The central government has mandated the use of the services of government telecom companies Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Sanchar Nigam Limited (MTNL) for all its ministries, public departments and public sector units.
A memorandum issued by the Department of Telecommunications (DoT) stated that, ‘Government of India has approved mandatory use of services of BSNL and MTNL by all its Ministries / Departments, CPSEs, Central Autonomous Bodies’. The memorandum is dated 12 October and was issued to all Secretariats and Departments of the Central Government after consultation with the Ministry of Finance.
The memorandum said that the cabinet decided to make the use of telecom services of BSNL and MTNL compulsory. The Department of Telecommunications has asked all Ministries, Departments, CPSEs and Central Autonomous Organizations to mandatorily use BSNL or MTNL network for internet, broadband, landline and leased line requirements.
This order has been made to reduce the losses of government telecom companies, which are rapidly losing their customer base. It may be noted that BSNL had a loss of Rs 15,500 crore in 2019-20, while MTNL had a loss of Rs 3,694 crore during this period.