labels: Telecom
Telecom minister wants BSNL to boost market share news
30 September 2008

Communications and IT minister A. Raja today asked public sector BSNL to give top priority to the growth of cellular and broadband services and asked BSNL to speed up the roll out of 3G and WI-MAX services based on the spectrum already allocated to it by the government.

He called upon BSNL to ensure immediate rollout of 3G and WI-MAX services based on the spectrum already allocated to it by the government.

Speaking at the 15th heads of circles conference of BSNL in New Delhi, Raja expressed worries over the dwindling market share of BSNL in the mobile telecom segment. He asked BSNL officials to workout a strategy to boost BSNL's market position, expressing confidence that the public sector telco would continue to contribute more than 50 per cent in achieving a national target of 20 million broadband connections by 2010.

The minister wanted the telecom giant to pay urgent attention to good quality of service, customer care and responsiveness to the needs of customers to beat the fresh challenges of competition arising out of the impending launch of number portability and  suggested beefing customer grievances redressal.

Raja also suggested upgrading the skills of the technical and managerial staff and providing them adequately training.

The minister asked for more intelligent financial management for better profit margins, keeping down the costs, efficient utilisation of capital assets, increasing revenue through sharing of infrastructure and reduction of outstanding dues.

Raja asked the BSNL management to innovate new value added services (VAS) to meet customers' aspirations and increase revenue.

Pointing to the gap between the all India teledensity of 30 per cent and the rural teledensity of 11 per cent, the minister said it was BSNL that had to takethe lead to bridge the digital divide.

He asked BSNL managers to devise newer methods to reach such areas not only in terms of access network but also through good distribution network.

The conference was attended by Siddhartha Behura, secretary, department of telecom, Kuldeep Goyal, chairman and managing director, BSNL; members of the BSNL board, chief general managers from BSNL Circles and DOT and BSNL officials.

India's telecom network has more than 340 million telephones, with 43.37 million connections having been been provided in just five months during the current year. During 2007-08, more than 94 million connections were provided.  The ministry's target is to achieve 500 million telephones by 2010 and 750 million by 2012. Out of a total 4.73 million broadband customer base in India, BSNL alone has provided more than 2.57 million broadband connections thus contributing approximately 54.3 per cent and has covered approximately 95 per cent district HQ, 43 per cent block HQ and more than 31,000 villages.

The Indian Telecom sector has witnessed dramatic transformation on almost all the fronts. While monopoly has given place to competitive regime with multiple players, tariffs have been reduced drastically. Long distance tariff has come down from Rs30 per minute to Rs.1 per minute.

The government is set to e-auction radio frequencies for telecom operators to start third-generation (3G) and Wi-MAX services across the country. Spectrum has been allotted to BSNL and MTNL to launch 3G and Wi-MAX services immediately giving them the first mover advantage.

Appreciating operational constraints of BSNL, the license fee for the fixed wireline connections in rural areas has been waived. Similarly, recognising the efforts of operators in rural areas, USO levy is being reduced from 5 per to 3 per cent for covering more than 95 per cent of the development blocks. This would facilitate reduction in BSNL expenditure and improve profitability.


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Telecom minister wants BSNL to boost market share