BSNL, MTNL share just 13.86 per cent and 9.82 per cent of mobile telephony market
26 November 2009
The market share of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) in the mobile technology segment stood at 13.86 per cent and 9.82 per cent, respectively, as of end-September 2009.
State-owned telecom firms BSNL and MTNL continued to lose market share in mobile technology segment due to intense competition and the entry of new operators with aggressive tariff plans, minister of state for communications and information technology Gurudas Kamat informed the Rajya Sabha today.
Over the past three years, the respective shares of BSNL and MTNL in the mobile telephony market has gone down from 21.50 per cent and 13.39 per cent, respectively, in the financial year ended 31 March 2007 to 17.67 per cent and 11.80 per cent, respectively, by end-March 2008 and further to 14.89 per cent and 10.75 per cent, respectively, as of end-March 2009.
The two had market shares of 13.86 per cent and 09.82, respectively, as of 30 October 2009.
The government is considering to offer part of its equity shareholding in BSNL by an offer for sale to the public. The move will facilitate BSNL to get Navratna status. It will also provide it an access to the capital market for raising fresh equity capital, if required and will promote growth of BSNL, the minister said. "The timing of the issue depends on the condition of the capital market," he added.
MTNL is already listed in the Indian stock market and the government currently holds a majority 56.25 per cent stake in the company.