DoT seeks ministry’s opinion on BSNL’s service surveillance plea

The department of telecommunications (DoT) has sought legal opinion from the law ministry regarding the application of Bharat Sanchar Nigam Ltd (BSNL) for unified access service licence for Delhi and Mumbai circles.

Sources said DoT had asked for advice on whether granting a unified access licence to BSNL would be in conformity with the provision that a service provider does not hold more than 10% in another company in the same circle.

Since the government holds 100% of BSNL and 56.25% in Mahanagar Telephone Nigam (MTNL), which provides basic and cellular services in Delhi and Mumbai, a legal opinion is necessary before the licence application is processed, sources said.

BSNL has sought licences for the two circles stating that since MTNL does not have a UASL licence but separate basic and cellular licences in Delhi and Mumbai, legally BSNL should be granted a UASL. According to BSNL officials, the 10% provision applies in case of UASL licences. Apprehending that using the same logic, MTNL would seek licences for other circles, especially metros like Kolkata and Chennai, BSNL has intimated DoT that it has no objections if MTNL is granted such licences in lieu of it being given licence for Delhi and Mumbai.

These circles are crucial for BSNL’s growth at this stage as they account for about 30% of India's mobile market.