BSNL inks tower leasing deal with Datacom

BSNL inks tower leasing deal with Datacom State owned telecom giant Bharat Sanchar Nigam Ltd, in a bid to save infrastructure costs, has announced to lease network towers to Datacom Solution, a telecom company that is yet to start its operations in India.

BSNL, however, did not divulge the contract terms including financial details and tenure of the deal with the mobile operator.

The state owned telecom firm has already similar infrastructure sharing deals with companies such as Aircel and Tata Teleservices, the seventh and sixth ranked telecom operators in India respectively. Tata Teleservices was the first firm to ink such 15-year tower-lease pact with BSNL last month.

BSNL is eying on generating Rs 1,000 crore of revenue from the tower sharing deals in the next financial year. A senior official of the company said, “BSNL is aggressively working towards sharing its infrastructure with existing and new telecom operators.”

Telecom firms are employing various measures to mitigate costs either by sharing towers or by contracting infrastructure work to other tower companies for increasing their pan-India presence, covering isolated and rural areas.

However, TRAI and other competent telecom organizations have repeatedly raised concerns over low infrastructure spending by telecom companies that is probably a prime cause of increasing call drop rate.