New Delhi: India’s cabinet on Wednesday approved a revival package of 890.47 billion rupees ($10.79 billion) for loss-making Bharat Sanchar Nigam Limited (Bharat Sanchar Nigam Limited).BSNL) to help deploy the state-owned telecom operator 4G and 5G services in a market dominated by private players.
“With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India,” the cabinet said in a statement.
The development comes days after BSNL partnered with top software company Tata Consultancy Services To help deploy 4G networks across the country as bigger rivals roll out next generation 5g network,
Debt-ridden BSNL, struggling with poor infrastructure, has been running at a loss for the past 12 years. The deficit for the year ending March 2022 narrowed to Rs 69.82 billion from Rs 74.41 billion a year ago.
The company is also struggling to win customers due to intense price competition owned by Reliance Industries. Reliance Jio InfocommBharti Airtel and vodafone idea,
The launch of Jio in 2016 upended the telecom market in India, when it offered free calls and low-cost data plans, cutting into rivals’ profits and revenues and leading to consolidation.
Shares of state-owned telecom company Mahanagar Telephone Nigam Ltd rose 14.3% after the news of BSNL’s revival package.
“With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India,” the cabinet said in a statement.
The development comes days after BSNL partnered with top software company Tata Consultancy Services To help deploy 4G networks across the country as bigger rivals roll out next generation 5g network,
Debt-ridden BSNL, struggling with poor infrastructure, has been running at a loss for the past 12 years. The deficit for the year ending March 2022 narrowed to Rs 69.82 billion from Rs 74.41 billion a year ago.
The company is also struggling to win customers due to intense price competition owned by Reliance Industries. Reliance Jio InfocommBharti Airtel and vodafone idea,
The launch of Jio in 2016 upended the telecom market in India, when it offered free calls and low-cost data plans, cutting into rivals’ profits and revenues and leading to consolidation.
Shares of state-owned telecom company Mahanagar Telephone Nigam Ltd rose 14.3% after the news of BSNL’s revival package.