Bharat Sanchar Nigam Limited (BSNL) plans to lease out its CDMA mobile network and hive off its tower business into a separate company, say news reports.
The operator has approached the Government of India for approval. BSNL is looking at generating additional revenue of Rs 16 billion over the next five years by sharing its CDMA network and infrastructure network with other players.
Also, BSNL will be appointing a consultant to advice it on its business plans and whether current regulatory framework allows for sharing of spectrum and infrastructure with third parties.
The operator is exploring the option of offering other operators access to its CDMA network and spectrum to offer dongles for wireless data services or make additional investments and use BSNL’s existing spectrum and network to provide full-fledged voice and data services to their subscribers.
BSNL is exploring the possibility of network sharing under the National Telecom Policy (NTP) 2012, which allows for spectrum sharing at a later date. Currently, the government does not allow leasing of spectrum. Besides, offering services without having spectrum or networks fall in the ambit of mobile virtual network operators (MVNOs), which is not allowed under the existing regulations. As part of the MVNO business model, third parties can buy spectrum from existing operators and sell it to consumers under their own brand.
