An officers group of Bharat Sanchar Nigam (BSNL) has said the Centre should keep the telco off its divestment list and focus on revival as it has “potential to turn a corner”.
According to a report by the Economic Times, the officers group said the company operates in a strategic sector and the focus should be on “faster revival” through foray into commercial 4G space.
K Sebastin, secretary-general of the Sanchar Nigam Executives’ Association (SNEA) said, “Niti Aayog should not think about BSNL’s disinvestment. The government decided to revive it, and if 4G launch is taking place early, it will have a great potential to grow, and 5G can also be launched soon.”
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The concern comes after Finance Minister Nirmala Sitharaman in her Union Budget speech on February 1 said the government has asked the planning body to review its divestment list, adding that the Centre would retain “bare minimum” public sector utility (PSU).
And while the telecom sector remains “strategically viable”, continued delay in 4G services launch and mandate on BSNL to maintain Mahanagar Telephone Nigam’s (MTNL) Delhi and Mumbai services has led to apprehension that privatisation is on the cards.
Sebastin added that since BSNL is strategic CPSU offering services which meet the Centre’s social obligations in times of natural calamities even in far-flung areas, it should “remain a strategic PSU in the future” as well, with focus on revival.
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The Union Cabinet in October 2019 sanctioned a Rs 70,000 crore revival package for MTNL and BSNL, but SNEA reps say “decisions that could really revive the telco” are still pending – such as 4G and possible 5G technology.
The stressed state-run telco had become earnings before interest, taxes, depreciation, and amortization (Ebidta) positive in the first-half of the ongoing financial year and the mobile data cost per Gigabyte (GB) had come down to as low as Rs 10.55, the Ministry of Communications (MoC) in a 2020 review said.
“The salary expenditure in BSNL and MTNL has reduced by around 50% (approx Rs. 600 crores per month) and 75% (approx Rs. 140 crores per month) respectively. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) have become positive in the first half of FY 2020-21 in both BSNL and MTNL,” the ministry said in a statement.
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