Bharat Sanchar Nigam Limited (BSNL) is averse to rolling out mobile phone networks in Maoist prone zones across eastern, central and southern India, as it feels the project is commercially unviable and will add to its financial losses.

Given that this group is prone to demolish communications infrastructure, such as mobile towers and optical fibre cables network, BSNL?s management feels that investing in capital-intensive network rollout in naxalite pockets will further drain its finances.

BSNL has told the Department of Telecommunications (DoT) that it will execute the project only if it is subsidised completely by the Universal Services Obligation Fund (USOF). However, this may require making changes in the Indian Telegraph Act & Rules.

Besides, BSNL will have to participate in an open bidding process to pitch for the USOF subsidy. The Ministry of Home Affairs, DoT and BSNL are expected to meet soon to calculate the total cost of rolling out mobile networks in the Maoist-affected areas in Chattisgarh, Jharkhand, West Bengal, Orissa and Andhra Pradesh. BSNL has discussed plans to set up 1,721 mobile towers in select naxalite pockets across India with national security agencies.