Bharat Sanchar Nigam Limited - Challenges

Challenges

During the financial year 2008-2009 (from April 1, 2008 to March 31, 2009) BSNL has added 8.1 million new customers in various telephone services taking its customer base to 75.9 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 62.3 million. However, despite impressive growth shown by BSNL in recent times, the Fixed line customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling rate under OneIndia plan, however, the success of the scheme is not known. However, BSNL faces bleak fiscal 2009-2010 as users flee.

Presently there is an intense competition in Indian Telecom sector and various Telcos are rolling out attractive schemes and are providing good customer services. But situation as on 2012 BSNL will be third largest operator(Service) and No 1 access operator among country. As Trai Report 2011-12 BSNL became most trustworthy brand due to its loyalty towards customers and its rule.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide service in non-lucrative areas especially rural areas) has been slashed by 20% by TRAI, w.e.f. April 1, 2009. The reduction in ADC may hit the bottomlines of BSNL.

BSNL has started 3G services in 290 cities and acquired more than 6 Lakh customers. It has planned to roll out 3G services in 760 cities across the country in 2010-11. according to users and big sources BSNL's 3G data speed is much higher than other operator and also it is competitively cheap.

Broadband services : The shift in demand from voice to data has revolutionized the very nature of the network. BSNL is poised to cash on this opportunity and has planned for extensive expansion of the Broadband services. The Broadband customer base of 3.56 Million customer in March'2009 is planned to be increased to 16.00 million by March 2014. On 13 June 2012, BSNL employees participated called off an earlier planned nationwide strike against discriminatory policies of BSNL management upon promise by Management to resolve the Demands of the protesting unions.

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