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BSNL monetization plan will usher in good things for PSU

According to the government plan under BSNL and MTNL's National Monetization Pipeline (NMP), 14,917 mobile towers would be installed along with 2.86 lakh kilometers of state-funded BharatNet fiber optic network across 400 railway stations, 150 trains and 26,700 kilometers of national highway. on the block to be sold to the private sector.


Article Key Points

  • BSNL has lost prepaid subscribers
  • Currently, BSNL largely lacks a 4G network
  • The telecommunications company has massively added subscribers to wired broadband

PSU Bharat Sanchar Nigam Limited (BSNL) is a telecommunications company that often makes headlines for the wrong reasons. The public telecommunications company reported a decline in its subscriber base quarter-over-quarter and month-over-month. 

National Monetization Pipeline (NMP)

The reasons for this phenomenon are manifold. First of all, it is the most obvious reason for the absence of a 4G network, which is the main reason subscribers were seen leaving the BSNL network. Except in areas where BSNL 4G is available, such as Kerala telecom circle, other prepaid BSNL circles have shown disappointing numbers. 

Conversely, the performance of BSNL broadband plans and services was exceptionally good. BSNL's wired broadband subscribers have grown tremendously, just the opposite of its prepaid subscribers. This is due to a strong fiber network, attractive bsnl ftth plans and many offers that BSNL has launched week after week. The final key in BSNL's plan for the future must be a monetization plan for the company's resources.

Government guide to National Monetisation Pipeline NMP

According to the government's plan under the National Monetization Pipeline (NMP), the 14,917 BSNL and MTNL mobile towers along with the 2.86 lakh kilometers of the state-funded BharatNet fiber optic network along 400 railway stations, 150 trains and 26,700 kilometers of National highway would be put on lockdown to sell to the private sector. BSNL workers' unions are concerned about this move. 

With a socialist bent, BSNL unions have always been in favor of maximum ownership of state assets, and although their fears are ideologically correct, the current state of the market and the telecommunications industry in general paints a different picture.

BSNL now needs a 5G network

India is currently on the verge of a 5G revolution. The government is working hard with the National Security Advisor who led the committee to streamline the verification process for telecom equipment manufacturers and allow telecom companies to import the appropriate equipment for better 4G and 5G deployment. 

Meanwhile, the BSNL team is simply serving the 3G population, which by current market standards is already on the verge of extinction. Most private telecom operators currently rely on 4G networks for their services and this has proven to be a good formula and a good way to go. 

On the other hand, BSNL is already looking for local suppliers for its tower and equipment needs for the next phase. Therefore, the NMP, coupled with an "Atmanirbhar" approach to purchasing equipment, will be good for the public telecom company in the long run.

BSNL Fiber Optic Asset Monetization (BSNL Asset Monetization)

Finally, the reach of BSNL fiber optics has been amazing as it has truly revolutionized the field for both consumers and businesses. Monetizing the assets of fiber optic cables laid across the country would allow private operators to make better use of them to provide more services to consumers with better deals. 

Current competition in the industry would also prevent prices from skyrocketing if BSNL were not present as an option on the broadband provider list. Even now, BSNL's prices for cable broadband services remain comparable to those of private operators. 

Therefore, in a long-term and not myopic perspective of divestment in the strategic sector, the monetization of BSNL's assets would have proved fruitful for the company.

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