The Hindu Business Line : BSNL’s ILD telephony biz may be hived off

New Delhi, Aug. 10 The Ministry of Communication and IT is exploring the possibility of hiving off the international long distance telephone segment of state-owned Bharat Sanchar Nigam Ltd into a separate company.

“BSNL and MTNL are losing out large revenues as they are dependent on other companies for their international long distance requirements. This can be saved if a new company is set up as BSNL Videsh,” said a top Government source. However the proposal is only at an initial stage.

While BSNL has an ILD licence, it does not have its own infrastructure at present. The company, which has the largest fixed line network in the country and fourth largest mobile network, routes its ILD calls through international carriers such as Tatas managed Videsh Sanchar Nigam Ltd, Reliance Communication, France Telecom, Telekom Italia and Bharti Airtel.

BSNL also has an under sea cable network with Sri Lanka and is planning another one to Singapore.

Merger ruled out

The Government has also practically ruled out the merger of BSNL and MTNL. “There are various hindrances including the fact that MTNL is listed and BSNL is not. So there is no possibility of the two companies being merged. Some trade unions are also opposed to the merger,” said the Government source.

Accident cover

In order to arrest the slide of fixed line telephony, BSNL is also planning to offer accident insurance worth Rs 50,000 to everyone taking a connection.

Sources said that talks are on with various banks including State Bank of India for the scheme which is expected to be launched shortly.

BSNL’s fixed line user base has been decreasing over past few years since users prefer to take a mobile connection.

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