BSNL posted a loss of R8,850 crore in FY12 and MTNL R4,018 crore—while BSNL has indicated its FY13 revenues will be 9% less than in FY12, MTNL’s first half losses of R2,151 crore are 26% higher than they were in the same period last year. Neither PSU is a hit with customers—only 55% of BSNL’s subscriber base is active and the figure is under 40% for MTNL, while that for the top 3 private telcos is over 93%. While private telcos service 1 million customers for every MHz of spectrum they have, the PSUs service just 0.37 million—this means the PSUs have way too much spectrum. Neither has any turnaround strategy that goes beyond trying to earn revenues from non-core areas like renting and leasing of real estate space, towers, and leasing of the CDMA network. MTNL, for instance, hopes to get R10,000 crore through sales of land assets—it has around 2,30,000 sq m of commercial land and 3,80,000 sq m of residential land. Why not sell the PSUs to strategic investors who can turn them around, apart from giving the government some good money?