Telecom Lead India: TRAI has proposed providing a financial support of Rs 2,750 crore to the
state-run BSNL for two years to maintain rural wireline connections that were
installed before April 1, 2002.
Support to BSNL may be continued for two years for sustenance of rural wireline
connections installed before April 1, 2002, according to TRAI.
DoT had sought TRAI’s views on continuation of support from
Universal Service Obligation Fund (USOF) towards the rural direct exchange
lines (DELs) on expiry of Rs 2,000 crore per year subsidy in July 2011.
TRAI had recommended a subsidy of Rs 600 crore to the cash-strapped BSNL on an
ad-hoc basis in March this year.
BSNL gross revenue plunges 11% to Rs 4,166 crore in Q3
BSNL has posted gross revenue of Rs 4,166.73 crore for the
quarter ended 31, December 2011, down 11.19 percent against Rs 4,691.86 crore
for the quarter ended 30, September 2011. For the quarter ended 31
December 2010, the Indian Government owned BSNL’s gross revenue stood at Rs
4,294.59 crore.
During the quarter ended 31, December 2011, BSNL’s wireless
subscriber base stood at 96.76 million, increased 11.59 percent against
subscriber base of 86.71 million for the quarter ended 31, December
2010. On the other hand, for the same period BSNL’s wireline subscriber
base stood at 23 million, declined 10.31 percent, compared to 25.65 million for
the quarter ended 31, December 2010.
TRAI said that the amount of support may be Rs 1,500 crore
for the first year and Rs 1,250 crore for the second year.
TRAI has sought comments from stakeholders on the issue by May 2. It has also
asked whether the support should be given from the USOF or from the Consolidated
Fund of India (CFI).
TRAI had recommended the Rs 600 crore subsidy from the USOF as an ad-hoc
measure since the issuance of the consultation paper and the process would take
time.
TRAI has estimated that BSNL’s annual deficit for maintaining rural wireline
connections installed before April 1, 2002 to be Rs 1,593 crore for FY2011-12
and Rs 1,265 crore for FY2012-13, taking into account the trend of
disconnection of rural wireline connections.
BSNL, as per TRAI recommendations, had received Rs 2,000 crore per year from
USOF for a period of three years from July 18, 2008 to July 17, 2011 on phasing
out of Access Deficit Charge (ADC) for sustaining its loss-making landline
business across rural India, according to PTI.
