BSNL to outsource 3G mobile services

State-run telecoms Bharat Sanchar Nigam Ltd plans to outsource its third-generation mobile services and is working on details for a franchisee agreement, the Business Standard reported on Monday.

The company will invite expressions of interest by the end of this month, the newspaper quoted BSNL Chairman Kuldeep Goyal as saying.

The paper said outsourcing would help BSNL reduce investments it needs to roll out the 3G services.

Goyal told the paper the franchisee could be an existing mobile service provider or a company that had not won or bid for 3G spectrum.

The franchisee will manage customer acquisition, marketing and sales of BSNL’s 3G services across the country, he said.

Vodafone and Bharti Airtel paid a combined $5.1 billion for 3G mobile licences in India last month, ending an epic auction that yields a bonanza for a deficit-strapped government.

Relaxation for travel by air to visit Jammu & Kashmir

NO. 31011/2/2003-Estt. (A-IV)

Government of India

Ministry of Personnel, P.G. & Pensions

(Department of Personnel & Training)

New Delhi, dated the 18th June., 2010

OFFICE MEMORANDUM

Subject.: CCS (LTC) Rules, 1988 – Relaxation for travel by air to visit J&K
The undersigned is directed to say that in relaxation of CCS(LTC) Rules. 1988, it has been decided by the Government to permit Government employees to travel by air to J&K as per the following scheme:-

(i) All officers/employees of Government of India will be allowed to avail LTC to visit J&K against conversion of one block of their Home Town LTC.

(ii) Officers/employees of Government of India entitled to travel by air can avail this LTC in their entitled class.

(iii) All other employees of Government of India can travel by air in economy class from Delhi and Amritsar to any place in J&K by any airlines subject to their entitlement being limited to LTC-80 fares of Air India. Journey from their place of posting up to Delhi/Amritsar will have to be undertaken as per their entitlement.

(iv) Restriction of air travel only by Air India on LTC to other places shall continue to remain in force.

(v) This scheme shall be effective from the date of issuance.

2. These orders shall be in operation for a period of two years from the date of issue of this O.M.

3. In their application to the staff serving in the indian audit and Accounts Department, these orders issue on consultation with comptroller and Auditor General of India.

Smt.Rajbala singh

Under secretary to the Govt.of India

BSNL to form IT, tower arms

State-owned Bharat Sanchar Nigam Ltd (BSNL) plans to float a subsidiary for IT application management and development of value-added services (VAS). It expects to tie-up with a large established private sector firm operating in IT management and VAS. It is willing to cede a minority stake to that company.

“This is at a very nascent stage of planning. We are looking at it and some concrete steps are expected to be taken in a few months,” Kuldeep Goyal, CMD, BSNL, told FE.

To create a robust business model for this subsidiary, BSNL will be allowed to allot contract to it without going through the tender process. This will help speed up its decision making capabilities and lead to better and on-time implementation of technological advancements.

The company floated two tenders for implementing ERP solutions and IT coil data recording (CDR) for Rs 400 crore and Rs 800 crore, respectively. These solutions will be implemented by the end of 2010-11.

The company has been also been planning to hive off its tower business. It plans to float a tower infrastructure company in six months to aggressively market its infrastructure to other private players and unlock substantial potential value through a strategic stake sale.

This will also be done to explore possibilities of monetising its tower assets and fiber optic capabilities. “We have signed agreements with almost all major operators for sharing our towers. We are working on making a separate tower subsidiary,” said Goyal.

The company has more than 50,000 towers on a pan-India basis. It has already committed to share 8,000 towers, of which 500 are being shared by private incumbents and new entrants like Bharti Airtel, Vodafone, Idea Cellular, Shyam Sistema Teleservices (SSTL), among others.

In 2008-09, BSNL earned Rs 17 lakh from tower sharing. It targets leasing 11,000 more towers for revenues of about Rs 250 crore. The formation of these two subsidiaries is subject to examination which may also involve Department of Telecommunications and other departments.

BSNL currently has a subscriber base of about 97 million (28 milion wireline and 69 million wireless subscribers). It also has 5.3 million broadband subscribers and is about to launch Wi-Max services.

No 3G fee refund for BSNL, MTNL

NEW DELHI: The finance ministry is learnt to have turned down the demand of state-owned telcos BSNL and MTNL to refund the Rs 29,000 crore both companies had jointly shelled out for third generation and broadband access spectrum, officials with direct knowledge of the development said.

In an unrelated development, the finance ministry has approved a waiver of the Rs 938 crore spectrum usage charge for the armed forces. This was one of the key demands of the defence ministry for vacating 3G airwaves so that this spectrum could be allotted to mobile phone firms for commercial telephony. The Centre will award 3G airwaves to successful bidders on September 1.

Following the conclusion of the auction process, BSNL chairman Kuldeep Goyal in his communication to the telecoms department had sought a refund of the Rs 10,187 crore it had coughed up for 3G. BSNL had argued that while private operators were allowed to choose particular circles during the bidding process based on their business plans, BSNL had been forced to launch high-end services on this platform in all circles, except the metros of Delhi and Mumbai. BSNL had also pointed out that other operators were paying far less for 3G airwaves outside the two metros when compared to the PSU. For instance, Bharti is paying Rs 5,731 crore, Vodafone Rs 5,054 crore, Aircel Rs 6,499 crore, Reliance Communications Rs 2,021 crore, Tata Rs 5,864 crore and Idea Rs 5,769 crore, the PSU added. It has also made a similar representation in the case of broadband spectrum.

MTNL, which offers communication services in Delhi and Mumbai, then demanded any concessions given to BSNL should be extended to it. The telecoms department had forwarded these requests to the finance ministry.

Now, the only option left with the telecoms department is to approach the Union Cabinet seeking a bailout, a move that is unlikely as any refund will be legally challenged by private operators. Private telcos already maintain that the Centre has given a clear first-mover advantage to BSNL and MTNL by awarding them 3G and broadband airwaves 12 months prior to the auction process.

Officials linked with these developments said BSNL will be compensated through other means such as an increased support from the Universal Service Obligation Fund for its unviable rural telephony operations. BSNL receives about Rs 2,000 crore annually from this fund to prop up its rural operations.