Union Communications Minister, A Raja has asked the Finance Minister, Pranab Mukherjee to refund Rs.29,598 crore paid by BSNL and MTNL collectively towards 3G and BWA spectrum fee.

"BSNL is the only service provider giving connectivity to the far-flung rural areas. The service rendered by BSNL in the rural areas of the country cannot be replicated," Raja said in a letter to the Finance Minister.

The Minister, emphasised that in terms of the New Telecom Policy, 1999, BSNL (then DoT) was not required to pay an entry fee for Cellular Mobile Licences, which were bundled with initial spectrum of 4.4 MHz. BSNL was also exempted from payment of 2G spectrum charges of Rs 1,650 crore in view of its immense social and rural obligations, he added.

"Both BSNL and MTNL have made a desperate request for reimbursement of the charges paid," said Raja.