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Finally, by sundown, the Cabinet Committee on Economic Affairs (CCEA) approved the Rs 70,000 crore worth impetus to the two state-driven telecom carriers. The decision— which many hope would be game-changing for the two loss-making telcos — was soon followed by Twitter and Facebook humming with ‘Thank You’ messages to Prime Minister Narendra Modi<\/a> and Home Minister Amit Shah<\/a>.
The development was indeed reassuring to as many as 200,000 employees and a nearly an equal number of those in the partner community who majorly thrive on the business from the two ailing public sector behemoths striving for revival amid brutal sectoral rivalry, that too in the absence of high-speed data network.
But some are wondering what’s the fuss about? The much-sought Centre’s revival plan lacks teeth with challenges galore. No timeframe is attached to the commercial fourth-generation or 4G-backed service rollout, and the much-awaited assets monetisation strategy – an integral component of the overall reprieve, is beset with bottlenecks.
The ambitious blueprint that has come after more than a year-long continuous ask from the top officials of BSNL and MTNL, principally talks about offering the voluntary retirement scheme (VRS) to drastically cut the wage burden, allocating next-generation airwaves administratively to make the two telcos competitive, and monetisation of real estate assets.
Voluntary Retirement Scheme (VRS)— making it right<\/b>
The Centre has announced an ambitious VRS for the employees who have attained 50-years of age. The ex-gratia component of the scheme comes at Rs 17,169 crore with the cost towards pension, gratuity and commutation to be borne by the government.
With more than 92,500 employees of BSNL and MTNL taking the voluntary scheme, it is expected to save as much as Rs 8,500 crore annually. Of the 22,000 MTNL headcount, 14,378 have opted for VRS, while BSNL’s nearly 78,500 employees choose to part ways. However, a few of them have also withdrawn their applications during a month-long window.
Under the formula, employees would receive 100-125% of the salary for remaining years of service, including the retiring month wage-based pension.
It may be arguably correct that if the workforce is reduced to such a large extent, then the telcos’ operational efficiency would go for a toss. However, BSNL maintained that it would continue to further hire resources on need basis and would focus on outsourcing some of the functions with outcome-oriented approach.
“We will do the outsourcing at that point (in the wake of deficit skilled manpower) of time, to maintain the operations, and may also opt for the people on the monthly contract basis, so that the gap can be fulfilled,” BSNL chairman Pravin Kumar Purwar said while dispelling fears.
Is 4G coming anytime soon?<\/b>
Due to the unavailability of high-speed data network or fourth-generation (4G) technology, both companies have been taking a revenue hit for many quarters and that too at a time when rivals were upping their 4G ante.
The loss-making telecom carriers, since the billionaire Mukesh Ambani-owned Jio’s disruptive 4G commercial launch in September 2016, have sought 4G airwaves to keep subscribers enticed from possible erosion.
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If you look at the market, it is gradually becoming data-based with 50% or more revenue coming from data services. So, data is an important piece for any telco to survive.BSNL's Pravin Kumar Purwar<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BSNL is set to get frequencies in the 2100 MHz spectrum for pan India operation except in the Rajasthan circle, while MTNL, which only operates in two metros, would roll out data services on the 1800 MHz in Delhi and 2100 MHz band spectrum in Mumbai.
Considering 4G is key to the ambitious comeback of the two operators, the Cabinet has approved administrative allocation of radio waves to offer broadband and other data services at 2016 prices.
The spectrum, according to a government statement, would be funded through capital infusion at a value of Rs 20,140 crore and the Goods and Service Tax (GST) amount of Rs 3,674 crore to the spectrum value would also be borne by the Centre through budgetary resources.
“If you look at the market, it is gradually becoming data-based with 50% or more revenue coming from data services. So, data is an important piece for any telco to survive,” Purwar earlier said.
BSNL aims to roll out 4G services within the next six months with an outlay of Rs 1,200 crore on network deployment and expansion while in the current constraints, it is planning for network upgrade wherever possible.
“Offering data services would be challenging for at least one year as the ambitious rollout is expected to entail additional spend for procuring equipment and undertaking deployment,” PK Jain, president of the Indian Telecommunications Services Association (ITSA<\/a>) said.
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRead also<\/h4>
Court directs DoT to pay BSNL, MTNL officers wages, arrears by December 5<\/a><\/h5><\/div>
92,700 BSNL, MTNL employees opt for voluntary retirement<\/a><\/h5><\/div><\/div><\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Assets monetisation a far cry<\/b>
The Cabinet has agreed to a Rs 38,000 crore-asset monetisation scheme over a period of four years. The initiative is a step to further monetise real estate across the country worth Rs 1 lakh crore through the Department of Investment and Public Asset Management (DIPAM).
The proceeds as envisaged, would be used to raise resources for retiring debt, servicing of bonds, network up-gradation, expansion and meeting the operational expenses.
Ironically, in the current economic stress-like scenario, attracting a prospective buyer is one of the top bottlenecks in addition to policy<\/a> pain points, say experts.
BSNL, according to Purwar, has identified as many as 14 high-value land parcels worth about Rs 8,000 crore as part of a phased approach, and added that the telco has been receiving support from the government to overcome existing challenges.
In order to smoothen the process, the BSNL’s top management wants to allocate its land resources in-principle to other government departments and agencies.
Sandeep Agarwal, co-chairman of the Telecom Exports Promotion Council (Tepc) believes that the decision making in BSNL was even slower than many government departments, and may not be able to decide on the floor valuation of assets.
“Although BSNL has chosen properties which are comparatively cleaner for monetisation but still, approvals will be required to monetise which may delay the entire process,” Agarwal added.
Is debt restructuring via Rs 15,000 crore worth of bonds enough?<\/b>
It is also devised that BSNL and MTNL would also raise long-term bonds of Rs 15,000 crore for which sovereign guarantee would be provided by the government. Such a step, according to the government, would restructure their existing debt and partly meet capital (Capex) and operational (Opex) expenditures.
Both BSNL and MTNL have though the industry-lowest debt of Rs 15,000 crore and Rs 20,000 respectively.
However, due to continued adverse market outlook and financially-sick BSNL and MTNL in particular, the two public-sector companies have been struggling to obtain credit despite sovereign guarantee provided by the Department of Telecommunications (DoT), and that hostile outlook is yet to diminish.
“Arranging Rs 15, 000 crores from the market by floating sovereign bonds will not be easy as it is still not clear as to what will be the public response because of adverse public perception,” ITSA said.
Merger between BSNL & MTNL— making the two ends meet<\/b>
The merger between the two public firms is back on the table after the initial plan during the former telecom minister, Kapil Sibal’s era was precluded following a slew of challenges including wage disparity and MTNL being a market-listed entity.
\n \n \n \n \nMerger of BSNL and MTNL is a big challenge because MTNL was created by an enactment in the Parliament and its stocks are listed while BSNL was created under the Company’s Act and it is not a listed company.ITSA's PK Jain<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n\n\n\n
Instead, a synergy between the two was considered with a scheme of things in which BSNL might be asked to manage MTNL’s deteriorating network, but that too didn’t work out.
MTNL has a natural suitor, and it would marry to BSNL, as per plan. In the interim, it has been proposed that MTNL would act as a subsidiary of BSNL since the entire process of amalgamation would take a longer time.
“Merger of BSNL and MTNL is a big challenge because MTNL was created by an enactment in the Parliament and its stocks are listed while BSNL was created under the Company’s Act and it is not a listed company,” Jain added.
What’s more to be done – now or never?<\/b>
In addition to accelerated efforts to maximise revenue from the consumer as well as enterprise business, the immediate credit infusion is much needed to keep the two telcos afloat to primarily fund operational expenditure (Opex).
With Purwar at the helm of affairs, it is high time to step up efforts to bring down operational cost and internal expenses to substantial levels. BSNL, in particular is aiming to cut power consumption by 15% or to save nearly Rs 400 crore annually from the present Rs 2,700 crore worth expense.
The Universal Service Obligation Fund (USOF), a Rs 50,000 worth strong corpus to fund rural telephony should treat BSNL fairly, and shouldn’t create any sort of bottleneck in clearing dues to the state-owned telco. This is also since both operators must-win back vendors trust which has been lately weakened following delayed outstanding payments.
“Both BSNL and MTNL have legacy work culture which is quite bureaucratic and the human resource which is brought from the then DoT, do not have mind-set of a service provider. If that work culture continues, it is very difficult to turn around the company,” ITSA’s Jain said.
Customer care and optimum uptime are some of the critical areas that need a holistic relook by the two public-owned companies.
\n \n \n \nOptical fibre networks of BSNL and MTNL should be sold out and leased back via infrastructure investment trusts (InvITs) and could be managed at an arms-length by third parties ready to provide a seven-year-long service-level agreement (SLA).TEPC's Sandeep Agarwal<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n
“Proper maintenance philosophy is to be formulated and adopted to minimise the downtime of services. The proper up-keep should also to be ensured so that there would be no break down in the services,” Jain added.
With 4G around the corner, the public sector service providers should renew its efforts to upgrade 2G and 3G networks across circles with a focus to achieve industry goals of Voice over LTE or VoLTE, in addition to efforts to bring out effective leasing models for vast telecom infrastructure encompassing 68,000 telecom towers and 7.60 lakh kilometres of fibre network.
“Optical fibre networks of BSNL and MTNL should be sold out and leased back via infrastructure investment trusts (InvITs) and could be managed at an arms-length by third parties ready to provide a seven-year-long service-level agreement (SLA),” Agarwal said and added that such an initiative would boost their income significantly.
The model once implemented by state-run operators, according to him, shall attract sovereign funds such as SoftBank and multinationals like Google, Facebook, Amazon and Netflix could provide a decent Return of Investment (RoI) to BSNL and MTNL.
Of the 20% telecom towers currently under the tenancy, BSNL gets roughly Rs 200 crore annually which, according to Purwar, is an area that the telco would focus to further increase additional revenue to up to Rs 1,000 crore a year.
The state-controlled has recently started dark fibre leasing, and have plans to further look into various strategies including InviT to deleverage its balance sheet.
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- Telecom乐动扑克News
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是莫迪BSNL, MTNL救助策略真的吗?
更多的中心的复兴计划缺乏丰富的牙齿与挑战。没有时间表附加到商业第四代或4 g-backed服务推广,和期待已久的资产盈利策略——整个缓刑不可或缺的组成部分,与瓶颈的困扰。
新德里:周三下午10月23日,2019年。将近一百万人直接或间接地与两个生病的电信公司——Bharat Sanchar Nigam说有限公司(BSNL)和Mahanagar电话尼噶有限公司(MTNL),上气不接下气地等待结果总理Narendra Modi-headed联盟内阁的会议正在进行。 
最后,日落,内阁经济事务委员会(协作组)批准了70000卢比的价值动力两个国营电信运营商。的决定——许多人希望会改变游戏规则的两个亏损的电信公司——很快就遭到了Twitter和Facebook的嗡嗡声与总理“谢谢”消息莫迪和内政部长阿米特·沙阿。
发展的确是让多达200000名员工,几乎同等数量的那些无聊的茁壮成长的合作伙伴社区两境况不佳的公共部门在业务巨头追求复兴在残酷的行业竞争,也没有高速数据网络。
但有些人想知道有什么大惊小怪?更多的中心的复兴计划缺乏丰富的牙齿与挑战。没有时间表附加到商业第四代或4 g-backed服务推广,和期待已久的资产盈利策略——整个缓刑不可或缺的组成部分,与瓶颈的困扰。
雄心勃勃的蓝图,经过长达一年多连续问BSNL和MTNL的高级官员,主要讨论提供自愿退休计划(工具)大幅削减工资负担,分配下一代广播电视管理两个电信公司的竞争,和房地产资产货币化。
自愿退休计划(工具)-使它正确
的中心宣布了一个雄心勃勃的工具与员工达到50年的年龄。的特惠组件方案17169卢比的代价对养老金,小费和换向由政府承担。
有超过92500的雇员BSNL和MTNL自愿计划,预计每年节省高达8500卢比。22000 MTNL人数,有14378人选择了工具,虽然BSNL的近78500名员工选择分手。然而,其中的一些也撤回他们的应用程序在为期一个月的窗口。
根据公式,员工将获得100 - 125%的剩余工资多年的服务,包括退休并由此开创月工资制这样的全新养老制度。
也许可以说是正确的,如果劳动力减少到这样一个很大程度上,然后电信公司的运营效率会扔掉。然而,BSNL坚称将继续进一步招聘资源需要的基础上,将专注于外包的一些函数结果为目标的方法。
“我们将做这一点的外包(赤字熟练人力)后的时间,维护操作,也可以选择每月合同的基础上为人民服务,这样的差距可以满足,“BSNL主席普拉文·库马尔Purwar说,虽然消除恐惧。
4 g会很快吗?
由于高速数据网络的不可用或第四代(4 g)技术,这两家公司已经收入了许多地方,也在竞争对手增加他们的4 g赌注。
亏损的电信运营商,因为这位亿万富翁穆克什Ambani-owned Jio破坏性的4 g商业发射2016年9月,寻求4 g无线电波来防止用户吸引可能的侵蚀。
如果你看一看市场,逐渐成为基于数据的50%或更多的收入来自数据服务。因此,数据是任何电信生存的一个重要部分。BSNL普拉文·库马尔Purwar
BSNL将得到频率2100 MHz频段的锅操作除了在拉贾斯坦邦,印度虽然MTNL,仅在两个地铁运营,将推出数据服务在德里1800 MHz和2100 MHz频带频谱在孟买。
考虑到4 g是雄心勃勃的回归的关键两个运营商,内阁已批准行政分配无线电波以2016的价格提供宽带和其他数据服务。
,根据一份政府声明,将资助通过注资20140卢比的价值和商品和服务税(GST)光谱3674卢比的价值也会通过预算资源由中心承担。
“如果你看一看市场,逐渐成为基于数据的50%或更多的收入来自数据服务。数据是一个重要的电信为了生存,“Purwar早些时候说。
BSNL旨在推出4 g服务在接下来的六个月的支出1200卢比在network deployment和扩张而在当前的限制,尽可能规划网络升级。
”提供数据服务将是一个挑战为至少一年雄心勃勃推出预计将需要额外花采购设备和任务部署,“PK Jain,印度电信服务协会主席ITSA)说。
资产货币化相去甚远
内阁同意Rs 38000 crore-asset货币化方案的四年。主动是一个一步进一步货币化全国房地产价值十万的1卢比通过投资和公共资产管理部门(DIPAM)。
所得的设想,将用于提高资源用于偿还债务,偿还债券,网络up-gradation、扩张和会议的操作费用。
具有讽刺意味的是,在当前的经济压力如场景,吸引潜在买家除了是一个瓶颈政策疼痛点,专家说。
根据Purwar BSNL,识别多达14个高价值的地块价值约8000卢比的分阶段方法,并补充说,电信已经接受来自政府的支持来克服现有的挑战。
为了抚平这个过程,BSNL高层想初步分配土地资源其他政府部门和机构。
Sandeep Agarwal,电信出口促进委员会的联合主席(Tepc)认为,决策BSNL甚至低于许多政府部门,在地板上,可能无法决定估值的资产。
“尽管BSNL选择属性,是货币化,但仍相对清洁,审批需要货币化可能延迟整个过程,”阿加沃说。
通过价值15000卢比的债券债务重组足够了吗?
也设计了BSNL和MTNL也将提高长期债券的15000卢比的主权担保将政府提供的。据政府,此举将重组其现有债务,部分满足资本(资本支出)和操作(Opex)支出。
BSNL和MTNL虽然industry-lowest债务分别为15000卢比和20000卢比。
然而,由于持续的不利的市场前景和financially-sick BSNL和MTNL特别是两个公共部门的企业一直难以获得信贷,尽管主权担保提供的电信部(点),而且充满敌意的前景没有减少。
“安排Rs 000卢比从漂浮的主权债券市场并非易事,因为它目前还不清楚什么将公众的反应,因为不利的公众,“ITSA说。
合并BSNL和MTNL——使桥的两端
两个上市公司之间的合并的表在最初计划在前电信部长Kapil Sibal的时代是杜绝以下一系列的挑战包括工资差距和MTNL被一个实体上市。
BSNL和MTNL合并是一个很大的挑战,因为MTNL是由议会制定,其股票上市公司BSNL创建时的行为,它不是一个上市公司。ITSA PK耆那教徒的
相反,两者之间的协同作用被认为是计划的事情BSNL可能被要求管理MTNL恶化的网络,但这也没有成功。
MTNL自然追求者,会嫁给BSNL,按照计划。在此期间,它被建议MTNL将作为子公司BSNL自融合的整个过程需要很长时间。
“BSNL和MTNL合并是一个很大的挑战,因为MTNL是由议会制定,其股票上市公司BSNL创建时的行为,它不是一个上市公司,”Jain说。
更重要的是要做,现在还是永远?
除了加速努力最大化消费者以及企业业务收入的直接信贷注入急需的保持两家电信公司的运转主要基金运营支出(Opex)。
Purwar掌舵的事务,是时候加强努力降低运营成本和内部费用到实质性的水平。BSNL,尤其是旨在减少15%的能源消耗或每年节约近400卢比从目前价值2700卢比的费用。
普遍服务义务基金(USOF),价值50000 Rs强大的语料库为农村电话应该公平的对待BSNL,和不创建任何类型的瓶颈在国有电信结算费。这也是因为运营商必赢回供应商信任最近已经削弱了延迟后未支付。
“BSNL和MTNL遗留工作文化非常官僚,从当时的人力资源点,没有思维定势的服务提供者。如果继续工作文化,很难扭转该公司“ITSA Jain说。
客户服务和最佳运行的一些关键领域需要一个整体重新由两个公有企业。
光纤网络BSNL和MTNL应该卖完了,租赁通过基础设施投资信托(InvITs),可以在一个独立的第三方管理准备提供seven-year-long服务水平协议(SLA)。TEPC Sandeep的阿加瓦尔
“适当的维修理念是制定和采用服务的停机时间降到最低。适当的维护也应该确保,这样就不会有分解的服务,”Jain说。
4 g在拐角处,公共部门服务提供商应该更新其努力升级2 g和3 g网络圈子集中实现产业目标的声音在LTE或回,除了努力有效的租赁模式庞大的电信基础设施包括68000年电信塔和十万的7.60公里的光纤网络。
“光纤网络的BSNL和MTNL应该卖完了,租赁通过基础设施投资信托(InvITs),可以在一个独立的第三方管理准备提供一个seven-year-long服务水平协议(SLA),”阿加沃说,补充说,这样的行动将大大提高他们的收入。
模型由国有运营商实现后,根据他的说法,软银等吸引主权财富基金和跨国公司如Google, Facebook,亚马逊和Netflix可以提供良好的投资回报(RoI) BSNL和MTNL。
20%的电信大楼目前正在租赁BSNL得到每年大约200卢比,根据Purwar,面积,电信将专注进一步增加额外的收入每年高达1000卢比。
政府最近开始暗光纤租赁,并计划进一步研究各种策略包括InviT去杠杆化资产负债表。
<\/span><\/figcaption><\/figure> NEW DELHI: It was Wednesday afternoon October 23, 2019. Nearly a million individuals directly or indirectly linked to the two sick telecom companies– Bharat Sanchar Nigam Limited (BSNL<\/a>) and Mahanagar Telephone Nigam Limited (MTNL<\/a>)— were breathlessly awaiting the outcome of Prime Minister Narendra Modi-headed Union Cabinet’s meeting underway.
Finally, by sundown, the Cabinet Committee on Economic Affairs (CCEA) approved the Rs 70,000 crore worth impetus to the two state-driven telecom carriers. The decision— which many hope would be game-changing for the two loss-making telcos — was soon followed by Twitter and Facebook humming with ‘Thank You’ messages to Prime Minister Narendra Modi<\/a> and Home Minister Amit Shah<\/a>.
The development was indeed reassuring to as many as 200,000 employees and a nearly an equal number of those in the partner community who majorly thrive on the business from the two ailing public sector behemoths striving for revival amid brutal sectoral rivalry, that too in the absence of high-speed data network.
But some are wondering what’s the fuss about? The much-sought Centre’s revival plan lacks teeth with challenges galore. No timeframe is attached to the commercial fourth-generation or 4G-backed service rollout, and the much-awaited assets monetisation strategy – an integral component of the overall reprieve, is beset with bottlenecks.
The ambitious blueprint that has come after more than a year-long continuous ask from the top officials of BSNL and MTNL, principally talks about offering the voluntary retirement scheme (VRS) to drastically cut the wage burden, allocating next-generation airwaves administratively to make the two telcos competitive, and monetisation of real estate assets.
Voluntary Retirement Scheme (VRS)— making it right<\/b>
The Centre has announced an ambitious VRS for the employees who have attained 50-years of age. The ex-gratia component of the scheme comes at Rs 17,169 crore with the cost towards pension, gratuity and commutation to be borne by the government.
With more than 92,500 employees of BSNL and MTNL taking the voluntary scheme, it is expected to save as much as Rs 8,500 crore annually. Of the 22,000 MTNL headcount, 14,378 have opted for VRS, while BSNL’s nearly 78,500 employees choose to part ways. However, a few of them have also withdrawn their applications during a month-long window.
Under the formula, employees would receive 100-125% of the salary for remaining years of service, including the retiring month wage-based pension.
It may be arguably correct that if the workforce is reduced to such a large extent, then the telcos’ operational efficiency would go for a toss. However, BSNL maintained that it would continue to further hire resources on need basis and would focus on outsourcing some of the functions with outcome-oriented approach.
“We will do the outsourcing at that point (in the wake of deficit skilled manpower) of time, to maintain the operations, and may also opt for the people on the monthly contract basis, so that the gap can be fulfilled,” BSNL chairman Pravin Kumar Purwar said while dispelling fears.
Is 4G coming anytime soon?<\/b>
Due to the unavailability of high-speed data network or fourth-generation (4G) technology, both companies have been taking a revenue hit for many quarters and that too at a time when rivals were upping their 4G ante.
The loss-making telecom carriers, since the billionaire Mukesh Ambani-owned Jio’s disruptive 4G commercial launch in September 2016, have sought 4G airwaves to keep subscribers enticed from possible erosion.
\n \n \n \n \n \n \n \n \n \n \n \nIf you look at the market, it is gradually becoming data-based with 50% or more revenue coming from data services. So, data is an important piece for any telco to survive.BSNL's Pravin Kumar Purwar<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BSNL is set to get frequencies in the 2100 MHz spectrum for pan India operation except in the Rajasthan circle, while MTNL, which only operates in two metros, would roll out data services on the 1800 MHz in Delhi and 2100 MHz band spectrum in Mumbai.
Considering 4G is key to the ambitious comeback of the two operators, the Cabinet has approved administrative allocation of radio waves to offer broadband and other data services at 2016 prices.
The spectrum, according to a government statement, would be funded through capital infusion at a value of Rs 20,140 crore and the Goods and Service Tax (GST) amount of Rs 3,674 crore to the spectrum value would also be borne by the Centre through budgetary resources.
“If you look at the market, it is gradually becoming data-based with 50% or more revenue coming from data services. So, data is an important piece for any telco to survive,” Purwar earlier said.
BSNL aims to roll out 4G services within the next six months with an outlay of Rs 1,200 crore on network deployment and expansion while in the current constraints, it is planning for network upgrade wherever possible.
“Offering data services would be challenging for at least one year as the ambitious rollout is expected to entail additional spend for procuring equipment and undertaking deployment,” PK Jain, president of the Indian Telecommunications Services Association (ITSA<\/a>) said.
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRead also<\/h4>
Court directs DoT to pay BSNL, MTNL officers wages, arrears by December 5<\/a><\/h5><\/div>
92,700 BSNL, MTNL employees opt for voluntary retirement<\/a><\/h5><\/div><\/div><\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Assets monetisation a far cry<\/b>
The Cabinet has agreed to a Rs 38,000 crore-asset monetisation scheme over a period of four years. The initiative is a step to further monetise real estate across the country worth Rs 1 lakh crore through the Department of Investment and Public Asset Management (DIPAM).
The proceeds as envisaged, would be used to raise resources for retiring debt, servicing of bonds, network up-gradation, expansion and meeting the operational expenses.
Ironically, in the current economic stress-like scenario, attracting a prospective buyer is one of the top bottlenecks in addition to policy<\/a> pain points, say experts.
BSNL, according to Purwar, has identified as many as 14 high-value land parcels worth about Rs 8,000 crore as part of a phased approach, and added that the telco has been receiving support from the government to overcome existing challenges.
In order to smoothen the process, the BSNL’s top management wants to allocate its land resources in-principle to other government departments and agencies.
Sandeep Agarwal, co-chairman of the Telecom Exports Promotion Council (Tepc) believes that the decision making in BSNL was even slower than many government departments, and may not be able to decide on the floor valuation of assets.
“Although BSNL has chosen properties which are comparatively cleaner for monetisation but still, approvals will be required to monetise which may delay the entire process,” Agarwal added.
Is debt restructuring via Rs 15,000 crore worth of bonds enough?<\/b>
It is also devised that BSNL and MTNL would also raise long-term bonds of Rs 15,000 crore for which sovereign guarantee would be provided by the government. Such a step, according to the government, would restructure their existing debt and partly meet capital (Capex) and operational (Opex) expenditures.
Both BSNL and MTNL have though the industry-lowest debt of Rs 15,000 crore and Rs 20,000 respectively.
However, due to continued adverse market outlook and financially-sick BSNL and MTNL in particular, the two public-sector companies have been struggling to obtain credit despite sovereign guarantee provided by the Department of Telecommunications (DoT), and that hostile outlook is yet to diminish.
“Arranging Rs 15, 000 crores from the market by floating sovereign bonds will not be easy as it is still not clear as to what will be the public response because of adverse public perception,” ITSA said.
Merger between BSNL & MTNL— making the two ends meet<\/b>
The merger between the two public firms is back on the table after the initial plan during the former telecom minister, Kapil Sibal’s era was precluded following a slew of challenges including wage disparity and MTNL being a market-listed entity.
\n \n \n \n \nMerger of BSNL and MTNL is a big challenge because MTNL was created by an enactment in the Parliament and its stocks are listed while BSNL was created under the Company’s Act and it is not a listed company.ITSA's PK Jain<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n\n\n\n
Instead, a synergy between the two was considered with a scheme of things in which BSNL might be asked to manage MTNL’s deteriorating network, but that too didn’t work out.
MTNL has a natural suitor, and it would marry to BSNL, as per plan. In the interim, it has been proposed that MTNL would act as a subsidiary of BSNL since the entire process of amalgamation would take a longer time.
“Merger of BSNL and MTNL is a big challenge because MTNL was created by an enactment in the Parliament and its stocks are listed while BSNL was created under the Company’s Act and it is not a listed company,” Jain added.
What’s more to be done – now or never?<\/b>
In addition to accelerated efforts to maximise revenue from the consumer as well as enterprise business, the immediate credit infusion is much needed to keep the two telcos afloat to primarily fund operational expenditure (Opex).
With Purwar at the helm of affairs, it is high time to step up efforts to bring down operational cost and internal expenses to substantial levels. BSNL, in particular is aiming to cut power consumption by 15% or to save nearly Rs 400 crore annually from the present Rs 2,700 crore worth expense.
The Universal Service Obligation Fund (USOF), a Rs 50,000 worth strong corpus to fund rural telephony should treat BSNL fairly, and shouldn’t create any sort of bottleneck in clearing dues to the state-owned telco. This is also since both operators must-win back vendors trust which has been lately weakened following delayed outstanding payments.
“Both BSNL and MTNL have legacy work culture which is quite bureaucratic and the human resource which is brought from the then DoT, do not have mind-set of a service provider. If that work culture continues, it is very difficult to turn around the company,” ITSA’s Jain said.
Customer care and optimum uptime are some of the critical areas that need a holistic relook by the two public-owned companies.
\n \n \n \nOptical fibre networks of BSNL and MTNL should be sold out and leased back via infrastructure investment trusts (InvITs) and could be managed at an arms-length by third parties ready to provide a seven-year-long service-level agreement (SLA).TEPC's Sandeep Agarwal<\/cite><\/div><\/blockquote>\n\n\n\n\n\n\n
“Proper maintenance philosophy is to be formulated and adopted to minimise the downtime of services. The proper up-keep should also to be ensured so that there would be no break down in the services,” Jain added.
With 4G around the corner, the public sector service providers should renew its efforts to upgrade 2G and 3G networks across circles with a focus to achieve industry goals of Voice over LTE or VoLTE, in addition to efforts to bring out effective leasing models for vast telecom infrastructure encompassing 68,000 telecom towers and 7.60 lakh kilometres of fibre network.
“Optical fibre networks of BSNL and MTNL should be sold out and leased back via infrastructure investment trusts (InvITs) and could be managed at an arms-length by third parties ready to provide a seven-year-long service-level agreement (SLA),” Agarwal said and added that such an initiative would boost their income significantly.
The model once implemented by state-run operators, according to him, shall attract sovereign funds such as SoftBank and multinationals like Google, Facebook, Amazon and Netflix could provide a decent Return of Investment (RoI) to BSNL and MTNL.
Of the 20% telecom towers currently under the tenancy, BSNL gets roughly Rs 200 crore annually which, according to Purwar, is an area that the telco would focus to further increase additional revenue to up to Rs 1,000 crore a year.
The state-controlled has recently started dark fibre leasing, and have plans to further look into various strategies including InviT to deleverage its balance sheet.
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