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BSNL to invest Rs 140 billion this fiscal

Thomas K Thomas

Bharat Sanchar Nigam has committed lower investments of Rs 140 billion in the current fiscal compared with Rs 160 billion in 2001-02, owing to the decreasing cost of equipment and infrastructure. The company will raise most of the funds through internal resources, but may also go for external borrowings if the government does not lend financial support for rural telephony.

Prithipal Singh, the new chairman and managing director of Bharat Sanchar Nigam said: "We are discussing with the government on how to fund our projects. It could be through the USO fund, through grants from the government specifically for rural telephony or even from external borrowings."

Singh said BSNL is targeting a revenue growth of at least 15 per cent this year compared with last year's revenues of Rs 240 billion.

Of the new services being planned this year, BSNL would take a licence for international long distance services apart from rolling out its cellular and WLL limited mobility services. The company is in talks with a number of international carriers to work out an arrangement to carry ILD calls.

On competition from private sector, Singh said BSNL has the advantage of being a large operator with nationwide coverage. "Private operators can compete with us on services but they cannot compete with us when it comes to size," Singh said, adding that BSNL will continue to remain the market leader for a long time.

He said that BSNL is addressing all the concerns raised by the private sector including that of providing connectivity to operators.

"We are working out a solution that addresses the problem in the long term. We are working out the investment and the hardware required to meet the requirements of the private sector," Singh said.

On the cellular roll out, the new chief said BSNL would commence operations from August. While pricing will be one of the factors to gain market share, Singh said, BSNL was also working on providing coverage and capacity in areas where the private sector has not ventured.

"We will cover national highways, the railways network and areas surrounding a circle where the existing cell operators have not set up infrastructure. We are trying to offer the entire range of value added service from day one," Singh said.

Another area BSNL is focusing on is leased line market. "We are taking steps to ensure that user needs are met with, including putting up optic fibre cables up to buildings in some cases, streamlining our processes and empowering our nodal officers," he said.

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