Government to Split 4G Spectrum Cost in Half With BSNL

Today, the All-Union & Association of BSNL (AUAB) met with the telecom minister, Manoj Sinha to talk on many points and address the problems that BSNL was facing. In the talk, the minister and union members spoke about the strike which was later deferred from the union’s side. Another point of discussion was the cost of the 4G spectrum which is scheduled to be allotted to the government led telecom operator.

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Major Win for AUAB and BSNL Employees

P. Abhimanyu, general secretary, BSNL Employees Union and spokesperson of AUAB remarked, “Four of our demands were settled. The most important being an in-principle approval of allotment of 4G spectrum to BSNL by the minister.” He further added to his statements, “It was decided that for allotment of this 4G spectrum, 50% of the cost would be borne by BSNL and the rest would be capital infusion from the government. The minister had assured us yesterday that he would take up the matter with the inter-ministerial group, which had earlier raised objections about allotment of 4G spectrum to BSNL.”

This comes as a significant step for the loss-making state-led telco as BSNL has long talked about an equity infusion for raising capital. This capital would then come in to use for the government led telco to buy 4G airwaves and to increase its network infrastructure in the country. Earlier, during talks with the finance ministry the centre had remarked that since BSNL was a loss-making company, an equity infusion deal would unlikely come to fruition. However, after the discussion with Manoj Sinha on Monday, the union and the minister concluded that the issue would be raised to the cabinet for further approval.