Blog Post

BSNL Mulls IPO; Plans CDMA Offering…No License Fee?

BSNL CMD Kuldeep Nair told Mint recently that it is time the company considered an IPO, but it depends on the government and employees. BSNL had cashflows of almost Rs. 11,800 crore (around $3 Billion) last year, and has plans to invest Rs. 15,000 crore thii year, and Rs. 20,000 crore each for the next three years to expand their mobile network.

Post Reliance Infocomm’s controversial forray into the GSM space, the Hindu reports, state owned telco BSNL has plans to offer CDMA services. BSNL currently uses CDMA for Wireless Local Loop (WLL) services, and intends to set up over 10,000 wireless towers for its CDMA network. Readers will remember that BSNL was struggling until a few months ago because of a severe spectrum crunch, some of which has been alleviaed because of a preferential policy by the government in allocating spectrum. As a continuation of that trend, BSNL will not be required to pay an additional fee to the government; Reliance paid Rs. 1651 crore for its GSM license. BSNL is expected to announce its CDMA venture by the end of the year, and Mint adds that the CDMA service would be launched after mid-2008.