The cabinet approved a revival package of Rs 1.64 lakh crore to revive BSNL.
The cabinet approved the merger of BSNL and Bharat Broadband Network Limited (BBNL).
The government will allot spectrum to BSNL to help expand 4G services.
New Delhi. A big news has come out about the government telecom company Bharat Sanchar Nigam Limited (BSNL). The cabinet approved a revival package of Rs 1.64 lakh crore to revive BSNL. Union Minister Ashwini Vaishnav informed about the decisions of the cabinet meeting. The Union Minister said that along with this, the cabinet approved the merger of BSNL and Bharat Broadband Network Limited (BBNL).
Ashwini Vaishnav told that the government will allocate spectrum to BSNL to help in the expansion of 4G services. Statutory dues of Rs 33,000 crore to this public sector telecom company will be converted into equity. Also, the company will issue bonds to pay off bank loans worth Rs 33,000 crore. CAPEX has been approved today for upgradation of company network.
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BBNL’s optical fiber will be BSNL’s
The Union Minister said that this package will help the telecom company to upgrade to 4G. At the same time, the merger of BSLN and BBNL will also strengthen the combined company. With this merger, BSNL will now have complete control of 5.67 lakh km of optical fiber of BBNL spread across the country.
There will be a big benefit from the merger
BSNL has more than 6.80 lakh km of optical fiber network. At the same time, BBNL has laid 5.67 lakh km of optical fiber in 1.85 lakh gram panchayats of the country. BSLN will get control of the fiber laid by BBNL through Universal Service Obligation Fund (USOF). To raise funds, the government will issue bonds worth Rs 23,000 crore for BSNL in the next three years. At the same time, the government will issue a bond of Rs 17,500 crore for MTNL in 2 years.
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BSNL does not even have 4G service
On the other hand, auction is being held for 5G spectrum in India today. Reliance Jio, Airtel and other companies are participating in this auction. However, as everyone knows, the government telecom company Bharat Sanchar Nigam Limited or BSNL is not participating in this auction. BSNL is also not a part of this auction because it has not yet released 4G service. It is currently focusing on 4G service launch only. Users are also trolling it a lot on social media regarding this.
Tags: 4G network, 5G network, BSNL, cabinet decision, Telecom business
FIRST PUBLISHED : July 27, 2022, 17:09 IST