4G/5G Spectrum Allotted To BSNL As Third Revival Package

In a significant move, the Union Cabinet has approved a third revival package for BSNL with the total outlay of Rs. 89,047 crore that includes allotment of 4G/5G spectrum for the public telecom service provider through equity infusion.

The decision was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi today. As part of the revival strategy, the authorised capital of BSNL has been raised to Rs 2.1 lakh-crore from Rs 1.5 lakh-crore.

Briefing the media after the meeting, Union Minister Piyush Goyal said that BSNL has 4G coverage in many areas of the country and is close to covering almost the entire country. "As for 5G, the concerned minister will inform you accordingly," he added.

With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity in remote parts of India. This spectrum allotment will enable BSNL to provide pan-India 4G and 5G services, 4G coverage in rural and uncovered villages under various connectivity projects, fixed wireless access (FWA) services for high-speed internet and services/spectrum for captive non-public network (CNPN).

The Union government believes that a government PSU in telecom should flourish because of its strategic importance. "With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to remote parts of India," the government has said.

The government approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs 69,000 crore and brought stability to the telecom sector.

Further, in 2022, the Centre again approved the second revival package for BSNL/MTNL amounting to Rs 1.64 lakh-crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, the merger of BBNL with BSNL, etc.

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, the government added.

BSNL has achieved strong growth in home fiber segment. It is providing more than 1 lakh new connections every month. Total home fiber subscriber base of BSNL in May 2023 is 30.88 lakh. Total revenue from home fiber last year was Rs 2,071 crore.

Telecom technology is a strategic technology with a limited number of end-to-end technology providers in the world. Under the 'Aatmanirbhar' program, India's own 4G/5G technology stack has been successfully developed. Field deployment has started and after a few months, it will be rapidly rolled out across the country on BSNL network.