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 Telecom Minister concerned over slow growth of BSNL (India)

  • August 8th, 2008
  • 11:25 am

Fretful over the sluggish growth of BSNL, Department of Telecom to work out a mechanism where important decisions could be expedited fast to drive more revenue for the PSU asked Telecom Minister A Raja. DoT being the nodal ministry can ask the PSU to speed up decisions and the minister has asked the Secretary to structure a device of regular monitoring of such proposals in DoT itself through the Government’s nominee on BSNL board.

The Minister said that in the competitive environment there is scope for increasing revenue from Value Added Services and BSNL can get much more revenue from VAS if it is able to take quick decisions. “A large number of proposals for VAS on revenue sharing basis in which no investments is required from BSNL are pending with the PSU for long for decision making. BSNL may be directed to look into such proposals on priority and in time-bound manner,” Raja further said. Raja believes that private Telecom operators drawing significant revenues from VAS and in a cheap tariff scenario, revenues from other services like VAS holds potential for a robust growth.

 BSNL to grab Mega IPO (India)

  • August 8th, 2008
  • 8:18 am

All set to go for a mega IPO, most probably in this financial year. This time its Bharat Sanchar Nigam limited (BSNL). Rs 40,000 crores is expected to be raise in the country’s largest-ever IPO through a share sale in BSNL. According to a Government officials, it would take a decision only after talks with trade unions. 5 to 10% of the stake would be up for the public to grab. In view of this, BSNL’s 304,000 employees will get to buy 500 shares each at Rupees ten a piece and the IPO would be in a between Rupees 300-400 per share. Another round of discussion is going to be held with trade unions, which have been resisting the stake sale.