Government promises yet another Incentive for the loss making BSNL and MTNL, Is it a wise decision?

By December 25th, 2014 AT 12:53 PM

BSNL has some good news in store as IT and Telecom Minister Mr. Ravi Shanker Prasad has announced that the Government would be giving out incentives to BSNL and MTNL in a bid to help it revive. Its no secret that both the state-owned Telcos are posting huge losses thanks to their poor service quality and the lethargic manner in which they resolve customers problems.


The exact volume and nature of incentives is still unknown but the money being pumped in will be a huge sum especially after taking into consideration the fact that they are in deep trouble. This incentive is an icing on the cake after Government waived off loan of Rs. 1411 crore to BSNL recently.

Also Read : Government in deep thoughts on shutting down state owned BSNL and MTNL ?

Is it a Wise decision?

Pumping in money to resurrect PSUs has rarely been fruitful and the fact that BSNL is not making any noticeable efforts on the quality front is disturbing. BSNL is coming up with good offers but they need to sort out the customer satisfaction part as well. Another part of the story is that BSNL is the only Telecom Operator that offers Internet connectivity in the nooks and corners of the country and simply shutting it down would have many adverse effect including the fact that rural people will be disconnected from the Internet. BSNL and MTNL really need to get their broken bits together before it’s too late.

Mahit Huilgol is a Mechanical Engineering graduate and is a Technology and Automobile aficionado. He ditched the Corporate boardroom wars in the favor for technology battle ground. He is also a foodie by heart and loves both the edible chips and non-edible silicon chips.

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Private telecom service providers can’t discriminate against BSNL, MTNL users, says Supreme Courtpreetravidipesh kumartri_vis Recent comment authors
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[…] Also read: Government promises yet another Incentive for the loss making BSNL and MTNL, Is it a wise decision? […]


TT Pls Remember & Keep it in mind always:- Just because of BSNL a Gov of India Enterprise, Private Operators (AVOID cartel) not able to increase Call/Data Tariff. Recall the scenario of pre 2002 when incoming call was charged at Rs.10 per minute. Venturing of BSNL into the Mobile business made incoming free and BSNL shoot up to No.1 rank in Mobile connections immedaitely. The lead was maintained for few years until Govt officers in hand in glove with Private Operators put hurdle in BSNL growth and stopped Tender of Mobile Lines for 4 yrs. BSNL was forcefully made to… Read more »

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