NEW DELHI : The government said on Saturday that state owned BSNL and MTNL will emerge as healthy entities after receiving the Rs 1. 64-lakh crore revival package approved by the Cabinet, while adding that reforms in the telecom sector — including having a contemporary legal setup — will continue as the market migrates to 5G networks.
Telecom minister Ashwini Vaishnaw said BSNL and even Vodafone Idea will benefit from reforms and sops that were handed out to the industry and thus chances of a duopoly — with Reliance Jio and Airtel being the only players — are not there. “With the balancesheet of companies getting cleaned up after the September reforms and de-stressing of their operations, most players are now ready for new capex cycles. The banks are also willing to support investments. The industry is also confident,” Vaishnaw said in Mumbai, where he met top investors and private equity players during the day.
Speaking on speculations around duopoly building up, he said the reforms have ensured that every company gets a chance to grow and become healthy. “Duopoly will not happen. Competition is maintained clearly. The September reforms have resulted in good stability in the industry. We are looking at newer players who want to enter the segment. We will see good, healthy competition in the sector. ”
On BSNL, the minister said that the PSU acts as a “market balancer” and will be a stable company. “Clearly, today the industry is stable, and past concerns don’t exist anymore. ”