Management’s plan for making BSNL viable-is it for fragmentation of BSNL into several entities?

As per the reports in the news papers, the CMD BSNL has submitted the following proposals to the Telecom Minister Sri Kapil Sibal for increasing the revenue of the BSNL, which is in losses since last 3 years:

1. The CDMA net work  of BSNL will be given on lease to other operators. BSNL is having CDMA network throughout the country except in Delhi and Mumbai. On this network mobile services are being provided, utilizing CDMA technology and utilizing the 800 MHz band spectrum. GSM 2G services are more popular and provided on 900 MHz and 1800 MHz spectrum bands utilizing GSM technology, and most of the customers of BSNL are GSM subscribers only. The CDMA services subscribers with BSNL are about 50 lakhs only whereas the GSM subscribers are more than 10 crores. The CDMA network can be utilised by the operator taking it on lase either for providing wireless data services as is being done in case of Tata Photon or it can be used to provide full pledged services including voice and data by upgrading the network with additional investments. This is possible since the new telecom policy 2012 allows spectrum sharing. A consultant will be appointed by BSNL to suggest it a model for leasing out its CDMA network. The Consultant for this purpose will be appointed by January 2013. It is estimated that such leasing of its CDMA network will yield a revenue of Rs 250 crore.
2. The Cell towers of BSNL will be hived off to form a separate subsidiary Company, so that its towers can be given on lease to other operators. The Consultant for suggesting the road map for the formation of this Tower Company will be appointed by the end of November 2012. BSNL is having 70,000 towers throughout the country and it is already having tower sharing agreements   with the private operators. It is expected that sharing of the excess tower capacity and other excess capacity will yield a revenue of Rs 1600 crore over 5 years.
3. The real estate holdings of BSNL will be monetised.  A Consultant will be appointed by BSNL to evaluate its real estate properties, to assess the rental potential of its built up spaces, to suggest how to develop its vacant lands and to suggest disposing off its assets. The Consultant will be appointed by November 15^th, 2012. BSNL is having 4400 hectares of land in 3500 towns throughout the country. BSNL is hiving off this 4400 hectares of land. It is said that the land bank of BSNL will be utilized for building call centers, software parks e, and for such other activities related to telecom.  This move of BSNL for utilizing its real estate comes afterthe suggestion of the Vijay Kelkar Committee for utilizing the lands available with Government Departments to generate huge revenue. As per estimation, BSNL will get revenue of Rs 250 crore upfront value on its real estate assets in 2013-14 and a rental value of Rs 250 crore every year starting from 2016-17 onwards.
4. BSNL will utilize its telecom factories to set up electronic equipment manufacturing facilities in partnership with various manufacturers and it will generate revenue of Rs 500 crore.
5. BSNL will utilize its training centers to impart training in telecom skills to various sections of the population and it will generate a revenue of Rs 200 crore over a period of 5 years.
6. It will provide wi-fi based high speed internet services at public places like Malls, airports, hospitals, IT parks etc which will generate a revenue of Rs 25 crore in each zone ( there are 4 zones in BSNL) in the first year and Rs 50 crore in each zone from second year onwards.
7. It will connect 15 lakh schools in the country with high speed internet and it will charge Rs 5000 per year per connection and it will yield a revenue of Rs 750 crore per year.

It is estimated that all these measures together will yield a total revenue of Rs 8000 crore to BSNL during next 5 years.

But the issue is why BSNL is unable to utilize its CDMA network to provide data services and other services when others having CDMA network are providing these services? Also if CDMA network is handed over to some body, if the cell towers are handed over to a separate subsidiary Company of BSNL , and  If the BSNL’s land assets are hived off as another subsidiary, what will be the shape of BSNL in future? If other operators are allowed to share the network of BSNL and provide services in their name without even having their own network, is it not allowing the competitor to use the network of BSNL? It appears that in the name of increasing the revenue, BSNL is proposed to be fragmented into several entities, thus weakening it more.