21.04.2014:BSNL unlikely to expand its operations in naxal-hit regions before July 2015

KOLKATA: State-run telecom operator BSNL is unlikely to be able to expand its coverage to nine Maoist-hit states before July 2015, delaying in the process the Centre's plan to beef up the country's internal security preparedness. BSNL was expected to roll out its mobile phone network in these states by September, but it will miss that deadline by at least ten months since it will get to finalise its network gear suppliers only by June, a senior telecom department official said. The company has been unable to fast-track the plan even as the home ministry and the Prime Minister's Office had impressed up the department of telecom to expand mobile coverage to boost surveillance after successive Maoist strikes killed CRPF jawans, and more recently, election personnel. Last month, the Telecom Commission had asked BSNL to invite fresh bids from GSM gear suppliers since earlier cost estimates submitted by the state-run operator were considered "too high". It had even asked BSNL to scrap its earlier tendering exercise even though it had named Delhi-based VNL and Himachal Futuristic CommunicationsBSE 1.97 % as equipment suppliers for the mobile roll-out in Maoist-affected regions. "BSNL has set in motion a fresh tendering exercise, but will open price bids only on May 2 and be in a position to place new purchase orders by late May or early June, said the official, who did not wish to be named. The commission, which is the highest decision-making body in the communications ministry, wants BSNL to ensure that the final project cost is within the Rs3,046-crore limit fixed by the Cabinet last year. This was after the Universal Services Obligation Fund (USOF), fund the proposed mobile roll-out, had dismissed BSNL's 28 per cent cost escalation proposal and had sought the commission's intervention. The USOF is a telecom department arm that subsidises rural network infrastructure roll-outs. The USOF corpus comprises of funds from telecom operators that contribute 5 per cent of their annual revenue to its kitty. "We will comply with Telecom Commission's directions, but will do our best to ensure BSNL is not put to loss since equipment prices have gone up over the past one year and there is scarcely a business case in rolling out mobile networks in such inhospitable regions where there are safety issues and a strong possibility of damage to telecom installations," said a senior BSNL official. BSNL has to establish mobile connectivity in 2,199 regions prone to Left-wing extremism across Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Bihar, Maharashtra, Madhya Pradesh, West Bengal and Uttar Pradesh to improve communications and surveillance operations.