BSNL, USOF on collision course over funding of mobile communications infrastructure in Naxalprone states

KOLKATA: Cash-strapped BSNL and the Universal Services Obligation Fund ( USOF) Administrator are on a collision course over the funding of mobile communications infrastructure in Naxalprone states across eastern, central and southern India as demanded by the home ministry.

Telecom department officials managing the Rs 17,000- crore USOF corpus have spurned BSNL's demand for subsidising the rollout of mobile networks in Maoist territories.

First, they have asked BSNL to meet all operating costs linked to the project from its internal revenues. On BSNL's compensation demand for associated capital costs incurred, the USOF has lobbed the ball into the court of telecom minister Kapil Sibal.

What's more, at a recent meeting chaired by telecom secretary R Chandrasekhar, it was decided that BSNL would be asked to establish mobile networks only around the major police stations across all Naxal- infested zones.

"We've told the BSNL management there's no need to provide exhaustive mobile coverage to every nook and cranny in states with a Maoist presence since that would be a waste of central resources. Coverage may extend some 3 km around every major police station in such regions," said a telecom department official who was present in the meeting.

"BSNL would do well to invest in solar power-driven mobile infrastructure, which would help optimise costs. Compensation of capital costs would entail the telecom minister's approval," a senior official responsible for managing the USOF corpus told ET.