The Hindu Business Line : BSNL, MTNL back spectrum allocation policy

BSNL in this context would like to clarify that the spectrum, which has been allocated to the company in its various licence service areas, was justified on the existing norms.

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New Delhi, Nov. 2 State-owned telecom majors Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd on Friday came out in support of the Government’s spectrum allocation policy.

They also said that the allegations made by Mr Sunil Bharti Mittal, Chairman, Bharti Airtel, that the two PSUs were using spectrum inefficiently were not justified.

“BSNL would have preferred that no aspersions/comparison is drawn on the allocation to other operators keeping in view the healthy competitive atmosphere which has been prevalent in the industry. BSNL in this context would like to clarify that the spectrum, which has been allocated to the company in its various licence service areas, was justified on the existing norms. BSNL has already made use of the spectrum and subscribers are being serviced. BSNL is also paying the applicable spectrum charges towards this allocation,” said Mr Kuldeep Goyal, Chairman and Managing Director, BSNL.

He was responding to a letter written by Mr Mittal to DoT on Thursday in which the Bharti chief had said that MTNL and BSNL have been doled out additional spectrum even when they have not fulfilled the subscriber base criteria as per the current policy.

Mr Mittal had also said that DoT should take away excess spectrum from the PSUs and make them examples of efficient usage of radio frequency. In response, BSNL said it was an efficiently run company and had captured number one position in the GSM market within six months of launch of its mobile services.

“We are the largest telecom operators providing the services in far flung and difficult areas of the country at most affordable and transparent tariffs. That is why BSNL is able to cover maximum rural areas where other private telecom operators find it commercially unviable to serve,” Mr Goyal said.

MTNL issued a press release which stated that its launch of mobile services was delayed due to various court cases filed by private operators. It also said that being a late entrant, it was at disadvantage since it was given spectrum in the 1800 Mhz band whereas private operators were given capacity in the more efficient 900 Mhz band.

“There is no question of any favouritism. MTNL considers spectrum as a precious sacred national resource, which needs to be utilised properly, uniformly and efficiently. Accordingly, MTNL is in agreement with and welcomes the proposed spectrum policy of the Government for the cellular service providers,” it said.