Cabinet approves third revival package for BSNL with total outlay of Rs 89,047 crore for 4G, 5G spectrum allocation

08/06/2023

new delhi, jun 7: The Union Cabinet on Wednesday approved the third revival package for BSNL with a total outlay of Rs 89,047 crore.
The package includes allotment of 4G and 5G spectrum for BSNL through equity infusion, an official statement said.
“The Union Cabinet chaired by Prime Minister Narendra Modi, today approved the third revival package for BSNL with a total outlay of Rs 89,047 crore," it said.
Also, the authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore.
The package comprises allotment of premium wireless frequencies 700 MHz band spectrum worth Rs 46,338.6 crore; 70 MHz of frequencies in 3300 MHz band worth Rs 26,184.2 crore; frequencies in 26 GHz band worth Rs 6,564.93 crore; in 2500 MHz band worth Rs 9,428.2 crore and Rs 531.89 crore for miscellaneous items. As a result of these two packages, BSNL has started earning operating profits since FY 2021-22. The total debt of BSNL has reduced from Rs. 32,944 Crore to Rs. 22,289 Crore
BSNL, struggling with poor infrastructure, has been battered by intense competition from Jio, the wireless arm of Reliance Industries, Bharti Airtel and Vodafone Idea which have rolled out 4G services at low prices on voice calls and data.
The development comes days after BSNL partnered with top software company Tata Consultancy Services to help deploy a 4G network across the country at a time when larger rivals were rolling out next-generation 5G networks.
Debt-laden BSNL, grappling with poor infrastructure, has been posting losses for the past 12 years. The losses narrowed to 69.82 billion rupees in the year ended March 2022 from 74.41 billion rupees a year ago.
The company has also been struggling to win customers in the face of intense price competition from Reliance Industries-owned Reliance Jio Infocomm, Bharti Airtel (BRTI.NS) and Vodafone Idea. The telecom market in India was upended by Jio’s launch in 2016, when it offered free calls and cut-price data plans, eroding the profit and revenue of rivals and leading to consolidation.
Shares of state-owned telecom firm Mahanagar Telephone Nigam Ltd surged 14.3 per cent after the news of a revival package for BSNL.

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