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Centre to discuss 5G trials, telco revival today

DNMUM437657 | 6/13/2019 | Author : DNA Money Correspondent | WC :502



Digital Communications Commission, erstwhile Telecom Commission, the highest policy-making body of the Department of Telecommunications (DoT), will meet Thursday to decide on crucial issues including 5G trials and revival package for the ailing telecom PSUs, BSNL and MTNL.
Another key issue that will need some clarity is the participation of Chinese player Huawei in the 5G trials. Telecom industry has asked the government to decide on this issue as many players are working with Huawei for 5G.
Once the approval comes, the spectrum will be allotted for three months, wherein specific India use cases will be developed by network equipment makers in partnership with telecom players.
The government plans to conduct a spectrum
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Also, both the firms have asked for allotment of the 4G spectrum without paying the auction price.
While BSNL is awaiting approval for its land asset monetisation, a voluntary retirement scheme (VRS) for both BSNL and MTNL and allotment of 4G spectrum are a key part of revival plans. Due to hyper-competition and a huge employee cost, the expenditure of both firms has hit the roof while revenues have nosedived. For BSNL about 55% of its expenditure goes into paying employees. For MTNL, staff salary constitutes around 99% of the total expenditure.
Crucial Issues
Another key issue that will need some clarity is the participation of Chinese player Huawei in the 5G trials
A committee set up by DoT had estimated the economic impact of 5G services to be over $1 trillion and it would be critical for various segments of the society




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