Govt likely to allocate 4G spectrum to BSNL, MTNL by December

The Department of telecommunications (DoT) is working on a proposal for allocation of spectrum in the 2100 MHz band for launching 4G services to state-run operators BSNL and MTNL, and a final decision on the same is expected by year-end. “We have set up an internal committee in DoT which is working on BSNL and MTNL’s proposals for launching 4G services. We expect to take a decision on this by December,” telecom minister Manoj Sinha told FE.

The minister said that the department is working to find solution which is in line with the Supreme Court order of 2012. The apex court had cancelled all the telecom licences and said that spectrum allocation should happen only through auctions.

While BSNL has proposed that it be given 5MHz chunk of 2100 MHz 4G spectrum in 19 cricles, except Rajasthan (where it intends to use own 800 MHz spectrum), for 4G services, MTNL wants 5MHz in Mumbai and 10MHz in Delhi in the 2100MHz band.

MTNL CMD PK Purwar told FE that the operator had roped in consultancy firm Deloitte to prepare a revival plan, which has been submitted to the DoT after approval by the board of directors. “Besides the spectrum to launch 4G services, we have also proposed some measures to revive MTNL. For instance, we have a debt of around Rs 19,000 crore and our monetisable land holdings are worth close to Rs 19,300 crore. So we have proposed to the DoT that they can take away our land and absorb the debt burden. We are paying around Rs 1,500 crore in interest payments alone every year.”

On monetisation of MTNL’s land holdings, Sinha said that the ministry is looking into the matter as there is the subject of land use, which can be changed or altered only by the state government.

Purwar said that while for the land in Mumbai, the issue of change in land use will come as it was given by the Maharashtra government, in Delhi, the land allocated to the operator is mostly owned by central government bodies like the Delhi Development Authority and NDMC on which the Centre can easily take a decision.

Bharat Sanchar Nigam Limited (BSNL)