WiMAX deal: CBI raids BSNL, StarNet

NEW DELHI,INDIA: India’s federal investigating agency, Central Bureau of Investigation, has raided various locations across Tamil Nadu, Haryana and Delhi in connection with alleged BSNL-WiMAX deal. The agency on Saturday searched residences of BSNL and Starnet Communications officials in four cities.

After preliminary enquiry, the CBI has registered a case, although former telecom minister A Raja has not been named in the FIR. The sources say that Raja forced state-owned BSNL to ink a deal with StarNet to obtain WiMAX technology.

The private firm had fudged its balance sheet to procure the letter of intent from BSNL. Nine teams of CBI are involved in search operations and questioning officials of both companies at Delhi, Gurgaon, Chennai and Kolkata.

Speaking to CIOL, WiMAX Forum's Regional Director (India) Shyam Kaushal said that in 2010 the franchise for WiMAX technology was awarded. “Besides StarNet, other companies such as Teracom and Take Solutions were given franchise,” he said.

Also read: WiMAX: Former BSNL chairman under scanner

The permission was revoked, while StarNet finally managed to get franchise through a court intervention, informed Kaushal. StarNet was allowed to offer services in three circles in Haryana, Himachal Pradesh and Tamil Nadu.

Under the franchise model, BSNL was required to offer desired WiMAX spectrum while the private firms were asked to create infrastructure for WiMAX services in various telecom circles.