No. It is an excuse to let a particular private operator to gain market share. Worst is yet to come for BSNL. Interesting days ahead for BSNL employees and BSNL users. Next two to 6 years are crucial, when 5g is expected to launch. For better 5g, private operators need strong fiber backbone that BSNL already has. BSNL may be forced to lease out fiber assets citing lack of income to pay the salaries and for other development.
It is true that while BSNL had the first mover advantage in 3G, they had the shoddiest 3G network even a couple of years back and even now data coverage is not even 50% of what Airtel/Vodafone-Idea offers. BSNL has good infrastructure, but maintanence is almost null. Yes many people in urban areas use their data plans as their network has improved in cities but this won't be enough to sustain them. And they have just too many employees. As the old saying goes, 'Too many cooks spoil the broth.'
Good they should shut it down with mtnl and all other govt. loss making enterprises which are making losses because of their useless workforce. It make other govt. babu's to also think twice who join govt co. just to have easy lifestyle.
This might Just be one good thing is Modi govt. has balls to do it and actually make govt. Co. more efficient and not just lazy resource hungry entity.
In my personal experience with mtnl it was horrendous to deal with these official if any time net would go down. When I finally placed a disconnection request via official letter they kept connection active saying they can't disconnect it until I personally waste time visiting their office and also pay dues for months for which they kept connection active on their own. #hopeless.