Lok Sabha Question No. 2326 (UNSTARRED), answered on 2018-08-01
Subject: Financial Condition of BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: KAUSHALENDRA KUMAR, DEVUSINH JESINGBHAI CHAUHAN

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 2326 TO BE ANSWERED ON 1 ST  AUGUST, 2018

## FINANCIAL CONDITION OF BSNL AND MTNL

†2326.   SHRI KAUSHALENDRA KUMAR: SHRI DEVUSINH CHAUHAN:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the  financial  condition  of  Bharat  Sanchar  Nigam  Limited  (BSNL)  and  Mahanagar Telephone Nigam Limited (MTNL);
- (b) whether the BSNL is on the verge of closure and if so, the details thereof and the reasons therefor;
- (c) whether  the  Government  proposes  to  decontrol  BSNL  and  MTNL  to  enable  them  to compete with the private sector telecom operators and if so, the steps taken by the Government in this regard;
- (d) the total losses incurred by MTNL and BSNL during each of the last three years and the funds provided by the Government to make up for the said losses;
- (e) whether the Government proposes to merge the said public sector telecom operators and if so, the details thereof and if not, the reasons therefor; and
- (f) the  details  of  new  schemes  launched  by  the  said  telecom  service  providers  for  their customers?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) Financial condition of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) for the last three years is as under:

(Rupees in Crore)

| Particular    | 2015-16   | 2015-16   | 2016-17   | 2016-17   | 2017-18   | 2017-18   |
|---------------|-----------|-----------|-----------|-----------|-----------|-----------|
|               | BSNL      | MTNL      | BSNL      | MTNL      | BSNL      | MTNL      |
| Income        | 32411     | 3513      | 31533     | 3552      | 27818*    | 3116      |
| Expenditure   | 37270     | 5519      | 36327     | 6523      | 33535*    | 6087      |
| Profit/(Loss) | (4859)    | (2006)    | (4786)    | (2971)    | (4785)*   | (2971)    |

(b) Since BSNL has incurred losses consecutively for the last three years, BSNL has been declared as 'Incipient Sick' as per the guidelines of Department  of Public Enterprises

(DPE).  Accordingly, action has been initiated by the Department of Telecommunications (DoT) for preparation of revival/restructuring plan of BSNL.

(c) BSNL and MTNL are Central Public Sector Enterprises (CPSEs) and thus, have to work within the various guidelines and regulations of Government of India, which are applicable for all CPSEs.  However,  MTNL  and  BSNL  have  Maharatna  and  Miniratna  status  respectively  which gives  them  enhanced  delegated  powers  and  certain  financial/operational  autonomy  in  their functioning.

(d) The details of Government support to BSNL and MTNL is at Annexure-I. Details of losses incurred by BSNL and MTNL are summarised at (a) above.

(e) At present, there is no proposal for merger of BSNL and MTNL. For merger of BSNL and MTNL,  there  are  various challenges/issues related to their employees,  debt, properties, Government share holding in MTNL etc.

(f) Details  of  new  schemes  launched  by  BSNL  and  MTNL  for  their  customers  are  at Annexure-II and Annexure-III respectively.

## Details  of  Government  support  to  BSNL  and  MTNL from time to time to make up their losses:

## BSNL:

-  Implementation of providing mobile connectivity in 2199 identified locations in Left Wing Extremism (LWE) affected areas at an estimated cost of Rs. 3567.58 crores .
-  Refund of surrendered BWA (Broadband Wireless Access) spectrum in 6 service areas held  by  BSNL.    Under  this  head,  Rs.  6724.51  crore  was  refunded  to  BSNL  through budgetary resources.
-  Implementation of Comprehensive Telecom Development Plan for Andaman & Nicobar Islands and Lakshadweep Islands through augmentation of satellite connectivity/bandwidth at an estimated cost of Rs. 120.49 crores.
-  Refund of Rs. 169.16 crore to BSNL on account of surrender of CDMA (Code Division Multiple Access) spectrum.
-  Optical Fibre Cable based Network for Defence Services (NFS Project) has been given to BSNL on nomination basis at the cost of Rs.24,664 crore.
-  For  execution  of  BharatNet  project,  Government  has  provided  Rs.5744  crore  in Phase-I and has earmarked Rs.6500 crore in Phase-II to BSNL.
-  Comprehensive  Telecom  Development  Plan  for  the North-Eastern Region for provision  of  mobile  services  in  uncovered  villages  in  Arunachal  Pradesh  and  two districts of Assam  at an estimated project cost of Rs. 1975.38 crore and implementation of Transmission-Media Plan for North Eastern Region at an estimated cost of Rs.295.97 crore .
-  Submarine Optical Fiber Cable Project at the cost of Rs.1900 crore has been assigned to BSNL on nomination basis for providing connectivity to the Andaman and Nicobar Islands.
-  Work of setting up of 25000 Wi-Fi Hotspots at Rural Telephone Exchanges at the cost of Rs.940 crore has been given to BSNL.
-  Work of setting up of Satellite Gateway at the cost of Rs.68 crore has been given to BSNL on nomination basis.
-  Notional loan of Rs. 1411 crore to BSNL which was due to be paid to the Government was waived-off.

## MTNL:

-  Refund  of  surrendered  BWA  (Broadband  Wireless  Access)  spectrum  in  two  service areas held by MTNL.  Under this head, Rs. 4533.97 crore has been refunded to MTNL through bonds.
-  The pension liability of MTNL  staff who  were absorbed from Department of Telecommunications (DoT), has been taken over by the Government.
-  Financial support of Rs. 492.26 crore was given to MTNL on account of liability arising from levy of Minimum Alternate Tax (MAT).
-  Refund of Rs. 458.04 crore to MTNL on account of surrender of CDMA (Code Division Multiple Access) spectrum.
-  Provision  of  High  Speed  Internet  on  Fiber  To  The  Home(FTTH)  and  Wi-Fi  at  the residences of Hon'ble MPs. The Project cost of  Rs 43.2 Crore was funded by DoT.

## New Schemes and plans launched by BSNL:

-  Launch of Data Tsunami Special Tariff Voucher (STV) of Rs. 98/- with validity of 26 calendar days and free usage of 1.5 GB/ Day.
-  Launch of STV of Rs. 39/- with validity of 10 calendar days and features - Unlimited voice  in  home  LSA  and  BSNL  roaming  area  only  +  100  Free  SMS  any  net  +  Free PRBT (Premium Ring Back Tone).
-  Launch of 'Welcome Offer' to New/MNP port-in customers '1 GB free data (to be used within first 15 days) + unlimited on-net calls for first 7 days' in East Zone and '350 MB free data (to be used within first 30 days)' in North Zone/West Zone/South Zone to all prepaid plans on regular basis.
-  Data STV of Rs. 155/- with validity of 17 calendar days and free usage of 2 GB/ Day.
-  Data STV of Rs. 198/- with validity of 28 calendar days and free usage of 1.5 GB/ Day + PRBT.
-  Free incoming voice call facility while in national roaming extended for one    year on pan-India basis w.e.f. 15.06.2018.
-  Introduction of new Family Broadband plan 'BBG Combo ULD 1199 Family' bundled with three mobile connections on pan-India basis - w.e.f. 01-04-2018.
-  Introduction of Free calling facility across all the DSL/FTTH Combo Broadband plans [pan-India /Circle Specific] having FMC>Rs. 675/-, which are currently being offered to the customers in different Circles/pan-India basis, w.e.f.01-06-2018.
-  Introduction  of  promotional  scheme  to  offer  one  free  broadband  connection  to  the customer who purchase new PC/Laptop in all the Circles (except Andaman & Nicobar) w.e.f.04-06-2018.
-  Introduction  of  Landline  plan  'LL  99'  ONNET'  for  providing  Unlimited  voice  calls  in BSNL Network   (Local + STD) on pan-India Basis. This plan also includes   additional facility of free night calling to all networks between 10.30 PM to 6 AM and all Sunday free calling on all networks within India.
-  Introduction of  annual landline plan 'LL 1200' and ' LL 1500' on regular basis  within pan-India additional facility of Free night calling to all Network between 10.30 PM to 6 AM and All Sunday Free calling on all networks within India..
-  Introduction  of  tariff  plan  for  VOIP  'Wings'  Service  [earlier  name  FMT  (Fixed  Mobile Telephony) with one time registration charges of 1099. In this  scheme  call charges will be Free to any network for one year within India and International calls as per existing land line tariffs (MOU basis)
-  Introduction of (1+1) scheme in landline segment along with call charges discounts on second  landline  phone  at  the  same  premises  where  the  first  landline  connection  is installed on promotional basis for three months
-  Introduction of Broadband plan 'Experience Unlimited broadband 249' on regular basis in all the Circles (except Jammu & Kashmir, Andaman & Nicobar and Vadodara SSA of Gujarat Telecom Circle.
-  Introduction  of  new  Broadband  plans  'BBG  Combo  ULD  45GB  Plan',  'BBG  Combo ULD 150GB Plan', 'BBG Combo ULD 300GB Plan' & 'BBG Combo ULD 600GB Plan' in all the Circles except Andaman & Nicobar.
-  Introduction of new FTTH Broadband Plan 'Fibro Combo ULD 777 and 'Fibro Combo ULD 1277 in all circles except Andaman & Nicobar
-  Introduction  of  bundled  VAS  facility  to  the  new  DSL/FTTH  Broadband  customers  on promotional basis.

|   S.N. | Plan Name            | Data                            | Speed                           | Free Calls                                      | Broadband      |
|--------|----------------------|---------------------------------|---------------------------------|-------------------------------------------------|----------------|
|      1 | Very High speed 4999 | 1500 GB                         | 100MBPS                         | Unlimited caling                                |                |
|      2 | Very High Spped 7999 | 2500 GB                         | 100 MBPS                        | Unlimited caling                                |                |
|      3 | FTTH Voice 500       | 10GB                            | 50MBps                          | 400                                             |                |
|      4 | BB-660-6M            | 90GB                            | 6MBps                           | 150                                             |                |
|      5 | STV 171              | 1.5 GB Data per day for 28 Days | 1.5 GB Data per day for 28 Days | Unlimited Local and STD Calls +100 SMS per Days | Mobile Service |
|      6 | STV 197              | 2 GB Data per day for 35 Days   | 2 GB Data per day for 35 Days   | Unlimited Local and STD Calls +100 SMS per Days |                |
|      7 | STV 231              | 2.5GB data per days for 42 Days | 2.5GB data per days for 42 Days | Unlimited Local and STD Calls +100 SMS per Days |                |
|      8 | STV 365              | 2.5GB data per days for 70 Days | 2.5GB data per days for 70 Days | Unlimited Local and STD Calls +100 SMS per Days |                |
|      9 | STV 421              | 2.5GB data per days for 84 Days | 2.5GB data per days for 84 Days | Unlimited Local and STD Calls +100 SMS per Days |                |

## MTNL Delhi

|   S.N. | Plan Name                              | Data                             | Speed                            | Free Calls                                                |                   |
|--------|----------------------------------------|----------------------------------|----------------------------------|-----------------------------------------------------------|-------------------|
|      1 | Freedom ULD-398 Combo                  | 25 GB                            | 8 Mbps                           | Unlimited Local call free on any network including Mumbai | Broadband Service |
|      2 | FTTH Fire-2000                         | 500 GB                           | 500 Mbps                         | Unlimited Local call free on any network including Mumbai | Broadband Service |
|      3 | FTH-3799                               | 400GB                            | 100 Mbps                         | Unlimited local & STD Calls                               | Broadband Service |
|      4 | FTH-790                                | 100 GB                           | 50 MBPS                          | Unlimited calls on MTNL network +200 MCU on other network | Broadband Service |
|      5 | FTH-1200                               | 200 GB                           | 75 MBPS                          | Unlimited calls on MTNL network +300 MCU on other network | Broadband Service |
|      6 | FTTH-2990                              | 800 GB                           | 500 MBPS                         | Unlimited local and STD on any network                    | Broadband Service |
|      7 | FTTH-4990                              | 1500 GB                          | 1 GBPS                           | Unlimited local and STD on any network                    | Broadband Service |
|      8 | Plan 151 for Mobile Prepaid Subscriber | 2GB data per days for 30 Days    | 2GB data per days for 30 Days    | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |
|      9 | STV 171                                | 1.5 GB Data per day for 28 Days' | 1.5 GB Data per day for 28 Days' | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |
|     10 | STV 197                                | 2 GB Data per day for 35 Days'   | 2 GB Data per day for 35 Days'   | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |
|     11 | STV 231                                | 2.5GB data per days for 42 Days  | 2.5GB data per days for 42 Days  | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |
|     12 | STV 365                                | 2.5GB data per days for 70 Days  | 2.5GB data per days for 70 Days  | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |
|     13 | STV 421                                | 2.5GB data per days for 84 Days  | 2.5GB data per days for 84 Days  | Unlimited Local and STD Calls +100 SMS per Days           | Mobile Service    |

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