DoT writes to state governments to use BSNL, MTNL for enhanced data security

The Department of Telecommunications (DoT) has urged the state governments to consider using the telecom services of state-run operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) over data security concerns. While governments have mandated using services of state-run telcos on a project-wise basis, such a broad directive of sorts is unprecedented, according to industry executives. If implemented, it could cost private telecom and internet service providers (ISPs) thousands of crores in potential annual revenue.

This comes at a time when the government is pushing state-run telecom companies and is announcing initiatives to revive them.

“The Union Cabinet, inter-alia, had approved the mandatory utilisation of capacities of BSNL and MTNL for internet, landline, and leased line requirements by the Central government, in view of the data security needs,” DoT stated in a letter as reported by the Economic Times.

“On similar lines, state governments were also requested to utilise the network capacities of BSNL for their telecom requirements,” the letter stated.

On April 8 as well, DoT secretary Neeraj Mittal had requested all departments agencies and PSUs of the state government to use BSNL and MTNL for internet, broadband, landline and leased line requirements.

The central government has announced revival packages for the two telecom operators in 2019, 2022 and 2023.