The Department of Space (DoS) is likely to waive off satellite bandwidth charges payable by Bharat Sanchar Nigam Limited (BSNL) for providing connectivity in the Andaman and Nicobar, Lakshadweep archipelagos and strategic border regions across the Northeast. The move is aimed at making BSNL’s operations viable in these regions.

Earlier, BSNL had approached MF Farooqui, secretary, Department of Telecommunications (DoT) claiming that providing coverage in Andaman and Nicobar Islands is not remunerative for the operator due to the huge mismatch in coverage costs and revenues. The operator stated that even though it spent Rs 1.22 billion towards operations in 2012-13, it earned Rs 0.48 billion as revenue. About, 54 per cent of its annual cost was towards satellite transponder charges while delivering telecom services in Andaman & Nicobar Islands.

Subsequently, Farooqui has asked DoS to consider waiving off satellite bandwidth charges for BSNL. According to Farooqui, 60 per cent increase in satellite transponder charges from April 2012 had undermined the viability of BSNL’s operations in these regions. This in turn, has had an adverse impact on the operator’s financial position. DoT has supported BSNL’s demand for waiver of satellite bandwidth charges on the ground that players operating in these strategic regions face challenges in establishing connectivity using optical fibre or microwave links. As a result, they have to use costly satellite bandwidth for delivering telecom services.

DoS now plans to take up the issue in the next meeting of INSAT Coordination Committee.