BSNL to Surrender Broadband Spectrum

By siliconindia   |   Tuesday, 04 October 2011, 00:30 IST
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Bangalore: State-owned telecom major Bharat Sanchar Nigam Limited (BSNL) has decided to surrender its broadband wireless airwaves to the government after the company's plans to launch WiMAX-based airwaves through a franchise model failed, reports Economic Times. Last year the telecom company, whose losses have tripled to about 6,000 crore for 2010-11, had paid 8313.8 crore for broadband access frequencies. Top officials of the company stated that BSNL was inquiring into a compensation of 8313.8 crore it had framed out for the airwaves. The move was a critical shift towards focusing on its 3G offerings. At the same time, the company has also persuaded the government that it is willing to continue its rural WiMAX offerings as a part of its social obligations. The other reason of BSNL offering to rebound the airwaves was that it cannot perceive a business case. It is the only Indian company that had perpetrated to the WiMax technology standard for its wireless broadband services, even as all other winners of these airwaves had decided to pick the upcoming long-term evolution (LTE) technology platform for their fourth generation offerings. The only company to select the WiMAX platform, BSNL had dared with the possibility of solitude from interoperability and roaming perspective. Furthermore, in future if BSNL were to offer 4G services on the LTE platform as a natural evolution for its existing customers, the company will be repelled with a spare WiMAX network.