BSNL hires IMRB to study fall in landline connections

With revenues and profit falling drastically for somtime now, state-run BSNL has hired market research firm IMRB to study the reasons for rising number of surrenders of its landline connections, the main source of income.

According to an internal BSNL study, the main reasons for falling landline BSNL connections are surrender of excess telephones, increased use of mobiles, unsatisfactory service, competition and economic factors.

A BSNL official said steps are being taken and will be taken as per the suggestions by IMRB. The steps being undertaken are formation of a marketing task force to provide doorstep services to customers and start of broadband, IPTV and VoIP services on landline connections, among others.
 

THE MAIN REASONS

* Surrender of excess telephones

* Increased use of mobiles

* Unsatisfactory service

* Competition and economic factors

Revenue from landline services dipped by 20.65 per cent to Rs 11,505 crore in 2008-09, compared to Rs 14,499 crore in 2007-08. BSNL landline connections stood at 2.89 crore in May 2009. The official said the number of landline connections surrendered during the previous three years stood at 2.1million, 2 million, 2.2million in that order.

This year, about 342,000 connections were surrendered till May 31. The net profit of BSNL dipped to Rs 104 crore in 2008-09 fiscal due to a fall in revenue and rise in wages. The income stood at Rs 34,937 crore in 2008-09. BSNL attributes the fall in profit to rising staff costs due to revision of pay and merger of 50 per cent IDA with the basic pay for all employees, besides decline in income from services.