Loss of Revenue
Perplexing that BSNL formed panel on tariff dispute with RJio, says CAG
This story was originally published at 18:30 IST on 2 April 2025
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NEW DELHI – The need to set up a committee by Bharat Sanchar Nigam Ltd. in August 2020 to recommend whether the frequency division duplex and time division duplex were alternative transmission modes of duplexing within the same technology of LTE (long-term evaluation) technology or two different technologies, was "perplexing", the Comptroller and Auditor General of India said in its report on the public sector undertaking for 2023-24 (Apr-Mar). The CAG said "BSNL corporate office had itself clarified in January 2019 that FDD (frequency division duplex) and TDD (time division duplex) were different technologies and hence chargeable at additional rates" as per the master service agreement with Reliance Jio Infocomm Ltd. for sharing of passive infrastructure by BSNL with Reliance Jio Infocomm Ltd.
The Comptroller and Auditor General said in its report that non-enforcement by BSNL of tariff clause in the master service agreement with Reliance Jio Infocomm resulted in loss of revenue of INR 17.58 billion to the government exchequer between May 2014 and March 2024. A dispute had arisen as Reliance Jio Infocomm refused to pay additional charges for the use of 4G FDD LTE and 4G TDD LTE to offer mobile or fixed wireless broadband links on the passive infrastructure of BSNL in 23 circles. The telecom company had argued that the two duplexing types were the same standards of the same technology of LTE, and therefore additional charges did not apply.
The government auditor said it was "noteworthy" that the committee took more than three years to finalise its recommendations, and that Reliance Jio Infocomm "has not yet accepted the composite rates too." Four of the 23 circles of BSNL raised bills at the rate recommended by the committee were also rejected by the telecom operator.
The Comptroller and Auditor General also remarked that BSNL failed to exercise the available arbitration option under the agreement for recovery of its legitimate dues. The audit body said BSNL has the right to explore all options within the master service agreement with Reliance Jio Infocomm if the dues remained unpaid by the telecom operator. End
Reported by Rajesh Gajra
Edited by Ashish Shirke
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