The Union Cabinet has approved a revival package for telecom operator BSNL on June 7. The package is worth a staggering Rs 89,047 crore ($10.79 billion). The package includes an allotment of 4G/5G spectrum through equity infusion.
A government press release said the authorised capital of BSNL will now be Rs. 2,10,000 crore which is Rs. 60,000 crore more than the last capital which stood at Rs. 1,50,000 crore. The 4G push for BSNL comes at a stage where its competitors are in the middle of a 5G rollout drive.
BSNL has struggled with poor infrastructure for the longest period of time. The company was not able to withstand the tough competition it faced from the likes of Airtel, Vodafone Idea, and Reliance Jio.
According to the package, BSNL can now:
- Provide 4G and 5G services all over the country.
- Provide Fixed Wireless Access services for faster internet.
- Provide spectrum for Captive Non-Public Network.
- Provide 4G coverage in rural areas with the help of various connectivity projects.
Interestingly, this is the third revival package issued for BSNL. The first package was passed in 2019, worth Rs. 69,000 crore which accroding to the government, brought stability to BSNL/MTNL.
The second revival package of Rs. 1.64 lakh crore was passed in 2022 for BSNL/MTNL.