The Hindu Business Line : Mobile segment: Raja sets 30% market share target for BSNL

New Delhi, May 22 The Communication and IT Minister, Mr A Raja, has set a target of 30 per cent market share in the mobile segment for Bharat Sanchar Nigam Ltd.

BSNL’s growth rate in the cellular segment has been declining due to lack of network capacity over the past six months. BSNL has 18.4 per cent share with 36.6 million subscribers while Bharti Airtel is the leader with a 32 per cent share and over 64 million mobile users.

Speaking at a conference with the Heads of BSNL’s Circles, Mr Raja said that “since the Government has fixed a target of 500 million telephone connections by 2010 and 750 million connections by 2012, BSNL should play a pivotal role in achieving the national target.”

Market leadership

He said that BSNL must retain market leadership by improving the quality of service, customer care and responsiveness to the needs of customers as well as the redressal of their grievances. BSNL’s growth in the mobile segment has been marred primarily due to the delay in procuring network equipment. The delay was first caused due to a suit filed by Motorola against BSNL for rejecting its bid for a 45 million tender. Subsequently, the project got delayed further after Mr Raja asked the company to restructure the project at lower price and at half the original size.

Tapping new areas

Mr Kuldeep Goyal, Chairman and Managing Director of BSNL, said the company will tap new colonies and industrial areas coming up across the country by rolling out its network.

Market analysts said that it will take a huge effort from BSNL to achieve the 30 per cent market share given the level of competition.

Apart from delay in buying its network equipment, BSNL also has to deal with political and social bottlenecks even as private operators are quickly rolling out their network. BSNL lost out its number two position in the market to Vodafone in 2007 after its expansion plans got stuck.

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