Govt May Shutdown MTNL Due To This Reason; All MTNL Operations Can Be Shifted To BSNL

Shreya Bose

Shreya Bose

Jun 08, 2023

According to a Mint report the Central government is planning to shut down the telecom operator Mahanagar Telephone Nigam Ltd (MTNL).

Shift in plans

Govt May Shutdown MTNL Due To This Reason; All MTNL Operations Can Be Shifted To BSNL

It will instead transfer MTNL’s workforce and operations to Bharat Sanchar Nigam Ltd (BSNL).

This is a major change from previous plans to merge the two entities.

The latest development has come in the wake of mounting debt and persistent loss making by MTNL.

MTNL’s woes

During the fiscal year 2022-23, MTNL recorded a loss of Rs 2,910 crore, higher than the previous fiscal year’s loss of Rs 2,602 crore.

Revenue from operations experienced a decline from Rs 1,069 crore in FY22 to Rs 861 crore in FY23.

Expenses increased to Rs 4,384 crore from Rs 4,299 crore during the same period.

MTNL’s outstanding debt escalated to Rs 23,500 crore in FY23 from Rs 19,661 crore in FY22.

BSNL’s comparative performance

On the other hand, BSNL witnessed a rise in revenues to nearly Rs 20,700 crore, surpassing the previous fiscal year’s Rs 19,052 crore.

Its growth in revenue can be credited to an increased number of fibre-to-the-home (FTTH) connections, augmented business from leased line services, and additional operating income.

The telco’s FTTH business saw significant growth of 30 per cent year-on-year, surpassing the carrier’s wireless business, which contributed less than a third of the overall revenues and grew by only 7 per cent to Rs 5,638 crore for FY23.

Relief package inclusions

The government helped BSNL and MTNL out in 2019 and then in 2022 with two relief packages.

It sanctioned a package worth ₹69,000 crore in 2019 which included measures such as:

  • Voluntary retirement scheme for employees of both companies 
  • Allocation of administrative spectrum for the provision of 4G services through capital infusion
  • Issuance of sovereign bonds with a tenure of 10 years or more for debt restructuring purposes
  • Monetization of land, buildings, towers, and fiber assets to maximize returns
  • In-principle approval for the merger of BSNL and MTNL

Sources disclosed that MTNL’s closure is imminent, with BSNL poised to assume control over its operations.

Shreya Bose
Shreya Bose
  • 610 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Nov. 23, 2022

Jio 5G Launched In Pune With 1Gbps+ Data Speed: Offers Unlimited 5G Data!

Reliance Jio on Thursday announced the launch of its 5G network in Pune. Dawn of a new era In October, Prime Minister Narendra Modi launched 5G in India with the promise of ultra high-speed internet on smartphones.  5G means speeds multiple times faster than 4G and lag-free connectivity which enable billions of connected devices to […]

Nov. 22, 2022

Airtel Increases Minimum Monthly Plan Tariff By 57%; Pay Rs 155 For Airtel’s Minimum 28-Days Plan

As expected, Airtel has triggered a new wave of price hikes in the telecom industry, and it’s expected that soon, others will follow suit. With this new round of price hikes, telecom companies like Airtel can expect much better ARPU or Average Revenue Per User, but it will burn a hole in the consumer’s pocket. […]

Nov. 17, 2022

BSNL 4G Can Launch As Early As January, 2023 With 10,000 Towers Across India! TCS-BSNL Partnership Will Work?

State-run BSNL is expected to launch its 4G services from January. TCS at the helm It is doing so with the help of Tata Consultancy Services (TCS) which has bagged the tender for the construction of towers to enable the rollout of the service. The tender for the setting up of 4G towers was released […]

Nov. 12, 2022

BSNL 4G Tests Successfully Completed; BSNL 4G Expected To Start From January, 2023!

BSNL has completed the trials for its indigenous 4G network as part of the proof of concept with a Tata Consultancy Services-led consortium. It was completed in the last week of October in Chandigarh. Location not yet decided A government official said that all the necessary network tests as part of proof-of-concept with a TCS-led […]

Recent Posts

Related Videos


Subscribe Now!

Get latest news and views related to startups, tech and business

who's online