 20,000 4G towers in those areas. This is a move that would provide residents of border states with improved mobile and broadband connectivity. As part of the plan, the government has devised to achieve 4G saturation, the responsibility of ensuring connection in rural areas has been delegated to BSNL. BSNL was entrusted with this responsibility.
A report that was released earlier states that BSNL has already started the process of putting the idea into action so it may be used. This project’s goal is to provide 4G coverage to around 25,000 towns, the majority of which do not currently have access to any form of connectivity. Those communities are in the majority.