BSNL introduces new schemes in Chennai

Adopts two-pronged approach to check landline drift to private players

Bharat Sanchar Nigam Limited (BSNL), Tamil Nadu, has adopted a two-pronged approach to check the drift of landline customers to private sector players, and increase its share in the market for mobile phones.

In Chennai, BSNL today launched a scheme called Liberty Plan 495, wherein new customers who wish to take a broadband connection get a landline telephone connection rent-free. The scheme is on for three months.

The new scheme has come on the heels of an major campaign by private sector players to promote their landline business. BSNL officials said a key objective of the new scheme was to check the drift of landline customers to the private sector players.

In Chennai, BSNL currently has 9.5 landline connections, and the number has begun to shrink every month as the number of people who go out of BSNL's net is greater than fresh landline connections.

In the market for GSM mobile phones, BSNL is gearing up to expand its network. According to K B Brahmadathan, chief general manager of BSNL, work is under way to commission another 4.5 lakh connections in the Chennai telecom circle by the third week of the month.

The new lines would give BSNL the space to grow its mobile base in Chennai to 9 lakh connections. BSNL, which has 315 towers in Chennai, will increase it to about 700 towers by January 2006 at a cost of Rs 150 crore, said Brahmadathan.

The investment in the Chennai circle will be supplemented by more capacity creation in the Tamil Nadu circle for GSM mobiles. Before the month ends, BSNL plans to put in place infrastructure to serve 17 lakh connections there, almost twice the size of its current 8 lakh connections capacity.

Around 25 per cent of BSNL's mobile phone customers have a postpaid connection. Brahmadathan said that the average revenue per user (ARPU) in the Chennai circle is Rs 500, while it stands Rs 400 in the Tamil Nadu circle.

In the wireless space, BSNL is set to expand its range of offerings. It will soon introduce WiFi services in Chennai. BSNL plans to have 48 hotspots in Chennai.