Bharat Sanchar Nigam Limited (BSNL) plans to generate Rs 16 billion in revenues from its tower business over five years, say news reports.
The operator also plans to hive off its tower business into a separate company. In a performance review meeting of the public sector firm conducted by Kapil Sibal, Minister for Communications and IT, BSNL stated that it expects to generate revenue of Rs 0.90 million from its tower business in the 2013 financial year and Rs 16 billion over five years.
To fasttrack the process of hiving off its telecom business, BSNL has already floated a request for proposal (RPF) for appointing a consultant to draw up a business plan. The last date for the submission of RFP by consultants is November 26, 2012. BSNL is expected to appoint a consultant by this year-end.
The operator has about 70,000 towers and it will explore various business models to realise the maximum value of its infrastructure.
Additionally, BSNL expects to generate revenue of Rs 4 billion annually by providing broadband connectivity to schools, Rs 2.5 billion per annum from rental income from surplus land and buildings, Rs 0.4 billion per annum from Wi-Fi networks and Rs 1 billion in the financial year 2014-15 from its telecom factory.
