BSNL plans $10 Bn Network expansion

BSNL plans $10 Bn Network expansion

By SiliconIndia   |   Thursday, 24 July 2008, 11:30 Hrs
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New Delhi: Bharat Sanchar Nigam (BSNL) is in plans to tow the lines of competition through a $10 billion expansion plan over the next three years. "Our mobile expansion is on track. We have rolled out 25 million lines all-India and this capacity kicks off in August," said Kuldeep Goyal, Chairman and Managing Director, BSNL.

BSNL announces another 93 million lines tenders for mobile expansion and have added two million lines in Wireless Local Loop (WLL). It has witnessed a six percent dip in its revenues to 32, 500 crore, states Times of India reports. The net profit of the company also slashes to 292 crore. Though it strikes a 13 percent increase amounting to 10, 600 crores in the mobile telephony, the other GSM operators like Airtel, Spice, Vodafone, Idea, Aircel and MTNL showcase a 40 percent growth. This was the time when the mobile industry saw over 35 percent industry growth rate. Moreover, BSNL continues to be the largest service provider in national long distance (NLD/STD) and fourth largest in international long distance, yet its NLD revenues decline by 40 percent.

So, BSNL heads towards broadband network monitoring and managing MPLS networks. "We are in talks with international firms like Cable and Wireless and British Telecom to carry overseas traffic through Virtual Private Network (VPN) and Managed Private Leased Services (MPLS) for big corporates," said Goyal. He also mentions focusing on broadband connections, wherein 2.3 million lines are occupied out of its four million lines capacity.

In the fixed line sector, BSNL controls over three-fourth of the near 27, 000 crore revenues, serving around 80 percent of India�s 39.5 million subscriber base. It has incurred a decline of over 10 percent in revenues across India and over 20 percent in subscriber base.

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