Gaining Subscriber Market Share is the Key for BSNL Says CMD

Anupam Shrivastava, CMD of BSNL has revealed the company’s plan for the current year during a media interaction. He stated that BSNL’s current goal would be increasing the subscriber market share and growing in the enterprise space to protect revenue over the upcoming quarters. The state-run telco has been able to match up the competition in the last 18 months, which in turn benefited the company in growing the market share. BSNL is currently the fifth largest telecom service provider in India with over 110 million subscribers and the leading wired broadband operator with close to 10 million users on board.

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“In 2018-19, we are going to grow our revenue on the back of the enterprise business, infrastructure sharing, collaboration for FTTH (Fiber to the home) and other services,” said Shrivastava, as per a report by Indian Express.

However, the chief officer is not expecting any surge in profits this year as the competition in the industry is still high. “In this financial year, it won’t be possible…because the market has disrupted a lot and many companies are in red. We hope that in 2019-20 we will be able to swing into net profit,” he added when asked about the company becoming profitable this year.

BSNL currently has close to 10% of market share in the Indian telecom market with the chart being led by Bharti Airtel with over 25% share. In the last one year, BSNL introduced various attractive tariff plans to stay ahead of the competition and they paid off well for the telco. In fact, BSNL is the only the operator in the top five list with no 4G services at all on board. Shrivastava reaffirmed that the 4G services launch would happen in the near future, which will help the operator further.

“We gained customers from companies that were closing operations. We did a mid-course correction. We realised that in this disruptive market, there is no point in focusing solely on revenue but also customer market share…we were able to do both,” Shrivastava added.

BSNL has been a loss-making entity for years now. Losses stood at Rs 4,786 crore in 2015-16, while the same has been Rs 8,234 in 2014-15. The numbers for 2017-18 are yet to come, but he added that EBITDA should remain in positive territory despite of the cutthroat competition in the industry.

“While the number is still to come out for 2017-18, we expect that EBITDA should remain in positive territory in spite of competition in the market. We also expect to reduce net loss through lower expenditure…We expect to maintain our revenue (at the same level as last year) during 2017-18,” he concluded.

BSNL is currently focussing on adding new subscribers, but at the same time, rival telcos are giving some tough to the government-owned entity. BSNL is expected to reveal the financial numbers of FY 2017-18 in early June.

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35 Comments on "Gaining Subscriber Market Share is the Key for BSNL Says CMD"

 

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saket
May 28, 2018 11:47 am 11:47 AM

I would say.

MVNO can save future of BSNL, but it require

1) Come ease in MVNO guidelines (to be inclued in NTP2018). It will be pure-play focusing on data operator with voice benefit .
2) As per Market DEMAND, BSNL can effectively use or install new infrastructures , and not on based on whims and wishes of BSNL or political party.

currently AirVOYCe , in tamilnadu circle ( BSNL network) MVNO is just doing mimmick like tubelight.
Does TT reader are testing/using/trying to use service of BSNL.

Kiran Fernandes | Goa
May 26, 2018 7:34 pm 7:34 PM
They could start increasing subscriber count by bringing FTTH to all the residential areas, and ditching their outdated copper lines called ADSL. BSNL doesn’t wanna put money in fiber, and wants to increase speeds on copper which is not possible because of the loss on copper, but they don’t wanna do anything about it, so I guess they should think about giving all their fiber assets over to Bharatnet, and let Bharatnet bring fiber all over India and start ftth in all residential areas of the country, and plans like 10 to 50Mbps with 2k being truly unlimited. BSNL is… Read more »
Ajit Singh
May 26, 2018 12:33 pm 12:33 PM
BSNL has lost the race in the urban area. They are surviving due to Government/ PSU business and in rural areas where other Telcos are not operating. Otherwise, who would subscribe to 2G/3G services when 4G services are available at such low prices. By the time BSNL decides to roll out 4G services, others would be ready with 5G. As per recent news reports, BSNL doesn’t have the money to pay for 4G spectrum. They have offered equity to government in lieu of spectrum fees. In such a scenario, how BSNL can gain market share is anybody’s guess. Good luck… Read more »
Vin
May 26, 2018 2:52 pm 2:52 PM

Firstly there is no use of 4g until and unless it provides Speed and connectivity accordingly.

For example : Jio 4g in my area gives speed around 0.50mbps thats 4g speed and to get that speed you have to wonder here and there.
And bsnl 3g in my area gives constant speed of around 3.5 to 4mbps so you can better decide which one to go for and 3g or 4g is just gimmick.

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