NEW DELHI: Blaring its disgust at operating as a social workhorse without compensation, BSNL has bluntly told the government that it will continue building wireless internet services across rural India only with a grant of Rs 2,395 crore more to support an unviable business.
The state-owned telecom company has written to the telecom department it is against rolling out services on the WiMAX technological platform without adequate financial support. ET has seen a copy of the letter dated September 29.
BSNL’s move, unusual for a state-owned company, is a sign that it has had enough of fulfilling the government’s social obligations without rewards. Though it made several threats in the past to stop its unviable businesses in rural India, including the subsidised landline connections it offers there, this is the first instance of the telco stopping a project rollout on the grounds that it did not make commercial sense.
BSNL’s grouse is that the work-without-pay culture to run unviable businesses that incur huge capital and operational expenditure has led to significant losses. The company posted a loss of Rs 1,822.65 crore for the year to end March, a first in its history.
The state-owned telecom company has written to the telecom department it is against rolling out services on the WiMAX technological platform without adequate financial support. ET has seen a copy of the letter dated September 29.
BSNL’s move, unusual for a state-owned company, is a sign that it has had enough of fulfilling the government’s social obligations without rewards. Though it made several threats in the past to stop its unviable businesses in rural India, including the subsidised landline connections it offers there, this is the first instance of the telco stopping a project rollout on the grounds that it did not make commercial sense.
BSNL’s grouse is that the work-without-pay culture to run unviable businesses that incur huge capital and operational expenditure has led to significant losses. The company posted a loss of Rs 1,822.65 crore for the year to end March, a first in its history.
Read Complete News here
No comments:
Post a Comment