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Indian government returns funds to state-run telecom companies while accepting 4G spectrum

Monday, 13 January 2014 - 4:21pm IST | Agency: DNA Web Team
After facing flak for its faulty and delayed allocation of 2G and 3G spectrum and related scams, government of India finally has finally decided to return funds to two major state-run comapanies BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam limited) while allowing them to return their 4G radio spectrums.

After facing flak for its faulty and delayed allocation of 2G and 3G spectrum and related scams, government of India finally has finally decided to return funds to two major state-run comapanies BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam limited) while allowing them to return their 4G radio spectrums. 

The government of India will finally refund 67.24 billion rupees to BSNL and 45.34 billion rupees to MTNL and accept their 4G radio spectrum with a view to help these companies off-load the financial crisis in the meanwhile. 

The government will refund 67.24 billion rupees to BSNL and 45.34 billion rupees to MTNL in a bid to help them financially while keeping the offer open to accept 4G.

 Information and Broadcasting Minister Manish Tewari told reporters after a meeting of the cabinet about this announcement.  BSNL and MTNL had received the spectrum in 2010 but have never started the services. 

India is in a unique position with regard to video consumption on mobile devices. According to Cisco’s 2013 Visual Networking Index, mobile data traffic in India is projected to reach 900 petabytes per month by 2017, with 60% of that data coming from mobile video alone.

"According to a recent study of Indian mobile networks by Skyfire 83% of 3G users experience at least some stalling while trying to watch a video. India’s 2G networks fared even worse for mobile video as over 99% of users experienced at least some stalling" says Sunil Kamath, Vice President for South Asia, Opera Software. 

With video consumption clearly skyrocketing, we need mobile networks that are capable to provide users with a stall-free mobile video viewing experience.

"Availability of 4G  services will certainly be a step towards better networks and increasing usage of mobile data," adds Kamath. 

Hence, it becomes highly important that 4G be launced sooner in India to increase internet penetration and put India on the path to technological revolution.

Also read: Reliance Jio Infocomm demos 4G LTE for the first time in Mumbai


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