BSNL shelves tower hive-off plan

NEW DELHI: BSNL has shelved its plans to hive off its towers and other related infrastructure into a separate company on the likes of all major private operators, a top official with the company told ET.

Last year, BSNL had drawn out a two-pronged strategy to improve its revenues and market share and this involved hiving off its towers into a separate arm as well as restructuring its reporting and management structures. This BSNL executive said that while the restructuring was on, the telco had decided to retain its towers as part of its mobile businesses.

Asked if the delay in BSNL���s proposed listing due to stiff opposition from employee unions was the reason behind the company���s move to shelve its plans to hive off its towers, the executive said that the two issues were not related. Another executive pointed out that falling valuations for the tower sector, coupled with the fact that this space is witnessing a massive consolidation, ensured that telcos would find it increasingly difficult to unlock value by merely hiving off their infrastructure into separate arms.