BSNL IPO likely in a year

NEW DELHI, INDIA: Union minister for Communication and Information Technology, A Raja has announced that the government is planning an Initial Public Offering (IPO) for Bharat Sanchar Nigam Limited (BSNL).

Addressing mediapersons today Raja informed that an IPO for BSNL is being considered. A decision on this would be taken soon, the minister said.

BSNL would look to have an IPO to dilute 10 per cent of its equity. BSNL is valued at $100 billion, according to S.D Saxena, director (Finance), BSNL. “We are looking at the IPO which would take a year’s time from now.”

Spectrum on seniority basis

Speaking about the license policy Raja said that the spectrum allocation would be made on seniority basis, which would be decided by considering the date and time when the operator has deposited the license fee to the Department of Telecom (DoT).

“We cannot change the policy. We have given the LoIs to the eligible candidates in a very transparent manner. First, we have to scrutinize the LoIs and in the next stage, signing of license (will take place) and then comes distribution of spectrum,” said Raja.

Raja did not divulge any details, when asked about the amount of spectrum available with the DoT. However, sources claim that the DoT is in possession of 20 MHz of spectrum. On the rejection of Bycell’s application, Raja said the operator has the liberty to go to the court.