New Delhi: In a major decision aimed at reviving state-owned telecom company Bharat Sanchar Nigam Limited (BSNL), the Union Cabinet on Wednesday approved a mega package of Rs 1.64 lakh crore for the revival of BSNL, which has a market share of just 10.13 per cent against the 89.17 per cent market share owned by private telecom players.
At a time when BSNL is losing its subscriber base, Union Telecom minister Ashwini Vaishnaw stated that the revival package would help BSNL in getting back the same as the approved fund would be utilised for distressing the 'legacy debit' of the public telecom service provider and augmenting infrastructure for better connectivity in far-flung areas of the country.
However, the minister has claimed that BSNL is adding one lakh subscribers every month, which contradicts TRAI's latest data that puts the BSNL's subscriber base in May 2022 at 58.05 million compared to 59.31 million users in April 2022 – a loss of 5,31,502 subscriber base.
As per the plan, in the next two years, BSNL would be able to roll out 5G services and would start making profits in Financial Year 2026-27, the minister said, adding that the package has three elements such as to improve services, de-stress the balance sheet, and an expansion of fibre network. "The package has a cash component of Rs 4,964 crore and a non-cash component of Rs 1.2 lakh crore spread over the years," the minister said, adding that the government will make administrative allocation of spectrum BSNL needs to offer 4G services and the allocation of spectrum in 900/1800MHz band at the cost of Rs 44,993 crore would be through equity infusion. With this spectrum, BSNL will be able to compete in the market and provide high-speed data using its vast network, including in rural areas.
The minister further said that Rs 33,000 crore statutory dues will be converted into equity to de-stress the balance sheet, while a similar amount of bank loans will be repaid through the issue of low-interest bonds.
The decision would help in providing 4G mobile services in 24,680 uncovered villages in remote and difficult areas as the project has a provision to include 20 per cent of additional villages on account of rehabilitation, new settlements, and withdrawal of services by existing operators, etc. In addition, 6,279 villages having only 2G/3G connectivity would also be upgraded to 4G.
The project will be executed by BSNL using Atmanirbhar Bharat's 4G technology stack and will be funded through Universal Service Obligation
Fund (USFO). The project cost of Rs 26,316 crore includes Capex and 5-year Opex.
"The project is a significant step towards the accomplishment of Prime Minister Narendra Modi's vision to provide mobile connectivity in rural areas. It will promote the delivery of various e-governance services, banking services, tele-medicine, tele-education, etc through mobile broadband and generate employment in rural areas," the minister said.
He further added that BSNL holds a network of more than 6.8 lakh kilometres of optical fibre cable (OFC) and the merger of Bharat Broadband Network (BBNL) with BSNL will provide another 5.67 lakh kilometres of optical fibre that is spread across 1.85 lakh village panchayats in India.