Despite a renewed push from the Department of Telecommunications (DoT) urging states to utilise services of state-run telecom firms Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), state departments remain largely hesitant, citing concerns over network quality and lack of advanced service capabilities, according to a Hindu Business Line report.
DoT Secretary Neeraj Mittal recently wrote to Chief Secretaries of all States and Union Territories, requesting them to “consider utilisation of the services of BSNL and MTNL” for internet, landline, and leased line requirements. The move is positioned as part of the Centre’s broader emphasis on national data security and efforts to retain telecom revenue within public sector undertakings.
However, the directive echoes a similar order issued in 2019, which mandated all ministries, public departments, and PSUs to switch to BSNL and MTNL services — a move that saw negligible compliance. The underlying hesitation persists, driven primarily by the perception that state-run telecom firms continue to lag in service delivery and network quality.
Revival Efforts for BSNL and MTNL
Since 2019, the government has injected approximately Rs 3.22 lakh crore into BSNL and MTNL through three revival packages aimed at modernising infrastructure and rolling out 4G services. Despite these efforts, the state-owned firms struggle to match the service standards and innovation offered by private telecom operators.
According to the report, industry analysts consistently highlight the superior connectivity, backend support, and customised solutions provided by players like Reliance Jio and Bharti Airtel. These private operators have increasingly won large government tenders, including those issued by Indian Railways. In 2018, Bharti Airtel secured a contract for 3.78 lakh mobile connections, while in 2023, both Jio and Airtel jointly won a tender to provide 1.1 million SIM cards under a Closed User Group (CUG) scheme. Jio secured 7.28 lakh SIM cards for Rs 126 crore and Airtel 4.85 lakh for Rs 84 crore.
Private telecom firms also offer advanced digital infrastructure such as IoT-based traffic monitoring systems, smart power meters with backend analytics, and fiber connectivity for flagship projects like the Central Vista and Delhi Metro.
“It’s all about better connectivity and backend support that these private telcos have,” an industry veteran was quoted as saying in the report. “Whether it is the Railways, Power or the Defence Departments, the private players have much better solutions than BSNL or MTNL.” While acknowledging BSNL’s progress and 5G rollout efforts, the veteran added that “it will take time to adapt by these departments.”
“One of the biggest projects of the government – the Central Vista – where the new Parliament stands also has companies like Airtel or Reliance Jio providing connectivity solutions through fiber. Apart from that, they are also part of the Delhi Metro for providing underground infrastructure for communication solutions (fiber),” an industry source was quoted as saying.
While the Centre continues to advocate for public sector telecom usage, the ground reality reflects a persistent preference among states and departments for the reliability, speed, and technical edge currently offered by private players, which outweigh the benefits presented by the DoT’s push for state-owned BSNL and MTNL services.
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