Cabinet approves spin off of BSNL's tower assets into separate company

India Infoline News Service | Mumbai | September 13, 2017 18:04 IST

The Union Cabinet has given its approval for hiving off mobile tower assets of Bharat Sanchar Nigam Limited (BSNL) into a separate company, fully-owned by BSNL, said a government release.

Autumn cloud and broadcasting tower
The Union Cabinet has given its approval for hiving off mobile tower assets of Bharat Sanchar Nigam Limited (BSNL) into a separate company, fully-owned by BSNL, said a government release.
 
This approval authorises BSNL to monetise its telecom tower infrastructure with the formation of a separate subsidiary company. There are around 4,42,000 mobile towers in the country out of which more than 66,000 mobile towers are of BSNL. An independent, dedicated tower company of BSNL with a focused approach will lead to increasing of external tenancies and consequentially higher revenue for the new company, it said.
 
The telecom tower industry has emerged as an independent business to harness the potential for sharing of infrastructure. The business model arose from the need to achieve economies of scale and to reduce capital investment costs for providing mobile services.
 
The Department of Telecommunications (DoT) policy allows sharing of passive infrastructure i.e. the tower structure, Diesel Generator sets, battery units, power interface unit, air-conditioning etc., which has facilitated the growth of the telecom infrastructure industry, it added.

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