BSNL expects valuation of its mobile tower company to be to the tune of Rs 20,000 crore
Union Cabinet on Wednesday approved a proposal to hive off state -owned telecom company BSNL's tower business into a new company.
New Delhi: The Union Cabinet on Wednesday approved a proposal to hive off state -owned telecom company BSNL’s tower business into a new company. This will allow the PSU to share its infrastructure with other players and help generate revenues.
The government also decided to compensate BSNL and MTNL Rs 627.20 (Rs 169 crore to BSNL and Rs 458 crore to MTNL) crore for 800 MHz CDMA spectrum that they surrendered. The sale of this spectrum yielded a revenue of Rs 3,777 crore.
Union Cabinet, which met under Prime Minister Narendra Modi gave ‘in principle’ approval for hiving off mobile tower assets of BSNL into a separate company, said sources.
BSNL mobile tower assets consist of about 64,500 towers and more than 50,000 tower sites have optical fibre cable connectivity. The company expects valuation of its mobile tower company to be to the tune of Rs 20,000 crore.
The telecom department (DoT) can now constitute an inter-ministerial group for working out the capital and organisational structure of the new company after market valuation of its tower assets.
( Source : deccan chronicle )
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