The Union Cabinet approved the third revival package for BSNL

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.

An Overview of the News

Revival Package:

The total outlay of the revival package is Rs 89,047 crore.
The package includes allocation of 4G and 5G spectrum for BSNL through equity infusion.
The government will increase the authorized capital of BSNL from Rs 1,50,000 crore to Rs 2,10,000 crore.

Revival Package Objectives

BSNL will emerge as a stable telecom service provider focused on providing connectivity to remote parts of India.
The spectrum allocation will enable BSNL to provide pan India 4G and 5G services.
BSNL will provide 4G coverage in rural and unserved villages under various connectivity projects.
BSNL will offer fixed wireless access (FWA) services for high-speed internet.
BSNL will provide services and spectrum for the Captive Non-Public Network (CNPN).

Previous Revival Package

The first revival package for BSNL and MTNL was approved in 2019, amounting to Rs 69,000 crore.
The second revival package for BSNL and MTNL was approved in 2022 amounting to Rs 1.64 lakh crore.

About

BSNL, which stands for Bharat Sanchar Nigam Limited, is a telecommunications company owned by the Government of India. It is one of the largest public sector enterprises providing a wide range of telecom services across India.

Establishment: The government corporatized the Department of Telecommunications (DOT), which was the national telecom service provider in India, on October 1, 2000, forming BSNL.
Services: BSNL offers a comprehensive range of telecom services, including landline telephone services, mobile services, broadband internet, digital TV, and enterprise-level communication solutions. It operates in both urban and rural areas, providing connectivity to millions of customers across the country.
Network Infrastructure: BSNL has an extensive network infrastructure comprising landline exchanges, mobile towers, internet gateways, and optical fiber cables. It has a wide coverage footprint, particularly in rural and remote areas, making it an important player in bridging the digital divide in India.
Landline Telephony: BSNL has been a dominant player in landline telephony services in India. It provides reliable and affordable landline connections to residential and business customers. Landline services from BSNL are known for their wide coverage, voice clarity, and accessibility.
Mobile Services: BSNL offers mobile services under the brand name “BSNL Mobile.” It provides 2G, 3G, and 4G mobile services across various circles in India. BSNL has also launched various prepaid and postpaid plans, including data packs, voice plans, and value-added services.

Significance

Financial Stability: The revival package aims to address the financial challenges faced by BSNL and improve its financial stability. It includes measures to tackle issues like mounting debts, operational losses, and improving the company’s revenue generation capabilities. This is significant as it ensures the sustainability of BSNL as a public sector telecommunications company.
Continuity of Services: BSNL provides essential telecom services, including landline telephony, mobile services, and broadband internet, to millions of customers across India. The approval of the revival package ensures the continuity of these services, avoiding disruptions and inconvenience to BSNL customers.
Employment Opportunities: BSNL is a major employer in the telecom sector, providing job opportunities to a significant number of individuals. The revival package is expected to strengthen BSNL’s operations, safeguard existing jobs, and create new employment opportunities.This is significant for the workforce associated with BSNL and the overall employment scenario in the telecom industry.
Digital Connectivity: BSNL plays a crucial role in providing digital connectivity, particularly in rural and remote areas where private telecom operators may have limited presence or coverage. The revival package aims to enhance BSNL’s infrastructure, expand network coverage, and bridge the digital divide in underserved regions. This ensures that people in these areas have access to essential communication and internet services.

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The Union Cabinet approved the third revival package for BSNL,The Union Cabinet approved the third revival package for BSNL,The Union Cabinet approved the third revival package for BSNL