Military network by BSNL gets major boost

In a bid to speed up vacation of additional spectrum by the defence establishments, the government is all set to approve around `5 000 crore additional fund, which will be over and above `9,175 crore already cleared, for setting up a dedicated alternative communication network for the Army, Navy and the Air force.
The government’s move is aimed at increasing the availability of spectrum for civilian use.
This, in turn, would facilitate government to earn more revenue, as once spectrum is freed, it would be able to auction them to telecom companies.
Confirming this, sources in the government said, “A meeting of Cabinet Committee on Economic Affairs (CCEA), which will be chaired by Prime Minister Manmohan Singh, is likely to approve a proposal to provide `5,000 crore, as additional fund for creation of dedicated communication network for the defence establishments. The proposal is high on the agenda of the CCEA meeting, which will meet on Tuesday.”
The amount would be over and above already approved amount of `9,175 crore for laying dedicated optical fiber for defence establishments to meet their communication requirement, they added.
The state-owned Bharat Sanchar Nigam Ltd (BSNL) is mandated to set up the alternative network by the department of telecommunications (DoT). According to DoT officials, who are involved in the process, an inter-ministerial group headed by cabinet secretary had cleared `5,000 crore, as estimated additional project cost.
The increase in project cost was sought by BSNL following stringent conditions by the defence forces. The Telecom Commission, the highest policy-making body of the DoT, approved `5,000 crore for the cost escalation in November last year only. The matter was then referred to an inter-ministerial group.
The DoT and the defence ministry had signed a memorandum of understanding in 2009, under which the defence forces were to vacate 25 MHz for 3G and 20 MHz for 2G spectrum. The DoT was to set up an exclusive and dedicated defence network.

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Telecom department may offer higher compensation to prompt ITS officers to stay back in BSNL, MTNL

KOLKATA: The telecoms department is likely to unveil a higher compensation package by June 30 to help state-owned BSNL and MTNL coax their senior managements, involving some 1000 senior ITS officers to stay back.

Last month, BSNL and MTNL had sought a review of an April 17 Delhi High Court order that required them to release these ITS officers by May 14 as they had all opted to return to government service where pension is higher. Both telcos had claimed such a move would derail them and had sought two years from the high court to defer the ITS repatriation exercise. But the court has given them till September 30.

Since there are no vacancies in the telecom department either to absorb so many executives, the government is working closely with BSNL, MTNL and the Indian Telecom Service Association (ITSA), the body representing ITS officers, to work out a compromise formula that encourages about 900 ITS officers to stay back in BSNL and another 100-odd in MTNL in the long term interest of both telcos. So much so, an internal telecom department panel chaired by joint secretary (telecom) Malay Srivastava is trying to finalise a new compensation package by the month end.

"Efforts are on to encourage these ITS officers to remain in BSNL and MTNL by ensuring they do not lose out on central pension dues," a senior official in the telecom department with direct knowledge told ET.

At present, the high court has fixed August 12, 2005, as the absorption date for ITS officers opting to stay back in either BSNL or MTNL. But in that case, 90 per cent of this ITS bloc which is in BSNL will lose 7 years of central government pension.

Since these central government officers were deputed to BSNL 12 years ago when the telco was spun off into a separate company from DoT, they have already accumulated 12 years of pension dues. But if they opt to retire from government service and seek re-employment in BSNL from August 12, 2005, they will retain barely 5 years of central government pension. Pension earned beyond August 12, 2005, will be as per state PSU scales which is lower than central levels.

"This is the main bone of contention and government is trying to address this urgently. One option is to allow ITS officers seeking absorption in BSNL and MTNL to retire from government service on current date. That way, they get to keep their central pension for the full deputation period, and thereafter earn additional sums as per PSU scale. But there is no decision yet," said a committee member.