BSNL awaits govt approval for IPO

NEW DELHI, INDIA: State-owned Telecom operator Bharat Sanchar Nigam Limited (BSNL) has today said that it is waiting to get the government approval for initial public offering (IPO) proposed by the telecom operator.

Kuldeep Goyal, chairman and managing director of BSNL, told the reporters that once it gets the approval, they would initiate the valuation process and talks with labour unions and will appoint merchant bankers.

Over a year ago IT and Telecommunications Minister A Raja had mooted proposals to list the state-owned firm, which was expected to raise $10 billion to be the country's largest-ever IPO.

However, the plan was put off due to opposition from some political parties and trade unions.

Talking about the bid results for equipment to build 93 million GSM lines valued at over $6.5 billion, Goel said: “The financial bids have been opened and Ericsson has qualified for north and east and Huawei for south.”

Rural BWA by March

Goel also said BSNL will complete role out of BWA (broadband wireless access) in 6000 rural blocks by March 2009.

“We have already started procurement for BWA and expect to complete role out by March 2009. By end of this year we will finish BWA roll out in 1000 blocks,” he said.

There are total 6000 rural blocks in the country. BSNL will also float fresh tender for new equipment early next year for 5000 blocks that will be left after connecting initial 1000 blocks.

BSNL is also bullish on completing BWA roll out in Punjab and Kerala by this March.

The state-owned telecom operator has pan- India 20 Mhz spectrum in frequency band of 2.5 GHz.

BSNL has already rolled out BWA network in three circles of Gujarat, Maharashtra (including Goa) and Andhra Pradesh with its services being managed by Soma Networks.