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 Home > V&D 100 - 2005 Volume 2 > BSNL: On The Mobile Highway
  V&D 100 - 2005 Volume 2
BSNL: On The Mobile Highway
Continued from page: 1

Wednesday, July 06, 2005

"Our major challenge is to manage the expansion and meet customer expectations"

What were the key achievements of BSNL in the FY 2004-05?
BSNL's mobile network subscriber base crossing one crore, and the launch of DataOne which has already become the leader in the segment are two instances of key achievements in services. Apart from that, the unaudited accounts show a profit of Rs 8,000 crore this year that makes BSNL the largest non-oil public sector. We are also in the process of massive expansion of the network. We plan to add 75 million lines in the next three years.

How has competition and growth of mobile services affected BSNL's fixed line business?
The competition from mobile services has not really affected the fixed network, as we still have a huge waiting list for the fixed line phones. As we are the only service provider engaged in connecting the rural destinations, we continue to be in demand. Any loss of fixed line subscribers is adequately compensated by increasing number of mobile subscribers.

How has been the response to your broadband services? Do you think the subscriber targets are realistic?
We have a subscriber base of 60,000 for our broadband services. Looking at the expanding broadband services, we are already leaders with services in over 32 cities. We already have a registered demand of 1.75 lakh broadband connections and with the service beginning in over 198 cities we are hopeful of achieving the targets set in this sector also.

Are you satisfied with the growth of mobile services?
Yes I have no reason to be dissatisfied with the growth of the mobile services. We just crossed one crore subscriber mark in cell phones, and are expanding by 4 million in every quarter of this year as part of the 15 million expansion plan. So by the end of the year we are more than double of our capacities in mobile phones. With more content and extensive spread of network we do not see any reason why we will not be increasing our market share from 25 percent to upwards of 40 percent. Our ARPU varies from region to region, but let me tell you we are in tune with the industry standards.

What is BSNL's strategy for getting and retaining corporate customer market beyond PSUs?
The private sector may be doing all that is in the books to make their roll out plan a success and woo high-end customers. But with our extensive reach in every nook and corner of the country, we remain the favorite of the high value customers too.

What do you think are going to be the major challenges for BSNL?
The major challenge is how we manage the massive expansion project and cope with the demands of the customers about the quality of services. It is no mean task that we need to add 75 million lines to our network and also introduce services like EDGE and 3G in the coming year.

Another challenge is to cope with the lowering call tariff and resist the attempts to do away with ADC regime, so that we are adequately compensated for the services to the rural and difficult areas. 

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