BSNL	1
CMD: Prithipal Singh Address: Statesman House, B-148, Barakhamba Road,  New Delhi-110 001 Tel.: 011-23372444, 23372424 Website: www.bsnl.co.in  V&D estimates CyberMedia Research

Bharat Sanchar Nigam Limited will definitely like to remember FY 2002–03 as the period in which it reinvented itself as India’s leading mobile operator (of the near future). After all, in a year that saw lots of pressures on its top line on account of growing competition and declining long-distance tariffs, BSNL’s success with its newly launched GSM service was the only bright spot. Taking everyone, including its private sector competitors by surprise, BSNL emerged as the second largest mobile operator in the country, within five months of the launch of its Cell One GSM service. Low entry barriers, simple tariff plans, lack of hidden costs, and ample thrust on network design and coverage formed the ingredients of BSNL’s success in cellular services.

On the other hand, a steep cut in the long-distance tariffs initiated by private long distance operators (first Bharti and then Reliance) led to a southward movement in BSNL’s revenues from NLD services. The operator is estimated to have earned only Rs 5,500 crore from its NLD business.

As the above-mentioned pressures started working on BSNL, the state-run operator started seriously exploring other avenues apart from consolidating its existing businesses. As such, it started paying attention to its broadband business. Broadband services, it believes, would be the key to neutralizing the decline in earnings from plain voice services and help it bolster its bottom line. The operator also began reorienting its corporate marketing by appointing corporate account managers and tying up the network integrators like Wipro and HCL for offering what it terms as total networking solutions to corporate customers. However, the operator remained slow and also a little unclear on its CDMA plans. This was largely because of the controversy surrounding the limited mobility services. 

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