bsnl - India Set To Dish Out $6 Billion To Revive Telecom Operators BSNL And MTNL

India Set To Dish Out $6 Billion To Revive Telecom Operators BSNL And MTNL

On Wednesday, India made it clear that they are planning on spending a massive $6 billion to revive their state-funded telecom operators, Bharat Sanchar Nigam Ltd. or simply put BSNL.

cabinet approved the revival of bsnl and mtnl1827252137 - India Set To Dish Out $6 Billion To Revive Telecom Operators BSNL And MTNL

BNSL and MTNL are coming back to India

They also plan on bringing back Mahanagar Telephone Nigam Ltd or also simply put MTNL.

Ravi Shankar, the Indian telecom minister, in a press conference made it clear that the Narendra Modi government has approved the merger of BSNL and MTNL. They are also said to have infused not just millions but billions of dollars in capital.

Well for those who don’t know, BSNL is a telecom operator that offers services across the nation while MTNL is another telecom operator that offers services to only New Delhi and Mumbai.

We saw these companies crumble when India’s richest man Mukesh Ambani brought in his own telecom company Reliance

Jio, which slam dunked the others.

MTNL is gonna become a subsidiary of BSNL until their merger is completed. According to the minister, BSNL would receive $2.8 billion to purchase 4G spectrum.

They are also said to raise an additional $2.1 billion of long-term bond that the New Delhi government to will support them and monetize $5 billion worth of assets for the next four years.

The minister went on to say that “We want to make BSNL and MTNL competitive, and bring in professionalism.”

BSNL uses 75% of it revenue to pay it over 176,000 employees and just last month they were reported to be unable to process all those payments.

But the government said it gonna be spending $2.4 billion on employee retirement packages to compensate for that.

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