BSNL is 100 per cent owned by the government under the Department of Telecom (DoT). - ALLCGNEWS

Central Government Employment News

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26 July 2010

BSNL is 100 per cent owned by the government under the Department of Telecom (DoT).

New Delhi: An employee association of BSNL, which is reeling under severe  financial pressure due to falling profits and market share, has charged the  Department of Telecom for pursuing policies favouring private operators  especially with regard to licence fee and spectrum charges.
BSNL is 100 per cent owned by the government under the Department of Telecom (DoT).


    Sanchar Nigam Executives' Association, representing over three lakh employees,  said that while all private operators pay licence fee computed on the adjusted  gross revenue from telecom services only, BSNL has been forced to pay the  licence fee based on non telecom revenues as well.

    This, the Association said, could be due to over staying of some of senior  officials in the DoT and their increased proximity with the private operators.

    "This highly prejudiced and discriminatory treatment met out to BSNL by DoT even  though inexplicable and incomprehensible could be largely attributed to  overstaying of officers in the sensitive licencing wing of DoT in complete  disregard of repeated instructions of DoP to shift officers dealing with  sensitive issues beyond reasonable time span because of their proximity with  vested interests," a representative of Sanchar Nigam Executives' Association  said.

   BSNL had witnessed over Rs 10,000 crore net profit 3-4 years ago and now all  these profits have been evaporated and the PSU is likely to report net losses  for the last financial year.

    Not only this, BSNL has been losing market share in the fast increasing mobile  phone market vis-a-vis their counter parts in the private sector.

    The issue relates to licensor, DoT, charging annual licence fees as percentage  of Adjusted Gross Revenue by including revenues from various non telecom  activities in the AGR.

    This was challenged by private operators in TDSAT which gave an interim  direction to exclude revenues earned fron non-telecom activities for calculating  AGR. And the same was upheld by the apex court also.

    The benefits of the interim stay has been passed on to private operators one by  one but the same has been denied to BSNL, making PSU to pay higher licence fee  every year.

    "The repeated requests by BSNL to DoT to extend the benefits to the PSU have  been turned down by the DoT," the Association claimed.

    Similarly, the private operators also challenged the increase in usage charges  for spectrum in TDSAT for which they got a stay order.

    In this case also while the private operators are paying usage charges at  existing rates, BSNL has been made to pay higher spectrum...

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