State run telecom PSU BSNL has crossed 100 million connection mark on the eve of ‘World Telecomunication Day’. Earlier Airtel, Reliance and Vodafone have achieved the taget of 100 million customers. BSNL is state run telecom company with operations in all across India except Mumbai and Delhi. In the month of March company has added 24.8 lakhs wireless customers so as to achieve total wireless customer base of 6.34 crores. Upto March end BSNL’s subscriber base of Landline, CDMA and GSM was 2.78 crores, 0.59 crores and 6.34 crores respectively, and BSNL achieved overall market share of 15%. Airtel is still leading with over all market share of 20% and 13 crores customers.

BSNL which is expected to book a loss of more than 3600 cr for fiscal year 2009-10 has been constantly loosing its market share to private operators owing to stiff competition and its rising staff cost. This year BSNL had to hike its staff salaries because of sixth pay commission which has substantially increased its staff cost amid declining revenues at all fronts. BSNL’s landline are undergoing constant surrender and GSM market is now ruled by private operators.

Entry of new players have further added to its woes. It is also facing hiccups in adding new GSM lines owing to complex tender procedures . Further time has to come for BSNL to pay for 3G spectrum for all circles in which it is operating which is going to be a staggering amount.

Its IPO has still not seen the light of the day due to opposition from its staff union and recommendations from Sam Pitroda are in the stage of contemplation.State run BSNL has a tough road ahead making its way forward in the telecom landscape which it ruled once and now dotted with plethora of operators jostling for their space and market share.

BSNL has achieved individual market share of 3.34%, 75.31% and 15% in CDMA, Landline and GSM services respectively.



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