NEW DELHI: The ambitious programs to connect country's unconnected villages, worth Rs 12,850 crores, offered to private service providers Bharti Airtel and Reliance Jio by telecom department's service fund, blocking the state-run Bharat Sanchar Nigam Limited's (BSNL) amid its revival, have been grappling with challenges with nearing deadlines.
The Universal Service Obligation Fund (USOF), the telecom department's (DoT) Rs 58,000-crore reserve to fund rural and remote digital connectivity, has apparently come under dock for awarding contracts to private telecom operators, following the inclusion of fourth generation or 4G mandate, despite BSNL's umpteen letters in a bid to upturn its revenues.
"The department adopted a regressive strategy which is not only worrisome for the state-run telecom provider, but is like a free pass to private companies to have an infrastructure ownership in a bid to suffice their 5% contribution towards the USOF," an industry person said.
Telecom service providers pay 5% of their adjusted gross revenue (AGR) towards the USOF levy.
The experts, however, citing poor progress and national security concerns, following a multitude of strategic locations including China-bordering areas, believe that a scrutiny from top echelons of the Centre is much needed.
Last year, both Bharti Airtel and Reliance Jio were awarded with Northeast - I and Left Wing Extremism (LWE) -II programs worth Rs 1,255-crore and 2,211-crore to deploy 1,511 and 2,542 telecom sites with a rollout deadline of 18 months, but the sources reveal that only a few surveys were conducted so far.
In 2019, the Digital Communications Commission (DCC), the highest-decision making body of the government annulled the Northeast - I connectivity program, a part of the ambitious Comprehensive Telecom Development Plan for the North-Eastern Region (NER), originally bagged by state-run BSNL.
"There is a great national security risk when procuring from foreign sources. Life of the equipment and unpredictability when a supporting nation becomes a hostile one over a period, are the areas of concern," Rakesh Kumar Bhatnagar, former advisor - Technology at the Department of Telecommunications said.
Further, Bhatnagar said, "It would be an unpleasant surprise, if in the audit exercise, it is found that many sites were claimed to be operational and as of today, would have no coverage even though the government's fund was claimed."
In the last few years, including in 2019, during which the Prime Minister Narendra Modi-headed Cabinet-approved revival for BSNL was in full swing, the USOF turned hostile to the ailing telco, and awarded mega initiatives such as to cover 354 uncovered villages to Jio, and subsequently to deploy 889 sites in Meghalaya to Bharti Hexacom in 2020.
"As duly acknowledged by the telecom department, Airtel has completed the USO funded rollout in the Northeast as per the agreement despite the challenging on-ground conditions," a Bharti Airtel spokesperson said, adding that the telco is at forefront in its endeavour to provide mobile coverage to uncovered villages in the country.
However, Bhatnagar believes that the government should review all USOF-driven projects, and undertake a technical audit so as to ascertain how many locations are covered.
"Overcoming challenges, Airtel’s network teams worked relentlessly to set up 1,358 towers to bring mobile network coverage to 1,246 villages in the Northeast. 283 installations were made along the National Highway. In fact, the agreement had only envisaged installation of 2G sites but Airtel has implemented 2G+4G technology in nearly 95% of the installed towers to benefit the region," the telco's spokesperson said.
Most recently, the 4G-based connectivity program at an outlay of Rs 6,466-crore in identified uncovered villages in the aspirational districts of Andhra Pradesh, Chattisgarh, Jharkhand, Maharashtra and Odisha was bagged by the two operators, swelling the total value of projects awarded to private sector to nearly Rs 12, 850 crore.
Further, Bharti Airtel spokesperson said, "Based on the performance in Northeast, we have been awarded the execution of USOF projects in Meghalaya, aspirational districts (Bihar and Rajasthan), LWE-II (Andhra Pradesh, Telangana, Bihar, Jharkhand, West Bengal and Uttar Pradesh). The projects put together involve reaching 7,946 uncovered villages. The execution of projects is in full swing with active cooperation from the USOF administration, state administration, and the Ministry of Home Affairs."
Queries to USOF administrator and Reliance Jio did not elicit any response.
The Delhi-based Telecom Equipment Manufacturers Association (Tema) that represents Indian telecom companies said that the licence conditions provided for rural and remote mobile coverage were not achieved by private telecom service operators.
Bhatnagar cautions that all the government-funded projects to deploy mobile networks are being undertaken by foreign equipment vendors, and eventually allowing 100% infrastructure ownership to private players. "The compliance, inspections and monitoring, are some of the critical aspects when equipment is procured from untrusted sources, and that makes a 'vulnerable' security scenario."
Bharti Airtel's gear suppliers include multinational vendors such as Nokia, Ericsson and Chinese Huawei, and Jio works exclusively with Korean Samsung.
Calling for a change by Airtel and Jio from their present deployment routes, they should make use of equipment designed and developed by domestic local manufacturers, compliance with the Telecom Engineering Centre's (TEC) general requirements, meeting the national security requirements, and further having compliance to Mandatory Testing and Certification of Telecommunication Equipment (MTCTE). By this, they (private telcos) can still be considered to deploy networks, he said.
"Track record of BSNL on rural coverage is much better and spread over decades, and should be the most favoured awardee of USOF projects after taking a parallel price discovery exercise," the industry veteran said.
"BSNL needs to be supported and given orders on a nomination basis as were given to the Common Service Centre (CSC)," NK Goyal, chairman, Tema said.
In a recent letter to the Department of Telecommunications, BSNL chairman PK Purwar sought to award connectivity programs in uncovered villages saying that it would allow state-controlled telco to deploy locally-designed and manufactured equipment in line with ambitious Atmanirbhar Bharat (self-reliant India) initiative.
Source : https://telecom.economictimes.indiatimes.com/news/usof-sidelines-bsnl-to-allow-rs-12850-crore-connectivity-programs-to-private-companies-progress-dismal/90859138
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