Sanjay Singh / New Delhi
In a move that will help state-owned telecom company, Bharat Sanchar Nigam Limited (BSNL) to launch fourth-generation (4G) services pan-India, the Department of Telecommunications (DoT) has given nod to its plan to use airwaves in the 2100 megahertz band.
According to BSNL the DoT’s approval will help it launch high-speed Long-Term Evolution (LTE) services soon. This will also ensure BSNL to utilize unused spectrum by offering contiguity. It may be mentioned here that the BSNL last year had moved to DoT with a detailed project report to acquire 3G spectrum worth Rs 13,885 crore.
It had pleaded for Rs 6,652 crore as equity infusion from the government. However, it had initially requested to meet the remaining cost through revenue to be generated over next 10 years.
Much to the relief of BSNL, government’s highest telecom policy making body, the Telecom Commission meanwhile has extended the time for spectrum payments from 10 years to 16 years now post- recommendation of the inter-ministerial group. As a result, BSNL can now pay-up from an extended six more years.
Telecom Minister, Mr Manoj Sinha has put the entire allocation process on a fast track with 80-day timeframe to conclude the process that would ensure that BSNL could get spectrum soon. Telecom companies are offering data packs at attractive prices as they are highly popular among customers.
Being a state-run telecom company, BSNL has to ensure to remain affordable in tariff. Unlike private telecom companies, they have a mandate to develop networks in non-profitable areas of the country.
State-run BSNL is trying to compete with private telcos in the fiercely priced-sensitive market in India, which has witnessed consolidation of private telcos after losing revenue and market share post launch of Mukesh-Ambani-run Reliance Jio Infocomm in September 2016.
In the last few months, state-run BSNL has introduced a host of prepaid recharge packs both for calling and data at discounted prices to increase and retain their customer base.