Lok Sabha Question No. 806 (UNSTARRED), answered on 2017-12-20
Subject: Revival of BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: CHANDRA PRAKASH JOSHI

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 806 TO BE ANSWERED ON 20 TH      DECEMBER, 2017

## REVIVAL OF BSNL AND MTNL

806. SHRI CHANDRA PRAKASH JOSHI:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the steps taken/being taken by the Government to arrest the declining consumer base of MTNL and BSNL in India;
- (b) the State-wise number of landline, mobile and internet subscribers of BSNL and MTNL during each of the last three years and the current year; and
- (c) whether  the  falling  tariff  level  has  helped  the  aforementioned  public  sector  telecom companies to regain  customer  base  and  if  so,  the  details  thereof  along  with  the  other  steps taken by the Government to revive the fortune of the said companies?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) The  steps  being  taken  by  Bharat  Sanchar  Nigam  Limited  (BSNL)  and  Mahanagar Telephone Nigam Limited (MTNL) to increase their subscriber base are detailed at Annexure-I
- (b ) State-wise details of number of landline, mobile and internet subscribers of BSNL and MTNL during each of the last three years and the current year are at Annexure-II.
- (c) BSNL  has  improved  in  its  market  share  due  to  its  competitive    tariff  plans    and    is increasing its 2G / 3G coverage by addition of BTS / Nodes to increase  its customer base.

In case of MTNL, the falling tariff has adversely impacted the overall industry including revenue  of  MTNL.  For  its  revival,  MTNL  has  engaged  Consultant  for  providing  'Advisory Services'. The Consultant has given certain recommendations for  revival of MTNL.

Department  of  Telecommunications  (DoT)  is  examining  the  recommendations  of  the Consultant  Report to  decide about the path of financial/HR/Corporate restructuring for  revival of MTNL.

## Measures taken by BSNL to further improve its customer base:

BSNL has drawn a comprehensive framework for augmentation / upgradation of its network in all spheres viz. wireless network, wireline network, data network,backhaul network & bandwidth  augmentation  with  aggressive  &  innovative  customer  centric  initiatives  to  retain  / enhance its customer base and to improve its financial position.

BSNL has aligned its growth plan for the coming years to catch up the growth in the data bus.  As  such,  BSNL  has  dedicated  its  major  resources  on  data  services  with  focus  on expansion of mobile network & broadband segment.

## 1.     Wireless Services

- A. Completion of Phase VII GSM project:
- BSNL will be completing Phase VII GSM expansion for 15 Million lines   with an investment of Rs. 4808 Crore.
- BSNL has already commissioned the planned capacity.
- As  per  present  roll  out  status,  10,962  (3G)  BTSs  &  14,250  (2G)  BTSs  have  been commissioned (total 25,212). This will improve 2G & 3G network coverage & data capability of 3G network.

B . Phase VII+ GSM Project:

-  Phase VII+ GSM project of BSNL presently envisages installation of approximately 13353 3G BTSs and 8968 2G BTSs in the circles of North, South & East zones.
-  As per present rollout status, total 13050 numbers of 3G BTSs and 8705 numbers of  2G BTSs have been commissioned in North, South & East zones.

C . Augmentation of GSM Mobile network capacity

Phase VIII: Formulation of next GSM expansion project:

a. Phase VIII.1: Induction and integration of Wi-Fi Hotspot / LTE (4G) with existing    GSM /UMTS network.

- b. Phase VIII.2 : Strengthening of Data Network-
2. (i). Media has been Strengthened to support the surge in data volume.
3. (ii) . No scarcity is observed in IP availability to support the data network.
- c. Phase VIII.3: The Inter Circle Roaming has been launched M/s Vodafone in Delhi for 'BSNL as a seeker' for all zones to facilitate more roaming options to BSNL's Customers. Testing is also under process for Intra Circle Roaming with M/s Reliance Jio in Karnataka. Inter Circle Roaming  has  been  launched  with  M/s  Vodafone  in  MP  &  CG  Circles  for  Vodafone  as  a seeker. Intra circle roaming has also been launched with M/s Aircel in Rajasthan as seeker.
- d. Phase VIII.4 Focus on enhancing 2G & 3G GSM coverage.

With regard to (a) & (d) above, a GSM expansion project under name Phase VIII.4 has been initiated for the following:

- Replacement of old equipment having high operational cost & AMC.
- Addition of 3G capacity for increasing 3G footprints.
- Introduction of 4G services.

## Annexure-I

- The project is presently envisaged to provide about 20881 2G BTSs, 22517, 3G Node Bs and 10000 4G E-Node Bs.

## 2. Wireline Services

BSNL  has  planned  to  migrate  the  entire  wireline  TDM  Exchange  network  by  IP  enabled Exchange since 2013. Next generation Network equipment based on the latest architecture are planned  to  be  deployed  gradually  to  replace  the  entire  TDM/  digital  Telephone  Exchanges (OCB, EWSD, AXE and 5 ESS TDM types).

Replacement of legacy Wireline exchanges by Next Generation Network (NGN) Switches:-

-  Phase I: Total capacity of 1 million line equipment has been commissioned in Phase -I class5  IMS  based  New  Generation  Network  (NGN).  The  implementation  of  phase-II  3  Million (core& access) equipment is in progress.

With migration to Next generation Network system, the customer will get better communication  Enhanced  Value  Added  Services  like  Personalized  Ring  Back  Tone,  Multi Media Video Conferencing and IP Centrex etc.

## 3.    Broadband Services

-  Augmentation of Broadband network for meeting data growth :-BSNL has procured MPLSTP  based  Next  Generation  Packet  Aggregation  Network  (MNG-PAN),  Installation  & commissioning of equipment is completed.
-  Setup of Network Monitoring system (NMS) for Wire-line, Wireless and Broadband network: PO  for  the  procurement  &  implementation  of  Broadband  Network  Management  System covering  BB  P2.2,  Multiply&  FTTH  Networks  has  been  placed.  The  equipment  is  in advanced stage of commissioning.
-  Roll-out of Wi-Fi Service: BSNL has been deploying 35000 Wi-Fi Access Points under WiFi  Hotspots  and  Mobile  Data  Offload  Project.  Till  date  3352  Wi-Fi  Hotspots  have  been installed  out  of  which  3042  have  been  radiated.  BSNL  is  also  rolling  out  Public  Wi-Fi Hotspots at Rural Telephone Exchanges of BSNL from these Wi-Fi Access Points as per Agreement of BSNL and USOF.

As on 31.10.2017, BSNL has installed 7733 Wi-Fi Hotspots across 3314 locations in the country through revenue share model.

## 4. Core Network for Backhaul Connectivity

Expansion of Provider Edge Network of BSNL: Out of planned 232 PE Routers, BSNL has commissioned  232  PE  Routers  along  with  their  integration  with  Core  Routers.  This  has resulted  in  the  expansion  of  IPMPLS  Network  from  106  cities  to  205  cities  providing connectivity for broadband, NGN, 2G/ 3G requirements apart from increased connectivity to enterprise customer.

Also, BSNL is taking up following customer centric measures to improve the delivery of services & improving customer satisfaction to the end user:

## Customer Centric Initiatives:

-  BSNL has focused on customer care services by installing exclusive call centres for GSM services, Wire- line and Broadband services.
-  Unlimited free night calling from land line to any Network between 2100 Hrs to 0700 Hrs in India by BSNL to its landline customers.
-  BSNL is  the  only  operator  in  India  which  is  offering  free  incoming  calls  to  its  customers while roaming on PAN India basis including service area of MTNL i.e. Delhi and Mumbai to its customers.

-  Minimum 512 Kbps broadband speed upgraded to 2 Mbps.
-  Introduced unlimited free calling during day and night on all Sundays on PAN India.
-  The new plan Experience LL 49 which also allows free calling facility  during  night  hours from Monday to Saturday of the week and 24 hours free calling on Sunday. The scheme has  been  extended  in  all  circles  (except  J&K,  NE-I  &  NE-II)  &  is  applicable  up  to 31.12.2017.
-  BSNL has introduced waive off installation charges scheme for New Landline which is applicable up to 17.07.2018.
-  The new plan Experience LL 49 allows free calling facility during night hours from Monday to  Saturday  of  the  week,  and  24  hours  free  calling  on  Sundays.  Rs  249  unlimited Broadband plan (upto 2 Mbps till 1 GB & up to 1 Mbps beyond).
-  Introduction of a scheme  to  waive off Installation  charges  for  new  LL/DSL/FTTH connections (voice/ Broadband/combo) in all the Circles, for a period of One Year-w.e.f. 1807-2017.
-  Introduction of a scheme for sale of ADSL Wi-Fi Modem @ Rs. 1500/- with 100% Cash back @ Rs. 50/- per month for maximum 30 month or till the BB connection remain active to the Broadband customers who subscribe under any Broadband plan with FMC Rs.675/- & above.
-  Introduction  of  new  Broadband  plan  'BBG  Combo UL 599' with 'Flat  2 Mbps Speed' and reformulation of certain PAN India DSL Broadband plans, which are currently being offered to the customers in PAN India basis - w.e.f. 10-07-2017.
-  Tariff Plan for 2Mbps FTTH/ILL Backhaul @ Rs. 17820/- for Wi-Fi Hotspots under Universal Service Obligation Fund (USOF) in all the circles-w.e.f.20-07-2017.
-  BSNL has introduced new LL Plan LL-299 with Fixed Monthly Charges (FMC) Rs.299. In this  tariff  plan  250  free  calls  are  allowed  to  any  network  within  India.  The  tariff  plan  is applicable w.e.f. 01.08.2017.
-  BSNL has revised the existing landline plans w.e.f.01.08.2017 & now customer will get free calls on BSNL Network equal to FMC.
-  BSNL  has  introduced  new  annual  landline  tariff  plans  'LL  1200  &  LL  1500'  which  also allows free calling facility during night hours from Monday to Saturday of the week and 24 hours free calling on Sunday. The tariff plans are applicable w.e.f. 01.09.2017 for 90 days.
-  BSNL has introduced Virtual landline Connection under plan 'ÄSEEM' in which customer can get a Virtual Landline number & get diverted all the calls received on that number to a mobile  number  of  his/her  choice.  This  plan  can  also  be  provided  in  Technically  Not Feasible(TNF) areas. The tariff plan is applicable w.e.f. 01.09.2017.
-  Introduction of a scheme  to waive off Installation charges  for  new  LL/DSL/FTTH connections (voice/ Broadband/combo) in all the Circles, for a period of One Year-w.e.f. 1807-2017.
-  BSNL has introduced unlimited local / STD BSNL to BSNL with 300 Mb data for only Rs.99 with validity of 28 days for its prepaid mobile customers in Kolkata TD, West Bengal, Bihar, Jharkhand,  Assam,  Gujarat,  MP,  Chhattisgarh,  and  Maharashtra  &  Rajasthan.  In  other circles, it varies from Rs.119 to Rs. 149.
-  BSNL has introduced STV of Rs 339 for 28 days with unlimited Local/STD BSNL to BSNL + Local /STD BSNL to others (with FUP of 25p/min after FUP) + Unlimited DATA (With FUP of 2GB /day with no speed restriction and thereafter with speed restriction of 80 KBPS).
-  BSNL  has  introduced  new  STV  plan  'BSNL  CHAUKKA'      '444'  Unlimited  data  (Speed reduced to 80 Kbps after 4GB/day) offer under prepaid mobile service.
-  BSNL has introduced  new plan 'BSNL SIXER' '666'  Unlimited data (Speed reduced to 80 Kbps after 2GB/day) & Unlimited  free voice (Local/STD)  for 60 days any net in HPLMN under prepaid mobile service.
-  BSNL  has  introduce  the  New  plan  is  of  rupees  429/  only  which  is  giving  Free  voice ( Local/STD) on any network and 90 GB data @ 1GB per day) for 90 days  on PAN India basis ( except Kerala Circle)

## Measures taken by MTNL to further improve its customer base:

## 1. For landline/broadband services-

-  Upgradation/Rehabilitation  of  external  plant  including  dropwires  to  make  it  joint free.
-  Installation of DSLAM nodes near the subscriber premises to reduce loop length to support high internet speed.
-  Close  monitoring  at  different  stages  so  that  faults  are  attended  quickly  and  the process has been  made  customer  friendly with the provision of  feedback mechanism.
-  Close  coordination  with  other  agencies  during  digging  work  to  avoid  damage  to underground cables.
-  The theft prone routes are being patrolled in the night to check theft of cables and cable theft alarms are being installed on primary cable.
-  SMS is  sent  to  customer  and  concerned  lineman  after  allotment  of  the  booked telephone fault.
-  Revision/ new plans on local call/STD.
-  Tariff rebalancing in Broadband by giving high fair data usage and upgraded speed up to 8 Mbps subject to technical feasibility.

## 2. For Mobile service-

-  Expansion of 3G network by adding 400+ Node Bs in MTNL Delhi & upgradation of existing 3G network in MTNL Mumbai. Installation of 1400 more Node Bs are in the process.
-  Introduction of new frequency plan and Optimization of cell level parameters.
-  Preventive maintenance to minimize the faults in the network.
-  On line monitoring of Base Transceiver Station (BTS) outages.
-  Optimization of Radio Frequency (RF) network regularly.

## Annexure-II

## State-wise number of landline subscribers of BSNL and MTNL

| S.No.   | State/Circle         | As on 31.3.2015   | As on 31.3.2016   | As on 31.3.2017   | As on 31.10.2017   |
|---------|----------------------|-------------------|-------------------|-------------------|--------------------|
| A       | BSNL                 |                   |                   |                   |                    |
| 1       | Andaman & Nicobar    | 12746             | 12954             | 14341             | 15156              |
| 2       | Andhra Pradesh       | 1496743           | 1340655           | 1216162           | 1108418            |
| 3       | Assam                | 165994            | 158772            | 153165            | 140456             |
| 4       | Bihar                | 194730            | 166156            | 155932            | 138912             |
| 5       | Chhattisgarh         | 139123            | 132438            | 133444            | 128376             |
| 6       | Gujarat              | 1322712           | 1172423           | 1110425           | 1049720            |
| 7       | Haryana              | 350362            | 305885            | 282293            | 248540             |
| 8       | Himachal Pradesh     | 200513            | 164336            | 142809            | 124937             |
| 9       | Jammu & Kashmir      | 149349            | 131214            | 134283            | 120305             |
| 10      | Jharkhand            | 144736            | 144935            | 138505            | 113859             |
| 11      | Karnataka            | 1402178           | 1294726           | 1229813           | 1152493            |
| 12      | Kerala               | 2484458           | 2187427           | 1999637           | 1905039            |
| 13      | Madhya Pradesh       | 690892            | 608789            | 580875            | 563402             |
| 14      | Maharashtra          | 1681804           | 1534836           | 1419352           | 1311363            |
| 15      | North East-I         | 68094             | 65139             | 61306             | 56373              |
| 16      | North East-II        | 59050             | 59038             | 59496             | 57563              |
| 17      | Odisha               | 306675            | 294061            | 279674            | 261733             |
| 18      | Punjab               | 761884            | 659460            | 586185            | 500047             |
| 19      | Rajasthan            | 690273            | 646839            | 599739            | 531471             |
| 20      | Tamil Nadu           | 1326825           | 1216131           | 1097636           | 1009528            |
| 21      | Uttarakhand          | 136061            | 123302            | 116308            | 104959             |
| 22      | Uttar Pradesh (East) | 402886            | 390103            | 379998            | 366057             |
| 23      | Uttar Pradesh (West) | 309971            | 264703            | 239112            | 215287             |
| 24      | West Bengal          | 422949            | 247758            | 305622            | 282009             |
| 25      | Kolkata              | 265066            | 668964            | 613190            | 576887             |
| 26      | Chennai              | 726366            | 671326            | 639666            | 589701             |
|         | Total BSNL           | 16412440          | 14762370          | 13688964          | 12672591           |
| B       | MTNL                 |                   |                   |                   |                    |
| 1       | Delhi                | 1609278           | 1615433           | 1601487           | 1566316            |
| 2       | Mumbai               | 1942393           | 1888655           | 1860887           | 1829547            |
|         | Total MTNL           | 3551671           | 3504088           | 3462374           | 3395863            |

## State-wise number of Mobile subscribers of BSNL and MTNL

| S.No.   | State/Circle         | As on 31.3.2015   | As on 31.3.2016   | As on 31.3.2017   | As on 31.10.2017   |
|---------|----------------------|-------------------|-------------------|-------------------|--------------------|
| A       | BSNL                 |                   |                   |                   |                    |
| 1       | Andaman & Nicobar    | 222723            | 351116            | 395900            | 443638             |
| 2       | Andhra Pradesh       | 9554414           | 9624990           | 9902190           | 10031184           |
| 3       | Assam                | 1165453           | 1249917           | 1443451           | 1507502            |
| 4       | Bihar                | 1861252           | 2235582           | 2876158           | 2742327            |
| 5       | Chhattisgarh         | 1009828           | 1374443           | 1593528           | 1794725            |
| 6       | Gujarat              | 3055520           | 3553430           | 4811203           | 5333112            |
| 7       | Haryana              | 2724779           | 3196266           | 3711636           | 4124570            |
| 8       | Himachal Pradesh     | 1391500           | 1687579           | 2147061           | 2355339            |
| 9       | Jammu & Kashmir      | 1163542           | 1275103           | 1451235           | 1520986            |
| 10      | Jharkhand            | 757042            | 906140            | 1127652           | 1258116            |
| 11      | Karnataka            | 6591288           | 6885739           | 6976379           | 7090478            |
| 12      | Kerala               | 6284889           | 7453461           | 9017410           | 9978690            |
| 13      | Madhya Pradesh       | 2044050           | 2899111           | 3503586           | 3754905            |
| 14      | Maharashtra          | 5015370           | 5788850           | 6459444           | 6826026            |
| 15      | North East-I         | 602728            | 690361            | 758021            | 755772             |
| 16      | North East-II        | 772965            | 787825            | 757627            | 688077             |
| 17      | Odisha               | 3385488           | 4101667           | 4996060           | 5215637            |
| 18      | Punjab               | 3004165           | 3566447           | 4541692           | 5026587            |
| 19      | Rajasthan            | 3160554           | 3899673           | 5469181           | 561942             |
| 20      | Tamil Nadu           | 7174985           | 7177811           | 7515277           | 8133572            |
| 21      | Uttarakhand          | 875458            | 982718            | 1284337           | 1405890            |
| 22      | Uttar Pradesh (East) | 7417209           | 8880615           | 11155587          | 11756341           |
| 23      | Uttar Pradesh (West) | 2352298           | 3218569           | 4469879           | 4322844            |
| 24      | West Bengal          | 1071566           | 1328973           | 1439531           | 1365292            |
| 25      | Kolkata              | 764197            | 775269            | 956040            | 1190711            |
| 26      | Chennai              | 1419209           | 1527876           | 1677590           | 1732160            |
|         | Total BSNL           | 74842472          | 85419531          | 100437655         | 105969422          |
| B       | MTNL                 |                   |                   |                   |                    |
| 1       | Delhi                | 2313943           | 2318460           | 2327203           | 2305008            |
| 2       | Mumbai               | 1169523           | 1242396           | 1300117           | 1290260            |
|         | Total MTNL           | 3423466           | 3560856           | 3627320           | 3595268            |

## State-wise number of Internet (Broadband) subscribers of BSNL and MTNL

| S.No.   | State/Circle         | As on 31.3.2015   | As on 31.3.2016   | As on 31.3.2017   | As on 31.10.2017   |
|---------|----------------------|-------------------|-------------------|-------------------|--------------------|
| A       | BSNL                 |                   |                   |                   |                    |
| 1       | Andaman & Nicobar    | 3584              | 3584              | 3584              | 3584               |
| 2       | Andhra Pradesh       | 196170            | 196169            | 196166            | 196164             |
| 3       | Assam                | 9715              | 9714              | 9713              | 9713               |
| 4       | Bihar                | 24689             | 24689             | 24689             | 24689              |
| 5       | Chhattisgarh         | 19939             | 19939             | 19939             | 19939              |
| 6       | Gujarat              | 158369            | 158365            | 158365            | 158364             |
| 7       | Haryana              | 92507             | 92505             | 92505             | 92505              |
| 8       | Himachal Pradesh     | 19777             | 19777             | 19777             | 19777              |
| 9       | Jammu & Kashmir      | 24381             | 24381             | 24382             | 24382              |
| 10      | Jharkhand            | 32123             | 32122             | 32122             | 32122              |
| 11      | Karnataka            | 207361            | 207363            | 207361            | 207359             |
| 12      | Kerala               | 382055            | 382055            | 382055            | 382055             |
| 13      | Madhya Pradesh       | 257286            | 257293            | 257293            | 257291             |
| 14      | Maharashtra          | 315638            | 315643            | 315642            | 315638             |
| 15      | North East-I         | 51065             | 51065             | 51065             | 51064              |
| 16      | North East-II        | 13662             | 13662             | 13662             | 13662              |
| 17      | Odisha               | 40557             | 40557             | 40557             | 40557              |
| 18      | Punjab               | 221334            | 221330            | 221331            | 221331             |
| 19      | Rajasthan            | 225670            | 225672            | 225672            | 225673             |
| 20      | Tamil Nadu           | 133666            | 133655            | 133654            | 133654             |
| 21      | Uttarakhand          | 46745             | 46745             | 46742             | 46742              |
| 22      | Uttar Pradesh (East) | 37374             | 37375             | 37373             | 37373              |
| 23      | Uttar Pradesh (West) | 87125             | 87119             | 87119             | 87112              |
| 24      | West Bengal          | 25102             | 25097             | 25097             | 25097              |
| 25      | Kolkata              | 354666            | 354641            | 354641            | 354635             |
| 26      | Chennai              | 184103            | 184100            | 184099            | 184099             |
|         | Total BSNL           | 3194663           | 3194617           | 3194605           | 3194581            |
| B       | MTNL                 |                   |                   |                   |                    |
| 1       | Delhi                | 576565            | 594101            | 577806            | 553260             |
| 2       | Mumbai               | 620499            | 587451            | 531686            | 485714             |
|         | Total MTNL           | 1197064           | 1181552           | 1109492           | 1038974            |