BSNL to IMG: Provide 700 MHz Spectrum via Equity Route for 4G

State-run telecom operator Bharat Sanchar Nigam Limited (BSNL) has urged the government to allot it 700 MHz spectrum through the equity route, which will help it launch 4G service in the country, allowing to compete with the likes of Airtel, Vodafone, Idea Cellular and Mukesh Ambani-led Reliance Jio.

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Notably, the super premium 700 MHz band went unsold after in the spectrum auction last year. The band was put up for sale for the first time at a reserve or base price of Rs 11,485 crore per MHz.

BSNL, during its meeting with the inter-ministerial group (IMG), has also sought a two-year moratorium on payment of licence fee for revenue earned from government projects and SUC or Spectrum Usage Charges for projects implemented inNorth Eastern states and Naxal-hit areas, according to media reports. The PSU, which offers services in India except for Delhi and Mumbai, urged the government to exclude revenue from these projects from overall licence fee calculation.

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Reports added that the telco also sought compensation of Rs 1,520 crore for CDMA spectrum it surrendered earlier.

The inter-ministerial group, comprising officials from ministries of communications and finance, is meeting telecom operators this week to discuss the financial difficulties being faced by the industry and measures that can be taken to ease the situation. Indian telecom operators are currently reeling under a Rs 4.6 lakh crore debt, and are facing pressure on profitability and revenue due to the intense competition introduced by the entry of Jio.