Finally BSNL and MTNL to get 11K Crore refund for spectrum surrender

Finally a big relief for state run operators BSNL and MTNL, the cabinet has decided to refund over Rs 11,000 crore to BSNL and MTNL in return for the BWA spectrum which was returned back in 2010.

BSNLBSNL will now get Rs 6,724.51 crore as refund while MTNL will receive Rs 4,533.97 crore which will be done in staged manner over a period of time. BSNL and MTNL did not take part in the 2010 spectrum auction and had been asked to match the price paid by the successful bidder for the airwaves. Both companies offered to surrender their spectrum and sought refunds of payments made.

BSNL surrendered its spectrum Tamil Nadu, Karnataka, A.P , Gujarat Maharashtra and Kolkata. The proposal was approved by Group of ministers headed by Finance Minister P Chidambaram.

What do you think at this move by the operator has the government delayed this process ? Can this help BSNL and MTNL to come out of the burden what they are facing as a reader what do you think do let us know via comments.

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  • anoop ck January 12, 2014 5:50 pm

    BSNL WIMAX vs RELIANCE 4G
    Govt OWNED Company vs Govts OWN Company…. The MEGA SCAM …

    The UPA govt conducted auction for BWA airwaves in 2010 while auctioning 3G spectrum.. At that time 1 Pan INDIA 3G spectrum of 19xx MHz in a block of just 5 MHz fetched an amount of whopping 16741 cr.. no company was there to bid for the whole 22 circles. BSNL got alloted 3g spectrum in all the 20 circles they operate by paying 10187 Cr, for the rest 2 circles MTNL paid Rs 6564 Cr.. u can see the auction details in the below link

    in 2010

    Auction for BWA (Broadband Wireless Access) spectrum in a block 20MHz.. conducted. Reliance backed Infotel broadband was the only company which got pan india BWA licence.. There were not such a tight bidding for BWA as in the case of 3G because of
    THE BWA SPECTRUM ALLOTTED PURELY FOR DATA SERVICES,
    ie Voice/Mobile services canot be offerd using that spectrum.. so Reliance got a huge block of 20MHz Spectrum in 22 circles by paying just 12847 Cr.. Which is also in the LTE compatible 2.3 – 2.4 GHz band

    BSNL

    - Did not participate in the BWA auction, but has been allocated a spectrum slot by the Indian government
    - paid Rs. 8,313.80 crore for BWA spectrum in 20 circles.
    Here BSNL got alloted Nonstanderd 2.6GHz spectrum, which is not suitable for LTE. The govt cheated BSNL and MTNL by alloting nonstandard spectrum at the same price as that of 2.3 Ghz

    BUT in 2013, the govt changed its rules and allowed Reliance to pay a nominal price of 1632cr and converted the BWA spectrum license to Unified license. ie reliance can offer Voice or any service using this spectrum now. ie the Reliance now Own 20MHz Block of spectrum for all services in all circles by paying just Rs 14479 Cr.. Remember 1 pan india 3g license had a value of 16741 Cr

    Now in 2014.. the govt approves the refund for nonstandard BWA spectrum alloted to BSNL.. After spending 1000s of crores for the wimax infrastructure..

    This is the way GOVT OWNED Companies and Govts OWN companies are treated..

    • BP Singh January 13, 2014 12:24 pm

      thanks Anoop for writing the truth.

  • arindam January 11, 2014 8:12 pm

    guys, most of the employees had already changed their attitude after recruitment of young engineers cum officers.We will come back in few days guys…

    • BP Singh January 19, 2014 9:19 pm

      Fully Agree..!!
      BSNL will be back to glory in 3-4 yrs for sure. Govt must support us.
      We don’t offer just Land-Line, We are Life-Line to the Nation..!!

  • Om Shiv Sharma January 11, 2014 6:51 pm

    With MTNL and BSNL out of the competition in 4G,Reliance Jio Info will be having almost a monopoly and will be able to provide cheap and efficient high speed broad band 4G services as compared to Land Line or 3G broad band services provided by BSNL and MTNL , at the cost of the Govt PSU”s i.e it will not be a good news for the BSNL and MTNL.

  • soumya January 11, 2014 2:03 am

    Guys the speed of bsnl still not 512 kb/sec. Me still getting download speed of 256 kb/sec. Me using 600 combo plan. Please reply

    • Gajendrakumar January 11, 2014 8:04 pm

      dear Madam, Kindly go through your tariff details of the plan and check the usage in selfcare.sdc.bsnl.co.in

      • BP Singh January 12, 2014 2:15 pm

        Check your Limit cap as per your tariff. it will be down after certain usage as per plan. so register in Selfcare portal and regularly check ur usage details.
        Pls search old posts in Telecom Talk. They have b’fully explained the whole process of Registration.

  • sai January 10, 2014 9:34 pm

    they are giving in installments.. already bsnl started to process to change their wimax subscribers to other technology like BB, 3G etc.

    • BP Singh January 22, 2014 11:57 pm

      In Punjab, BSNL giving 3G data cards instead of EVDO users.

  • Kunal January 10, 2014 9:11 pm

    Seriously hope that both the companies use this money to improve coverage and 3G services. Its high time since long !!!

  • amarrdiip January 10, 2014 12:53 pm

    bsnl & mtnl will get only short term relief. big problem what they offer in future to generate revenue & current biggest this is there service quality. & it is no more afffordable too now

  • kunal January 10, 2014 12:43 pm

    Agar efficient mil bhi jaata toh bsnl employees ne kaunsa pahad khod lena tha.

    3g ki haalaat bacha bacha jaanta hai.

    Broadband installation mei kam se kam yeh log 10 din lagate hain.

    Aur kharaab ko theek karne mein 15 din.

    Acha hua surrender kar diya.

    Nahi to ek aur failure bsnl ke portfolio ka hissa ban jaata.

    Jab tak iske susst aur kaamchor employees ko nikala nahi jaata ,

    yeh company sone ko bhi mitti bna degi.

    • pravej January 11, 2014 9:00 pm

      Dear Kunal,
      Agar BSNL nahi hota to ye private company wale apki pocket khali kar dete. Remember BSNL is the most patriotic & transparent telecom company.

      • BP Singh January 22, 2014 4:28 pm

        very right Parvej bhai.

  • shibamay chakraborty January 10, 2014 12:05 pm

    This amount should have been refunded long back in April, 2011 but govt. will refund it now without any interest though they forced bsnl to part Rs.8412 cr without giving any option to bsnl and that too a obsolete spectrum which is of no use in the latest technology.

  • Md Rajaul January 10, 2014 12:03 pm

    As BSNL pushed to accept the redundant airwaves – 2.4 gigahertz of BWA spectrum without participating into auction and at par price with the Private operatos whereas private operators got 2.3 qigahertz spectrum.2.4 gigahertz interferes with other bands, is not a clear band and does not effectively work for WiMAX services.
    It is not commercially viable. The band offered to BSNL may not be suitable and technically does not match with the equipment available in the market.
    So,it is good that now they are returning back the amount paid for 6 circles.It would have been better if instead of returning spectrum,BSNL should have demanded same spectrum offered to private operators in place of redundant one.

  • Darshan Malu January 10, 2014 8:35 am

    They would have surrendered all the spectrums and would have recovered all the loss and would had play a steady game…

  • Tharun George January 10, 2014 7:42 am

    Hope DOT auction these spectrum soon.

    I don’t know why BSNL would retain its WiMax spectrum in Kerala and other states. It is a total failure. The tariff is more than broadband and no coverage or BSNL even don’t want to sell.

    • Riju January 10, 2014 10:30 am

      No one will bid this spectrum.Because it is in 2.5GHz band. it is less efficient.

    • SHIBU K T January 18, 2014 7:03 am

      Not true. I’m a user of Wimax in Kerala and more than happy about the connection. The speed is great & consistent. I know many friends who are interested in applying for a Wimax connection. Coverage could be a problem, but this does not work like any other wireless connection. Even 1 block means full speed.

  • Tharun George January 10, 2014 7:39 am

    Still Rs 6,724.51 crore not enough for BSNL to get back to profit.

    • BP Singh January 12, 2014 2:42 pm

      Dear,
      Already BSNL managed to reduce their losses by 2500 crores.
      I guess the present loss is around 7500 crores due to many micro and macro factors.
      There are huge retirements in BSNL so the pay/salary expenses will be less in another 1-2 yrs.
      I am pretty sure that if the momentum carries on then BSNL will be back in profit after 3-4 yrs. If we get back our 6740 crores then there will be around only 750 crore loss this year and that is very easy to manage in one go by increasing tariffs of any of the product or service. But BSNL seldom increase tariffs. There is huge scope of improvement in following services of BSNL:
      1. Marketing – visibility of the Products and Services at all platforms be it Offline or Online.
      2. Fault rectification within stipulated time.
      3. Complaint redressal Mechanism must be regularly checked and feedback system.
      4. Avoid frequent strikes by BSNL Union/Associations. Their genuine demands/issues must be resolved within 6 months to settle the unrest. This is a Big factor to boost the employees. If employees are satisfied then it will result in great performance.
      5. Customer Care – solution to problems at CC. Educate CC guys so that complaint does not go to next level in most of the cases.
      6. Penalty to the Officer/employee if fault does not gets through within time.
      7. Availability of the staff round the clock and on all days. Special staff on special duties.
      8. Unnecessary expenses can be avoided in running the business. e.g, You will find all electrical appliances running all the time in the offices and exchanges. Use of solar panels to avoid electrical expenses. Spare/waste materials to be sold/discarded in all offices.
      9. Young, educated staff at Counters. preferably the female employees.
      10. Every BSNL Employee must have its own Official Mobile number so that subscriber can contact the concerned the guys at one go. there y avoiding unneeded harassment/delay.
      11. Display of important numbers, toll free numbers, higher officers contact no. etc at all offices and public places.
      12. There must not be any downtime of Broadband server, GSM server and congestion.
      13. Cable cuts to be restored with in 48 hours.
      14. Contacts all PSUs, govt owned companies to get only BSNL Landline, Broadband and Mobile services.
      15. Easy access of Selfcare portals through web and mobiles like USSD feature.
      16. Joint ventures with other companies for extra revenue. Like opening ATMs, Mobile/Tablet store, Computer shops, Canteens, Cyber Cafes etc.. within the big buildings of BSNL. Revenue sharing can be done with the firms.

      There are numerous points for improvement. But above are enough for a turn around of national telecom company.

      regards,
      Bandhan Preet Singh, BSNL, Chandigarh

  • GOUTHAM January 10, 2014 4:41 am

    good move by the goverment to save an importent PSU UNIT

    • RAJU January 10, 2014 4:43 am

      nt good move