BSNL's fixed-line numbers are shaky

Stagnation casts shadow on company's overall performance

Even as Bharat Sanchar Nigam Ltd (BSNL) maintains that landlines would stage a comeback, data compiled by the company reveals that surrender of telephones outnumber new connections in some of its largest circles in the basic services sector.

While three circles among the service provider's top seven circles in the country registered a decrease in the number of landline connections in 2004, in three others, the growth in landline subscriber base was less than 1 per cent.

The stagnation in the major circles has also cast a shadow on the company's overall performance "" it registered a mere 1.6 per cent increase in landline customers in 2004, to finish the year with a little over 35.4 million subscribers.

According to BSNL's data, in 2004, in the Karnataka, Gujarat and the Punjab Circle, the landline base was down by 0.55 per cent, 5.27 per cent and 1.47 per cent, respectively in 2004.

"These circles enjoy a higher level of mobile penetration and many of our subscribers who went mobile had surrendered their landline. Also, with increased reliability and user friendly tariff patterns, most of our subscribers returned their second telephone connections in 2004," said a senior BSNL executive, explaining the reasons behind the poor growth of landlines.

Contrary to the public sector unit's claims that surrenders had not affected its revenues, the data also reveals that in the circles of Karnataka and Gujarat, the amount realised by fixed services in 2004 was down by 8.6 per cent and 0.80 per cent respectively as against the previous year.

BSNL executives refused to comment on the decline in revenue from fixed services. Amongst the other large circles, Maharashtra had a growth of 0.22 per cent, Andhra Pradesh 0.54 per cent and Tamil Nadu 0.89 per cent.

The service provider recorded its highest growth in the Circles of Andamans and Nicobar (11.63 per cent), North East (11.58 per cent) and Jammu and Kashmir (8.03 per cent). The UP East Circle, which ranks ninth in subscriber base, however generated the highest revenue for the service provider in 2004.

Despite the poor growth in landlines, the company is confident in meeting the government's target of 250 million telephones by 2007.

"Our focus is two-fold "" establish a nationwide footprint and wipe out the 1.8 million strong waiting list by the year-end. Currently, we are working on numerous projects to connect all villages in the country. We have also begun a massive modernisation drive to retain and increase our urban base. Landline numbers are bound to rise," said a BSNL executive.

"Our boradband services will soon be available in about 200 cities. Broadband will lead the landline growth in the coming years," he added.