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Will not let BSNL die: Telecom Minister

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V&D Bureau
New Update

Indicating that reviving Bharat Sanchar Nigam (BSNL) is one the key priority areas of the government, telecom minister Ravi Shankar Prasad has said the state-run telco will not be allowed to die.

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"The government is committed to the revival of BSNL...I want to assure the House that BSNL will not be allowed to die," he said in Parliament.

"Inadequate investment in infrastructure expansion in recent years leading to delay in expansion of mobile network" and paying "market rate (of Rs 18,500.38 crore) for both 3G and broadband wireless access (BWA) spectrum" led to its downfall, the minister said.

The PSU firm slipped into losses due to lack of investment and the rising competition from its peers.

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"BSNL is expanding its mobile network across the country through installation of 15 million lines at a cost of Rs 4,804 crore," Prasad informed.

Earlier, the minister had said that the government will invest Rs 39,458 cr in loss-making PSU telcos BSNL and MTNL.

"The financially-stressed public sector telecom companies that together have a debt of Rs 21,208 crore as of June-end, face declining revenue due to loss of market share, increasing expenditure and inability to invest  in network expansion,” the telecom minister had said.

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BSNL has debts to the tune of Rs 3,335 crore in March 2012, which rose to Rs 6,448 crore in June 2014, while MTNL's debt has gone up to Rs 14,760 crore end of last month from Rs 9,648 crore in March 2012.

The firm's market share has dipped from 15.66 percent as on March 31, 2010 to 11.70 percent as on May 31, 2014.

 

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