Sunday, January 15, 2012

USO fund administrator says no to BSNL rural operations but we can wait for TRAI report.-.thehindubusinessline.

Earlier in December, BSNL's Chairman and Managing Director, Mr R. K. Upadhyay had written to DoT seeking support. In his letter to the department, he said that BSNL was not able to cross-subsidise the services in rural areas due to competition. “Even with the number of subscribers of rural wire lines going down, the network infrastructure is still required to be maintained at a particular optimum capacity with a certain fixed cost,” Mr Upadhyay said.
The only hope now for the PSU is to wait for the recommendations of the telecom regulator on this issue. According to sources, the Telecom Regulatory Authority of India (TRAI) may give a proposal in favour of BSNL. In anticipation of this, the DoT has asked the USO fund administrator to seek an enhancement of budgetary allocation for the financial year 2011-12 to the extent of Rs 1,000 crore on BSNL's account.
 

USO fund administrator says no to BSNL rural operations but we can wait for TRAI report.-.thehindubusinessline.

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