BSNL and MTNL 4G Services Launch Could Be Delayed Yet Again

A new report has come up which hints towards the stalling of allocation of 4G spectrum to the two-government led telcos, BSNL and MTNL. As per this new update which comes from the officials, the finance ministry will likely extend the timeline which was proposed by the Department of Telecommunications (DoT) for the allocation of fourth-generation network services to these state-run telcos.

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Fiscal Deficit Delays Investment for BSNL and MTNL

To recall, before this happening, both the telcos were expecting to receive the 4G spectrum before the end of this year and were already readying themselves for the launch of 4G services. However, to their disappointment, the department won’t be going ahead with the process since the ministry of finance is looking at the pros and cons of the expenditure which is summing up to be around Rs 13,000, a figure which will likely affect the financial situation in the country amidst already struggling fiscal deficit. This news is reported by NewIndianExpress.

Sources in the ministry remarked, “Writing it as expenditure at this period of time seems very difficult. The (finance) ministry is weighing other macroeconomic factors and this is expected to take more time than anticipated earlier. I do not see it in any time soon.”

Manoj Sinha Bets on 4G for State Run Telcos

After being declared as ‘incipient sick’ by the Department of Public Enterprise, MTNL and BSNL decided that they would take the capital in the form of equity infusion following due examinations with the money being in the way of costs and expenditure.