BSNL taps Microsoft for broadband muscle

State-owned telecom behemoth BSNL has joined hands with Microsoft for its broadband foray.

V P Sinha, chairman and managing director of BSNL, said Microsoft would provide content for its broadband services. "We have already signed an MoU with Microsoft which is developing software programmes in regional languages," Sinha said.

The CMD informed BSNL had also tied up with Korea Telecom, the largest provider of broadband service in the world. Korea Telecom would provide technological support to BSNL.

BSNL has earmarked an investment of Rs 2,000 crore in National Internet Backbone (NIB) project which include roll out of broadband service. NIB would be completed in four phases.

Sinha said company was looking at 50,000 subscribers for this service in three months and two lakh subscribers within six months. BSNL's association with Microsoft would help it break the language barrier.

It found content in regional language would be a strong weapon to penetrate deeper in the market. Broadband connectivity would provide number of services viz. television, internet, wireline telephony by a single cable.

The CMD said BSNL has taken up the challenge to turn the company into the largest telecom company in south east Asia. This would be achieved by focusing on wireless and wireline telephony and strengthening broadband activity. The company is now implementing the second phase of NIB project. This phase would require an investment of Rs 700-800 crore.

BSNL has rolled out broadband in Chennai and Hyderabad where it was being marketed by franchisees. Sinha said the service was offered to them on non-exclusive basis. "We will roll out the service in all important cities, state capitals in phased manner," Sinha said.

"The most critical aspect in the service is to enhance the speed of connectivity. We have to improve the bandwidth capacity by improving the copper wire and also lay optical fibre cable (OFC)," Sinha said.

BSNL is going to end the year with a turnover of Rs 27,000 crore and a profit of Rs 3,000 crore. It plans to invest Rs 13,700 crore to enhance its capacity.