The story so far: Telecom Minister Ashwini Vaishnaw, during the recently-concluded Budget session of the Parliament, had said the state-owned telecom operator, BSNL, was now a stable entity and making operating profits. Further, the Telecom Minister informed the House that the telecom services provider would soon be able to roll out its home-grown radio and core 4G network.
Operating profit refers to the revenue remaining with a business after subtracting its variable and fixed operating costs. In contrast to net profit, it accounts for debt, one-time costs, and taxes.
In 2019, the Union Cabinet had approved a proposal to revive BSNL and MTNL which included measures such as a merger of the two entities, reducing employee-related costs, restructuring debt by raising bonds through sovereign guarantees, monetisation of assets, and administrative allotment of spectrum for providing 4G services throughout India.
