3G: BSNL, MTNL not to seek concessions

NEW DELHI, INDIA: State-run telecoms firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) said that they have not sought any concessions from the government for third-generation (3G) spectrum payment.

"We have enough reserves to pay for 3G spectrum," said Kuldeep Goyal, chairman of BSNL.

The state-run telecom firms, which already run 3G services, are expected to match the highest bid price paid by the private mobile operators for 3G spectrum.

BSNL is the fourth-largest mobile operator in India, the world's fastest growing mobile phone market with some 500 million subscribers and adding roughly 16 million new users a month. 

MTNL chairman and managing director Kuldip Singh also said the state-run telecom operator has not sought any concessions from the government on the auction price for 3G spectrum.

"We are not seeking any concessions. We are still discussing things with the board and the government," Singh told IANS.

MTNL has already been allotted 3G spectrum but it has to match the auction price of Rs.6,564 crore for its two circles of Delhi and Mumbai.

Singh also said that no decision had been taken on the proposed MTNL-BSNL (Bharat Sanchar Nigam Ltd) merger. With both players losing market share to private players, there is pressure on the two to improve profitability.

The two companies have been exploring the possibility of a merger for the last two years, but differences related to management, employee compensation and holding structure have put the deal on the backburner.

"The government will decide on this. There is no decision as of now," said Singh.

MTNL is also hoping that revenues from 3G services, broadband Internet and its enterprise business will help the company recoup the Rs.2,500 crore loss posted in the previous financial year.

"There was lot of provisioning last year and that's why we incurred losses. This year we are looking at additional sources of revenue from enterprise business, mobile applications, and broadband," Singh told IANS.

"There is so much of pressure on revenues because of falling tariffs that we want to increase our customer base in 3G and wireline broadband and take it to 2 million subscribers this year."

Currently the company has about 375,000 customers using its 3G services and 800,000 subscribers for broadband wireline.

(With input from Reuters)