BSNL to invest Rs1,600 crore in broadband infrastructure, eyes 9 million customer base; launches low-cost PC

03 January 2009

Public sector telecom giant Bharat Sanchar Nigam (BSNL) is said to be readying an investment of around Rs1,600 crore in infrastructure facilities to support eight million broadband connections.

Speaking to the media on the sidelines of the launch of the Nova netPC, a low-cost computer that will be an enabler for the telecom giant to secure a nine-million customer base, Kuldeep Goyal, chairman and managing director of BSNL said that the public sector telco had received an order from the government to roll out eight million broadband connections.

This rollout would see BSNL invest Rs1,600 crore in infrastructure facilities needed to support these connections.

Moreover, the facilitate the adoption of broadband, BSNL, in association with Chennai-based Novatium Solutions has launched the Nova Net PC, a new range of personal computers.

The partnership and low cost offering with Novatium is aimed at reaching rural communities in India where people are unable to afford notebooks and desktop computers on account of their high prices. This new Nova Net PC comprises a set up box, keyboard and a mouse, and would be available to customers at an initial down payment of around Rs1,999 to Rs2,999, and a monthly rental of Rs199, or Rs175 respectively.

Goyal said that BSNL is planning to add nine millon connections at the rate of three million annually. India presently has an abysmal broadband penetration level of less than one per cent. Of this, BSNL has a market share of around 60 per cent with a customer base of 5.52 million, according to Goyal. Developed countries have broadband penetration levels of around 60 per cent, or higher.