Busy Tone: BSNL eyes 50% more users

NEW DELHI: State-owned Bharat Sanchar Nigam (BSNL) has set an ambitious target of increasing its mobile subscriber base by 50% in the current financial year to 25m. In order to achieve this and also make its state units more proactive, the PSU has now fixed targets for each of its 26 telecom circles and intimated them of the same.

According to an internal note circulated by the company, Maharashtra is on the top of the agenda with BSNL headquarters here asking the state unit to add a minimum of 1.4m new mobile connections in ’06-07, followed by Uttar Pradesh (East) and Gujarat at 0.9m each.

Other states, which have high targets, include Tamil Nadu (0.8m), Madhya Pradesh (0.7m) and Andhra Pradesh (0.5m). Interestingly, the internal note points out that Bharat Sanchar Nigam has a waiting list of over half a million spread across six of its circles — Rajasthan, North East II, Maharashtra, Madhya Pradesh, Chhattisgarh and Assam. The circles have been instructed to clear the waiting list by December ’06.

BSNL executives maintain that this target is not only achievable, but also likely to be upwardly revised keeping in mind the demand for its services. The company will soon award a contract for 43.5m GSM lines, for which it has short-listed five network majors, namely Nokia, Siemens, Motorola, ZTE and Ericsson. Additionally, BSNL has also awarded a contract for 18m GSM lines to the ITI-Alcatel joint venture.

BSNL is the second-largest GSM service provider in the country with a little over 18m subscribers (as of May-end) and a market share of close to 24%. It closely follows Bharti Airtel, which has a base of 21.86m and a market share of 29%. Next comes in Hutchison Essar, with 16.77m customers and a market share of 22.3%.