In a significant move to strengthen the state-owned telecommunications company, Bharat Sanchar Nigam Limited (BSNL), the Union Cabinet gave its approval on Wednesday for the third revival package with an impressive outlay of Rs 89,047 crore. The comprehensive package, aimed at rejuvenating BSNL’s operations, includes the allotment of 4G and 5G spectrum through equity infusion, as stated in an official announcement.
One of the key aspects of the package is the increase in BSNL’s authorised capital from Rs 1,50,000 crore to Rs 2,10,000 crore, reflecting the government’s commitment to empowering the telecom giant. Additionally, BSNL will receive the allocation of premium wireless frequencies across various bands, with a total value of Rs 46,338.6 crore for the 700 MHz band, Rs 26,184.2 crore for 70 MHz in the 3300 MHz band, Rs 6,564.93 crore for the 26 GHz band, Rs 9,428.2 crore for the 2500 MHz band, and Rs 531.89 crore for miscellaneous items.
The infusion of spectrum will enable BSNL to launch pan-India 4G and 5G services, extend 4G coverage to rural and underserved areas as part of various connectivity projects, provide high-speed internet through Fixed Wireless Access (FWA) services, and cater to the needs of Captive Non-Public Network (CNPN) customers.
This marks the third revival package for BSNL, following the initial support provided by the government in 2019 with a package worth Rs 69,000 crore for both BSNL and MTNL. The second package, announced in 2022, was valued at Rs 1.64 lakh crore. These earlier packages included financial assistance for capital expenditures, viability gap funding for rural landlines, balance sheet restructuring, settlement of Adjusted Gross Revenue (AGR) dues, and the merger of BBNL with BSNL. Consequently, BSNL’s total debt has significantly reduced from Rs 32,944 crore to Rs 22,289 crore, illustrating the positive impact of the previous revival measures.
The latest revival package for BSNL signifies the government’s unwavering commitment to revitalising the public sector enterprise and strengthening its competitive position in the ever-evolving telecommunications landscape. With the infusion of 4G and 5G spectrum, BSNL is expected to transform its offerings, providing advanced and reliable services to its customers across the country. The implementation of this package is poised to redefine BSNL’s role as a key player in India’s telecommunications industry, fostering digital inclusivity and driving socio-economic progress nationwide.
