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G. Rambabu

NEW DELHI, Nov. 10

WITH private sector operators swamping the telecom market with their services, the Department of Telecommunications (DoT) has decided to initiate sweeping changes in the procurement policies of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) to help them take on the competition more effectively.

According to official sources, the present tendering process of both the telecom behemoths is due for an overhaul, as it places them at a distinct disadvantage vis-à-vis the private operators in the cellular, basic and long-distance services. Even as the Bhartis and Tatas are able to implement their projects at a breakneck speed, both BSNL and MTNL have to cope with layers of procedure to put in place their projects.

These delays have to be minimised if they have to compete efficiently in the multi-operator scenario. The department is looking at ways in which these policies can be reworked so that both BSNL and MTNL too can take faster and more transparent decisions, they noted.

A recent example of how BSNL is yet to have the first-mover advantage in the pan-India broadband space is the continuing delays in its tender for appointing franchisees. The company had initially planned to appoint franchisees for its broadband services across the country by end-October to provide TV channels, video-on-demand (VoD), interactive gaming , video-conferencing, music-on-demand and high-speed Internet access to its wireline customers.

But since then, this has been postponed thrice. The present deadline for receiving expression of interest is November 18. By the time it completes the process, its competitor Reliance would have already launched its services in this sector.

In fact, the cellular services of BSNL, which were launched on October 19, too had quite a few false starts. The launch date was being postponed, mainly because the infrastructure necessary for its nationwide rollout was not in place. This gave the private operators enough time to come up with counter strategies, the sources noted.

The delays in the tendering process also to a large extent explain the lacklustre performance of MTNL in its cellular venture `Dolphin' and its wireless in local loop (WLL) limited mobility services `Garuda' in Delhi and Mumbai.

These procedural delays were acceptable as long as both the companies were monopolies in their respective regions. However in a multi-operator scenario, this could prove costly in terms of declining market share. Efforts were, therefore, being made to ensure that the tender evaluation was completed in as short a time as possible without any complications, they said.

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BSNL, MTNL get nimble to take on competition — Procurement policies to be overhauled

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