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This is an archive article published on May 12, 2005

BSNL gets refunds worth Rs 1,995 cr

State-owned BSNL has been refunded licence fee and spectrum charges worth Rs 1,995 crore for 2004-05, to offset its loss-making rural operat...

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State-owned BSNL has been refunded licence fee and spectrum charges worth Rs 1,995 crore for 2004-05, to offset its loss-making rural operations.

The reimbursement strives to balance an annual outgo of around Rs 2,500 crore as licence fees and spectrum charges from BSNL, that, the government decided in 2000, may make its operations unviable.

The decision was taken in in light of the fact that nearly 85 per cent of the rural communications network is run by BSNL.

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A percentage of revenues of all basic and cellular operators go to the government as licence fee and spectrum charges. Eight to 12 per cent of the revenues, depending on licence category and 2 to 4 per cent of revenue based on spectrum usage go to the government.

BSNL alone is entitled to the refunds, for up to 2007. The Rs 51,600 crore-turnover telecom industry pays about Rs 6,000 crore a year as licence fee, Universal Service Obligation (USO) levy, spectrum charges and dividends.

Besides the Rs 1,995 crore refund, private telecom players owe BSNL Rs 900 crore (as on January 31, 2005) as interconnect user (ICU) charge, infrastructure usage and access deficit charges.

The information was provided by Minister of State for IT and Telecom Shakeel Ahmed in Parliament.

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Some of the bills raised by BSNL to the private sector telecoms, however, have been disputed.

Telecom firms get Rs 1,314 cr from USO

NEW DELHI: Rs 1,314.50 crore has been disbursed to telecom operators in 2004-05 as per the USO that funds rural telephony. So far, Rs 1,814.50 crore has been made available, of which Rs 1,314.50 crore are for 2004-05 alone. For the current financial year, Rs 1200 crore is to be provided to telecom companies with rural networks. BSNL is the biggest user of the USO fund, even as most of the 87 per cent villages covered by telecom networks are BSNL’s. — ENS

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