State-run telecom operator, Bharat Sanchar Nigam Limited (BSNL) is reportedly sought a grant of Rs 20 billion from the central government in return for surrendering spectrum in the 900 MHz band. BSNL has proposed to surrender 1.2 MHz of spectrum in the 900 MHz band in 18 circles. The operator will use the funds to finance additional capital expenditure and network upgradation costs for The company?s move is in line with the latest recommendations by the Telecom Regulatory Authority of India (TRAI) suggesting that the operator free up spectrum for the upcoming auctions in February 2015. Further, TRAI has proposed assigning 1.2 MHz of frequency airwaves to the company in the less efficient 1,800 MHz band in the Gujarat, West Bengal and Rajasthan circles where BSNL’s spectrum holdings are less than 3.8 MHz.
If the recommendations are accepted by the Department of Telecommunications (DoT), then the additional 5 MHz of contiguous spectrum in 900 MHz band will be available for the auctions.
