Government mulls equity infusion into BSNL

The department of telecommunications (DoT) is considering a proposal made by BSNL to infuse equity into it so that the state-run telecom operator can be allocated spectrum in the 2100 MHz band for launching 4G services to shore up its revenues. “We are considering it,” telecom minister Manoj Sinha told reporters at the sidelines of an event on the ministry’s achievement in the last four years.

BSNL wants the government to allocate 5MHz spectrum in the 2100 MHz band in 19 circles for launching 4G services. The cost of the airwaves, according to rough estimates based on spectrum auction prices in October 2016 that comes to around Rs 12,955 crore, is proposed to be paid in half by issuing additional shares to the government and the remaining via revenue generated in equal annual installments.

“BSNL and MTNL are working very hard to improve service quality, despite not having the crucial 4G spectrum in a market that has become cut throat. But, there is always scope for better services,” the minister said.

During the press conference, Sinha said the new telecom policy, or National Digital Communications Policy (NDCP), is expected to be cleared by the Union Cabinet by July end. It aims to provide minimum download speed of 50 Mbps, attract investment of around $100 billion and create 4 million jobs.

Telecom secretary Aruna Sundararajan told reporters that the draft policy will be placed before the Telecom Commission in its meeting scheduled for June 29.

On In-Flight Connectivity (IFC) services, Sinha said that the policy is expected to be in place by next year.

On E&V bands, which are used for backhaul services for effective transmission of data, a senior DoT official hinted that the government may not auction the E&V bands. He said that globally such spectrum is not auctioned, and Trai had also recommended allocation of such bands without auction.

Sinha informed that the India Posts Payments Bank (IPPB) is likely to operationalise all its 650 branches by July.

Bharat Sanchar Nigam Limited (BSNL)