BSNL sell off plans hit another hurdle

Adding fuel to the ongoing fuss over the government8217;s desire to sell off shares in telecom PSU BSNL, a majority Union of the PSU has ex...

Adding fuel to the ongoing fuss over the government8217;s desire to sell off shares in telecom PSU BSNL, a majority Union of the PSU has extracted an assurance from the government that there is no proposal for its disinvestment.

The BSNL Employees Union has been assured by the Department of Telecom DoT that there is no proposal at hand to unbundle BSNL8217;s local loop infrastructure as well.

In addition, DoT has told the Union general secretary V.A.N. Namboodiri in writing that 8216;8216;all efforts8217;8217; will be made to procure Navratna status for BSNL. DoT8217;s representative on BSNL board and additional secretary Y.S. Bhave has told the Union that its views will be considered 8216;8216;as and when the Draft New Telecom Policy is formulated8217;8217;.

While the four assurances are not the end of the road for the government in case it does seek to divest shares in BSNL or unbundle the local loop, they could place the DoT on a sticky wicket whenever the decisions are actually taken.

At present, BSNL itself is not keen to have its stake sold off or its networks unbundled. Besides, it would be pleased with navratna status, a long-standing demand of the Union.

Unbundling, which would make BSNL share its last mile infrastructure with private telcos, has, however, been mooted by the telecom regulator TRAI for over two years.

While BSNL will have to follow the government8217;s decision in case it decides to unbundle the copper wires, it has pointed out that there are problems in doing so. At present, the PSU supports around 2 crore customers on its copper wires, making up 20-30 per cent of its infrastructure.

Story continues below this ad

BSNL has argued that it faces a 6 million-plus broadband and telecom target and so cannot afford to hand over infrastructure to rivals. Besides, private sector players have already rolled out their own fibre optic cable or wireless links to take connectivity to doorsteps, making unbundling unnecessary in parts.

The BSNL Employees Union decided to 8216;8216;defer its strike8217;8217; on the basis of these assurances, which were given out on January 4, 2006, on the day the employees were to go on strike.