23-Dec-2022: Launch of 4G Services by BSNL
In line with Atma-Nirbhar Bharat initiative of the Government, BSNL was directed to deploy Indian 4G stack. BSNL floated the Expression of Interest (EOI) on 1st Jan, 2021 for the Proof of Concept (PoC). The PoC has been completed with few pending points. BSNL has issued the Purchase Order for 6,000 sites for 4G roll-out on 31-03-2022 and another purchase order of 6,000 sites on 25-07-2022. Thereafter, BSNL has floated the tender in October 2022 for its requirement of 1 lakh 4G sites.
On 23.10.2019, Government of India approved the revival plan for BSNL and MTNL. It inter-alia approved the reduction in employee costs through Voluntary Retirement Scheme (VRS), debt restructuring by raising of sovereign guarantee bonds, administrative allotment of spectrum for 4G services through capital infusion, monetization of core and non-core assets and in-principle approval of merger of BSNL and MTNL. As a result of these, BSNL has become EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) positive since the financial year 2020-21.
Further on 27.07.2022, to transform BSNL into a viable Public Sector Undertaking, the Government approved a revival package for BSNL amounting to Rs 1.64 lakhs crores. The revival measures focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet and augmenting its fibre network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.
27-Jul-2022: Cabinet approves revival package of BSNL amounting to Rs 1.64 Lakh Cr.
Telecom is a strategic sector. Presence of BSNL in telecom market acts as a market balancer. BSNL plays a crucial role in expansion of telecom services in rural areas, development of indigenous technology and disaster relief.
To make BSNL financially viable, the Union Cabinet chaired by Prime Minister Shri Narendra Modi today approved the revival package of BSNL amounting to Rs 1.64 Lakh Cr.
Revival measures approved by the Cabinet focus on infusing fresh capital for upgrading BSNL services, allocating spectrum, de-stressing its balance sheet, and augmenting its fiber network by merging Bharat Broadband Nigam Limited (BBNL) with BSNL.
Upgrading BSNL services
- Administrative allotment of Spectrum: To improve existing services and provide 4G services, BSNL will be allotted Spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 Cr through equity infusion. With this spectrum, BSNL will be able to compete in the market and provide high speed data using their vast network including in rural areas.
- Financial support for capex: To promote indigenous technology development, BSNL is in process of deploying Atmanirbhar 4G technology stack. To meet the projected capital expenditure for next 4 years, Government will fund capex of Rs 22,471 Cr. This will be a significant boost to development and deployment of Atmanirbhar 4G stack.
- Viability gap funding for rural wireline operations: Despite the commercial non-viability, BSNL has been providing wireline services in rural/remote areas to meet the social objectives of the Government. Government will provide Rs 13,789 Cr to BSNL as viability gap funding for commercially unviable rural wire-line operations done during 2014-15 to 2019-20.
- Increase in authorized capital: The authorized capital of BSNL will be increased from Rs 40,000 Cr to Rs 1,50,000 Cr in lieu of AGR dues, provision of capex and allotment of spectrum.
De-stressing BSNL balance sheet
- Debt structuring: Government will provide sovereign guarantee to these PSUs for raising long term loan. They will be able to raise long term bonds for an amount of Rs 40,399 Cr. This will help restructuring existing debt and de-stressing the balance sheets.
- Financial support for AGR dues: To further improve the balance sheet, AGR dues of BSNL amounting to Rs 33,404 Cr will be settled by conversion into equity. Government will provide funds to BSNL for settling the AGR/GST dues.
- Re-issue of preference shares: BSNL will re-issue preference share of Rs 7,500 Cr to the Government.
Augmenting BSNL fiber network
- Merger of BBNL and BSNL: To facilitate wider utilization of infrastructure laid under BharatNet, Bharat Broadband Network Ltd (BBNL) will be merged with BSNL. The infrastructure created under BharatNet will continue to be national asset, accessible on a non-discriminatory basis to all the Telecom Service Providers.
With these measures, BSNL will be able to improve the quality of existing services, roll out 4G services and become financially viable. It is expected that with the implementation of this revival plan, BSNL will turn-around and earn profit in FY 2026-27.
22-Jul-2022: 4G and 5G Licenses to BSNL and MTNL
Government is implementing various schemes under Universal Service Obligation Fund (USOF) to enhance telecom connectivity in the rural and predominately tribal areas of the country including North Eastern Region (NER) and areas affected by Left Wing Extremism (LWE), Border areas, Aspirational Districts and Islands. Also, BharatNet project is implemented in a phased manner to provide broadband connectivity to all Gram Panchayats (GPs) in the country. The scope of BharatNet has been extended up to all inhabited villages beyond GPs in the country. The details of the schemes are attached as Annexure-I.
The Government on 23.10.2019 approved the revival plan for BSNL and MTNL. The Cabinet inter-alia approved administrative allotment of spectrum for 4G services through capital infusion. On 21.12.2020, the Government approved the allocation of spectrum for Delhi/Mumbai to BSNL. Further, the Cabinet in its meeting held on 14-06-2022 has inter-alia reserved spectrum for BSNL for providing 5G services. Testing of Indian make 4G Equipment, under Atmanirbhar Bharat initiative, is already at advance stage and the delivery of the equipment will commence after completion of the testing. People will start getting benefitted once this equipment are deployed and commissioned.
Annexure-I
Details of schemes/projects to improve the communication network/system in rural, tribal and hilly areas across the country:-
- Under LWE Phase-I scheme, 2,343 mobile towers have been installed in LWE areas which including 96 mobile towers of the State of West Bengal and are providing services. Under LWE Phase-II scheme, 2,542 mobile towers at Ministry of Home Affairs (MHA) identified locations are approved across the LWE States;
- Scheme for providing mobile connectivity in 354 villages of uncovered border areas including Ladakh and Kargil Region, Himachal Pradesh, Uttarakhand and other priority areas.;
- Comprehensive Telecom Development Plan for mobile connectivity in the North Eastern Region to provide mobile coverage in uncovered villages and along with the National Highways;
- Scheme for providing 4G mobile connectivity in 502 uncovered villages of Aspirational Districts in four States, namely, Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan;
- Scheme for provisioning of 4G based Mobile service in 7287 uncovered villages of Aspirational Districts of 5 States Andhra Pradesh, Chhattisgarh, Jharkhand, Maharashtra and Odisha;
- Laying of submarine optical fibre cable between Chennai and Andaman & Nicobar Islands for providing connectivity to Andaman & Nicobar Islands;
- Submarine OFC connectivity between Kochi and Lakshadweep Islands.
- Mobile connectivity to cover uncovered villages and along National Highway (NH 223) in Andaman & Nicobar Islands;
- BharatNet project to create network to connect all the Gram Panchayats and villages with broadband infrastructure.
1-Apr-2022: Revival of BSNL and MTNL
The Government approved a revival plan for Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on 23.10.2019.The revival plan inter-alia includes measures to reduce the Staff cost through a Voluntary Retirement Scheme (VRS) for employees of age 50 years and above, administrative allotment of spectrum for providing 4G services with funding through budgetary allocation, monetisation of non-core and core assets to generate resources to retire debt, meet CAPEX and other requirement and debt restructuring by raising of Sovereign Guarantee Bonds.
It has also been approved to administratively allot spectrum to BSNL and MTNL for providing 5G services on the same principles as followed for 4G. BSNL and MTNL would rollout 4G and 5G services based on techno-commercial considerations.
