NEW DELHI: The finance ministry is learnt to have turned down the demand of state-owned telcos BSNL and MTNL to refund the Rs 29,000 crore both companies had jointly shelled out for third generation and broadband access spectrum, officials with direct knowledge of the development said.
In an unrelated development, the finance ministry has approved a waiver of the Rs 938 crore spectrum usage charge for the armed forces. This was one of the key demands of the defence ministry for vacating 3G airwaves so that this spectrum could be allotted to mobile phone firms for commercial telephony. The Centre will award 3G airwaves to successful bidders on September 1.
Following the conclusion of the auction process, BSNL chairman Kuldeep Goyal in his communication to the telecoms department had sought a refund of the Rs 10,187 crore it had coughed up for 3G. BSNL had argued that while private operators were allowed to choose particular circles during the bidding process based on their business plans, BSNL had been forced to launch high-end services on this platform in all circles, except the metros of Delhi and Mumbai. BSNL had also pointed out that other operators were paying far less for 3G airwaves outside the two metros when compared to the PSU. For instance, Bharti is paying Rs 5,731 crore, Vodafone Rs 5,054 crore, Aircel Rs 6,499 crore, Reliance Communications Rs 2,021 crore, Tata Rs 5,864 crore and Idea Rs 5,769 crore, the PSU added. It has also made a similar representation in the case of broadband spectrum.
MTNL, which offers communication services in Delhi and Mumbai, then demanded any concessions given to BSNL should be extended to it. The telecoms department had forwarded these requests to the finance ministry.
Now, the only option left with the telecoms department is to approach the Union Cabinet seeking a bailout, a move that is unlikely as any refund will be legally challenged by private operators. Private telcos already maintain that the Centre has given a clear first-mover advantage to BSNL and MTNL by awarding them 3G and broadband airwaves 12 months prior to the auction process.
Officials linked with these developments said BSNL will be compensated through other means such as an increased support from the Universal Service Obligation Fund for its unviable rural telephony operations. BSNL receives about Rs 2,000 crore annually from this fund to prop up its rural operations.