Lok Sabha Question No. 4383 (UNSTARRED), answered on 2022-03-30
Subject: Private Telecom Service Providers
Ministry: COMMUNICATIONS
Asked by: Shiromani Ram

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 4383 TO BE ANSWERED ON 30 TH  MARCH, 2022

## PRIVATE TELECOM SERVICE PROVIDERS

## †4383. SHRI RAMSHIROMANI VERMA:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  telecom  sector  in  the  country  is  currently  dominated  by  private  telecom  service providers and if so, the details thereof;
- (b) the factors responsible for the low share of the Government Telecom Providers in the telecom sector despite having a huge infrastructure; and
- (c) the steps taken by the Government to increase the share of Government Telecom Providers in the telecom sector and the success achieved by the Government in this regard?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) Yes Sir. The number of telephone connections provided by public TSPs and private TSPs, as on 31.12.2021, are given below:

| Type of TSP              | Number of telephone connections   | Number of telephone connections   | Number of telephone connections   |
|--------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
|                          | Wireline                          | Mobile                            | Total                             |
| Public TSPs (BSNL& MTNL) | 10,348,229                        | 117,615,635                       | 127,963,864                       |
| Private TSPs *           | 13,439,165                        | 1,037,003,984                     | 1,050,443,149                     |
| Total                    | 23,787,394                        | 1,154,619,619                     | 1,178,407,013                     |

The market shares of public TSPs and private TSPs, as on 31.12.2021, are given below:

| Type of TSP    | Market share (in terms of number of telephone connections)   | Market share (in terms of number of telephone connections)   | Market share (in terms of number of telephone connections)   |
|----------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
|                | Wireline                                                     | Mobile                                                       | Total                                                        |
| Public TSPs    | 43.50%                                                       | 10.19%                                                       | 10.86%                                                       |
| Private TSPs * | 56.50%                                                       | 89.91%                                                       | 89.14%                                                       |

(b)   Public TSPs viz. BSNL and MTNL are major players in wireline segment however, they are facing intense competition in the mobile segment. BSNL/MTNL do not offer 4G services (except in a few places by BSNL). Due to lack of extensive 4G coverage across India and with increase in 4G handset penetration, the market share of Government TSPs is low in wireless segment.

(c)    Government on 23.10.2019 approved the revival plan of BSNL and MTNL. The revival plan interalia  includes  measures  like  reduction  in  employee  cost  through  Voluntary  Retirement  Scheme  (VRS), administrative  allotment  of  spectrum  for  4G  services  through  capital  infusion  by  the  Government  into BSNL/MTNL, debt restructuring by raising of sovereign guarantee bonds and monetization of assets of BSNL/MTNL. The following is the progress of implementation of revival measures:

- i. VRS has been successfully implemented in BSNL and MTNL. Total 92,910 employees (BSNL 78,569, MTNL - 14,387) opted for VRS. As a result, salary expenditure is reduced by around 50% in BSNL and around 80% in MTNL during FY 2020-21.
- ii. Cabinet  approved  administrative  allotment  of  spectrum  for  4G  services  to  MTNL  and  BSNL through  capital  infusion  by  the  Government.  The  Government  also  approved  the  allocation  of spectrum of Delhi and Mumbai (MTNL areas) to BSNL to have pan-India presence in 4G services. Amount of Rs. 23,270 crores is allotted for revised cost of 4G spectrum in FY 2022-23.
- iii. For monetization of Land/Building assets, DIPAM approved monetization of 11 assets of BSNL (tentative value Rs. 18,200 Crores) and 06 assets of MTNL (tentative value Rs. 5,158 Crores) in phase-1 for which IPCs (International Property Consultants) have been appointed. Out of these properties in phase-1, 4 properties (reserved price of Rs 670 crores) of BSNL and 2 properties (reserved price of Rs 290 crores) of MTNL have been taken for e-auction; However, the bids are received only for one property of MTNL.
- iv. With the help of sovereign guarantee extended by the Government, BSNL has raised Rs. 8500 Crores and MTNL has raised Rs. 6500 Crores. The amount realized through the bonds has been utilized to restructure existing high cost debt.
- v. The Government also approved in-principle approval for merger of BSNL and MTNL. Due to financial  reasons including  high  debt of MTNL, the merger of MTNL with BSNL is deferred. However,  close  co-operation  and  service  integration  between  BSNL  and  MTNL  has  been undertaken.
- vi. Further,  Government  has  also  issued  instructions  to  all  Govt.  Departments/  CPSEs/  Central Autonomous Organizations for mandatory utilization of BSNL/MTNL network for internet/broadband, landline and leased line requirements.

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