The Department of Telecommunications (DoT) has given signal to the Bharat Sanchar Nigam Limited (BSNL} to surrender some Broadband Wireless Access spectrum. The purpose of this whole exercise is to allow BSNL to streamline the financial situation to overcome its losses.  

Talking to reporters the telecom secretary, R Chandrashekhar, on Wednesday said that  DoT has agreed  in principle” agreed to the proposal. However, the terms and conditions of the process of returning the spectrum has yet to be decided. BSNL has asked for a refund of the amount it paid for the airwaves.

Chandrashekhar hinted that Airwaves in more than 14 of the operator’s 20 BWA service areas could be returned.

BSNL’s argument is that it purchased the airwaves at much higher price than it actually accepted. BSNL paid Rs10,186.58 crore for 3G spectrum and Rs8,314 crore for BWA spectrum, based on auction prices. “We have held preliminary discussions on the proposal. It was decided that it merited further consideration”, Chandrashekhar said.

BSNL  suffered a loss after tax of Rs 6,384 crore in the twelve months to March 31, having lost Rs 1,822 crore a year earlier.