Big fix, little fix

8 Aug 2008 By Una Galani Follow @ugalani

The potential privatisation of the subcontinent’s largest telecoms operator is creating a buzz. Yet while BSNL has scale, it s in the wrong market. With half of its customers coming from a monopoly in India s declining fixedline market, BSNL is far from the pick of the crop.

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The Indian government is in the early stages of planning an initial public offering of Bharat Sancham Nigam, the 100% stateowned telecoms operator, the country's largest.

According to BSNL's finance director, S.D. Saxena, a sale of between 5 – 10% is planned. Saxena says the company is valued at about $100bn.

The board of BSNL is negotiating with unions over concerns a listing could lead to job cuts. BSNL's employees union last week rejected a share sweetener from the government.

The possible sale of BSNL, which has long been in the running for privatisation, is back on the agenda following a political split in India's Congress party's ruling coalition. Last month, the Communists, who oppose privatisations, withdrew their support for the government.

Context News

The Indian government is in the early stages of planning an initial public offering of Bharat Sancham Nigam, the 100% stateowned telecoms operator, the country's largest.

According to BSNL's finance director, S.D. Saxena, a sale of between 5 – 10% is planned. Saxena says the company is valued at about $100bn.

The board of BSNL is negotiating with unions over concerns a listing could lead to job cuts. BSNL's employees union last week rejected a share sweetener from the government.

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