Telecom Minister of India, Ravi Shankar Prasad, said that high employee cost, stiff competition, and no 4G services are the main reason for the poor financial status of the Bharat Sanchar Nigam Limited (BSNL) and MTNL. The high employee costs and absence of 4G services are proving to be the major factors causing the decline of the Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telecom Nigam Limited (MTNL). At a time when private network service providers are offering data at a very low cost, BSNL and MTNL are finding it impossible to compete with the private carriers.
The Telecom Minister of India said that the absence of 4G services, high employee cost, and the data-centric marketing strategy is removing BSNL and MTNL from the competition.
To revive or restructure the plans of BSNL and MTNL, students from the Indian Institute of Management (IIM), Ahmedabad were engaged. The minister said that as per the people who joined them for the improvement and revival of the companies, a new plan for MTNL and BSNL is under preparation. The revival plan also includes government support for providing support for the 4G spectrum. Ravi Shankar Prasad also clarified that no proposal for the closure of both the Public Sector Undertakings (PSU) was under the consideration of the government.
Mr. Prasad also pointed out the fact the total employee cost of BSNL is 75.06 percent and MTNL is 87.15 percent which is far more than other carriers.
The minister also told that the government has received six proposals for the commencement of 5G trials in the country from companies like Huawei and ZTE. He concluded his statement that only a limited geographical area will be provided for the 5G trials in the country.