Level playing field?

News paper reports -level playing field.

New Delhi: As the 3G-spectrum auction enters its last round, private operators have started pitching for a level-playing field. The GSM industry body, Cellular Operators Association of India (COAI) has written to the department of telecommunications saying that even the state-run BSNL and MTNL must be subjected to the same terms and conditions on the payment for the 3G spectrum as expected by the private operators.

Our comments:BSNL and MTNL are government controlled corporations having terms and conditions in terms of issuing tenders,procurement of equipments etc. So it is no fair on the part of the private operators to compare with them to BSNL,MTNL.



Rajan S Mathews, director-general of COAI has written to the DoT secretary, P J Thomas expressing concern that the state-run telcos must not be exempted from the clause in the Notice Inviting Application that clearly states that all the successful spectrum winners must make payment within 10 calendar days of the auction and that BSNL and MTNL must be required to match the winning price achieved in the respective service areas in the 3G auction as payment for the alloted spectrum.
3G spectrum auctions have already raked more than 150% of the reserve price that the government had set at the onset of the spectrum auction.

Our comments: Eventhough the 3g auction prices have taken a very big lead what others  have not expected, BSNL MTNL are functioning to fulfil social obligations like provision telecom facilities in rural areas where there is less revenue. Take an example having a exchange of 50 lines in rural area. By posting  telecom officials ,supply of power, provision of security guards etc. make BSNL to incur loss. As BSNL  has to provide telecom facilities in rural areas, BSNL has to incur loss which reflects on staff. Because of priority of providing facilities to rural people,BSNL incurs loss. Whether any operator is ready and install a telephone exchange of 100 lines in rural area?.  BSNL incurs a loss of fifty thousand in some rural areas for lines less than 50..  Private operators should not comapre BSNL and MTNL with them.


FE was the first to report in its edition dated April 7 that BSNL has initiated steps to approach the government to give it a breather from matching the highest bid for at least the next two years.

 Our comments: BSNL and MTNL should be exempted from paying licence fees for 3 G. The government has already started treating BSNL and MTNL  on private operator terms. Revenue from ADC is less  and most of the assurances given while forming BSNL and MTNL are not kept now. So BSNL  is losing. end of the report.