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Updated: December 20, 2009 23:48 IST

Don’t justify loss of connections: Par panel to BSNL

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LOSING CUSTOMERS: A BSNL tower in Noida. File Photo: Shiv Kumar Pushpakar
The Hindu
LOSING CUSTOMERS: A BSNL tower in Noida. File Photo: Shiv Kumar Pushpakar

It is not just landlines, BSNL is losing mobile subscribers too, according to a Parliamentary panel which has pulled up the PSU for not taking effective steps to check its falling market share.

“Instead of taking any effective action to reverse the trend of surrenders, BSNL has tried to justify the position by stating that surrender of mobile connections is a countrywide phenomenon for all service providers and not specific only to BSNL.

“The committee is not happy with the way BSNL has reacted on one of the serious observation made by us regarding surrender of telephone connections”, said the Standing Committee on Communications and Information Technology.

It said there is an urgent need to conduct an independent study to know the precise reasons for surrender.

The PSU, the largest telecom company in the country, has lost 24.36 lakh mobile customers by way of surrendered connections in 2008-09 while in WLL (Wireless in Local Loop), it has seen about two lakh exits.

The Committee said it is constrained to note the increasing trend of surrender of BSNL connections under mobile and WLL category. Under WLL, the number of surrendered connections has risen from 7.21 lakh in 2007-08 to 9.24 lakh in 2008-09.

In the mobile segment, the number has increased from 49.42 lakh to 73.78 lakh.

Under the third landline category, the number of surrendered phones has slightly improved from 44.09 lakh in 2007-08 to 43.13 lakh, said the panel.

Today there are various choices before the customers and they opt only for that service provider which gives the best service. BSNL has to take note of that, said the panel.

In comparison with private players, BSNL has slipped in mobile number subscriber additions and base

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