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Published: June 8, 2023
Updated: June 8, 2023

Cabinet Approves ₹89,047 Crore Revival Package for BSNL to Acquire 4G and 5G Spectrum

The Cabinet Committee on Economic Affairs has granted approval for a third revival package worth ₹89,047 crore to Bharat Sanchar Nigam Limited (BSNL), a state-run telecommunications carrier. This significant funding will enable BSNL to acquire 4G and 5G airwaves from the government, paving the way for the launch of 4G services in the coming months and 5G services by 2024 across India. With this package, the government's total assistance to the country's fourth-largest carrier since 2019 has reached ₹3.22 trillion.

Enhancing Connectivity: Spectrum Allocation and Expansion:

The approved funds will be allocated for the acquisition of 5G spectrum in various frequency bands, including 700 MHz, 3300 MHz, 26 GHz, and 2500 MHz. This spectrum can be utilized for both 4G and 5G services. The allocation will be carried out through equity infusion, and the prices will be determined through an auction process, along with the applicable goods and services tax. The total amount allocated for spectrum acquisition is ₹46,338 crore, ₹26,184 crore, ₹6,564 crore, and ₹9,428 crore for the respective frequency bands.

BSNL's Path to Debt-Free Status:

Communications and IT Minister, Ashwini Vaishnaw, expressed confidence that BSNL will achieve debt-free status within three years. He emphasized that the government will not provide any further equity or government-backed debt to the company. The reduction of BSNL's debt, currently standing at ₹22,289 crore, will primarily be accomplished through internal accruals. In order to compete effectively in the market, BSNL plans to revamp its IT, HR, and technology platforms to enhance consumer-friendly services.

Expanding Services and Coverage:

The allocation of 4G and 5G spectrum will enable BSNL to provide nationwide services, including fixed wireless access, captive non-public networks, and coverage in rural and uncovered areas. The company has already placed a purchase order for equipment required for 1 lakh 4G sites, amounting to approximately ₹19,000 crore. This development aligns with the government's vision for BSNL to become a major player in the telecommunications industry, providing services where other players do not reach.

Significant step towards the revitalization of BSNL

The approval of the ₹89,047 crore revival package marks a significant step towards BSNL's revitalization and expansion in the competitive telecommunications market. With the acquisition of 4G and 5G spectrum, BSNL aims to offer advanced services to customers across India. The government's commitment to ensuring BSNL's debt-free status and the company's efforts to revamp its operations reflect the collective goal of providing quality connectivity and driving digital transformation in the country.