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BSNL says pvt firms should also share infrastructure
By siliconindia staff writer
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Tuesday, 18 May 2004, 19:30 IST
NEW DELHI: Amid demands by private cellular operators that they be allowed to share BSNL's network on commercial terms to provide service to rural and remote areas, BSNL has sought a `quid pro quo' arrangement saying it too should be permitted to take advantage of the wireless network of private players.
"Their infrastructure should also be shared by BSNL. We should also be allowed what they are asking for," BSNL chairman and managing director VP Sinha, told PTI in New Delhi.
On the demand made by private operators on infrastructure sharing, Sinha said, "They (operators) are strong in wireless and local loop...let us share that too."
Sinha's comments come in the wake of demands by private cellular firms that they be allowed to share the infrastructure of BSNL to serve rural and remote customers.
Acknowledging the need to increase the slowing mobile subscriber additions in the country, TRAI had said it was considering measures to accelerate the subscriber growth outside metro cities.
TRAI's move was aimed at increasing the mobile additions to three million per month from the existing under two million.
Although the measures proposed by the regulator are still under wraps, TRAI has said infrastructure sharing could be an option to optimise growth.
Cellular Operators Association of India had recently said the present All India Average Revenue Per User (ARPU) of Rs 451 did not support the huge capital expenditure required to lay the rural network.
It had said while the ARPU was enough to cover network costs, it was not sufficient to invest in new networks in rural areas.
The private operators have to tap the rural market for volume and revenue growth, COAI had pointed out.