To strengthen its operations and stem its losses, Bharat Sanchar Nigam Limited (BSNL) is planning to hive off its telecom business, say news reports.
At present, BSNL has about 70, 000 towers across the country. The operator is looking at hiving off its telecom tower business into a separate company for the optimum utilisation of its resources. The operator is planning to float a tender to appoint a consultant to suggest the business roadmap ahead for the company.
BSNL has been continuously registering a decline in its profit since 2004-2005. In 2004-2005 the company registered a profit of Rs 101.83 billion before turning into losses in 2009-2010.
During the financial year 2009-2010, the company?s losses stood at Rs 18.23 billion. Also, during 2010-2011, BSNL registered a loss of Rs 63.84 billion due to huge outgo on employees? salary and expenses incurred by the operator for acquiring 3G and broadband wireless access spectrum (BWA). For the 3G and BWA licences, BSNL paid Rs 85 billion as the licence fee to the government.
And for the financial year 2011-2012, BSNL registered a loss of Rs 88.51 billion.
In order to contain its losses, BSNL is also considering the option of surrendering its 3G licences. To reduce its expenditure on employees? remuneration, the operator has submitted a voluntary retirement scheme for the government?s approval.
