TRAI recommend Rs. 600 Crore subsidy to BSNL

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16 Feb 2012
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Telecom Regulatory Authority of India (TRAI) recommended a subsidy of Rs 600 crore to BSNL for its Wireline rural operations across india. The subsidy would help BSNL in maintaining rural wireline connections installed before April 1, 2002. "Keeping in view the urgency of matter, considering that it would take some more time to issue a consultation paper and that time would also be taken in consultation process, the Authority recommends that a subsidy of Rs 600 crore purely as an ad hoc measure may be given to BSNL," TRAI said in a statement.
The Department of Telecom ( DoT) had sought TRAI's recommendations regarding continuation of support from Universal Service Obligation Fund (USOF) towards the rural direct exchange lines (DELs) on expiry of Rs 2,000 crore per year subsidy on July 17, 2011. TRAI said that it has recommended the subsidy from USOF as it is not easy for the government to arrange additional funds for this purpose through the normal budgetary process. The arrangement however would be purely on ad hoc basis. BSNL,had received Rs 2,000 crore from USOF for a period of three years from July 18, 2008 to July 17, 2011but on its expiry it had demanded 2,580 crore per year from USOF. It sought the assistance to cover up the deficit related to commercially non-remunerative on phasing out of Access Deficit Charge ( ADC) for sustaining its loss-making landline business across rural India. This might give some relief to BSNL to continues its telecom operation in rural areas, which cost more than Rs. 16000 Crore to BSNL in FY09-10. But billion dollar question is "Is Rs. 600 Crore enough to Continues BSNL's loss making rural operations, which is backbone of Government's various e-Governance projects & other rural empowerment projects specially for rural area.
They are making loss for Rural business, but they are also ripping off irban customers...

I think there is absolutely no need to subsidise BSNL when their officials are making bad moves and implementing wrong business tactics always...
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