NEW DELHI: State-run telecom company BSNL is likely to announce a substantial revenue loss in 2010-11 mainly due to payment it made for buying3G and BWA spectrum and delay in execution of expansion plans.
"The results are being audited. We can not predict the final outcome but price paid for 3G and BWA spectrum is going to hit company's revenue," a senior BSNL official closely involved with the development of financials of the company told PTI.
Government has given a slot of 3G spectrum and BWA (Broadband Wireless Spectrum) to both state-run telecom companies BSNL andMTNL before the auctions were held and they were kept out of the auction process.
The spectrum to both public sector companies was given under condition that the two will have to match the best price paid by the highest bidder in the respective telecom circles.
As a result, BSNL paid Rs 10,186.58 crore for 3G spectrum and Rs 8,313.8 crore forwireless broadband spectrum in mid-2010 after completion of the spectrum auction.
"Despite insufficient reserves, the PSU paid the money as it was not given any time extension. We were also not given option to pick and choose circle as a business case," the official said.
He said that the payment made by the company is going to hit BSNL's top as well as bottom lines.
"We don't expect much decline in revenue from services. There should be hardly drop of 2 per cent but we may see dip in other income," the official said.
Another BSNL official mentioned that cancellation of various tenders for augmenting capacity and delay in equipment procurement for utilising existing capacity is also going to impact revenue of the company.
There are various tenders like managed lease line network,Mpls Based Next Generation Transport (MNGT), mobile network expansion etc which the company have not been able to execute till date. BSNL is losing out opportunity in the market, said BSNL official involved in company's network operations.
BSNL revenue has been declining on yearly basis. In FY'10, the company reported 7.4 per cent decline in total revenue to Rs 27,913.44 crore from 30,169.42 crore. The PSU reported its first loss of Rs 2197.48 crore in FY'10.
The senior official said the dip in revenue is possible but range of decline cannot be estimated at present.
BSNL expects to complete auditing of financial result in August.
"The results are being audited. We can not predict the final outcome but price paid for 3G and BWA spectrum is going to hit company's revenue," a senior BSNL official closely involved with the development of financials of the company told PTI.
Government has given a slot of 3G spectrum and BWA (Broadband Wireless Spectrum) to both state-run telecom companies BSNL andMTNL before the auctions were held and they were kept out of the auction process.
The spectrum to both public sector companies was given under condition that the two will have to match the best price paid by the highest bidder in the respective telecom circles.
As a result, BSNL paid Rs 10,186.58 crore for 3G spectrum and Rs 8,313.8 crore forwireless broadband spectrum in mid-2010 after completion of the spectrum auction.
"Despite insufficient reserves, the PSU paid the money as it was not given any time extension. We were also not given option to pick and choose circle as a business case," the official said.
He said that the payment made by the company is going to hit BSNL's top as well as bottom lines.
"We don't expect much decline in revenue from services. There should be hardly drop of 2 per cent but we may see dip in other income," the official said.
Another BSNL official mentioned that cancellation of various tenders for augmenting capacity and delay in equipment procurement for utilising existing capacity is also going to impact revenue of the company.
There are various tenders like managed lease line network,Mpls Based Next Generation Transport (MNGT), mobile network expansion etc which the company have not been able to execute till date. BSNL is losing out opportunity in the market, said BSNL official involved in company's network operations.
BSNL revenue has been declining on yearly basis. In FY'10, the company reported 7.4 per cent decline in total revenue to Rs 27,913.44 crore from 30,169.42 crore. The PSU reported its first loss of Rs 2197.48 crore in FY'10.
The senior official said the dip in revenue is possible but range of decline cannot be estimated at present.
BSNL expects to complete auditing of financial result in August.
