Parliamentary Panel Asks Government to Allocate 4G Spectrum to BSNL and MTNL at the Earliest

The government was asked to allocate 4G spectrum to both BSNL and MTNL at the earliest so that the PSUs will be able to compete with private telecom operators and survive in the competitive Indian telecom market. The Standing Committee of Information Technology has asked the government to allocate the required spectrum to the state-run telcos. “The Committee is of the view that both BSNL and MTNL will lose the data market if they are not given 4G services soon. To compete and survive in the telecom market, the Committee feels that 4G spectrum should be given to them at the earliest,” BJP MP Anurag Singh Thakur said in the report tabled in Parliament. Both Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) have already submitted their proposals for the allotment of spectrum. If government allocates the required spectrum, BSNL and MTNL will launch 4G services in the telecom circles where they’re operating.

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MTNL has its operations in Delhi and Mumbai telecom circles, while BSNL is operating in 20 telecom circles. It’s also revealed that the telcos have requested for 5 MHz block of radiowaves in 2100 MHz band, as it was reported earlier. “The Committee has been informed that Hon’ble Minister (Manoj Sinha) had declared on the floor of the House that government is shortly going to take a final decision in the matter and the department is actively considering giving 4G spectrum,” the report further added.

Furthermore, the allotment of 4G spectrum to BSNL and MTNL will have a negative impact on the wireless and broadband segments as it’s against equity infusion.