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Updated: December 14, 2009 20:43 IST

BSNL loses market share by nearly half in three years

PTI
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A BSNL tower at K.K. Nagar Exchange in Chennai.
The Hindu A BSNL tower at K.K. Nagar Exchange in Chennai.

One of the reasons for this is that the PSU has followed all norms to award contract for expansion of services. It had floated a tender for adding 93 million GSM lines in mid-2008

Defending BSNL's massive loss in market share to just 16.71 per cent now from over 31 per cent in 2006-07, the government on Monday said it was mainly due to fierce competition and not due to managerial reasons.

"BSNL, being a Central Public Sector Undertaking, has to follow established institutional procedures in its various functions, which is not required in a private company," Telecom Minister A Raja said in a written reply in Lok Sabha.

BSNL has lost market share both in the mobile as well as in wire line telephony.

One of the reasons for this is that the PSU has followed all norms to award contract for expansion of services. It had floated a tender for adding 93 million GSM lines in mid-2008 but till now it has not been able to place the orders.

This is even when its existing capacity is almost exhausted in most of the circles.

Meanwhile, the minister said, BSNL has undertaken organisational restructuring with a view to provide end-to-end focus on different businesses. Under this, separate business units have been created to improve performance.

He said BSNL's market share in wire line telephony has come down to 76.03 per cent in 2009-10 (till 31.10.2009) while in case of mobile service the share has fallen to 12.18 per cent from 18.66 per cent.

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