Cabinet approves financial assistance to BSNL and MTNL

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Cabinet approves financial assistance to BSNL and MTNL

August 07, 2015

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The Union Cabinet has approved to extend financial support to Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) with an aim to revive the state-owned operators. A total of Rs 6.27 billion will be paid as compensation to the two operators for surrendering the CDMA spectrum that was auctioned in March 2015.

BSNL would receive a compensation of Rs 1.69 billion for surrendering one block of 1.25 MHz of CDMA spectrum in four circles while MTNL would get Rs 4.58 billion for surrendering 5 MHz, each in Delhi and Mumbai.

The Cabinet has also approved a proposal to hive off BSNL’s telecom towers into a separate company with an aim to unlock value from the assets of the operator. BSNL has around 64,000 towers across the country. The operator has leased around 5,471 towers so far to various private telecom companies earning revenue of Rs 4.32 billion by May 2015.