The Hindu Business Line : BSNL and access deficit

First, about 80 per cent of the capital assets of the BSNL and MTNL was created by the surplus of revenues over expenditure; that is, by subscriber contribution. The rural network and the rest had come to the BSNL without any capital charge.

The revenues from the rural subscribers more than cover the expenses on the operation and maintenance of the rural services, which are no more than 20 per cent of BSNL's total subscribers.

It is now getting compensation from the Universal Service Fund (USF) for whatever low-cost services it is providing in the rural areas.

There is absolutely no reason for subscribers of P-Telcos to subsidise BSNL in any segment.

If it is the policy that BSNL should provide some low-cost services to some people decided by politicians, then the difference between the cost and the revenue must come not from the subscribers of the P-Telcos but from the General Budget or from the high profits of BNSL itself.

It is unfortunate that the owner of BSNL — the Ministry for Communications — appears is concerned only with the profits. In the process, is injustice being done to the P-Telcos and their subscribers?

T. H.Chowdary

Hyderabad

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