Cabinet approves 4G, 5G spectrum allocation to BSNL, outlay of Rs 89,047 crore

New Delhi: The Union Cabinet on Wednesday approved the third revival package for BSNL with a total outlay of Rs 89,047 crore. The package includes an allotment of 4G and 5G spectrum for BSNL through equity infusion, an official statement said.

The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore. With this revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to the remotest parts of India.

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

The government approved the first revival package for BSNL/MTNL in 2019. It amounted to Rs 69,000 crore and brought stability to the unit. In 2022, the government approved a second revival package for BSNL/MTNL amounting to Rs 1.64 lakh crore. It provided financial support for capex, viability gap funding for rural landlines, financial support for de-stressing the balance sheet, settlement of AGR dues, and the merger of BBNL with BSNL.

As a result of these two packages, BSNL started earning operating profits in FY 2021-22 and the total debt of BSNL was reduced from Rs 32,944 crore to Rs 22,289 crore. The package comprises allotment of premium wireless frequencies 700 MHz band spectrum worth Rs 46,338.6 crore; 70 MHz of frequencies in the 3300 MHz band worth Rs 26,184.2 crore; frequencies in the 26 GHz band worth Rs 6,564.93 crore; in the 2500 MHz band worth Rs 9,428.2 crore and Rs 531.89 crore for miscellaneous items.

“BSNL has achieved strong growth in the home fibre segment. It is providing more than 1 lakh new connections every month. The total home fibre subscriber base of BSNL in May 2023 is 30.88 lakh. The total revenue from home fibre last year was Rs 2,071 crore,” a statement from BSNL stated.

Indigenous 4G/5G technology

Telecom technology is a strategic technology with a limited number of end-to-end technology providers in the world. Under the Atma Nirbhar vision statement, India’s own 4G/5G technology stack has been successfully developed and the deployment has started. After a few months of field deployment, it will be rapidly rolled out across the country on the BSNL network.