Soon Reliance Jio’s Jiofiber and Bharti Airtel’s Xstream will have to worry about emerging rival in the converged high-speed Internet-TV-Voice segment.
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How Did This Happen?
The telecom giant BSNL signed an MoU with internet-based live streaming platform YuppTV in a bid to offer bundled live TV and video content via broadband mobile, fixed-line connections and BSNL’s high-speed Bharat Fiber to their customers.
The BSNL-YuppTV combine into the ‘triple play’ space is expected to have a significant effect on broadband internet penetration in the non-metro and rural markets.
At the end of August, wireless broadband subscribers are around 596.55 million while wired broadband connections are only 18.32 million out of which only 8.79 million belongs to BSNL, according to TRAI.
What Does Company Has To Say?
Uday Reddy, Founder and CEO, YuppTV to TNIE said “BSNL’s reach in these tier-2 and 3 markets is unrivaled and the partnership will give us significant value,”.
He also informed that the commercial aspects of the pact have to be decided yet but the offering is technically ready.
As BSNL’s chairman and MD P K Purwar agreed “Such marriage between infotainment and telecom players will happen.. Content is key to drive data consumption and original content is the name of the game,’.
How Consumers Will Benefit?
With this deal, BSNL will be able to provide customers with YuppTV’s library of both licensed and original content exclusive to the Indian market.
Also it will provide live TV broadcasts. While Bharat Fiber will be providing public-private partnerships vehicles for promoting entrepreneurship.
This model licenses franchisees to provide last mile fiber services while the backend and core infrastructure is provided by BSNL.
Reddy said, “There are 120,000-gram panchayats with (Bharat Fiber) connections and a company like YuppTV can step up and lead that initiative in some regions, creating entrepreneurs…,”.
According to YuppTV, they will support in offering broadband services to underserved areas by providing last-mile infrastructure. Which was backed by Reddy saying “This will boost broadband penetration significantly,”.
Why Did This Happen?
The Bharat Sanchar Nigam Ltd (BSNL) is going through a tough phase. the company’s Chairman and managing director P K Purwar said “BSNL is the least leveraged telecom company. We have certain legacy issues as we have large manpower,”.
He said “BSNL should be able to launch 4G services in this financial year. We expect govt to allocate 4G spectrum in this calendar year,”.
Company Going Through Tough Phase
According to reports, the company has been making losses since 2009-10. Also, the company allotted 4G spectrum by equity infusion of ?6,767.5 crore.
The DOT is working for a revival plan for BSNL which suggested a voluntary retirement scheme (VRS) for BSNL’s employees and monetization of the company’s land.
The plan is to fund BSNL VRS packages via a mix of ?6,365 crore in cash and through bonds. The company has around 176,000 employees.
Meanwhile, the company’s union has adjourned their hunger strike after the meeting with top management where they promised to pay the September salaries by October 23. (reference)
They are also keeping hope with the revival plan suggested by DOT. Also, this new venture with YuppTV will hopefully open more doors for the countries telecom major.
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