At a recent meeting called by the Prime Minister’s Office (PMO) to discuss the issues related to BSNL’s declining revenues and market share, the state-owned operator asked for an exemption from sharing 6-10 per cent of its annual revenues as licence fee l

At a recent meeting called by the Prime Minister’s Office (PMO) to discuss the issues related to BSNL’s declining revenues and market share, the state-owned operator asked for an exemption from sharing 6-10 per cent of its annual revenues as licence fee levy with the government. The proposal, if accepted, will help BSNL save up to Rs 40 billion per year. The PMO also conceded a suggestion for the immediate sale of 10 per cent government equity in the telecom entity. The issue of waiving the levy on fixed line services in rural areas was also discussed at the meeting.

Though the policy change had been approved by DoT, it could not be implemented with effect from January 1, 2010 on account of opposition by the finance ministry. This waiver is likely to result in a further saving of Rs 18 billion for BSNL.