MTNL, BSNL subscribers dropped due to lack of full-scale 4G: Centre

Government-owned telecom service providers MTNL and BSNL have seen a decline in the number of subscribers in the past three years because of "stiff competition" in the sector as well as lack of 4G services on a full scale, Parliament was informed on Wednesday.

Minister of State for Communications Devusinh Chauhan in a written reply to the Lok Sabha said following a financial relief package from the Centre, BSNL and MTNL have been operationally profitable since 2020-21.

"The reasons for decline in subscribers are lack of 4G services on a full scale and stiff competition in the telecom sector. In line with Atmanirbhar initiative of the government, BSNL has issued purchase orders for one lakh sites to roll out 4G services all over India in the next 18-24 months," Chauhan said.

MTNL had 32.96 lakh subscribers for its wireless services in 2021, which declined 29 per cent to 23.5 lakh subscribers as of March 2023, according to the reply.

BSNL also saw its subscriber count declining 12.6 per cent as on March 31, 2023 for its wireless services at 10.35 crore from 11.85 crore in March 2021.

BSNL wireline subscriber base, however, grew 7 per cent to 71 lakh in March 2023 from 66.49 lakh in March 2021.

MTNL wireline customer count, though, went down by about 20 per cent to 23.12 lakh in March this year from 29.03 lakh in March 2021.

However, the minister said both BSNL and MTNL became "operationally profitable" after the central government approved a Rs 70,000-crore revival package in 2019.

The Union Cabinet in July 2022 approved a second revival package of Rs 1.64 lakh crore for BSNL.

The Centre in June approved the allotment of 4G and 5G spectrum to BSNL with a total outlay of Rs 89,047 crore.