BSNL 5G spectrum: MTNL will not be privatized, What about BSNL 5G!

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Chauhan wrote that BSNL 5G spectrum has already been reserved and at the same time MTNL will not be privatized. The government will hold a 5G spectrum auction for private telecom companies in India. Furthermore, Chauhan said that testing of the indigenous 4G equipment is now in an advanced stage and that final delivery of the equipment will take place once the test is complete.

Synopsis

  • Mahanagar Telephone Nigam Limited (MTNL) may not be privatization.
  • Although MTNL now has very limited operations in India, the government plans to continue managing it.
  • BSNL's financial situation was also not good.

Mahanagar Telephone Nigam Limited (MTNL) may not go under privatization. The state-owned telecommunications company has been making losses for as long as everyone can remember. Although MTNL now has very limited operations in India, the government plans to continue managing it. 

According to a PTI report, Devusinh Chauhan, Minister of State (MoS) for communications, provided a written response to Rajya Sabha detailing the losses the company has suffered. For the year 2021-22, the loss of MTNL was Rs 2,617 crore.

BSNL 5G spectrum

Along with this, Chauhan made it clear to Rajya Sabha that there are no plans to privatize MTNL for now. Both BSNL (Bharat Sanchar Nigam Limited) and MTNL are running due to the aid package announced by the government for both companies in 2019. BSNL and MTNL were planned to be merged entities.

However, the government decided to delay the merger due to MTNL's high debt. BSNL's financial situation was also not good. Therefore, the merger has been deferred until MTNL's debt situation improves.

5G spectrum reserved for BSNL

In another response to the Rajya Sabha, Chauhan wrote that 5G spectrum for BSNL has already been reserved. The government will hold a 5G spectrum auction for private telecom companies in India. Furthermore, Chauhan said that testing of the indigenous 4G equipment is now in an advanced stage and that final delivery of the equipment will take place once the test is complete.

BSNL is in dire need of a 4G rollout to change things for itself. Right now, whether it's call drop rate or data rate, BSNL networks are at the worst performing end of the graph. The state-owned telecommunications company will earn a lot from the launch of 4G as demand for BSNL 5G services is not expected to increase in the consumer space anytime soon. Ericsson's Mobility Report also said 4G networks will be an important part of India's telecom ecosystem in the coming years.

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