Category Archives: Telecom

Issues connected with telecom matters

Government to give loan to BSNL and MTNL to pay salary

01 Saturday Feb 2014

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The Empowered Group of Ministers (EGoM) on Revival of BSNL and MTNL has decided that in case required, government will give loans to BSNL and MTNL to pay salaries to the BSNL/MTNL absorbed DOT employees. This was decided on the basis of the suggestions by the DOT in this respect.
The government is fully responsible to pay the salary of the BSNL absorbed employees, since had they been in DOT itself, without considering the profit or loss, they would have been paid salary by the Government itself. Take the case of Department of Posts or any other department. Salary is paid irrespective of profit or loss. The BSNL or MTNL employees are not the responsible persons for the profit and loss and they should not be penalised.
The decision of the EGoM is only common sense. But our demand is that the Government, instead of giving loan, should provide the required amount for paying salary as assistance. This will be justice only.

Spectrum Auction – Telecom companies happy with 5% charges.

31 Friday Jan 2014

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As was expected, none of the private telecom companies have withdrawn from the spectrum auction. All the companies which have registered for auction will participate.
They are Bharti Airtel Ltd, Vodafone, Reliance Jio Infocomm Ltd, Idea Cellular Ltd, Telewings (Uninor), Reliance Communications Ltd, Tata Teleservices Ltd and Aircel Ltd. they are in race to bid for about 403 MHz of airwaves in 1,800 MHz band and 46 MHz spectrum in 900 MHz band.
The decision of the EGoM to charge 5% for the spectrum seems to have satisfied all. Compare this with the 3% recommended by TRAI. Almost all decisions of the TRAI seems to be pro-private.

BSNL proposes to encash its land assets.

31 Friday Jan 2014

Posted by in BSNL News, Telecom, TU News - Telecom specific

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It is reported that BSNL is proposing to monetise its land assets in Mumbai and Delhi and other parts of the country to make up for the loss of last four years and for development and expansion. Immediately the proposal is with regard to the 37 acres in Borivali, 6.63 acres in Santa Cruz, 25.5 acres in Deonar (all in Mumbai) and 1.48 acres in Sector -33, Noida and 0.84 acres in Sector-18 Noida (all in Delhi). BSNL projects to use these for housing and commercial purposes.
According to the reports, the assets of the BSNL land all over India comes to about Rs. 13,500 crores. (This can not in any way be correct. BSNL has land all over India, in all places in the centre of the towns/cities. The land value will be more than 10 times more than this at the least).
The question is how these lands will be used? Whether lease it or sell it? Or whether develop by BSNL and rent it?
We are of the strong opinion that these issues should be discussed with the recognised unions/Forum of BSNL Unions/Associations, before embarking on the project. The pros and cons of the entire project is to be decided and if it is to be implemented, it has also to be ensured that it has to be done in a very transparent way to avoid corrupt practices.

Vodafone – How many tax cases?

30 Thursday Jan 2014

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How much the MNCs are cheating the government on taxes etc. is not fully known. But the following case is an indicator. The MNC is the telecom giant Vodafone.
There is already a tax case which is in talks to settle for an amount of Rs.13,000 crore with regard to its purchase Hutchinson stake in 2011. Secondly there is another tax case worth Rs. 3,700 crore with regard to sale of its Pune BPO arm which is in the court. Now the IT Department has put another tax demand of rs. 3,000 crore for an alleged transfer pricing case of 2010-11.
It is no wonder that telecom companies like Vodafone are getting profits after profits. They are continuously avoiding taxes and if notices are given they manage the government through politicians and bribing.
The casualties are PSUs like BSNL and MTNL which obeys the rule of the government.

TRAI Clears Spectrum Trading Guidelines

28 Tuesday Jan 2014

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The TRAI has issued the guidelines on 28th January for trading of spectrum, which the private companies have been demanding for a long time. According to these guidelines the telecom companies can buy and sell spectrum which they have bought from the government through auction or by paying market prize. It is feared that this decision may adversely affect BSNL and MTNL, the telecom PSUs.

EGoM decides for 5% fee as spectrum charges

28 Tuesday Jan 2014

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The Empowered Group of Ministers(EGoM) headed by Finance Minister,which met on 27-01-2014 decided to charge 5% fee as spectrum charges. Earlier it was from 3% to 8% according to the usage. The Broadband Spectrum charges will continue 1%, who have already got the same.
While the Reliance Jio has welcomed the decision, the COAI which includes Reliance, Vodafone etc. has protested against the same depending upon their own interests.
However, it is a fact that the present decision of the government favours the private companies more or less. How it will affect BSNL and MTNL has to be examined.

EGoM will decide on Spectrum Charges on 27th Meeting

25 Saturday Jan 2014

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On the basis of the recommendations of the TRAI and on its own consideration, the Telecom Commission has recommended three methods of charging spectrum, which the Empowered Group of Ministers (EGoM) are expected to consider and take decision in its meeting to be held on 27th January. The private telecom companies have been pressurising the government to reduce the charges to the lowest %. No doubt, the government will be favourable to them, as in the past.

MTNL offers free roaming between Mumbai and Delhi

24 Friday Jan 2014

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MTNL will be offering free incoming roaming between Delhi and Mumbai. Both are controlled by MTNL.The decision is expected to be announced and will be implemented from 26 th January 2014 as per reports.

Delay in NOFN can not be appreciated

22 Wednesday Jan 2014

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The media has reported that the National Optic Fibre Network is being delayed due to delay by BSNL,Power Grid and Railtel to lay the cables. This gives a wrong signal that even such an important programme is not being executed even after the funds have been allotted.
The plea that tender could not be finalised for laying cable so far can not be accepted. These are national projects for which BSNL will be getting some funds. It is reported that Rs. 2700 crores is already allotted to the three companies of which 70% comes to BSNL.
BSNL Has to be active and vibrant. It can not function as a government department.

Rs. 4,800 crore loss to Government in allotment of spectrum to Reliance Jio.

20 Monday Jan 2014

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Another scam on spectrum allotment has been exposed by the CAG. The report charged the government with allotting spectrum to Reliance Jio below value which resulted in Rs. 4,800 crore to government.
The report stated” Due to the provision of inadequate eligibility criterion for the participation in the auction of BWA spectrum and deficient due diligence on the part of the DOT Officials, the promoters of IBSPL.. made windfall gain of Rs. 4,800 crore at the cost of public exchequer immediately after closure of BWA Spectrum auction in June 2010.”

The full details of scam is going to be exposed.