BSNL yet to renew long-expired 2G spectrum licence

Assent for renewal soon, says BSNL; it’s impossible to do away with 2G as most rural areas are still dependent on it, says telecom firm
For representational purposes
For representational purposes

CHENNAI: The  state-owned BSNL’s 2G spectrum licence expired in February this year and it is yet to be renewed,  according to a BSNL official. Sources told Express that talks are  going on with the Department of Telecommunications (DoT) to renew the 2G spectrum licence for another two years.

A BSNL  official from Tamil Nadu circle told Express that DoT is likely to give  its assent for renewal of the licence soon. “We are in the final stages of discussion,” he added. This also comes as a DoT committee recommended that the BSNL should not procure any 2G  equipment, not even for replacement. It is learnt that the committee has  observed that BSNL should migrate all its subscribers to 4G as the 2G  services are expected to go down significantly. 

The BSNL  official told Express that it is not possible to do away with 2G  connection as most of the rural parts of Tamil Nadu are still dependent on the 2G network. Sources said BSNL has written to the DoT, saying that  non-investment in 2G network will put its key revenue stream at risk, and cause a significant disadvantage to compete in the market.

While  the BSNL official refused to discuss the committee report saying that the corporate office will take a decision, it is learnt from BSNL  employees that it will be hard to do away with the 2G network. Sources indicated that many low-income users have shifted to BSNL, which still offers plans that come with a long-term incoming call facility.

It  is learnt that the DoT committee, which has submitted its recommendations for the upcoming 4G tender of BSNL, wanted the telecom provider to emulate countries like Japan, Singapore, South Korea, Norway and Switzerland by doing away with 2G services.

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