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Rediff.com  » Business » 3G: BSNL, MTNL asked to pay Rs 16,751 cr

3G: BSNL, MTNL asked to pay Rs 16,751 cr

Source: PTI
May 21, 2010 18:50 IST
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The government is understood to have asked Bharat Sanchar Nigam and Mahanagar Telephone Nigam to pay Rs 16,750.58 crore for the 3G spectrum in their possession within the stipulated 10 days of the close of auction.

The Department of Telecom has written a letter to BSNL and MTNL asking them to pay Rs 10,186.58 crore (Rs 101.87 billion) and Rs 6,564 crore (Rs 65.64 billion), respectively, for the 3G spectrum in their respective areas of operations, sources in the know said.

The two PSUs, however, when contacted, said they are yet to receive any communication from the DoT and would decide once they receive such a demand.

Asked whether they would make the payment within 10 days as per the payment schedule, both (BSNL and MTNL) replied cryptically saying an appropriate decision will be taken at an appropriate time.

BSNL and MTNL got 3G spectrum much ahead of private players and both PSUs are supposed to pay as per the final bid of the auction. MTNL offers services in Delhi and Mumbai while BSNL in rest of the country.

As per the final bid of 34-day long auction, which closed on May 19, the bid for Delhi stood at Rs 3,316.93 crore (Rs 33.17 billion) and Mumbai at Rs 3,247.07 crore (Rs 32.47 billion) and all-India bid was Rs 16,750.58 crore (Rs 167.51 billion).

When contacted, BSNL CMD Kuldeep Goyal told PTI that "once we receive the communication, we shall discuss internally and decide." He had said yesterday that BSNL had not sought any exemption from paying the spectrum fee.

Similarly, an MTNL official said "as and when we are asked by the DoT, we shall take an appropriate decision".

Both PSUs were given 3G spectrum almost a year ahead of private operators to overcome the nitty-gritties of the complex tendering process. The private operators, who recently concluded the auction, would be given spectrum in September this year.

Sources said that the DoT has also sent a formal communication to other operators who have won the bid in respective circles.

As per the Notice Inviting Applications, issued by the DoT before auction, all the winners are supposed to make 100 per cent payment within 10 days of close of auction.

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