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HomeNewsTelecom NewsFrost & Sullivan report predicts ‘good’ if BSNL, MTNL merge
Wednesday, 27 March 2019 05:10

Frost & Sullivan report predicts ‘good’ if BSNL, MTNL merge

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If state owned telecom companies BSNL and MTNL merge, it will be good for all stakeholders, according to Frost & Sullivan Director, Digital Transformation Practice, Benoy CS.

Benoy added the entry of Jio in the Indian telecom sector has resulted in reduced tariff and various freebies for customers. 

But he also said that the freebies are coming at the cost of the health of the telecom sector. The telecom industry, he said, is going through a rough phase and the reduced tariff and freebies can’t continue for ever.

He said: “The good part is that our fundamentals are very strong. A growing economy, young population, high data usage, digitization, untapped rural potential etc. are some of the positives for the industry from a long term perspective.”

“History teaches us that when things are not going well, it forces us to introspect and get back to basics. As always, private sector companies are quicker to act and adapt than public sector companies,” he said.

He said merger will help in Cost Optimization, Enterprise and Wholesale Business growth and Better Valuation.

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