The government has informed the parliament that Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) have seen a decline in the number of subscribers in the past three years because of stiff competition in the sector and the lack of 4G services on a full scale.
In a written reply to the Lok Sabha, Devusinh Chauhan, Union Minister of State for Communications, said that following a financial relief package from the government, BSNL and MTNL have been operationally profitable since 2020-21. The reasons for the decline in subscribers are the lack of 4G services on a full scale and stiff competition in the telecom sector. He added that in line with the Atmanirbhar Bharat initiative of the government, BSNL has issued purchase orders for 100,000 sites to roll out 4G services all over India in the next 18-24 months.
Meanwhile, MTNL had 3.29 million subscribers for its wireless services in 2021, which declined 29 per cent to 2.35 million subscribers as of March 2023, according to the reply. BSNL also saw its subscriber count declining 12.6 per cent as on March 31, 2023, for its wireless services at 103.5 million from 118.5 million in March 2021. BSNL wireline subscriber base, however, grew 7 per cent to 7.1 million in March 2023 from 6.65 million in March 2021. MTNL wireline customer count went down by about 20 per cent to 2.31 million in March 2023 from 2.9 million in March 2021. However, the minister said both BSNL and MTNL became operationally profitable after the central government approved a revival package worth Rs Rs 700 billion in 2019.
