me_saket 73 Report post Posted June 28, 2009 Source : economic times NEW DELHI: Amid falling revenues and profits, state-owned BSNL is mulling a proposal to induct a strong foreign telecom operator as a strategic partner to reverse its fortunes, a move that may yield more money to the government than from listing or disinvestment. "A strategic partner will be a better option...provided the government is favourable to that idea," a source, working closely on the listing of the PSU and involved in negotiations with the employees' unions, said. BSNL's valuation has been pegged at about 100 billion dollars and the PSU has a paid up capital of about Rs 5,000 crore (1.04 billion dollars). BSNL had reported a revenue of Rs 38,000 crore and a net profit of Rs 3,000 crore in the last fiscal and this year the company has projected a dip in both total income as well as net profit, mainly due to lower average revenue per user (ARPU) and if the trend continues for few years the company's long term plans may suffer. Asked why a foreign strategic partner should be favoured over listing and disinvestment, sources said "...because when they come they can have a say in the management and change the face and culture of the company." There are many big foreign telecom operators, like AT&T, France Telecom and others, who are looking at entering the Indian market and these companies are in talks with some of the private service providers. My Views: BSNL is lookign for this strategic partner to enter into MVNo market. BSNL's cdma netowrk is now at good standing, can be lend to ant foreign operator to start thier business with MVNO. so soon we will se 10digit bsnl cdma number. That's why bsnl is taking time, govt allowed roaming facility to it's cdma mobile more than year ago, but lack of policies for mvno and poor image of BSNL's TARANG, they delayed. Now they are ready to give this network to any foreign opeator Share this post Link to post Share on other sites
