Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are serving over 5,000 branches and ATMs of the Indian Bank. The Indian Bank is a state-owned finance service and banking body.
According to a report from The New Indian Express, the state-run telco has signed a Memorandum of Understanding (MoU) with the Indian Bank for providing high-quality, uninterrupted telecom services.
The MoU underlines the commitment of BSNL to provide seamless telecom services to the Indian Bank at competitive market rates. This means the telco might be availing its services to the bank for a lower market rate than usual.
BSNL and MTNL See Some Positive From The MoU
BSNL and MTNL both will see some respite to their financials after the MoU signed with the Indian Bank. This is a good move from the government to ensure that both the state-run telcos have enterprise clients that will bring them good revenues in the long run.
Dr VK Sanjeevi, Chief General Manager of Chennai Telephones, said that both MTNL and BSNL are already connecting over 5,000 branches of the Indian Bank and its ATM machines as well.
We can’t confirm for how long the MoU will stay in place. The Indian Bank will be using the latest technologies and connectivity services from both BSNL and MTNL at competitive market rates, and this will not only help the telcos but also the bank since it will be able to scale operations online.
It would be great if BSNL could sign more MoUs with other institutions and companies to scale its enterprise business. All the private telecom operators are already in the race for providing the best enterprise services by leveraging their 5G ready networks.
The government should ensure that BSNL doesn’t fall behind such an important segment of the market. Further, the state-run telco is expected to roll out 4G with such equipment that will only require a software upgrade to become compatible with providing 5G services.
Thus, in the coming years, we can even see BSNL competing with the private telcos in the enterprise business. With the help of a quick 4G rollout, BSNL can completely change the current structure of market competition.