BSNL to launch its mobile services by Sept.

HYDERABAD: As the battle in the mobile service provider segment gets fiercer,

Bharat Sanchar Nigam Ltd (BSNL) is looking forward to launch its GSM cellular

mobile telephone services by the end of this month. The government-owned

behemoth, which has a lock on the landline phone market thanks to its monopoly

position till recently, is all set to make foray into the Indian cellular

market, Prithipal Singh, chairman and managing director, BSNL said.

"We have already invested to the tune of Rs 2,500 crore in building the GSM network all across the country. Our equipment is in place, and it has been validated in most parts of the country. Though in some parts we are still in the process of getting the equipment in place. We expect to launch the service by end-August or the first week of September," Singh informed, after inaugurating BSNL’s customer utility portal, www.bsnl.in.

Once the cellular service is started by BSNL, it has set for itself an ambitious target of acquiring 25 lakh subscribers by March next year, including 2.5 lakh in Andhra Pradesh. However, it is very much possible in the light of the fact that private GSM mobile phone service providers have been able to notch up a subscriber base of 70 lakh in five years. "We have the technology, the manpower and the reach, and can begin our GSM service in 1,000 cities, but we will be launching it in some of the major cities initially. We expect to have 40 lakh subscribers by the end of the second year," Singh said.

BSNL will be the third cellphone service provider in Andhra Pradesh, offering its services on the 900 Mhz spectrum, the other two being Bharti Mobile and Idea Cellular. The fourth service provider, Hutch, operates on 1,800 MHz. "All these private players are offering a lot of new schemes and once we are in the market we will make sure that to match these offers and evolve our own packages for different sections of subscribers," he added. Singh said that BSNL had a customer-service network of 3,000 offices around the country, to handle the GSM service.

BSNL had created the infrastructure to handle six lakh Wireless in Local Loop subscribers, and this could be ramped up to handle 7.5 lakh subscribers depending on the demand. BSNL currently has over two lakh subscribers for its WLL service, which allows limited mobility. This includes 17,000 subscribers in Andhra Pradesh, according to Surya Sriramulu, chief general manager of AP-Telecom. The portal developed by Hyderabad based Intelligroup Asia Pvt. Ltd. is designed to facilitate greater interaction between the customer and BSNL, Singh said.

"We have already included the online billing in the portal and we are having tie ups with UTI and HDFC. However we would like to have our association with all the banks in order to make sure safe transfer of money through online payment gateways of various banks," Singh explained.

BSNL is expected to launch its cellular service in Bangalore and rest of Karnataka during September. According to BSNL’s Principal General Manager, B.R. Baliga, tests on the base tower stations (BTS) that have been installed so far are currently in process. Of the 150 BTS, 39 need to be installed which would be completed by the end of August. The cellular network of BSNL in the state will have a capacity of three lakh subscribers. BSNL has a target of capturing two lakh subscribers by the end of March 2003.

BSNL holds the license to offer cellular services across the country as the third operator. The fourth service provider in Karnataka, Hutch, has already launched its services. Speaking to the press, a BSNL official said that BSNL had invested Rs 120 crore in Phase I of the cellular network project and would invest Rs 34 crore in Phase II. "Such low investment by us was possible as we already have our vast telecom network in place, which can be used for other services too," he added.

The official date for the launch of cellular services in Karnataka will be announced by the BSNL headquarters in New Delhi once all the tests are completed. Authorities pointed out that the cellular footprints of BSNL service would cover the entire state, including highways. Though the cellular tariff would be decided at the BSNL headquarters, each circle will modify the rates to match that of the private players active in their areas.

The wireless in local loop service, which BSNL is currently offering in the state, has 800 handheld subscribers. While 3500 fixed wireless terminals have been installed in Bangalore, another 3000 terminals have been installed in rural district. BSNL will further enhance the WLL service by setting up more base stations.