labels: bharat sanchar nigam ltd, industry - general, telecom
BSNL losing out to private sector news
Our Corporate Bureau
18 June 2007

New Delhi: Delays in executing equipment order is costing public sector BSNL its market share, which it is losing rapidly to the private sector in terms of adding new subscribers.

"We are adding only 3-4 lakh subscribers every month as against our plans to add 15-20 lakh, which is why our market share is eroding slowly," says BSNL chairman and managing director AK Sinha.

Sinha, however, is confident that BSNL would soon bounce back.

He attributes not having been able to increase BSNL's subscriber base as planned to delays in executing the order for expanding the capacity of 60 million GSM lines at an investment of over Rs 20,000 crore for which it had floated bids. The contract has been caught up in legal wrangling.

BSNL is yet to place the order, even after 15 months of its tendering process.

"After the court gave us clearance to go ahead with placement of order, we are processing the technical conditions ... some more details are still being worked out before placing an Advanced Purchase Order (APO) to the two lowest bidders Ericsson and Nokia," Sinha said.

Swedish equipment giant Ericsson had emerged the lowest bidder to get 60 per cent of the order, followed by Finish company Nokia, which cornered 40 per cent.


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BSNL losing out to private sector