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BSNL and MTNL Revival Minutes: GoM Amit Shah-led discussions on VRS, 4G spectrum

BSNL Employees Unions are under pressure with the discussions held with GoM AmitShah led for Revival of BSNL and MTNL.  The administrative cost for assigning 4G radio waves to BSNL is anchored at Rs 14,000 crore and Rs 6,000 crore for MTNL.

BSNL Employees Unions
The Group of Ministers (GoM) led by Interior Minister Amit Shah discussed on Tuesday the offer of a voluntary retirement scheme (VRS) and the fourth generation services or 4G radio waves aimed at the stressed Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on Tuesday.

In addition to Shah, GoM included telecoms, IT and law minister Ravi Shankar Prasad and finance minister Nirmala Sitharaman.

Sources familiar with the development said the group discussed ways to restore health to the two public sector service providers during the two-hour meeting and considered the monetization of real estate assets and land to finance VRS for employees ready.

Previously, officials of the Ministry of Finance opposed the VRS package for a value of Rs 6,365 crore to BSNL and for a value of Rs from 2,120 crore to MTNL
The Center is also reflecting on the operational synergy between BSNL and MTNL to further reduce operating costs. MTNL offers cellular services in two metropolises: Delhi and Mumbai, while BSNL operates in the rest of the country.

The income / salary ratio of both telecommunications companies is much higher than that of private sector operators.

Since 2016, both public sector operators have requested the allocation of 4G radio waves to remain competitive in the provision of data-based services, which also reduces their revenues quarterly.

The administrative cost for assigning 4G radio waves to BSNL is anchored at Rs 14,000 crore and Rs 6,000 crore for MTNL.

The government should immediately investigate asset monetization strategies, including towers and fibers, to keep BSNL and MTNL afloat, "said Sandeep Aggarwal, chairman of the industry commission and telecommunications trade at PHD.

The real estate assets, the fiber optic network and the combined mobile towers BSNL and MTNL are anchored at Rs 1.10 lakh crore, Rs 60,000 crore and Rs 35,000 crore provisionally.

Aggarwal added that the revenues can be used to finance the VRS, 4G and 5G spectrum, as well as the operating expenses of both telecommunications companies.

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