Jobaaj Stories
According to certain reports, the Department of Telecommunications (DoT) has decided to allocate a spectrum worth Rs 62,000 crores to state-run Bharat Sanchar Nigam Limited (BSNL).
According to officials, a proposal to give a 10 MHz block in the premium 700 MHz spectrum band worth about â‚ą40,000 crores along with 70 MHz in the mid-band (3600 MHz to 3670 MHz) worth about â‚ą22,000 crores to BSNL for 5G has been approved.
"The DoT committee has approved the proposal and it will now be discussed by the inter-ministerial panel DCC (digital communications commission), following which the Cabinet will have to give the final go-ahead," a source told ET.
This spectrum allocation is in addition to the massive Rs 1.64 lakh crore revival package proposed for public telecom. The spectrum will be used to roll out the company's 5G services by around August 2023.
The debt-laden telecom has several plans in mind as it is looking to make a revival of its declining operations.
The telecom is reportedly planning to raise around $1.03 billion in the coming weeks through the sale of 10-year government-guaranteed bonds. The bonds are expected to pay interest on a semi-annual basis and will contain an irrevocable and unconditional guarantee by the government of India. CRISIL is said to have rated the notes as AAA.
This is an effort by the public telecom to improve its operations. Moreover, Telecom Secretary K Rajaraman has announced that BSNL is working towards providing high-speed internet to all villages without one within a year or so!
However, is this really possible?
BSNL has incurred absurdly high losses throughout the years. It is yet to launch its 4G services and is expected to launch its 5G services by August next year.
The public sector telecom is substantially lagging in comparison to the private players who have already launched their 5G networks and are making visible efforts towards launching their SA 5G networks.
Moreover, the company has lost significant market share over the years as it was recently dethroned by Reliance Jio as the largest fixed-line service provider in the country. This was the first time something as such happened since the initiation of telecom services in our country.
All we can do is wait and watch what the future holds for the company.
Article by Aman Agarwal.
