wordpress blog stats
Connect with us

Hi, what are you looking for?

Pre-IPO, BSNL Gets Spectrum, Waivers; To Manufacture Handsets, Modems; Unions Stalling IPO

The Indian Government has already approved the release of one block each of 3G spectrum of 2x5MHz in the 2.1 GHz Band for BSNL and MTNL, both public sector telecos. The government release itself states that they’re allowing government owned companies “a first-mover advantage over private operators”. What’s more, they’re also being given a block of 20 MHz Broadband Wireless Access (BWA) spectrum in the 2.5 GHz band, at 2645 MHz.

Besides this, they’re guaranteed 3G and BWA spectrum at a price equal to the highest bid in the service areas. License fees for rural lines has also been waived for BSNL, and they’re getting upto Rs. 2000 crore per annum from the USO Fund to make up for the removal of the Access Deficit Charges. Not that it’s going to do them much good, though. ET reports that BSNL is likely to launch 3G only by June, after receiving equipment from Ericsson. The initial launch will be for 10 million lines.

BSNLs plan to offer ESOPS to its employees isn’t cutting much ice with them though – they’re holding out for more. As per ET, the ESOPs would have meant a windfall of Rs. 1.5-2 lakh for each employee. BSNL is expecting 2008-09 revenues at Rs 45,000-50,000 crore.

Raja expects BSNL to list at Rs. 300-400, which would value the company between $37-45 Bilion, much much more realistic than the $100 billion that was being quoted earlier. Remember that Bharti Airtel, the biggest mobile company currently has a market cap of close to $40 Billion. BSNL has more landline subs, and is the third largest mobile player. An of course, all the government sops would count for something. Maybe.

BSNL plans to invest upto $3 billion per year over the next 3 years on overall capex. The PSU will invest Rs. 900 crores (around $220 Million) in manufacturing Consumer Premise Equipment (Modems) at its Kolkata factory. DNA reports. they’re also planning to manufacture handsets, which they will supply to other telecom providers and other mobile handset makers.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ