Earlier this year, the government considered the merger of Bharat Broadband Network Limited (BBNL) and Bharat Sanchar Nigam Limited (BSNL). However, it didn’t happen and wasn’t approved until now. BBNL and BSNL merger has been approved by the Union cabinet on Wednesday (27 July 2022).
BSNL and BBNL merger gets approved, revival package sanctioned
BBNL and BSNL merger is now approved by the Union Cabinet. The merger will offer an edge to BSNL in terms of the optic fibre cable network. BSNL currently has a fibre optic cable network of 6.83 lakh kilometres, and with this merger, the telecom company will enjoy additional 5.67 lakh kilometres of optical fibre from BBNL. The optical fibre laid by BBNL is spread across 1.85 lakh village panchayats with the help of the Universal Obligation Fund (USOF).
It is also confirmed that the workforce of BBNL will be absorbed by BSNL. “BSNL will work as an executing arm of the government and ownership of assets will rest with the government. BBNL has a workforce of less than 200. We have in our proposal said that we can absorb them in BSNL and contracts will be obliged, and revenue share agreements will be honoured,” said PK Purwar of BSNL, as noted by ETTelecom.
To recall, back in April this year, the government postponed the BBNL and MTNL merger, but it was planning for the BBNL and BSNL merger. That said, the merger is now finally approved after a couple of months of the proposal.
In related news, the Union Cabinet has also approved a revival package for BSNL. The cabinet has sanctioned a Rs 1,64,000 crore package which will be divided into three elements. One of the major goals of this package is to improve the quality of service offered by BSNL. The package will also help the state-run telecom operator to extend its reach of fibre. Lastly, it will also help in stabilizing the balance sheet of the company.
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