Bharat Sanchar Nigam Limited (BSNL) is planning to hive off its tower assets into a separate subsidiary. This will allow the company to realise value from its telecom infrastructure. Presently, the matter of forming a separate tower company is pending before the Union Cabinet. Once it is cleared, BSNL will form the tower company in six months.
BSNL’s tower assets are reportedly valued at Rs 65 billion. It has around 71,000 telecom towers spread across the country. Currently, the company?s tower business provides revenues to the tune of Rs 2 billion, which is likely to increase if a separate tower subsidiary is formed.
Towers are seen as lucrative assets and many private companies have spun them off into separate entities, which carry lucrative valuations, and interest from potential investors.
