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Merger Of Telecom And Broadband Firms Carried Out On This Month’s Card


The government plans to merge BBNL with BSNL this month

New Delhi:

The government plans to merge Bharat Broadband Nigam Limited (BBNL) with the loss -making government telecommunications operator Bharat Sanchar Nigam Limited (BSNL) this month, a senior official said.

BSNL chairman and managing director PK Purwar at a function organized by the All India Association of Graduate Telecom Engineers and Officers (AIGETOA) recently, said the government was giving the telecommunications firm a chance for recovery.

“The government has decided that BBNL will be merged into BSNL. This means all BBNL work at the pan-India level will come to BSNL,” Mr Purwar said at the AIGETOA All-India Conference on March 13.

In his meeting with the union telecommunications minister, Mr Purwar said he held an hour -long meeting for this purpose.

BSNL already has a network of over 6.8 lakh kilometers of fiber optic cable (OFC) network.

With the proposed merger, BSNL will get 5.67 lakh kilometers of optical fiber, which has been placed in 1.85 lakh village panchayat in the country using the Universal Service Obligation Fund (USOF).

The BBNL special purpose vehicle (SPV) was formed in February 2012 to lay a fiber optic network across 2.5 lakh village panchayat nationwide using the USOF and provide access to all telecom operators without discrimination.

Telecom operators must pay an 8 percent license fee on their revenue from the sale of telecom services which includes a 5 percent levy for the USOF.

The state government does not impose a right of way (RoW) charge for placing OFCs by BBNL, which helps it save a substantial amount compared to the fees that telecom operators have to pay.

Inquiries sent to the Department of Telecommunications and BBNL did not elicit any answers.

However, some BBNL officials said that employees in the department were not in favor of the proposed merger as BSNL had not implemented the Bharatnet project in the past and had not completed vendor payments even though payments had been made to government telecommunications firms. by SPV.

Officials share the standard view that private telecommunications operators also contribute to the USOF.

Transferring BBNL assets under one player would be contrary to the idea and objective of creating an SPV, which is to provide access to rural broadband networks without discrimination to all players.

When contacted, Mr Purwar said, “there is no such view in BSNL’s notice. BBNL’s delivery to meet Bharat Net’s objectives is well below the required level. BSNL, as the custodian of USOF’s assets, will ensure all such assets are made available to all TSPs/ISPs and agencies others based on the principle of arm’s length. “

In his speech at the conference, BSNL CMD asked employees to tighten their belts and put their best steps forward for BSNL’s growth, as political leadership has given freedom for recovery, and there will be no CAPEX problems for at least the next two years.

Mr Purwar said, “in the budget, an allocation of around Rs 45,000 crore has been made for BSNL. Previously Rs 24,000 crore. Previously the allocation was only for spectrum. Now, it is spectrum, CAPEX etc. So the government wants to give you opportunities .Can you make a presentation? “

He said that the company is in the final stages of testing for 4G and may approach the board to place small orders in March so supply can begin in May and June, and lower -level network testing and experience can be done.

“Then it should be taken further after commercial talks. The government’s expectations are very clear from us. The prime minister wants it (done) on August 15,” Mr Purwar said.

He said that the next phase of telecommunications growth will come from fiber -to -home services, and in the next few days, 1 lakh mobile base stations will serve as a point of presence for the distribution of fiber -based broadband connections to customers.

“If we lose this opportunity, then there is no way we will have an alternative option. The government will oppose the stated policy for BSNL. If you look at what the policy is for CPSE.

“The government’s policy is to either implement or perish. The government wants to give BSNL a chance so that BSNL becomes a strategic asset. We have a responsibility to prove ourselves,” added Mr Purwar.

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