oppn parties BSNL Must Be Converted To A Special Purpose Vehicle

News Snippets

  • Home minister Amit Shah says BJP under Narendra Modi taught communal rioters a lesson in 2002 and that has kept Gujarat peaceful since then
  • Supreme Courts stays Calcutta HC order for a CBI probe itno the move to create supernumerary posts for illegally appointed teachers
  • Calcutta HC "stunned, scandalized and flabbergasted" that the state government created supernumerary posts to appoint illegally appointed teachers in the SSC scam
  • Law minister Kiren Rijiju says collegium system to select judges is alien to the Constitution while CJI Chnadrachud defends it
  • Delhi HC bars people from using actor Amitabh Bachchan's image, voice, duplicate image or anything associated with him to promote anything without his authorization
  • Final electoral roll pubslished in J&K, shows a gain of 772000 voters or a 10.19% rise
  • CJI Chandrachud says that the Supreme Court and the government must not find faults but must strike a balance to work toegether
  • After being hit by ransomware, the servers of AIIMS remained out of order for the 3rd day
  • CBI files charge sheet against 7 in Delhi liqour excise scam case, Manish Sisodia's name not in it
  • Supreme Court to examine the issue of gay marriages, issues notice to Centre
  • Adani Enterprise will raise Rs 20000cr in a follow-on public offer (FOP), the largest of its kind in India
  • Forex reserves rose by $2.5bn in the week ended November 18 to stand at $547bn
  • Kshema General Insurance becomes the first company to get licence after 5 years, 19 more await Irdai approval
  • Stocks end flat but positive on Friday after a volatile trading session: Sensex gains 20 points to 62293 and Nifty 28 points to 18512
  • First ODI: New Zealand beat India in a high scoring match as even after scoring 306, Indian bowlers fail to press home the advantage
Supreme Court questions the tearing hurry to appoint Arun Goel as election commissioner, says it is 'mytified' by the criteria for shortlisting 4 officers for the purpose
oppn parties
BSNL Must Be Converted To A Special Purpose Vehicle

By Linus Garg
First publised on 2022-07-29 10:21:52

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

The government has announced a financial package of Rs 1.64 lakh crore to revive BSNL. The package is designed to de-stress its balance sheet (the public sector telco has run up losses of Rs 30000cr in the last three years), provide it with spectrum and also has a cash component for funding capital expenditure. But the problem is to identify whether BSNL is competitive enough to survive in the cut-throat business of providing telephony and internet connections to customers. It has a miniscule percentage of customers (just over 3%) in the huge market. Its infrastructure is outdated - when private players are jumping to 5G, the government will provide 4G spectrum to BSNL now and 5G will be provided after two years. With this kind of support, is the government not guilty of throwing good money after bad in trying to revive it?

But when one takes into consideration the fact that telecommunication is of strategic importance and cannot be left to the private sector which is guided solely by the profit motive, the importance of BSNL cannot be discounted. Having said that, it still does not make sense for the government to hope for its revival as it has imposed several restrictions (like salary constraints which do not allow it to attract talent) and asked it to make do with outdated technology. As the government needs the BSNL to carry out projects of strategic importance like the BharatNet (to connect all panchayats through broadband connectivity) and taking telephony and internet to areas where private players do not, is it not time to convert it into a special purpose vehicle just to carry out such projects and relieve it of the burden of competing with private players when it is clearly not in a position to do so?

It is time the government defines the role it would like BSNL to play, provide it with full support and allow it to work with complete focus in those areas only.