Troubles for BSNL and MTNL Increase as Trai Steps Back from 4G Spectrum Allocation

The Telecom Regulatory Authority of India (Trai) has shed off any responsibility related to allocation of the fourth generation, or 4G airwaves to the government led telecom operator Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), ET Telecom reported. The regulator has said to the department of telecommunications (DoT) that administrative allocation of spectrum to public companies is a “policy” decision.

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Troubles Increase for BSNL and MTNL

A DoT official said in this regard, “Early this week, the Trai in a letter to the telecom department said that the allocation of the spectrum to public-owned entities is an administrative matter and the government would be in the best position to dispose of the matter.”

This new development in the spectrum allocation row has brought hurdles for the Narendra Modi led NDA government which was already ideating on the plan of seeking approval from the Election Commission of India (ECI) to take the radio waves allocation proposal to the Cabinet. There has also been a building pressure from the employees of the government led telcos as the 2 lakh people from the workforce are mounting pressure on the government on top of the recent financial woes.

Last month, the DoT had sought a recommendation from Trai on whether or not the spectrum could be allotted to two state-driven operators administratively. If the allocation of the spectrum happens, then the two government-led telecom operators will be able to step into the fourth-generation network thus levelling their operations with the likes of other telecom operators like Reliance Jio, Vodafone Idea and Bharti Airtel.