BSNL plans Rs. 19,400 cr mobile, broadband services expansion

Bhaskar Hazarika

NEW DELHI: To boost the mobile and broadband services in the country the Bharat Sanchar Nigam Limited (BSNL) is planning to invest Rs. 19,400 crore in the next financial year.

The investment would be mainly for the expansion of its mobile and broadband services. BSNL officials confirmed that the investment plan has been finalized but the planning commission is yet to approve it.

The official said that due to massive competition in the field of mobile and broadband services, BSNL would now concentrate on expansion of its services.

“Around 80 per cent of the investment would be made for expansion of mobile network and broadband. Apart from it the investment will be made on upgradation of switching system, wireless and other IT related services,” the official added.

With quality services and the recent reduction in fixed line rentals BSNL is optimistic to retain their customers. The official added that broadband is likely to play an important role to retain their existing customers.

In the current financial year BSNL would lay 20 million lines across the country of which 80 per cent would be mobile to meet the demands of the subscribers. BSNL is also targeting to cover 14,000 villages with one telephone in each village over the next two years.

The mobile network expansion plan would be a part of BSNL's proposed 60 million GSM line tender, which is likely to come out by within January.

Expansion of the mobile network would be part of BSNL's proposed mega tender for 60 million GSM lines envisaging an investment of over four billion dollar. The 60 million lines envisage an investment of 4.5 billion dollar (about Rs 21,000 crore).

For the remaining three months in the current fiscal, the PSU would add eight million mobile lines with two million each in the four zones under its ongoing expansion plan of adding 14 million lines.

BSNL has also added 10 lakh cellular connections in the last month of 2005 by setting the record of more than 14 million connections all over the country.