The other reasons for the anticipated decline are reduced access deficit charge amount and declining tariffs.
"We hope to increase our gross revenues and profits but net profit is likely to be affected by some parameters. The trigger is we were earlier given full reimbursement of license fee and spectrum charges but for 2005-06, we got one-third of the amount and before that two-third amount. This will have an impact of up to Rs 700 crore (Rs 7 billion) on account of lowered license fee alone.
There were a significant income tax waiver last year, which will not be available for 2005-06", A K Sinha, CMD, BSNL told PTI. "All this look like it (net profit) may dip Rs 2000 crore (Rs 20 billion) but I hope it will not be so much" Sinha gave an optimistic reply. BSNL used to get about Rs 2300 crore (Rs 23 billion) for license fee reimbursements.
He said there are indications that the gross revenue could swell up by nine per cent. Tariffs are falling, some landlines have been surrendered although we have also gained new customers, average revenue per user has fallen.
So the situation is very fluid, he said. BSNL for the current fiscal of 2006-07 will not get any reimbursement for license fee and spectrum charges. The time-bound reimbursement of these two costs were assured to BSNL after the PSU attained the status of a corporation in 2000 to adjust to various costs after it seized to become part of department of telecom.
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