BSNL bosses are in big trouble! Communications Minister Kapil Sibal has pointed out that BSNL has given costly BWA Spectrum almost free to the franchisees on revenue sharing basis causing huge loss to the BSNL.

BWA Spectrum is used for Wimax services. BSNL had already paid about Rs. 8000 crore as entry fee to the government for BWA Spectrum. This valuable spectrum has been given by BSNL  to four franchisees (companies) for running wimax services  on condition of revenue sharing without any entry fee or other charges.This according to reports will allow these companies access to about 50,000 towers 20,000 office premises of BSNL!

It is reported that Kapil Sibal has written to Secretary DOT as follows: ” It has been pointed out that ‘cheap access’ has been provided to these franchisees by BSNL, including costly Broadband Wireless Access (BWA, the technical name for Wimax) spectrum in metropolitan cities for which BSNL has already made massive upfront payment”. Kapil Sibal added ” These shell companies (franchisees) are reportedly more interested in selling their stake to potential buyers rather than broadband network roll-outs. As a result, the commercial/financial interests of BSNL has been sacrificed during the selection of Wimax franchisees last year.”

BSNL Management is in real trouble. Let us see what the Management has to say. It has however become clear that the BSNL interests are being sabotaged.( Based on report in Hindustan Times dated 08-02-2011