BSNL, the Indian government-owned telecommunications service provider, is one of the most commonly known brands in India. And why wouldn’t it be? It was the pioneer in the telecommunications sector in India where it has reached the length and breadth of the nation. But as years passed it couldn’t keep up with the competition from the private sector. And now it is in big financial trouble. This troubling financial situation is making employees worried. So, to resolve the situation the union of the employees now has reached the Union Government.
The government owes Rs. 30,000 Crore to BSNL
According to reports, The Department of Telecommunications (DoT) owes about Rs 30,000 crores to BSNL.
As it is a public sector Company it is forced to operate in areas in which it is not viable to operate. Still, to continue to operate in those areas, it receives funding from the government. Now, BSNL is owed Rs 13,789 crores which comes under Viability Gap Funding (VGF) for rural telephony.
Hence the employee union wants the money from the government to ensure that the telco can be put back on track.
For a long time now, the union has been demanding the release of the funds and after much persuasion, the Telecom Ministry released a meager amount of Rs 282 crores.
BSNL’s financial situation is worsening
With increasing competition, BSNL is losing out on subscribers. This has put BSNL in a tight situation financially. The task of expanding its networks and strengthening its G network won’t be possible if it doesn’t get the money from the government.
According to Mr. Satyanarayana, President, BTEU, Visakhapatnam, the union has also requested the IT Minister, Ashwini Vaishnaw, for asking the relevant authorities inside the DoT for BSNL’s initiation of 4G networks and services. Mr. Satyanarayana further added that BSNL is ready with 17,500 cell towers throughout India, and the towers have already been upgraded from 3G to 4G. All it requires is a nod from the government, and BSNL can start providing 4G services.
While the rest of the operators in the country are preparing for 5G, BSNL is still struggling to launch its full-fledged 4G network. The company needs to make its 4G networks live in India so that it can become financially stable. Only then it can look forward to 5G in the coming years.