BSNL offers to surrender BWA spectrum in 17 circles

With a loss of over Rs 6000 crore, the company retains only Maharashtra, AP, Gujarat and Haryana service areas

PTI | October 17, 2011



At a time when private operators are scrambling for more spectrum, loss-making state-run BSNL has offered to surrender its Broadband Wireless Access (BWA) spectrum in 17 circles, seeking refund of Rs 8,313.80 crore.

"BSNL has written a letter to Department of Telecom (DoT) offering to return BWA spectrum in 17 circles... (It) wants to retain only Maharashtra, Andhra Pradesh, Gujarat and Haryana service areas," a source from the DoT said.

BSNL is understood to have registered a loss of over Rs 6,000 crore for 2010-11, mainly due to high staff cost and payments made for acquiring 3G and BWA spectrum.

Last year, BSNL had paid over Rs 8,500 crore to the government as spectrum charges bidding for the BWA auction, and was allotted non-standardised band of BWA spectrum for 21 circles.

"The letter stated that BSNL was allotted non-standardised band of BWA and can't be put in use, so the company wants to return... The department will now take a look and may consider an option to re-auction the spectrum also if possible," the source added.

Earlier, the PSU had floated a tender to allow franchisees to run services on revenue share basis, which came under DoT scanner due to irregularities found in allotting BSNL's WiMAX franchisee.

The employees unions of state-run BSNL had asked the government to refund over Rs 8,313 crore paid by the PSU for acquiring non-standardised Broadband Wireless Access (BWA) spectrum.

BSNL has been facing severe financial pressure as its losses have more than tripled to about Rs 6,000 crore during 2010-11, mainly due to hefty outgo for employees' salary and expenses borne by the PSU for procuring 3G and BWA spectrum.

The company had registered a net loss of Rs 1,823 crore during 2009-10.

BSNL had reported the highest net profit of over Rs 10,000 crore in 2005-06, but since then its profits have been falling and in 2009-10 it reported net losses.

More than 47 per cent of the total income of the company goes for the payment made to the BSNL's employees.

The company is already preparing a voluntary retirement plan to employees as part of its efforts to revive the loss-making company.

The company has set an internal target of 99,700 employees - comprising Group A (1,483), Group B (6,262), Group C (76,655) and Group D (15,214) staffers.

The VRS has been under discussion since 2009 when a panel headed by Sam Pitroda, adviser to the Prime Minister on Public Information Infrastructure and Innovations, advocated that BSNL take the VRS route to prune its nearly 2.77 lakh strong workforce by a third.

BSNL's liability for the proposed VRS is pegged at a modest Rs 2,700 crore, while the telecom department will shoulder nearly Rs 18,000 crore.

The DoT is already examining the feasibility of merging government telecom companies ITI and MTNL with state-run BSNL, in line with the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE).

BSNL, offers telecom services in all areas of the country, barring Delhi and Mumbai.
 

Comments

 

Other News

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter