Date:11/07/2007 URL: http://www.thehindu.com/2007/07/11/stories/2007071158730300.htm

Tamil Nadu - Coimbatore

Plea to expedite BSNL cellular network expansion

Staff Reporter

— PHOTO: S. SIVA SARAVANAN

United they fight: Members of the Federation of BSNL Officers and Employees staging a dharna in the city on Tuesday .

Coimbatore: Members of the Joint Struggle Committee of the Federation of Bharat Sanchar Nigam Limited (BSNL) Officers and Employees staged a dharna in front of the main exchange here on Tuesday. They demanded immediate procurement of equipment to expedite the expansion of cellular network.

They have planned to go on a one-day strike on Wednesday. They have threatened to go on an indefinite strike, if the stalemate over the expansion is not resolved by July 11.

They said when the BSNL was trying to capture a substantial market share in the mobile phone segment to compensate the massive surrenders in landline phone segment, a tender was floated in 2006 for procurement of equipment to release another 4.5 crore mobile connections. Three manufacturers were in the race and the tender was awarded to two lowest bids.

This resulted in the third operator approaching the court for a stay. The operator withdrew the case after six months and it was announced that procurement orders would be placed in 15 days.

Even after three months there was no progress in placing orders. The Ministry was delaying the procurement citing the difference in the cost per connection comparing the contracts given to Mahanagar Telecom Nigam Ltd. and the BSNL unmindful of the difference in technology.

Till March, the BSNL had released 18 lakh connections a month, but in May it had released only a meagre 2.4 lakhs. In the same month, the competitors had walked away with a lion’s share of 81.2 lakh connections. If the situation continued, the BSNL would become a sick enterprise.

The Union Minister for Communication was of the opinion that the procurement of gadgets would result in a loss of Rs. 1,700 crore for the BSNL. If the procurement was to be delayed, the BSNL would incur a loss of Rs. 7,000 crore a year. In March, the share of BSNL in the telecom market was 22.36 per cent and it had come down to 21.43 per cent now. Further delay would result in the market share falling by one per cent every two months, the demonstrators said.