Once again, the Cabinet has approved a revival package of Rs 89,047 crore for Bharat Sanchar Nigam Ltd (BSNL).
A Revival Package For BSNL
On 7 June, the Union Cabinet chaired by Prime Minister Narendra Modi approved the third revival package for BSNL having the total outlay of Rs. 89,047 crore.
This also includes the allotment of 4G/5G spectrum for BSNL through equity infusion.
So far, BSNL is struggling with poor infrastructure.
It has been battered by the intense competition from Jio, the wireless arm of Reliance Industries, Bharti Airtel and Vodafone Idea.
These competitors have rolled out 4G services at low prices on voice calls and data.
The news has affected the shares of state-owned telecom firm Mahanagar Telephone Nigam Ltd, which surged nearly 12% after the news of a rival package for BSNL.
Earlier media reported that the government was contemplating the closure of Mahanagar Telephone Nigam Ltd (MTNL), a debt-ridden telecommunications company.
As they are planning to transfer the staff and operations of MTNL to BSNL, abandoning the previous proposal of merging the two state-owned telecom companies.
A Major Step To Enhance Its Infrastructure
Government’s decision to consider closure stems from the fact that MTNL has been facing continuous losses, further burdened with a substantial amount of debt.
Prior to this, BSNL awarded a significant advance purchase order (APO) valued at an impressive Rs 3,889 crore to ITI.
Here ITI is a central public sector undertaking, for the deployment of its 4G network.
So, ITI will be responsible for manufacturing the Radio Access Network (RAN) equipment as per the terms of the agreement.
Notably, the APO issued by BSNL pertains to the Reservation Quota (RQ) Order specifically in the West Zone.
The latest move from the government signifies a major step forward in BSNL’s efforts to enhance its network infrastructure and provide advanced 4G services to its customers.
The Residents from the border states who have been struggling with limited mobile and data connectivity have found solace as BSNL initiated the installation of 20,000 4G towers.
BSNL has been entrusted with the responsibility of ensuring connectivity in remote areas, as part of the government’s 4G saturation plan.
BSNL has already commenced the implementation of the project, media earlier reported.
There objective is to provide 4G coverage to approximately 25,000 villages, many of which currently lack any form of connectivity.