BSNL submits 18-point wish list to govt panel
In order to beat financial stress, staterun BSNL (Bharat Sanchar Nigam Limited) on Tuesday presented an 18point wish list to the inter-ministerial panel, which includes temporary allotment of 2,100-megahertz (Mhz) spectrum for six months to one year, free allocation of 700-Mhz airwaves, and reduction in licence fees. The panel, which was formed to look into the woes of the telecom sector, is meeting industry players this week, to understand their problems. Apart from BSNL, another government-owned firm MTNL (Mahanagar Telephone Nigam Limited) met the panel on Tuesday.
Presenting its viewpoint, BSNL told the panel it should be allocated 5 MHz spectrum in 700-MHz band by the government through equity route. Also, the telco has sought temporary allotment of airwaves in 2,100 MHz for six months to one year, so that it can shift its 3G services to 4G. An official said the government has enough airwaves in 2,100 Mhz that can be given out for a period of one year.
Since the state-run operator has a social obligation to service all areas including non-profitable ones, it wants that the revenue collected from nonprofitable areas should not be calculated as part of the adjusted gross revenue.
An official said most of the private players did not offer services in such areas but BSNL, being a state-run operator, has to.
MTNL has also submitted its point of view to the panel. The operator, which offers services in Delhi and Mumbai, wants to sell its land parcels to generate additional revenues.
Both the state-run firms want lower licence fees and spectrum usage charges.
MTNL chairman and managing director P K Purwar said the company needs government support for availability of ~8,000-10,000-crore capital over a period of time. MTNL has also sought government's help to take care of its employee costs. Citing instances of Bharti Airtel, Vodafone and other private operators, Purwar said these companies are being supported by their promoters.
The government is the promoter of MTNL and hence "should not be found wanting" with regard to capital requirements of the telecom company.