Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are the two government-run telecom companies in India. Both companies have different management and a completely different target market. For instance, MTNL only focuses on the Delhi and Mumbai metro circles while BSNL works PAN-India. A few years back, there were talks around the merger of both state-run telecom companies to streamline operations. But then there were no updates and the merger was seemingly put to the side by the government. However, according to a recent report from TheNewIndianExpress, the merger of both companies could be very much in the books.
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As per the report, BSNL is planning to bring in IIM-Ahmedabad and Deloitte to make a plan for improving its financial situation in the future and also form a merger plan with MTNL. The aim of bringing in the two organisations is to help resolve the legal issues that would arise when merging with MTNL and then also attain a profitable future.
To recall, MTNL recently signed a Memorandum of Understanding (MoU) with BSNL to achieve a synergy of operations. What exactly is the government planning here is unknown. However, it is worth noting that BSNL could soon come in a much better position financially once it starts offering 4G to customers throughout the country. BSNL is using a tech stack that can also be upgraded to 5G with a simple software push and is also Made in India.
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BSNL has been receiving a lot of help from the central government for many years. The state-run telco has already received 3 revival packages in total since 2019. This means that the government does want the telco to make a comeback. There is already plenty of 4G and 5G spectrum reserved for BSNL to leverage and offer seamless internet connectivity services to customers.
