BSNL may incur losses, thanks to Dept of Telecom

All because the PSU did not question or go to court against a Department of Telecom decision to hike spectrum charges.Paying the new spectrum charges will mean an annual financial implication worth over Rs 700-800 crore for BSNL, which might leave it poorer by Rs 800 crore per annum. This, when it is anticipated to report a loss for the last fiscal, for the first time in history.

BSNL’s dilemma comes despite the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) asking the DoT to collect existing spectrum charges from petitioners till it took a decision on the plea by private players against the hike in spectrum charges. 

n February this year, the DoT had issued orders hiking spectrum usage charges (ranging between 1-2 per cent) for all mobile players (GSM and CDMA) as per the spectrum being held by them. The hike was supposed to be in force from April 1, 2010.

As per the TDSAT order, private players continued paying the old charges, while BSNL went on paying the hiked charges. The PSU’s fault was it did not plea before court nor did it question the government order. It being a 100 per cent government-owned company, it could not question the parent body’s decision.

Yet several pleas were made by BSNL Chairman and Managing Director, Kuldeep Goyal, to the DoT seeking the exemption as per the TDSAT order. In his letter to Telecom Secretary, P J Thomas last month, BSNL CMD said, “Being a 100 per cent government-owned PSU, BSNL would not like to challenge the order of DoT for hiking spectrum usage charges. Therefore, it is requested to kindly extend the benefit of TDSAT orders to BSNL also, in order to protect its interests and ensure level playing field.”

But the plea fell on deaf ears.   
Shocked at the government’s response, the PSU executives have decided to take the issue to the court. “Despite the company facing financial difficulties, we are being forced to cough up money. We will ask the Centre to exempt us from paying the hiked charges. If we fail to get justice, we have no option but to move the court,” said Sanchar Nigam Executives Association (India) General Secretary, G L Jogi.