FINANCIAL PERFORMANCE OF BSNL

BSNL is maintaining its financial accounts in two segments viz. “Cellular” and “Other than Cellular”. The “Other than Cellular” segment includes mainly Fixed-line and Broadband.

The detail of Profit (Loss) for “Other than Cellular” segment in the financial Year 2008-09 is as follows:

As per amended roll-out obligation conditions issued on 10.2.2009, the period for first phase of roll-out obligations is one year from the date of allocation of start up spectrum plus the average delay in granting statutory permissions such as Standing Advisory Committee on Frequency Allocation (SACFA) clearances.  The date of registration for service test by Telecom Enforcement & Resource Monitoring (TERM) cells of the Department of Telecom is treated as date of meeting the roll out obligation in case of coverage criterion is met for roll-out obligation on testing.  Therefore, the date of meeting roll-out obligations can be ascertained after completion of testing by the TERM cells.  In case the LICENSEE fails to bring the Service or any part thereof into commission (i.e. fails to deliver the service or to meet the required coverage criteria/network roll out obligations) within the period prescribed for the commissioning the Licensor shall be entitled to recover LD charges @ Rs.5 lakh per week for first 13 weeks; @ Rs.10 lakhs for next 13 weeks and thereafter @ Rs.20 lakhs for 26 weeks subject to a maximum of Rs.7.00 crores.  For delay of more than 52 weeks the Licence may be terminated under the terms and conditions of the Licence agreement.