Union Cabinet Approves BSNL-BBNL Merger


Merger of BSNL- BBNL: The Union Cabinet recently approved the merger of Bharat Broadband Network Limited (BBNL) with the Bharat Sanchar Nigam Limited (BSNL).

Key Points:

Through this merger, BSNL will get an additional 5.67 lakh kilometres of optical fibre.

67 lakh kilometre of optical fibre has been laid in 1.85 lakh village panchayats of India using the Universal Service Obligation Fund (USOF).

Currently, BSNL has an optical fibre cable network of over 6.83 lakh kilometres.

USOF is a Rs 55,000-crore strong reserve, that has been created to provide connectivity to rural and remote areas of India.

Background:
The merger was first announced the merger of BBNL with BSNL in April 2022. BBNL is a special purpose vehicle (SPV), that was established to implement BharatNet project.

Bharat Sanchar Nigam Limited (BSNL):
BSNL is the largest government-owned, wireless telecommunications service provider in country.
It was set up on October 1, 2000. 
It is headquartered in New Delhi. 
It works under the ownership of Department of Telecommunications. 

Bharat Broadband Network limited (BBNL)

Bharat Broadband Network Limited is also known as BharatNet. 
It is owned by government and provides broadband infrastructure. 
It was established by the Department of Telecommunications, under Ministry of Communications. 
It is involved in the establishment, management and operation of National Optical Fibre Network, under which government seeks to provide a minimum of 100 Mbit/s broadband connectivity across 250,000-gram panchayats in India.


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