New Delhi: The Central Government has said that all the Ministries, Public Departments, and CPSUs, must use the loss-making state-run telecom firms Bharat Sanchar Nigam Limited (BSNL), and Mahanagar Telephone Nigam Limited (MTNL). This move is sure to come as a major reprieve to the telecom firms.
"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," a memorandum issued by the Department of Telecommunications (DoT) said.
On October 12, this particular memorandum was issued to all secretaries and departments under the Centre following consultation with the finance ministry.
Apparently, the decision to mandate the use of BSNL and MTNL telecom service was taken by the Cabinet.
All the ministries/departments have been requested to issue necessary instructions including to CPSEs/Central Autonomous organisations under their control for mandatory utilisation of BSNL/MTNL network for internet/ broadband, landline and leased line requirements, the memorandum further added.
It needs mention here that BSNL recorded a loss of ₹15,500 crores and MTNL posted a loss of ₹3,694 crores in 2019-20.
BSNL's wireline subscriber base has eroded from 2.9 crores in November 2008, to around 80 lakh in July this year.
Similarly, MTNL's fixed-line customers have come down from 35.4 lakh in November 2008, to 30.7 lakh in July this year.