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BSNL sees 17% revenue growth in Maharashtra circle

October 03, 2003 18:36 IST

Bharat Sanchar Nigam Ltd is to invest around Rs 932 crore (Rs 9.32 billion) for infrastructure development in Maharashtra circle, even as the telecom services provider is expecting a 17.4 per cent increase in revenue to post Rs 3,075 crore (Rs 30.75 billion) by March 2004 from the circle.

"The investment, which is in line with our plans to stay ahead of competition, will be used for building a robust infrastructure and addition of the latest technology," R N Bharadwaj, chief general manager, BSNL, told reporters in Mumbai on Friday.

The Maharashtra circle comprises Maharashtra and Goa, but excludes Mumbai.

The company would invest around Rs 328 crore (Rs 3.28 billion) for upgrading its wireless in local loop infrastructure, Rs 154 crore (Rs 1.54 billion) for its global systems for mobile communications and Rs 550 crore (Rs 5.50 billion) for other infrastructure, including that of its Internet and fixed-line operations, he said.

The investments would be used to strengthen BSNL's optical fibre cable and trunk automation system, apart from using it for procurement of other telephony equipment,
Bharadwaj said.

On expectations of an increase in revenues by 17.4 per cent, the CGM said BSNL expects to post Rs 2,650 crore (Rs 26.50 billion) from basic services during the fiscal, compared to Rs 2,474 crore (Rs 24.74 billion) registered in the last fiscal.

The company, which was a late entrant to GSM services and had posted only Rs 24 crore (Rs 240 million) in revenues during the previous fiscal, Bharadwaj said, adding, this would touch a Rs 200 crore (Rs 2 billion) mark by the end of the fiscal.

BSNL expects to post a 50 per cent increase in revenues to Rs 100 crore (Rs 1 billion) from its leaseline operations, while it is expecting to receive around Rs 125 crore (Rs 1.25 billion) from its interconnect deals, he said, adding the company had posted Rs 96 crore (Rs 960 million) during the previous fiscal.

"We will achieve the target of Rs 3,075 crore this fiscal, through a thrust on marketing and optimising our operating costs," the CGM said.

BSNL expects to save 10 to 15 per cent from optimising its operational costs, he said, adding, the telecom major had recorded a total revenue of Rs 2,620 crore (Rs 26.20 billion) in FY03. 

The company would also look at increasing revenues from GSM server services and leaseline operations, which are the "new thrust" areas for BSNL, he said.

BSNL would also increase its services to cover all the talukas in the region, totalling around 304 short distance calling areas, he said.

The company would add a total of 296,000 new connections this year, which includes WLL connections, while BSNL aims to provide services to another 221,000 customers in WLL alone, he said.


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