The Hindu Business Line : MTNL saddled with unutilised network capacity

IN what is proving to be a problem of plenty, Mahanagar Telephone Nigam Ltd (MTNL) is faced with a steadily increasing "spare capacity" in its networks for basic and mobile services in Delhi and Mumbai.

According to official sources, a review of its performance by the Department of Telecommunications (DoT) has noted that while the private operators have to constantly upgrade their networks to accommodate their increasing subscriber base for fixed line and mobile services, MTNL has a surplus capacity in its networks which it is dying to fulfil on account of a negative demand for its services.

While other operators have been logging in customers by droves, MTNL has faced a "net negative increase" in its subscriber base. In other words, the people who are surrendering their fixed lines and mobile connections is much more than those who are acquiring new connections from MTNL, the sources noted.

As against the annual target of 3.50 lakh new telephone connections, including fixed line, limited mobility (WLL) and GSM mobile, the company has been able to provide only 2.08 lakh connections so far. Moreover, the net increase is negative by 92,000 this year, as per the latest available figures provided to the DoT.

In the case of fixed line services, the MTNL network in both the metros can accommodate 57.54 lakh connections but has been able to maintain only 44.53 lakh lines. Of the 13 lakh "spare" connections for which it is not finding subscribers, 7.20 lakh is in Delhi and 5.80 lakhs in Mumbai. Instead, 1.45 lakh subscriber have disconnected their fixed line connections this year.

As regards its limited mobility services, the equipped capacity of its networks is 2.93 lakh connections in both the metros, while it has provided these services to 1.14 lakh subscribers. That leaves it with a spare capacity of 1.86 lakh connections, which it is finding difficult to distribute despite having the most affordable "mobile" tariffs.

The situation is no different in the GSM cellular services that it offers in Delhi and Mumbai. The equipped capacity of its networks is 5 lakh connections, the company has managed to attract only 3.22 lakh subscribers in the two years since the services were launched. That leaves it with a spare capacity of 1.78 lakhs.

The DoT has taken note of this trend, which is in complete contrast with the experience of private operators and asked MTNL to take corrective action immediately. The sources noted that what has surprised the DoT even more is the fact that even while the company is faced with "spare capacity", without taking corrective action, it is in the process of upgrading its existing network to enable it to cater to more subscribers in the future. It proposes to commission 8 lakh additional GSM lines and 8 lakh WLL lines, for which the tendering process has already been completed.