Public sector companies like BSNL have been lagging behind for the past decade due to the dominance of private telecom companies. Again and again we hear about the business struggles of these state-owned telcos. However, it seems that the central government is going to take a big decision on MTNL, which is in much worse condition than BSNL. In fact for the last three-four years the government was thinking of transferring all the operations and staff of the company to BSNL i.e. Bharat Sanchar Nigam Limited to deal with the business losses and financial challenges of MTNL or Mahanagar Telephone Nigam Limited. That is, the government was planning to merge the two organizations. But according to new reports, the plan has now been abandoned by the government. Instead, it is heard that plans are being made to completely shut down MTNL in the next few days.
MTNL service will be discontinued soon
According to a recent report by Livemint, two government officials have sealed the closure of MTNL. According to them, the company is facing continuous losses and has a debt burden of around Rs 40,000 crore. A merger of MTNL with BSNL in such a situation could further exacerbate the financial problems and hamper the chances of revival of both the companies. Therefore, the decision to close the organization will be final. But in this case BSNL will manage all the activities instead of MTNL. It may be noted that BSNL has already started working on this in Delhi and Mumbai.
MTNL is doing business, but BSNL is facing some profit
Despite getting government help, MTNL has not been able to turn around in the past few years. In the 2022-23 financial year, the company’s losses rose to Rs 2,910 crore – and while the revenue was only Rs 861 crore, their expenses were said to have increased by Rs 4,384 crore. It is clear that even in this happy scenario of 5G launch, MTNL is struggling. His struggle, various steps did not work.
On the other hand, BSNL’s condition has improved since the same financial year. The telecom company plans to launch 5G services by 2024 and has a revenue of Rs 20,700 crore – reports say. In that case, it remains to be seen whether the once ‘hero’ BSNL can make more profit while managing the operations of MTNL…