New Delhi : The government can provide financial help to BSNL, a state-owned telecom company facing debt crisis and cash crunch. The government may also fund another company MTNL. The government will also allocate 4G spectrum to these companies. The government has taken note of this after infusing capital into government banks. The Department of Telecommunications has proposed this before the Central Cabinet. The cabinet may take a decision on these proposals this month. The government has obtained legal assistance from the Solicitor General for this.
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Government telecom companies were required to get legal clearance before allocation of 4G spectrum. BSNL and MTNL, being a government company, do not participate in the spectrum auction. According to a news agency, the cabinet may take a decision on spectrum allocation in the third week of this month. After this, further action will take three to six months.
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In this phase of data competition, the government telecom companies are not able to compete with private companies due to lack of 4G spectrum. Like banks, BSNL and MTNL will also be provided capital through bonds. Both these companies are going through a severe capital crisis. BSNL has not been able to give salary to its 1.76 lakh employees last month. On the other hand, MTNL has not paid salaries to its employees for the last two months. Let the senior officials of these telecom companies keep the identity secret and have told about the company's poor financial condition.
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