BSNL, MTNL market shares fall to 14.42 per cent in 5 years: ReportPosted on Monday, April 30, 2012 - 18:48 pm
"The total share of public telecom service providers in the network expansion has declined in the last five years from 34.69 per cent in 2007 to 14.42 per cent by the end of July 2011," the report, that was tabled in Parliament last week, said.
However, in case of private operators, the total percentage share has increased from 65.32 per cent to 85.58 per cent during the same period.
The Department of Telecom has attributed the reason for this decline predominantly to surrender of landlines and limited growth in mobile phone services.
"As far as the limited growth in mobile telephony is concerned, it has been attributed to higher competitive mobile market, delay in capacity augmentation resulting in congestion and poor quality of services, and lack of marketing activities and poor visibility of products," the report said.
While distribution network is weak, particularly in rural areas, the uptime of mobile towers has been adversely affected due to indifferent attitude of IP vendors, which impacted the performance of the public firms, it added.
Even in wireline segment, private operators have added more subscribers whereas in the case of public operators, there is a decline in the user base.
"The total number of wireline telephones in public operators network in 2007 was 37.46 million, which declined to 28.03 million in July 2011, while the private operators increased their wireline base to 6.15 million in July 2011 from 3.31 million in 2007," the report said.
In wireless segment too, BSNL and MTNL's market shares declined to 11.44 per cent in January, 2012 from 20.55 per cent in 2007, a decline of about 50 per cent.
"The situation is opposite for the private service providers. From a share percentage of 79.45 per cent during 2007, it has grown to 88.56 per cent as on January 31, 2012," the report said.
BSNL has performed "poorly" in its mission to increase the rural wireless telephony in the country, the report said.
"Its share percentage has declined from 29.26 per cent during 2007 to 11.02 per cent as on December 31, 2011," the report said.
On the other hand, the share of private operators in rural telephony has grown to 88.98 per cent in December 31, 2011 from 70.74 per cent in 2007, it added.