World VoIP NewsBSNL may see licence fee exemption to help improve fortunesBSNL may see licence fee exemption to help improve fortunes

BSNL may see licence fee exemption to help improve fortunes


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Indian state-owned telco Bharat Sanchar Nigam Ltd (BSNL) may be granted an exemption from paying between 6% and 10% of its annual revenues as a licence fee, the Economic Times reports.
Indian state-owned telco Bharat Sanchar Nigam Ltd (BSNL) may be granted an exemption from paying between 6% and 10% of its annual revenues as a licence fee, the Economic Times reports.

It is understood that such a move is being considered after the operator presented a case to the Prime Minister’s Office (PMO) earlier this week with a view to improving its standing in the Indian telecoms sectors, less than a month after it was revealed that Idea Cellular had overtaken BSNL as the third largest operator by subscribers in the wireless sector. With the government also having pressed BSNL over meeting financial targets, it has also been mooted that a sale of an approximate 10% stake in the operator could be considered.

Commenting on the meeting between the operator and the PMO, Andimuthu Raja, India’s communications minister said: ‘We discussed with the PMO about the licence fee waiver for BSNL. As the first step, we sought the waiver for fixed line services in rural India. We had already approved this policy change, but it could not be implemented (due to objections from the finance ministry).

The rural licence fee waiver alone will enable BSNL to save about INR18 billion (USD390.5 million) annually.’ On the back of this initial conference the PMO has now called for a meeting with the Ministry of Communications and Information Technology to discuss BSNL’s current situation with reference to both its declining revenues and market share.


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