JOINT ACTION COMMITTEE OF BSNL ASSOCIATIONS / UNIONS OF EXECUTIVES AND NON-EXECUTIVES D-7, Gole Market, New Delhi - 110001 JAC/ GL 24-06-2010 To Thiru A.Raj Hon'ble Minister of Communications & IT, Government of In New Delhi 110001 camp at Coimbatore. Sub: Procurement of additional mobile lines and Waiver / Reimbursement of 3G and BWA Spectrum charges to BSNL Respected Sir, We would like to place before you the following issues which have got crucial connection with the development and expansion programmes of BSNL and its financial viability for your kind consideration. 1. Procurement of additional 10 million mobile lines for BSNL. BSNL which was number one in total lines and second in mobile lines and which was competing aggressively for the first position till 2006, lagged behind afterwards mainly due to capacity crunch as the 45.5 million tender was reduced to half and procurement delayed. The next tender for 95 million mobile lines also had the same fate of being cancelled completely. After the 20" April 2010 strike, it was assured that in addition to the 20 million lines available at present, another 10 million lines will be procured this, year to pass over the capacity crunch. But unfortunately, the BSNL management has decided to procure only 5.5. million lines. It is very much necessary that the entire 10 ion lines be procured so that there is no capacity crunch and more connections can be ven, 2, Reimbursement / Waiver of 3G and BWA Spectrum charges to BSNL We are happy that the Government will be getting a substantial amount through the auction of the 3G and BWA Spectrum auction. However, BSNL has been asked to pay the maximum for both the spectrums even though it was not a party in the auction and could not select the circles it required on the basis of market, which the private companies were able to do. BSNL has already paid Rs, 10,178 crores for 3G and is asked to pay Rs. 8313 crores for BWA spectrum, coming to a total of Rs.18,500 crores. Thefinancial viability and the cash balance of BSNL will be reduced to such an extent that by 2011, the company will be in loss. BSNL is the government PSU which has to implement the socio-economic commitment of the Central Government to provide connections in villages and remote areas where the private companies are not at all interested being non- profitable areas. Under these circumstances, we request you that you may kindly take a decision to waive the spectrum charges for the BSNL and reimburse the amount already paid by it. We hope your kind self will consider the above matters sympathetically and take necessary decisions which will benefit the telecom PSU, in the larger interests of the country. Thanking You, Yours Faithfully, art _ 2p Ar 7 _——— V.AN.Namboodiri Convener, 78 Joint Forum of BSNL Unions Phone: 011-23343388 Mob: 9868231431