MTNL and BSNL doubt against strengthening despite merger

Mumbai, Ta. October 24, 2019, Thursday

Metropolitan Telephone Corporation Ltd. (MTNL) and Bharat Communications Corporation Ltd. The merger of (BSNL) did not strengthen either of these companies, as such analysts are expressing their opinion. The merger will create competition for some private players and may reduce operating costs.

The merger decision has been taken too late which was to be taken years ago. The operations of these two telecom companies have deteriorated. The merger with the Voluntary Retirement Scheme will reduce operating costs but will not help improve the future of these companies, said a telecom fielder.

The government announced Wednesday the merger of the two initiatives as part of the revival package. The total loss of BSNL, which was once considered a Navratna company, has surpassed Rs. BSNL has gone so far as to lose its inability to compete with private players.

BSNL has become the most unprofitable government telecom undertaking with a workforce of 1.5 lakh, he said. These companies can be strengthened only after a strong restructuring after the merger, ”said another analyst.

Don't be surprised if the government honorably discharges employees of these companies and then closes it. The mentality of employees of BSNL and MTNL who once had a monopoly in the country's telecom sector is still there. These companies have not been able to withstand competition due to such thinking as Hota Hai Chalati Hai.

The government had set up MTNL with the aim of developing telecom infrastructure in the country while BSNL took over from the previous telecom services and telecom operations department of the central government.