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17 September 2014

Exclusive: Government plans to shutdown the operations of BSNL and MTNL. Who is going to get the benefit ???

State run PSUs, MTNL and BSNL are running in losses for many years and this caused the Central Government to discuss the proposals to shut down these state-owned companies. The list contains 10 companies which includes BSNL, MTNL, Air India etc. and the list was prepared by Department of Public Enterprises (DPE).

MTNL and BSNL, the state owned telecommunication giants, were providing services in the nook and corner of the country including remote rural areas where private operators hesitate to provide services. These two public sector companies are currently providing the lowest telecom tariff to the people of India with seamless roaming services and PAN India 3G coverage. BSNL also offering 'WiMax - 4G Wireless Broadband Service' in selected telecom circles, including Kerala.

Department of Telecom (DoT) thinking seriously on the options to close the operations of BSNL and MTNL as a part of Governments efforts to deal with heavy loss making Govt owned companies. DoT is also discussing the merger of BSNL and MTNL in order to minimize the losses. MTNL is already listed in stock exchange.

The existence of government supported telecommunication company is very much essential in Indian market since it will give more benefit to consumers from unethical hike in  tariff. From the current Telecom market, we can clearly see that,  these two public sector units are providing service to the common people at the lowest and reasonable tariff as compared to all other private operators whether it is broadband, landline, 3G or EVDO. Infact, these two companies are acting as price regulators in the telecom market.

Readers, please share your views on the Governments decision to close the operations of the sate owned telecom giants - BSNL and MTNL. Will this move help the telecom consumers in India?

Post Comments
  1. shutting down is not an option.., government need to think about it that..shutting down these 2 companies cause more trouble of their user and create wrath against Government.

    1. Govt should shut down BSNL immediately by giving a good vrs to the employees as they have no right to use our hard earned tax in running such a huge loss making organisation and giving luxury payouts and facilities to the underperforming employees who take it granted. Govt should give it to private operators keeping the tariff control through trai. I don't use BSNL at all !!!


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