India’s government has proposed a revival package worth an estimated $10 billion for the state-owned service providers Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
Both operators have been struggling.
BSNL recorded a loss of 138 billion Indian rupees ($2 billion) in its last fiscal year, while MTNL’s loss was about INR34 billion ($495 million).
The government’s planned revival package includes a voluntary retirement scheme (VRS) for employees. Authorities also want to give 4G spectrum worth INR200 billion ($2.91 billion) to BSNL and may provide as much as INR130 billion ($1.89 billion) in financial aid to support 4G network rollout.
But this effort to revive the fortunes of the two companies may be too little, too late. Both firms have been recording losses for many years.