State-run telecom operator Bharat Sanchar Nigam Limited i.e. BSNL has been suffering from financial problems for a long time. The problem did not go away after the help of the government. That is why this time the company is bringing two bonds worth 290 million dollars i.e. 24.04 billion rupees. There will be two 10-year bonds, according to a Reuters report. BSNL has invited coupons and commitment bids from investors and bankers. The bonds will be available with an AAA (CE) rating from CRISIL and an unconditional and irrevocable guarantee from the central government.
Note that BSNL now needs funds to launch 4G network The state-run telco is already buying various equipment to install 4G network from Tejas Networks and has acquired technology from TCS Networks. However, to upgrade 1 lakh sites across India and operate the existing network, the company is missing the amount of money that BSNL needs.
Still most of the telco’s customers use 2G and 3G. Hence the number of active subscribers has dropped below 50 million (5 crore) due to lack of high speed network. Although, the company has launched 4G under test in several areas, if the coverage is not completed quickly across India, customers will not be attracted to the telco and they will be forced to leave the network.
Recently BSNL has set up 3500 4G sites in five major states of North India including Punjab, Haryana Himachal Pradesh, Uttarakhand and Uttar Pradesh. Besides, the company has also built sites in South India’s Telangana and Tamil Nadu for future 4G rollout.
It may be noted that BSNL is currently offering a promotional offer to its customers. In this offer, if customers upgrade their 2G and 3G SIMs to 4G SIM, they will not have to pay any cost, in return they will get 4GB data absolutely free. This promotional offer of the company will be available to the customers till 31st March 2014.
