NEW DELHI: Loss making state-owned telecoms major BSNL has offered to surrender its broadband wireless airwaves to the government after it its plans to rollout WiMAX-based using these airwaves through a franchisee model flopped, an official with direct knowledge of the development told ET.
The telco, whose losses have tripled to about Rs 6,000 crore for 2010-11, had paid Rs 8313.8 crore for broadband access frequencies last year. Top officials in the company told ET that the telco was seeking a refund of the Rs 8313.8 crore it had shelled out for these airwaves, while also adding that the move was a strategic shift towards focusing on its 3G offerings. At the same time, BSNL has also assured the government that it is willing to continue its rural WiMAX offerings as part of its social obligations.
ET has learnt that another reason for the telco offering to return the airwaves was that that it cannot see a business case. It is the only company in India that had committed to the WiMax technology standard for its wireless broadband services even as all other winners of these airwaves had decided to opt for upcoming long-term evolution (LTE) technology platform for their fourth generation offerings. With just a single company adopting the WiMAX platform, BSNL is confronted with the possibility of isolation from an interoperability and roaming perspective. Besides, if BSNL were to offer 4G services on the LTE platform in the future as a natural evolution for its existing customers, the telco will be confronted with a redundant WiMAX network.
But when contacted on this issue, BSNL's chairman and managing director, RK Upadhyay, denied that he had written to the Centre seeking to return its broadband wireless spectrum. Upadhyay said that BSNL was evaluating various options regarding its BWA airwaves, but did not elaborate.
BSNL's attempts to use its broadband wireless airwaves have been engulfed in controversy for the last three years. In 2009, it was forced to cancel its tender for awarding WiMAX franchises after its own investigations revealed that five of the six shortlisted companies - WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways - were acting as 'fronts' for certain individuals.
It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day. BSNL had also come under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. It subsequently awarded contracts to four companies - Teracom, Take Solutions, Adishwar India and Ampoules - after a re-tendering process, but these companies have made little progress in launching full-fledged services. ...ET
The telco, whose losses have tripled to about Rs 6,000 crore for 2010-11, had paid Rs 8313.8 crore for broadband access frequencies last year. Top officials in the company told ET that the telco was seeking a refund of the Rs 8313.8 crore it had shelled out for these airwaves, while also adding that the move was a strategic shift towards focusing on its 3G offerings. At the same time, BSNL has also assured the government that it is willing to continue its rural WiMAX offerings as part of its social obligations.
ET has learnt that another reason for the telco offering to return the airwaves was that that it cannot see a business case. It is the only company in India that had committed to the WiMax technology standard for its wireless broadband services even as all other winners of these airwaves had decided to opt for upcoming long-term evolution (LTE) technology platform for their fourth generation offerings. With just a single company adopting the WiMAX platform, BSNL is confronted with the possibility of isolation from an interoperability and roaming perspective. Besides, if BSNL were to offer 4G services on the LTE platform in the future as a natural evolution for its existing customers, the telco will be confronted with a redundant WiMAX network.
But when contacted on this issue, BSNL's chairman and managing director, RK Upadhyay, denied that he had written to the Centre seeking to return its broadband wireless spectrum. Upadhyay said that BSNL was evaluating various options regarding its BWA airwaves, but did not elaborate.
BSNL's attempts to use its broadband wireless airwaves have been engulfed in controversy for the last three years. In 2009, it was forced to cancel its tender for awarding WiMAX franchises after its own investigations revealed that five of the six shortlisted companies - WiExpert Communications, SV Telecom Systems, Digitelco Communications, Spectrus Communications and Technotial Infoways - were acting as 'fronts' for certain individuals.
It was found that these companies shared the same corporate details, notaries, auditors and dates of incorporation, and even their last annual general body meeting was shown to be held on the same day. BSNL had also come under pressure from its labour unions to scrap the tender following reports of wide-scale corruption in the methodologies adopted to shortlist successful bidders. It subsequently awarded contracts to four companies - Teracom, Take Solutions, Adishwar India and Ampoules - after a re-tendering process, but these companies have made little progress in launching full-fledged services. ...ET
