Union Telecom Minister Ashwini Vaishnaw on Wednesday, July 27 said that the Union Cabinet has approved a revival package worth Rs 1.64-lakh crore for the state-run Bharat Sanchar Nigam Ltd (BSNL).
The ambitious revival package has three main goals: improving the quality of services, distressing the company’s balance sheet and expanding the company’s fibre reach.
The Cabinet also approved the merger of BSNL and Bharat Broadband Network Limited (BBNL), the state-owned broadband infrastructure provider. The minister said the combined network of BSNL and BBNL is expected to be 14 lakh km approximately; this, he added, is likely to boost high-speed optical fibre services across India including remote areas.
The government is also approving a sovereign guarantee bond issuance for BSNL for the company to replay its loans and destress its balance sheet. The company has Rs 33,000 crore debt on its books.
The state-run telco will also be given the required spectrum to expand services, especially its 4G offerings. He further said after the package, BSNL will be able to boost 4G services to raise APRU to Rs 170-180. The Cabinet also approved the allocation of spectrum for 4G ad 5G services for BSNL.
Vaishnaw also said that Cabinet has approved a project for the saturation of 4G mobile services in all uncovered villages of the country through Universal Service Obligation Fund, at an estimated cost of Rs 26,316 crores.
The timing of the announcement comes at a time when Department of Telecom (DoT) is in the process of auctioning the crucial 5G spectrum to mainly 4 players—Reliance Jio, Bharti Airtel, Vodafone Idea and a group entity of Adani Enterprises.
As of May 31, 2022, private telecom providers held almost 90% market share in the Indian telecom sector while the government-run BSNL and MTNL had just 10%.
