Government agrees to BSNL’s proposal to return spectrum

07 Dec 2011

The government has in principle agreed to the proposal by state-run Bharat Sanchar Nigam Ltd (BSNL) to surrender broadband wireless access (BWA) spectrum in 13-14 circles, giving some relief to the loss-making telco.

BSNL, which was allotted non-standardised band of BWA spectrum for 21 circles, opted to retain the spectrum only in Maharashtra, Andhra Pradesh, Gujarat and Haryana service areas.

If accepted, BSNL could get back over Rs7,000 crore from the government for spectrum in 13-14 circles.

BSNL currently offers services in all telecom circles of the country, barring Delhi and Mumbai, which are serviced by another PSU Mahanagar Telecom Nigam Ltd (MTNL).

"The Department of Telecom (DoT) has in principle agreed to the BSNL's proposal of surrendering BWA spectrum in 13 to 14 circles," telecom secretary R Chandrasekhar said on the sidelines of India Telecom Summit in New Delhi.

He, however, said the technicalities are still in the discussion stage and the final decision would be taken in consultation with the company.