BSNL, MTNL losing market share

NEW DELHI, INDIA: As the Indian telecom arena is dominated by private telecom players, intensifying the competition, state-run telecom companies BSNL and MTNL are losing market share in mobile technology segment.

While the market share of BSNL has come down by nearly 8 per cent in the last 30 months, MTNL's share is down by over 3 per cent, Minister of State for Communications and Information Technology Gurudas Kamat informed Rajya Sabha today.

As on March 31, 2007 BSNL had a market share of 21.5 per cent, which has come down to 13.86 per cent as per the data available till September 30, 2009. During the same period, MTNL's market share has come down from 13.39 per cent to 9.82 per cent.

The minister also said that the government is considering to offer part of its equity shareholding in BSNL by an offer for sale to the public. He said this move will facilitate BSNL to get Navratna status and it will provide an access to the capital market for raising fresh equity capital.

However, he did not specify as to when it would happen.

MTNL is already listed in the Indian stock market and the Government of India holds 56.25 per cent stake in the company.

In order to strengthen the financial health of BSNL and MTNL, some initiatives have been taken, said Kamat.

They include:

-Augmentation of capacity to enhance the network coverage and to remove the congestion.

- Expanding distribution channels and improving system of follow up of franchisees and retailers.

- Developing a system of providing special premium Service Level Agreements (SLAs) for large enterprise customers and focusing on corporate accounts.

- Improving customer care, better feedback and after sales service.

- Development of new lines of revenue through infrastructure sharing.

- Improving management information systems for better management and collection of revenue.