Union Minister Ravi Shankar Prasad has informed the Parliament that the government will administratively allocate spectrum to Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) for 5G and future services.
The allocation of spectrum to the two PSUs is expected to be done on the same principle as proposed for allotment of spectrum for 4G services.
The government has allocated funds worth Rs 240.84 billion for spectrum for 4G services in 2021-22. Earlier in January 2021, BSNL had invited an expression of interest (EoI) for prior registration and proof of concept (PoC) for its upcoming 4G tender.
Further, the parliament was also informed that both BSNL and MTNL had become EBITDA positive for the half year ended September 2020 and nine months ended December 2020.
Starting April 01, 2021, BSNL will manage MTNL’s mobile services in Delhi licensed service area.
As part of the revival package for the two telcos, the government also approved sovereign guarantees for bonds of Rs 150 billion to be raised by BSNL and MTNL for their debt restructuring.
