The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared a ₹89,047 crore revival package for Bharat Sanchar Nigam Ltd (BSNL), the third such government handout for the state-run telco since 2019. The carrier will use the amount for acquiring spectrum, so that it can begin to offer 4G services within months and 5G services by 2024 across the country.
With this, the total government assistance to India’s No. 4 carrier has swelled to ₹3.22 trillion. The government had earlier approved a ₹69,000 crore package in 2019 to revive and stabilize the telecom business, followed by ₹1.64 trillion in July 2022 to improve its balance sheet and expand capex.
The latest package is meant for securing 5G spectrum in the 700 Mhz, 3300 Mhz, 26 Ghz, and 2,500 Mhz bands, which can be used for 4G as well. The airwaves will be given at auction-determined prices plus goods and services tax, which amounts to ₹46,338 crore, ₹26,184 crore, ₹6,564 crore, and ₹9,428 crore for the four bands. BSNL’s authorized capital will rise from ₹1.5 trillion to ₹2.1 trillion.
“Time has come that BSNL should be in the leagues of major players in the country, and provide services where others do not provide,” said communications and IT minister Ashwini Vaishnaw. He said the carrier will have to provide good quality services in order to compete with the market on its own. Private telcos Airtel and Reliance Jio have already begun offering 5G services across 200,000 sites in the country.
“With this spectrum allotment, BSNL will be able to provide pan-India 4G, 5G services, fixed wireless access services, captive non-public networks and coverage in rural and uncovered villages,” Vaishnaw added. BSNL has already placed orders with TCS-CDoT and ITI to buy equipment for 100,000 4G sites for about ₹19,000 crore.
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