A foreign strategic partner for BSNL?
30-06-2009
Public firm Bharat Sanchar Nigam Limited (BSNL) is considering a proposal to induct a foreign telecom operator as a strategic
partner, according to a PTI report. The move is expected to raise more funds for the PSU than other options such as listing or
disinvestment.
BSNL, which has a paid up capital of around $1.04 billion is valued at $100 billion. It reported a decline in total income as well as net profit this year, because of lower average revenue per user (ARPU).
It had revenues of Rs. 380 billion (Rs 38,000 crore) and net profit of Rs. 30 billion (Rs 3,000 crore) in the last fiscal. BSNL has a subscriber base of around 50 million and the company is expecting to add 1 million users in June 2009.
The coming in of a foreign partner is expected to change the culture and the working of BSNL as the foreign partner would also have a say in the management of the company.
Many foreign telecom players like AT&T, France Telecom and others are mulling an India foray. These companies are also in talks with various private sector telecom companies for entering the Indian markets. BSNL can also look at this option for inducting a foreign partner, the report says.
BSNL also launched its 3G services in February this year. Currently, it offers 3G services in 70 cities and has about 9,000 3G subscribers. It plans to expand its network to cover 1,000 cities by the end of this year.
Based on a Reuters India story
BSNL, which has a paid up capital of around $1.04 billion is valued at $100 billion. It reported a decline in total income as well as net profit this year, because of lower average revenue per user (ARPU).
It had revenues of Rs. 380 billion (Rs 38,000 crore) and net profit of Rs. 30 billion (Rs 3,000 crore) in the last fiscal. BSNL has a subscriber base of around 50 million and the company is expecting to add 1 million users in June 2009.
The coming in of a foreign partner is expected to change the culture and the working of BSNL as the foreign partner would also have a say in the management of the company.
Many foreign telecom players like AT&T, France Telecom and others are mulling an India foray. These companies are also in talks with various private sector telecom companies for entering the Indian markets. BSNL can also look at this option for inducting a foreign partner, the report says.
BSNL also launched its 3G services in February this year. Currently, it offers 3G services in 70 cities and has about 9,000 3G subscribers. It plans to expand its network to cover 1,000 cities by the end of this year.
Based on a Reuters India story
