Loss-making government-owned Bharat Sanchar Nigam (BSNL) is pondering whether to spin-off its towers into a separate business says its chairman and managing director RK Upadhyay, according to news agency PTI.
The Indian telco plans to appoint a…
Loss-making government-owned Bharat Sanchar Nigam (BSNL) is pondering whether to spin-off its towers into a separate business says its chairman and managing director RK Upadhyay, according to news agency PTI.
The Indian telco plans to appoint a strategic consultant to explore options for its 70,000 towers. It is also exploring ways to improve efficiencies.
In 2010 Prime Minister Manmohan Singh commissioned a review panel headed by business guru Sam Pitroda to make recommendations for BSNL. One of the committee’s suggestions was that BSNL should spin-off its towers into a subsidiary and share its infrastructure with private firms. The panel also said the potential subsidiary could release value through a stake sale, merger, acquisition or IPO.
In July it was reported that BSNL was considering sharing 24,000 of its towers with Reliance’s Infotel Broadband.
As of July it was reported that the telco only shared 1,500 of its 70,000 towers.
