BSNL Revival Package

• The Union Cabinet has approved a third revival package for state-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) with an outlay of Rs 89,047.82 crore for allotment of 4G and 5G spectrum through equity infusion. The approval sets the stage for the struggling telco to launch 4G, and, eventually, 5G services.
• In 2019, the government approved the first revival package for BSNL with an outlay of Rs 69,000 crore, followed by a second package worth Rs 64 lakh crore in 2022.
• Due to these two packages, BSNL has started earning operating profits since FY 2021-22. Total debt of BSNL has reduced from Rs 32,944 Crore to Rs 22,289 Crore.

KEY HIGHLIGHTS

• The authorized capital of BSNL was increased from Rs 1,50,000 crore to Rs. 2,10,000 crore.
• It provided financial support for capex (Capital Expenditure), viability gap funding for rural landlines, financial support for de-stressing the balance sheet and settlement of adjusted gross revenue (AGR) dues and merger of BBNL with BSNL.
• With the third revival package, BSNL will emerge as a stable telecom service provider focused on providing connectivity to remotest parts of India.
• The Cabinet has made provisions to allot airwaves to BSNL in the 700 MHz band, making it the only other telco apart from Reliance Jio to have spectrum in the coveted frequency range. The 700 MHz band is best suited for coverage in high-density areas, and is ideal for data networks and consumer-led services.
• The government also merged Bharat Broadband Network Limited (BBNL) with BSNL. With this merger, BSNL got an additional 5.67 lakh kms of optical fibre laid across 85 lakh village panchayats through the Universal Service Obligation Fund (USOF).