Minister of State for Communications, Pemmasani Chandra Sekhar reported that the delay in launching the 4G network and strict competition has affected the company’s revenue. Regarding the scheme of wallet retirement scheme (VRS) for BSNL employees, Chandrashekhar said that no proposal is being considered for this.
Recently, BSNL has been approved by the central government for a funding of Rs 6,000 crore for expansion of 4G network. The company also plans to launch 5G network by the middle of this year. This fund will also be used for the company’s 4G network of subsidiary metropolitan telephone corporations (MTNL). The control of MTNL, which provides telecom services in Delhi and Mumbai, is with BSNL. BSNL’s network can also be allowed to bid foreign companies in a contract of about two billion dollars of telecom equipment for upgrade to 5G.
The government has emphasized the use of indigenous technology for BSNL’s 4G network. If foreign telecom equipment companies are included for upgrade on the company’s 5G network, this will be a big change in the government’s stance. BSNL is finding it difficult to compete with private telecom companies due to lack of 5G mobile services. The responsibility of installing the company’s 4G network is with the Software Maker Tata Consultancy Services (TCS) led Consortium. The government is considering a proposal for the company’s 5G tender volume to reserve a proposal for the country’s companies. Foreign companies can be allowed to bid for the rest of this tender.
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