States Reluctant to Opt for BSNL, MTNL Despite DoT Push Amid Concerns Over Service Quality: Report

States Reluctant to Opt for BSNL, MTNL Despite DoT Push Amid Concerns Over Service Quality
Despite a renewed push from the Department of Telecommunications (DoT) urging states to utilise services of state-run telecom firms Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), state departments remain largely hesitant, citing concerns over network quality and lack of advanced service capabilities, according to a Hindu Business Line report.

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Also Read: DoT Urges States to Prefer BSNL, MTNL for Telecom Services, Citing Data Security

DoT’s Renewed Directive to States

DoT Secretary Neeraj Mittal recently wrote to Chief Secretaries of all States and Union Territories, requesting them to “consider utilisation of the services of BSNL and MTNL” for internet, landline, and leased line requirements. The move is positioned as part of the Centre’s broader emphasis on national data security and efforts to retain telecom revenue within public sector undertakings.

However, the directive echoes a similar order issued in 2019, which mandated all ministries, public departments, and PSUs to switch to BSNL and MTNL services — a move that saw negligible compliance. The underlying hesitation persists, driven primarily by the perception that state-run telecom firms continue to lag in service delivery and network quality.

Revival Efforts for BSNL and MTNL

Since 2019, the government has injected approximately Rs 3.22 lakh crore into BSNL and MTNL through three revival packages aimed at modernising infrastructure and rolling out 4G services. Despite these efforts, the state-owned firms struggle to match the service standards and innovation offered by private telecom operators.

Also Read: Tejas Networks Completes Equipment Supply for BSNL 4G/5G Rollout, Eyes New Contracts

Large Government Contracts

According to the report, industry analysts consistently highlight the superior connectivity, backend support, and customised solutions provided by players like Reliance Jio and Bharti Airtel. These private operators have increasingly won large government tenders, including those issued by Indian Railways. In 2018, Bharti Airtel secured a contract for 3.78 lakh mobile connections, while in 2023, both Jio and Airtel jointly won a tender to provide 1.1 million SIM cards under a Closed User Group (CUG) scheme. Jio secured 7.28 lakh SIM cards for Rs 126 crore and Airtel 4.85 lakh for Rs 84 crore.