The Department of Telecommunications (DoT) may provide Bharat Sanchar Nigam Limited (BSNL) with financial compensation for maintaining un-remunerative services, say news reports. Alternatively, DoT may ask the incumbent to decide whether it wants to to continue or exit such services.
Prior to this, the incumbent had requested DoT for a Rs 40 billion subsidy for the current financial year to meet its operational costs. BSNL’s current subsidy period ended in July, 2011.
The operator has registered heavy losses to the tune of about Rs 60 billion in 2010-11.
In an attempt to stem its losses, the incumbent had offered to surrender its BWA spectrum in 17 circles. The operator had also asked DoT for a refund of Rs 83.13 billion.
Also, BSNL had asked if it could retain spectrum in Maharashtra, Andhra Pradesh,
