With new revival package, Govt makes more efforts to pull BSNL out of trouble
New Delhi: The authorised capital of state-run telecom company BSNL has expanded from Rs. 1,50,000 crore to Rs. 2,10,000 crore after the government announced a revival package of Rs 89,047 crore this week.
The Centre has been making efforts to put loss-making BSNL back on a growth trajectory.
The new package is expected to help BSNL emerge as "a stable telecom service provider focused on providing connectivity to remotest parts of India,” a government statement said.
This comes after the government roped in Tata Consultancy Services (TCS) to aid BSNL in the deployment of the 4G network across India.
However, all private telecom companies are already amid 5G roll out and are offer 4G services at cheap rates.
BSNL has been facing persistent challenges due to its inadequate infrastructure for a significant period. The company has encountered intense competition from major players such as Reliance Jio, Bharti Airtel, and Vodafone Idea, which have affected its market position and performance.
As per the statement, BSNL will have the capability to offer the following services:
Pan India 4G and 5G Services: BSNL will be able to provide 4G and 5G services across the entire country, ensuring faster and more advanced mobile connectivity.
4G Coverage in Rural and Uncovered Villages: BSNL will extend 4G coverage to rural areas and villages that currently lack adequate connectivity through various connectivity projects.
Fixed Wireless Access (FWA) Services: BSNL will offer high-speed internet services through Fixed Wireless Access, enabling reliable and fast internet connectivity for residential and business customers.
Captive Non-Public Network (CNPN) Services/Spectrum: BSNL will provide services and spectrum for Captive Non-Public Network, catering to the specific connectivity needs of enterprises and organizations.
In 2019, the government introduced the first revival package for BSNL/MTNL, which involved an infusion of Rs 69,000 crore. The government claimed that this package brought stability to BSNL/MTNL.
In 2022, the government approved a second revival package for BSNL/MTNL, amounting to Rs 1.64 lakh crore. The allocated funds were intended for various purposes, including spectrum allocation, capital expenditure, and viability gap funding.
According to government data, the combined impact of the two revival packages has been positive for BSNL. Since the financial year 2021-2022, BSNL has reported operating profits, indicating an improvement in its financial performance. The total debt of BSNL has reduced significantly, declining from Rs 32,944 crore to Rs 22,289 crore.