BSNL’s third revival package: Union Cabinet approves allotment of 4G/5G Spectrum to BSNL

Source: The post is based on the article “BSNL’s third revival package: Union Cabinet approves allotment of 4G/5G Spectrum to BSNL” published in the PIB on 7th June 2023

What is the News?

As part of the revival strategy, the Union Cabinet has approved BSNL’s third revival package with a total outlay of Rs. 89,047 crores. It includes an allotment of 4G/5G spectrum for BSNL through equity infusion. With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.

What are the key aspects of BSNL’s revival package?

Read here: Cabinet approves revival package of BSNL amounting to Rs 1.64 Lakh Cr.

What are the potential benefits of BSNL’s third revival package?

With this spectrum allotment, BSNL will be able to a) Provide pan India 4G and 5G services, b) Provide 4G coverage in rural and uncovered villages under various connectivity projects, c) Provide Fixed Wireless Access (FWA) services for high-speed internet, and d) Provide services/spectrum for Captive Non-Public Network (CNPN).

About the performance of BSNL’s previous revival packages

The Government approved the first revival package for BSNL/MTNL in 2019 and brought stability to BSNL/MTNL.

In 2022, the Government approved a second revival package for BSNL/MTNL. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, 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.

Read more: What are the concerns against the revival package for BSNL?
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