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