The Prime Minister's Office (PMO) on Friday reviewed the telecom sector including two sick PSUs. The PMO has asked the telecom department to help Bharat Sanchar Nigam Limited (BSNL), which has not been able to pay wages because of its ongoing financial crisis, till the formation of the next government, news agency IANS reported today. The PMO decision will likely help over 1.76 lakh BSNL employees facing salary woes.

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BSNL is a central government-owned telecom company. According to sources, BSNL may face difficulty in increasing revenue and paying the monthly salary bill of Rs 1,200 crore. Sources said since the elections are close, the government does not want the 1.76 lakh employees to face any pay-related problems. 

The new government, to be formed after the Lok Sabha elections, will now solve the BSNL problems. For now, according to sources, the PMO has asked the Department of Telecommunications (DoT) to help BSNL and get its salary bill resolved anyhow till July. All employees of the company received their last month's salary on March 15.

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For the first time in the 19-year history of BSNL, the DOT had helped the ailing telco last month in paying salaries. BSNL's net loss is Rs 8,000 crore and its revenue has come down to around Rs 27,000 crore. In the wake of reduction in data charges and free voice calls, BSNL has been facing a tough time. 

The public sector company is also struggling because it is not able to provide LTE 4G service due to lack of spectrum. DOT has forwarded its spectrum proposal to TRAI for consultation. The PSU cannot participate in the auction of spectrum. The salary bill of BSNL is 70 per cent of its revenue. The PSU is now facing troubles of revenue losses from its services.