Lok Sabha Question No. 1773 (UNSTARRED), answered on 2019-02-13
Subject: Revamping BSNL/MTNL
Ministry: COMMUNICATIONS
Asked by: SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, Shrirang Appa Barne, VINAYAK BHAURAO RAUT, MANSUKHBHAI DHANJIBHAI VASAVA, ANANDRAO  ADSUL, RAKSHA NIKHIL KHADSE

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO.1773

## TO BE ANSWERED ON 13 TH  FEBRUARY, 2019

## REVAMPING BSNL/MTNL

## 1773.  SHRI ADHALRAO PATIL SHIVAJIRAO:

DR. SHRIKANT EKNATH SHINDE:

SHRI SHRIRANG APPA BARNE:

SHRI VINAYAK BHAURAO RAUT:

SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

SHRI ANANDRAO ADSUL:

SHRIMATI RAKSHATAI KHADSE:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the loss or profit of MTNL & BSNL during the last three years, their total liabilities as compared to their profits and the service infrastructure available with them in comparison to their private counterparts for mobile services;
- (b) whether  BSNL  and  MTNL  have  failed  to  attract  customers  as  compared  to  their private counterparts despite having large infrastructure, particularly in the urban areas;
- (c) if so, the reasons found out by these Government companies including for call drops and low connectivity;
- (d) whether the Government  is considering the restructuring/revamping of these companies  to  make  them  competitive  and  profitable  and  if  so,  the  plan  prepared  by  the Government in this regard and the time by which it will be implemented; and
- (e) the other steps proposed to be taken by the Government in this regard along with the provision  of  cheaper  and  better  services  to  their  customers  in  the  age  of  cashless transaction/payment systems?

## ANSWER

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

- (a) The  profit(loss) and  liabilities  of  Bharat  Sanchar  Nigam  Limited  (BSNL)  and Mahanagar Telephone Nigam Limited (MTNL) for the last three years are as under:

(in Rupees Crore)

| Year    | BSNL          | BSNL        | MTNL          | MTNL        |
|---------|---------------|-------------|---------------|-------------|
|         | Profit/(loss) | Liabilities | Profit/(loss) | Liabilities |
| 2015-16 | (4859.16)     | 35673.58    | (2005.74)     | 21545.26    |
| 2016-17 | (4793.21)     | 33364.16    | (2970.57)     | 21029.66    |
| 2017-18 | (7992.85)     | 43125.41    | (2970.65)     | 22587.02    |

(b) & (c) Market  share  of  BSNL  and  MTNL  in  terms  of  landline  and  mobile  phone connections during the last three years are as under:

| S.   | As on      | Percentage of Market Share of BSNL and MTNL   | Percentage of Market Share of BSNL and MTNL   | Percentage of Market Share of BSNL and MTNL   | Percentage of Market Share of BSNL and MTNL   | Percentage of Market Share of BSNL and MTNL   | Percentage of Market Share of BSNL and MTNL   |
|------|------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| No.  |            | Wireline Connections (%)                      | Wireline Connections (%)                      | Mobile Connections (%)                        | Mobile Connections (%)                        | Total Connections(%)                          | Total Connections(%)                          |
|      |            | BSNL                                          | MTNL                                          | BSNL                                          | MTNL                                          | BSNL                                          | MTNL                                          |
| 1    | 31.03.2016 | 58.63                                         | 56.42                                         | 9.66                                          | 4.50                                          | 9.59                                          | 8.29                                          |
| 2    | 31.03.2017 | 56.15                                         | 55.27                                         | 9.97                                          | 4.03                                          | 9.63                                          | 7.37                                          |
| 3    | 31.03.2018 | 54.42                                         | 54.13                                         | 11.51                                         | 3.94                                          | 10.26                                         | 7.16                                          |
| 4    | 30.09.2018 | 52.64                                         | 53.41                                         | 12.64                                         | 3.99                                          | 10.48                                         | 7.23                                          |

Note:  The  percentage  of  market  share  of  BSNL  &  MTNL  is  as  per  their  areas  of operation.

The  market  share  of  BSNL  in  respect  of  mobile  connections  has  increased marginally. The market share of MTNL in respect of mobile connections is very less (<5%) due  to  highly  competitive  market  and  lack  of  funds  for  upgradation/  augmentation  of  its mobile network.

There is marginal decline in wireline connections of BSNL and MTNL due to shift of wireline customers towards more handy mobile phones as well as cheaper mobile services.

Telecom Regulatory Authority of India (TRAI)  monitors the performance of service providers including BSNL and MTNL, against the benchmark for various Quality of Service (QoS) parameters laid down by TRAI by way of Quality of Service regulations issued from time to time, through Quarterly Performance Monitoring Reports (PMRs). As per PMR for the  quarter  ending  September  2018,  for  Cellular  Mobile  Telephone  Services  BSNL  is meeting  the  benchmarks  for  all  the  parameters  in  all  the  service  areas,  except  the parameters for assessing call drop viz 'Network QoS DCR Spatial distribution measure or DCR Network\_QSD(90,90) (benchmark 2%)', and 'Network QoS DCR temporal distribution measure or DCR Network\_QTD(97,90) (benchmark ≤ 3%)', in West Bengal Service area and 'Point  of  Interconnection  (POI)  Congestion  (No.  of  POIs  is  not  meeting  the  benchmark) (Average  over  a  period  of  quarter)  (benchmark  ≤  0.5%)'  in  Rajasthan  Service  area  only. Whereas, M/s MTNL is meeting the benchmarks for all the parameters in both  Delhi and Mumbai service areas.

(d) BSNL and MTNL have been incurring losses continuously since financial year 200910.  As per Department of Public Enterprises (DPE) guidelines, both CPSEs (Central Public Sector Enterprises) have been declared as 'Incipient Sick'.

Consequent upon declaration of BSNL as 'Incipient Sick', action has been initiated by the Department  of  Telecommunications  (DoT)  for  preparation  of  revival/restructuring  plan  of BSNL. Indian Institute of Management (IIM), Ahmedabad has been tasked for undertaking a study and preparation of revival/restructuring plan of BSNL.

The 'Revival Plan of MTNL' prepared by MTNL consultant is under examination in DoT.

(e) Steps  taken  to  facilitate  BSNL  and  MTNL  to  compete  in  telecom  sector  are  at Annexure.

## Steps taken to improve position of BSNL:

Department  of  Telecom  (DoT)  is  utilising  the  strength  and  competence  of  BSNL  to implement a number of important projects such as:

1.  Providing  mobile  connectivity  in  2199  identified  locations  in  Left  Wing  Extremism (LWE) affected areas
2.  Implementation  of  comprehensive  telecom  development  plan  for  Andaman  and Nicobar  Islands  and  Lakshadweep  Islands  through  augmentation  of  satellite connectivity/bandwidth
3.   Optical Fibre Cable based Network for Defence Services (NFS Project)
4.  Execution of BharatNet Project
5.  Comprehensive  Telecom  Development  Plan  for  the  North-Eastern    Region  for provision  of  mobile  services  in  uncovered  villages  in  Arunachal  Pradesh  and  two districts of Assam
6.   Implementation of transmission media plan for North Eastern Region
7.  Submarine  Optical  Fibre  Project  for  providing  connectivity  to  the  Andaman  and Nicobar Islands
8.  Setting up of 25000 Wi-Fi Hotspots at Rural Telephone Exchanges of BSNL
9.  Setting up of Satellite Gateway .

This  improves  the  capacity  utilisation  of  the  organisation,  enhances  and  diversifies  the revenue generating avenues while at the same time facilitating the fulfilment of Government objectives.

BSNL has also been encouraged to take measures such as ;

1.  Augmentation  of  mobile  equipment  capacity/upgradation  of  mobile  network  in  its areas  under Phase-VIII.4 project.
2.  To  improve  quality  of  wireline  telephone  network  BSNL  will  replace  Legacy  Public Switched Telephone Network (PSTN) switches to Next Generation Network (NGN) which support different kind of services i.e. voice, video and data. With migration to NGN,  customer will get enhanced Value Added  Services on wire line like Personalized Ring Back Tone, Multi Media Video Conferencing, IP Centrex, Limited Fixed Mobile Telephony (LFMT) and Fixed Mobile Convergence(FMC), etc. This will provide better facilities to customers and at lower maintenance cost to BSNL.
3.  Transport  Network  with  200  GBPS  line  capacity  connecting  47  state  Capitals  and important cities. Work in 45 cities has already been completed.
4.  Routers  have  been  installed  and  commissioned  where  by  IP-MPLS  network  has increased  from  106  cities  to  205  cities  providing  connectivity  for  broadband,  NGN 2G/3G requirements.

1. Redeployment  of  Digital  Subscribers  Line  Access  Modules  (DSLAMs)  of  existing wireline broadband network near to the subscriber premises thereby reducing copper length and enhancing the quality of broadband service.
2. Last year, MTNL finalized and made operational its new policy to engage partners on revenue  share  basis  to  extend  its  FTTH  services.  20  Partners  in  Mumbai  and  15 partners  in  Delhi  have  already  started  to  provide  FTTH  connections  at  speeds  upto 100 Mbps.
3. MTNL has signed an MoU with New Delhi Municipal Corporation Smart City Limited (NDMCSCL) with the objective to provide various services like FTTH, Public Wi-Fi for making  NDMC  area  as  a  SMART  City.  The  project  involves  around  2000  FTTH connections  in  Connaught  Place  area  and  approx.150  access  points  for  Wi-Fi enabling.
4. Customer centric Strategies:
5.  Download speed of broadband is being upgraded to 8 Mbps progressively without any additional cost depending upon feasibility and line parameters.
6.  Training  is  being  given  to  line  staff  to  improve  maintenance  and  installation practices.
7.  Refurbishing of Pillars and DPs is planned in phased manner.
8.  To  improve  copper  pair  quality,  existing  drop  wires  have  been  replaced  with twisted drop wires or thermo sleeves have been put at open joints.
9.  Proactive Monitoring of Broadband Faults.

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