The Hindu Business Line : Broadband helps stem loss of fixed lines: MTNL

THE Executive Director at Mahanagar Telephone Nigam Ltd , Mr M.S. Rana, says broadband has helped in tapering down loss of fixed line business. He adds that the company's focus on broadband will help retain customers. Excerpts from CNBC-TV18's exclusive interview with Mr Rana.

What kind of revenue contribution and growth can you see from the broadband business?

Basically, broadband is a value addition to our fixed line. So we expect a good amount of revenue from it.

Could you tell us whether there has been any kind of stemming of the loss of fixed line customers, which has been happening steadily?

The broadband business will help us in retaining our customers; because the broadband side is coming up, the value of fixed line has increased.

What is the average rate at which you are losing customers now on the fixed line side?

Basically, we cannot say we are losing customers because it is a migration from one side to another. It is a fixed line customer moving to mobile depending upon the financial conditions.

We get equal number of additions also. Some get disconnected due to non-payment also. So it is a continuous process. By and large. we are maintaining our number of customers on a static level with very minor changes.

What growth have you seen in mobile business?

The mobile space has seen a tremendous growth. In the last one year, we have added a capacity of 6 lakh; which is almost getting consumed. About 5.5 lakh has already been utilised. So in a one-year period, we have added more than 5- lakh customers in the mobile space.

Any new big contract that you are expecting for the rest of this financial year? We understand that Reliance may be applying for MTNL licences. Could you confirm that and can you give a sense of these contracts, the size of them?

We don't look at it from that angle. For us every customer is a valued customer. Reliance is most welcome because they are big customers. So we will be too happy that they come to MTNL. But for us, everyone is a valued customer.

What's the outlook on the PCO side of the business?

The PCO side is giving good amount of business to MTNL. PCO revenues have been good and are going up. As regards STD, our tariffs have fallen. So there may be minor changes in our revenues, but overall revenues from the PCO side are very good.

The proposed consolidation with BSNL, what is the latest on that?

I will not be able to talk about it. I will not be able to give my comments on this.