Bharat Sanchar Nigam Limited (BSNL) has issued a letter of intent (LoI) to five domestic telecom companies for participation in its proposed tender for 4G services.
According to a BSNL notice issued in January 2021, the company had proposed to test the quality of Indian telecom equipment before letting them participate in the 4G tender to be floated by the company.
In a written reply to Lok Sabha, minister of state for communications Devusinh Chauhan, said that BSNL has floated the expression of interest on January 1, 2021, for proof of concept from Indian companies interested in participating in BSNL’s upcoming 4G tender. Further, LoI has been issued to 5 eligible bidders on July 1, 2021. Further, he added that the government has made a budgetary allocation of Rs 240.84 billion for spectrum for 4G services in the financial year 2021-22.
The revival plan has been prepared considering the recommendations of Indian Institute of Management, Ahmedabad for BSNL and a consultant for Mahanagar Telephone Nigam Limited (MTNL), which were made by them after consultations with various unions, associations, and employees. These revival plans were recommended by the Boards of BSNL and MTNL. Both BSNL and MTNL have raised bonds and utilised the funds to retire existing high-cost debt. As a measure of Government support to BSNL, instructions have been issued for mandatory utilization of capacities of BSNL and MTNL by all ministries, departments of the government of India, CPSEs, autonomous bodies etc. for their internet or broadband, landline and leased line requirements, Chauhan said.
As part of the revival package, the government has provided Sovereign Guarantee of Rs 85 billion and Rs 65 billion to BSNL and MTNL respectively.
