BSNL Current Affairs - 2019

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BSNL Revival Plan

The Union Cabinet on October 23, 2019 approved the proposal for revival of BSNL and MTNL. It allotted the 4G spectrum to the institutions. The MTNL will act as a subsidy to BSNL. A four-step revival plan has been announced for BSNL. Also, the GoI plans to raise Rs 15,000 crore through sovereign bonds.

Significance

Both BSNL and MTNL were making losses for the state since a long time. MTNL is Mahangar Telephone Nigam Limited, a state-owned entity that provides telecom services at New Delhi and Mumbai and in Mauritius. It was founded in 1882. There are around 25,191 employees working with the company.

The BSNL loss is estimated to be around Rs 14,000 crore with a decline in revenue of Rs 19,308 crores during 2018-19. The loss of MTNL was around Rs 755 crores (in Q4, May 2019). The companies hold salary dues and pension dues for the employees. The total debts held by the companies amount to Rs 40,000 crores.

With merger under Rs 70,000 crore plan and 4G spectrum offering will help the entities in monetizing their assets. They can raise capital expenditure required to roll out the network and bring in efficiency in their operations.

BSNL to Offer Data Connectivity Services via SMS in India

BSNL has signed a partnership agreement with the French company Be-Bound to offer data connectivity through SMS in areas where there is no Internet connectivity or signal breaks.

How it will work?

The working of technology is explained below:

  • The SMS based data connectivity will work with the help of a technology embedded in a mobile App.
  • The app will detect if the user’s area has poor network connectivity. If yes, then the app will send commands to the Be-Bound server.
  • This commands would be sent send SMS from the user’s account.
  • Be-Bound server will facilitate SMS based data connectivity after getting a command from the app.
  • The connectivity is based on SMS sent to and fro between the app and the Be-Bound server.

This technology was first introduced in France and it is also being tested in some of the African countries. In India, BSNL is in talks with some apps to implement the technology.