Only sought equal field, Mittal to Ramesh

Stung by the criticism of Minister of State for Commerce Jairam Ramesh, Bharti Airtel chief Sunil Mittal said his demand for creating a level playing field among private and public sector firms in allocating spectrum for mobile operations was being misunderstood.

Responding to Ramesh's comments that slammed him for castigating state-run firms BSNL and MTNL, Mittal denied criticising the companies, and said he only opposed the report of Telecom Engineering Centre that recommended a spectrum allocation criteria "unheard of anywhere in the world."

"You have picked up the wrong interpretation of my letter (to Department of Telecom secretary D S Mathur) through the newspapers.... My letter does not castigate BSNL nor MTNL," Mittal said in a letter to Ramesh.

Mittal, however, asserted that BSNL and MTNL have been granted more spectrum than the private sector and in excess of the entitlement under government policy. Moreover, the two PSUs have less customers than the private sector and granting them additional airwaves means jumping the queue.

"We are delighted that BSNL and MTNL have been given more spectrum as we support the same, but only demand that the rules be the same for the private sector and thereby ensure a level playing field," he said.

Mittal agreed that public sector firms face many constraints, and are not free to run efficient operations. "I, however, resent your charge that we are lobbying to block competition... We are always willing to face any competition including from some very powerful competitors and many times with our hands tied behind our back," he added.

Ramesh slams Mittal on BSNL comments

Bharti Airtel chairman Sunil Mittal's remarks against BSNL and MTNL have evoked sharp reaction from the government with Minister of State for Commerce Jairam Ramesh slamming Mittal for castigating the PSUs, which were subjected to "aggressive lobbying" from private competitors.

"Public service enterprises have to face many constraints in their operations, not the least being aggressive lobbying by competitors to stymie their expansion," Ramesh said in a letter to Mittal expressing deep disappointment at the entrepreneur's views on BSNL and MTNL.

Mittal had objected to allocation of spectrum to the PSUs, especially BSNL that does not fulfill subscriber-based criteria as prescribed in the current policy.

"I was anguished at your comments on BSNL and MTNL. I am well aware that there are differing opinions on the best way of allocating spectrum. You (Mittal) have a point of view, which you have expressed forcefully. What pained me is the manner in which you have castigated BSNL particularly," the minister said.

BSNL has been facing many hurdles to expand its operations in the mobile telephony, and was reduced with virtually nil capacity to offer any new connection and has been losing its market share to private competitors.

Ramesh also pointed out that PSUs have done far better in meeting social obligations compared to private players and singled out BSNL for appreciation for the role it played.

"I can tell you from my experience, and there are a few who travel regularly across the country as I do, that BSNL has fulfilled a larger social role much more effectively than your own company or any other private service provider," the minister said.