Yes its a big amount to invest in remodelling itself. Its the right time to do it as the telecom sector is all set to go through a major change once the 3g auctions are done. The only concern is that the quantum is quite big but i am sure it will be done in steps. Hope, its a well thought decision by the concerned authorities!!
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BSNL needs to invest in modernization in order to deliver better services to its customers as well as to catch new ones. If not, it is going to lose market and it would not be any different from Air India. That is why the above investment is justified. However, I do get the feeling that a few vested interests in the private sector telecom companies want to see the BSNL going ITI, HMT and Air India way so that they can capture the huge business of BSNL. A lot of hurdles are placed on the path of BSNL from being more competitive in the field.