BSNL unions demand refund of Rs 18,500 cr, threaten strike

Asserting that it was forced to pay a whopping Rs 18,500 crore for 3G and Broadband spectrum, the employees associations of BSNL today asked the government to refund the money and threatened to go on strike if the demand was not met.

The Joint Action Committee (JAC), represented by three lakh executives and non-executives of BSNL, has called a convention on Monday, demanding the refund of the spectrum money as well as exempting the PSU from paying license fees on fixed lines, among other concessions.

According to them, BSNL was not given the option to bid and choose circles of its choice like other private players. Rather, it was given spectrum for all the circles barring Delhi and Mumbai (where another PSU, MTNL, got the radio waves) and asked to match the winning bid.

The union is likely to call for a three-day sit-out strike from September 21 to register their protest in case the government fails to resolve the issues. They will go on an indefinite strike in case the government fails to meet their demands in totality within a reasonable timeframe.

"BSNL has been arbitrarily forced to pay on 3G and BWA airwaves in total contravention of the provisions envisaged in National Telecom Policy, 1999.

"Blatant discrimination meted out by insensitive and indifferent bureaucracy in DoT to BSNL by depriving it of legitimate opportunity to bid for choice of circles of commercial potential deserves strongest condemnation," representatives from the Sanchar Nigam Executive Association (SNEA), an executive association of BSNL, told PTI.

Earlier, Telecom Minister A Raja had asked Finance Minister Pranab Mukherjee to refund the spectrum fee of over Rs 29,598 crore to BSNL and MTNL, citing precedents and their social responsibility, including rural connectivity.

Raja had emphasised that in terms of the New Telecom Policy, 1999, BSNL (then DoT) was not required to pay an entry fee for Cellular Mobile Licences, which were bundled with initial spectrum of 4.4 Mhz. BSNL was also exempted from payment of 2G spectrum charges of Rs 1,650 crore in view of its immense social and rural obligations.

Besides the refund of spectrum charges, the union also demanded that the BSNL management should get complete freedom to decide and finalise its commercial and business policies and procure equipment without any political or bureaucratic interference.

Other demands include absorption of ITS officers and compensation of BSNL through a levy (known as Access Deficit Charge) to offset incredibly huge losses it has incurred to meet its obligation of deploying infrastructure and offering services in remote parts of the country at subsidised rates.