The rationale of disinvestment

'Attractive numbers apart, there are very good fundamental reasons to begin what should eventually be a complete disinvestment of BSNL. The government should not be spending time and money running telecom companies when the private sector has shown itself perfectly competent to do so. The government already looks after consumer interest through the regulator, TRAI. Also, in a rapidly advancing, technology-intensive sector, being a government enterprise, with all its concomitant constraints, handicaps BSNL while facing private sector competition. Controversies like those surrounding the early roll out of 3G spectrum to BSNL and MTNL can also be avoided once they are privately owned and managed. The current IPO is just the first step in a process of reform of the PSU giant. Any stalling of it would seriously hamper its commercial future. The employees should realise that their interests align with the best commercial interests of BSNL.'

- 'BSNL engaged', FE Editorial.


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