It was expected from this government. In an effort to further weaken the C-DOT, the Gigabit Passive Optical Network (GPON) technology which has been indigenously developed by C-DOT has been transferred to seven PSU-private companies.

C-DOT has been a premier organisation and it has at the initial stage developed many indigenous technology including suitable switching for India called C-DOT exchanges. There were hundreds of newly recruited Engineers with commitment. But instead of further developing this R and D institution, the government reduced its support. Most of the Engineers were compelled to leave due to less motivation including low wages.

Now, even the technology developed by it is handed over to others. The companies to which the technology is transferred are: ITI, Bharat Electronics, VMS Systems, United Telecoms, Sai Infosystems, SM Creative Electronics and Tejas Networks. Except the first two all are private companies.