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3G Spectrum price goes up, BSNL's IPO plans put on hold
By siliconindia
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Thursday, 23 September 2010, 21:18 IST
Bangalore: The Department of Telecommunications is looking towards a healthy financial situation before going ahead with BSNL's planned initial public offering. Unexpectedly high bid price of 3G spectrum, made it difficult for BSNL to recover the money estimated earlier. Moreover, the unions are still opposed to the IPO plan.
For the first time, BSNL has posted losses of 
1,823 crore for 2009-10. The company had recorded a profit of 575 crore in 2008-09. The drastic reduction in rates with tough competition impacted the growth of the company. BSNL had paid Rs 10,186.58 crore for acquiring 3G spectrum.
Declining revenues primarily because of losses from its landline services and a higher wage bill due to arrears that had to be paid on the Pay commission recommendations were considered to be the major reasons. BSNL's 3G mobile services have not done well and the company has managed to garner only a small subscriber base.
The Pitroda panel had suggested 30 percent disinvestment in phases, among other things. The disinvestment proposal was met with stiff opposition from the employees' unions and associations of BSNL. The government has been planning an IPO for BSNL since the last three years.DoT has also constituted an internal committee headed by Member (Services) to look into the recommendations of the Pitroda panel.
1,823 crore for 2009-10. The company had recorded a profit of 575 crore in 2008-09. The drastic reduction in rates with tough competition impacted the growth of the company. BSNL had paid Rs 10,186.58 crore for acquiring 3G spectrum.
Declining revenues primarily because of losses from its landline services and a higher wage bill due to arrears that had to be paid on the Pay commission recommendations were considered to be the major reasons. BSNL's 3G mobile services have not done well and the company has managed to garner only a small subscriber base.
The Pitroda panel had suggested 30 percent disinvestment in phases, among other things. The disinvestment proposal was met with stiff opposition from the employees' unions and associations of BSNL. The government has been planning an IPO for BSNL since the last three years.DoT has also constituted an internal committee headed by Member (Services) to look into the recommendations of the Pitroda panel.