The downfall of BSNL | WHAT? WHY? HOW?

BSNL, which was once a top public sector unit, is facing a financial crisis and is not able to clear its dues and loans. BSNL’s debt is around 15000 crores, and 70% of it is unpaid.

But what happened is that BSNL is not able to clear its dues, BSNL does not have liquidity and is trying for a loan, to clear the loan itself, They promised to give 10% amount every month to its vendors for repayment, but now they are not able to give.

There was a time when Bsnl was at the top of the Telecommunication Sector, in Every Individual’s phone there was a connection to Bsnl. But due to changes in time and lack of updating from time to time, the company started declining, and now it is near closing.

Bsnl Website https://www.bsnl.co.in/

Why did all this happen

BSNL was a profitable business till 2009-10 when it suffered its first loss due to poor network connection and high competition. They started putting their customers, and customers started getting more attracted to the private sector because of good networks and better plans, like Airtel, Jio, and others.

When the survey was done huge financial crisis was going on, and the government thought to close down BSNL.

BSNL has not even launched its 4G yet, while Jio has announced to launch of 5G. Do you think BSNL can make a comeback or not now due to its financial crisis and high competition, Maybe it will merge into a private company?

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