BSNL to hive off mobile tower assets into separate company

In a move to make BSNL more competitive, the Cabinet has approved a proposal to hive off BSNL's mobile towers into a separate company. BSNL owns close to 65,000 mobile towers, and this move could help the loss making company to be more competitive.

This move is expected to generate revenues of Rs 940 crore in the 1st year of operations. Currently, BSNL earns about Rs 200 crore, and sources say that the company could earn around Rs 2000 crore after carving out the new subsidiary. The new tower company is expected to be valued at Rs 20,000 crore.

This initiative will also help telecom providers expand their reach in certain areas, as the company has towers in urban as well as rural locations.