Bharat Sanchar Nigam Limited (BSNL) is now optimising the networks of Mahanagar Telephone Nigam Limited (MTNL) in Mumbai and Delhi. With this, the telco’s networks will now have much better coverage and will also aid in lowering the operational expenditure of the public sector unit (PSU). For the unaware, BSNL had earlier took over the operation and maintenance of MTNL networks in Delhi on April 1, 2021. Then the telco also did the same in the Mumbai circle on September 1, 2021. According to the KeralaTelecom report, BSNL will not be liable for the Capex liabilities of MTNL. Here’s everything you should know.
BSNL Will Be Handling MTNL Mobile Networks
Even when there is a cash deficit faced by MTNL, BSNL will keep on operating the mobile networks of its sister company. BSNL will also pay the salaries to the MTNL staff out of the revenues earned by the MTNL networks in Mumbai and Delhi. BSNL is also allowed to use its staff for improving the future operations of MTNL if needed.
At the same time, all of the legal and operational expenditures will also be paid by BSNL which will include things such as Spectrum Usage Charges (SUC), License Fees (LF), AMC charges, and Rental for Hired sites, Electricity bills, and more. These bills and dues will be paid by BSNL out of the revenues it gets from the operation and maintenance of MTNL’s mobile networks.
Note that all the capital liabilities and assets will be of MTNL. But BSNL will be responsible for any cash deficit that occurs. With BSNL taking charge of MTNL’s mobile networks, things and the service quality of the telco in Delhi and Mumbai might change. MTNL users might soon see strong prepaid offerings just the way BSNL offers to its users. The only thing that’s awaited for both the government PSUs is the arrival of 4G networks. With 4G networks in the scene, things for the telcos will change rapidly.