Business Standard

A sub-optimal solution

BSNL-BBNL merger will not help


Prasad said pursuant to policy formulated by the government to permit sharing of infrastructure by Telecom Service Providers, BSNL and MTNL are also monetising their tower assets by permitting sharing of their towers with other TSPs.

Business Standard Editorial Comment
The proposed merger of Bharat Broadband Network Ltd (BBNL) with Bharat Sanchar Nigam Ltd (BSNL) is nothing but a lifeline for loss-making public sector undertakings (PSUs). BSNL Chairman and Managing Director P K Purwar’s statement that the government had given a turnaround opportunity to the state-owned telco through the merger confirms that. The Union government is expected to loosen the purse strings to ensure there is no capex crunch for BSNL at least for two years as the state-owned telco leads the amalgamated entity. While the government action may be guided by the right intention of reviving loss-making telecom PSUs,

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First Published: Mar 22 2022 | 10:50 PM IST

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