[by Cerius Shah] Good old guv’nor BSNL is now getting into the valuation game. Its plan to divest 10%, which at a valuation of $100 billion (BSNL revenues for 06-07 stood at Rs 39,750 crore), works out to $10 billion (Rs 40,000 crore). Apparently the DoT is mulling over the matter. BSNL seeks Rs 15,000 crores to expand its network especially in rural places.

ET:  BSNL is India’s largest telco by both revenues and subscriber numbers. The PSU, which has over 75 million customers (fixed-line and mobile), had revenues of Rs 39,750 crore in 2006-07, with a net profit of Rs 7,805 crore. BSNL has said it will invest about Rs 15,000 crore this fiscal to expand its mobile and broadband networks across the country.

Nikhil adds: Something that should work in BSNLs favor is the preferential treatment from policymakers - particularly when it comes to spectrum allocation (something that has impacted the share prices of other telcos). A rumor a BSNL-MTNL merger has also been around for years, and it is believed that India is yet to unbundle the last mile on the insistence of the two public sector telcos. Question is - will the preferential treatment continue post-IPO, once the government has cashed on this anti-competitive exclusivity?