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BSNL demands 700MHz Spectrum again, MTNL seeks financial support

 
State-owned BSNL now days asked the govt. to allot it the prized 700 megacycle per second spectrum via equityroute and wanted moratorium on payment of licence fee for revenue attained from government comes.
 
MTNL, on the opposite hand, wanted government facilitate in making Rs 8,000-10,000  crore capital out there citing telecommunication tariffwar being fought by personal operators. It conjointly wanted pressing measures to bring down worker price.
 
Senior officers of Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd met the inter-ministerial group (IMG) amid monetary stress within the telecommunication sector.
 
The two state-owned telecommunication PSUs wanted government's support to become a lot of agile, within the face of stiff competition from the personal operators, particularly aggressive new entrant Reliance Jio.
 
The debt-ridden MTNL flagged "legacy issues" as well as its high worker price and asked government to support, "in some form", its capital demand of Rs 8,000-10,000 crore over a period of time.
 
BSNL, on the opposite hand, has revived its push for 700 megacycle per second spectrum "through equity infusion route". within the spectrum auction last year, the telecommunication sector had neglected the premium 700 megacycle per second band that was place up purchasable for the primary time at a reserve or base value of  Rs 11,485 crore per MHz.
 
However, BSNL has been soliciting for this premium spectrum for 4G and internet data services roll out. BSNL conjointly needs a biennial moratorium on payment oflicence and Spectrum Usage Charges for comes enforced in North jap states still as in sect political orientation areas.
 
Essentially, BSNL needs the revenue from such comes to be excluded from overall licence fee calculation. BSNL has conjointly wanted compensation of Rs 1,520 crore for CDMA (Code Division Multiple Access) spectrum it relinquished earlier.
 
When contacted, BSNL CMD Anupam Shrivastava told: "Last year we tend to were able to address the strain, however this year we square measure feeling the pinch owing to competition. Despite our internet data output growing 3 folds, the revenue (in mobility business) is harassed."
 
MTNL detected that Airtel, Vodafone and alternative personal operators square measure being supported by their promoters.
 
"The war between the operators is being fought on the strength of capital therefore the government shouldn't wait in capital provisioning (for MTNL),"MTNL CMD P K Purwar same when the meeting with the IMG.
 
He additional same that the high worker price a tab of Rs. 2800 crore is making a "non-level enjoying field" for MTNL viz-a-viz personal operators. It urged the goverment to appear at choices like voluntary retirement theme (VRS) to bringdown worker expenses.
 
The IMG is meeting numerous telecommunication operators and banks on to debate the monetary problems with the telecommunication business and mull measures that may be taken to ease matters.
 
The sector is reeling below Rs 4.6 hundred thousand crore debt and its revenue still as profitability square measure below severe strain following free voice and internet data offerings from Jio.
 
But Jio in its meeting with the IMG 12th June,2017 had darned the industry's monetary woes on the reluctance of established operators to use equity for investment into new technology.
 
The IMG is slated to satisfy banks as well as SBI, PNB, AxisBank and HDFC on day, and therefore the remaining telcos - Airtel,Vodafone and Idea Cellular - on June sixteen.

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