Lok Sabha Question No. 61 (STARRED), answered on 2019-06-26
Subject: Poor Performance of BSNL and MTNL
Ministry: COMMUNICATIONS
Asked by: Rama Devi, Manoj Kishorbhai Kotak

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

LOK  SABHA STARRED QUESTION NO. 61 TO BE ANSWERED ON 26 TH   JUNE, 2019

## POOR PERFORMANCE OF BSNL AND MTNL

## †*61. SHRIMATI RAMA DEVI: SHRI MANOJ KOTAK:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government-owned Telecom Service Providers (TSPs) i.e. BSNL and MTNL are unable to compete with private sector TSPs and losing their market share due to which existence of both  these  companies  is  in  danger,  if  so,  the  details  thereof  and  the  reaction  of  the  Government thereto;
- (b) the reasons for Government owned TSPs incurring losses whereas private TSPs are earning crores of rupees every year along with the reaction of the Government thereto;
- (c) the steps taken/being taken by the Government to rectify the situation; And
- (d) the  details  of  the  competitive  approach  adopted  by  these  TSPs  in  relation  to  their  private counterparts who have been reducing their tariff rates continuously?

## ANSWER

## MINISTER OF COMMUNICATIONS, LAW & JUSTICE AND ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (d) A statement is laid on the Table of the House.

Contd………2/-

## STATEMENT TO BE LAID ON THE TABLE OF LOK SABHA IN RESPECT OF PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. *61 FOR 26 TH  JUNE, 2019  ON 'POOR PERFORMANCE OF BSNL AND MTNL'.

(a) & (b) As informed by Bharat  Sanchar Nigam  Limited (BSNL) and Mahanagar  Telephone Nigam Limited (MTNL), their market share during the last three years is as given below:

| Market Share (in %age)   | Market Share (in %age)   | Market Share (in %age)   | Market Share (in %age)   |
|--------------------------|--------------------------|--------------------------|--------------------------|
| PSU                      | As on 31.03.2017         | As on 31.03.2018         | As on 31.03.2019         |
| BSNL                     | 9.63                     | 10.26                    | 10.72                    |
| MTNL*                    | 7.37                     | 7.16                     | 6.95                     |

The Telecom sector is facing financial stress due to stiff competition and reduction in tariffs. The Gross Revenue of two private operators i.e. Airtel and Vodafone/Idea has also reduced in FY 2017-18 and FY 2018-19. For BSNL and MTNL, stiff competition in mobile segment, high employee cost and absence of 4G services (except in few places for BSNL) in the data-centric telecom market is eroding their competitive strength.

(c) Indian Institute of Management, Ahmedabad and M/s Deloitte were engaged to facilitate the preparation  of  the  revival/restructuring  plan  of  BSNL  and  MTNL  respectively.  Pursuant  to  their recommendations and approval of respective  Boards, a  comprehensive  revival  plan  for  BSNL  and MTNL is under preparation.

In addition, 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. (d) Steps taken by BSNL and MTNL to remain in competition are at Annexure.

## Steps taken to improve position of BSNL:

1. Augmentation of mobile equipment capacity/upgradation of mobile network in its areas under Phase-VIII.4  project  by  replacing  old  equipment  having  high  operational  cost  &  Annual Maintenance Charges, addition of 3G capacity for increasing 3G footprints and introduction of 4G services.
2. To  improve  quality  of  wireline  telephone  network,  BSNL  is  replacing  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 has been commissioned.
4. BSNL is  deploying  Wi-Fi  hotspots  through  various  projects  which  includes  revenue  share model with Hotspots Service Providers  (HSSPs). A total  number of 43500 Wi-Fi Hotspots have been commissioned till 30.04.2019.
5. Routers  have  been  installed  and  commissioned  whereby  IP-MPLS  (Internet  ProtocolMultiprotocol Label Switching) network has increased from 106 cities to 205 cities providing connectivity for broadband, NGN (fixed line) and 2G/3G requirements.
6. BSNL is also focusing on customer care services by installing exclusive call centers for GSM services, Wire- line and Broadband services.
7. Matching and innovative tariff plans and other subscriber friendly schemes are being launched by BSNL.
8. Constant monitoring of network to improve the quality of service
9. Launching  of  new  services  and  bundling  schemes  in  the  network  for  retention  of  the subscribers.
10. Network outage is being very closely monitored. Network is being optimized.

## Steps taken to improve position of MTNL:

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. A total of 242 DSLAMs have been redeployed in Delhi and 188 in Mumbai till 31 st March 2019. In the year 2018-19, 22 DSLAMs in Delhi and 14  in  Mumbai  have  been  redeployed  thereby  reducing  copper  length  and  enhancing  the quality  of  Broadband  service.  This  has  improved  customer  experience  and  reduced  the number of complaints.
2. MTNL had worked out, finalized and made operational the new policy to engage partners on revenue share basis to extend its FTTH services. Various partners were roped in to offer the high-speed  broadband  services  on  fiber.  In  the  year  2018-19,  out  of  total  12,105  FTTH subscribers added by MTNL, 9,520 subscribers (approx. 79%) were added by revenue share partners.
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. 250 access points for Wi-Fi enabling.
4. Customer Centric Strategies:
- a. Tariff of Wireless services has been rationalized significantly in view of the cut throat competition. MTNL now offers three times more data in the same price.
- b. Download speed of broadband is being upgraded to 8 Mbps progressively without any additional cost depending upon feasibility and line parameters.
- c. Tariff re-balancing of Broadband service has been done for giving more competitive and attractive tariff package to the customers.
- d. Training is being given to line staff to improve maintenance and installation practices.
- e. Refurbishing of Pillars and DPs is planned in phased manner.
- f. To improve copper pair quality, existing drop wires have been replaced with twisted drop wires or thermo sleeves have been put at open joints.
- g. Proactive Monitoring of Broadband Faults.

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