DoT protests govt plan to switch off

The Department of Telecommunications (DoT) has decided to confront the finance ministry over its recent recommendation that the government ministries, officials and departments be permitted to use the services of any telecom operator.

While seeking that the government continue with its existing policy of Bharat Sanchar Nigam Ltd (BSNL) being the preferred communications service provider in respect of all government agencies, the DoT has also said that the move to allow private players could lead to security concerns.

"The issue is not about the revenue loss that BSNL may incur on account of private telecom operators offering services to government agencies, but about the network security," DoT officials said.

"We are set to request the finance ministry to remove clause 5 of the instructions dated November 23, and maintain the current status, on account of security issues," DoT sources added.

The move follows a strongly-worded communication from BSNL Chairman A K Sinha to the government, where he had said "...the denial of preferred status of communications service provider in respect of all government agencies would lead to the weakening of the PSU."

"Survival and growth of BSNL is extremely important to promote competition and protect customer interests in the country, which are the larger objectives of the government," Sinha had said.

The DoT is also likely to highlight BSNL's contention that it was a 100 per cent government-owned company and that "all private telecom operators followed a policy of using their own telecom services for all communications across their various units," sources said.

It may also be pointed out to the finance ministry that "initiatives of the PSU such as rural connectivity, are executed as part of state obligations and not as commercial objectives, and profitability is not the major determinant parameter for these," sources added.

Sinha in his letter had accused the government of adopting double standards vis-à-vis the state-owned service provider, and said, "While on one hand BSNL has been used as a tool for implementing socially desirable but commercially non-feasible initiatives by the government, on the other hand, it has been denied the privilege of having the status of preferred service provider for the government sector."

"BSNL is also expected to compete with other private operators, on an unequal playing field, where the procurements as well as operations are absolutely unencumbered by any obligations other than commercial interests," Sinha had added.

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DONT' HANG UP

DoT wants BSNL to continue as the preferred communications service provider for all government agencies

It says allowing private players may lead to security concerns

BSNL says it is expected to compete with other private operators on an unequal playing field

Initiatives like rural connectivity undertaken as state obligation and are not commercial objectives, it argues