State run telcos BSNL and MTNL have finally got an approval from the Union Cabinet to surrender their Broadband Wireless Access (BWA) spectrum, in a bid to improve their existing financial condition. In a press briefing, Information & Broadcasting minister Manish Tewari said that this refund is being provided as part of the revival package for telcos and will be done over a period of time. He added that this refund will also help these telcos to meet basic financial commitments such as operation and maintenance of their respective telecom networks. BSNL Surrenders BWA Spectrum in 6 Circles, MTNL Surrenders in 2 BSNL has surrendered BWA spectrum in six of the twenty circles (Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Kolkata) for which it will be receiving a partial refund of 6,724.51 crore while MTNL has surrendered BWA spectrum in both the circles (Mumbai and Delhi), for which it is receiving full refund of 4,533.97 crore. Earlier, BSNL had paid Rs 8,313.80 crore to acquire BWA spectrum in 20 circles while MTNL had paid Rs 4533.97 crore to acquire spectrum in two circles. Note that both the telcos had not participated in the 2010 BWA spectrum auctions, although they had been allotted spectrum and directed to match the price paid by successful bidders. Reports had suggested that BSNL had been looking to surrender its BWA spectrum since October 2011 and had received the Department of Telecommunications (DoT)’s approval in December 2011 while MTNL had reportedly been looking to surrender its broadband wireless access (BWA) spectrum since November 2012, so as to improve its existing financial condition and start making profits which it hasn't for the past 16…
