The central government has made use of state-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) services mandatory. The order provides relief to state-run telecom firm BSNL and MTNL as they recorded a huge loss earlier.
The memorandum issued on 12th October 2020, by the Department of Telecommunications (DoT), stated: ” The government of India has, inter-alia, approved the mandatory utilisation of capacities of BSNL and MTNL by all ministries/departments of the government of India, CPSEs, central autonomous bodies”.
According to the memorandum all the ministries, departments, Central Public Sector Enterprises (CPSE)/ Central Autonomous Organisations have been ordered to use mandatorily services of state-run BSNL /MTNL for their network for internet/ broadband, landline, and leased line requirements.
This will result as a relief for the loss-making state-run telecom service providers who have been losing their wireline subscriber base. Earlier BSNL recorded a loss of Rs 15,500 crore while MTNL recorded a loss of Rs 3,694 crore in 2019-2020.