Business Standard

Don't bet on BSNL, MTNL's revival

The four-point turnaround plan for the public sector telcos is a set of necessary steps but is far from sufficient

Illustration by Binay Sinha
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Illustration by Binay Sinha

Rahul Khullar
The government just announced a “revival plan” for the ailing public sector telcos, BSNL and MTNL. The four-point plan comprises: Raising cash through issue of sovereign bonds (Rs 15,000 crore) allocating 4G spectrum (at government cost) to create a new revenue stream; monetising assets (mainly land) to mobilise Rs 38,000 crore; and reducing employee strength through an attractive voluntary retirement scheme (VRS). The announcement should be welcomed: The government has finally decided to act.

First, some history. MTNL has been in serious distress for over a decade — grossly overstaffed, dwindling customers and revenues, and no internal resources for investment. In
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Oct 31 2019 | 12:58 AM IST

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