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CHAPTER -IV
BSNL HISTORICAL PERSPECTIVE

BHARATH SANCHAR NIGAM LIMITED

Bharath Sanchar Nigam Limited was inaugurated on 1st Oct 2000

and is one of the land mark events in the history of telecommunication

where the dept of telecom was corporated as and named as BSNL.

The formation of BSNL on lst Oct 2000 was one of the landmark

events in the history of telecommunication in India. This high-tech is

customer oriented company with emphasis on value addition. Today it is

the largest public sector undertaking of nation serving more then 35,000

million customer. It improves quality of telecom services in India. And

expansion of telecom net work into the village amongst its customers.

Introduced most of value added services AMS SMS on fixed lines etc..

with force of cost Answering machine services.

BSNL CELLONE CELLULAR SERVICE TARIFF CARD OF

PLANS
1 Plan 140

2 Plan 225

3 Plan 325

4 Plan 525
 56

TABLE 4.1
INITIAL AMOUNT FOR NEW CONNECTION

PARTICULARS AMOUNT

Registration fee Rs. 500

Activation Charges (One time) Rs. 200

Security Deposit

a. Local Rs.1,000

b. Local + STD Rs. 2000

c. Local + STD + ISD Rs. 3000

All the plans of BSNL in initial amount taking the connection

should be the same amount.

TABLE 4.2
CALL CHARGES [INCULDING ALL TIME PLUS IUC] IN
Rs. PER MINUTE

For all 24 hrs

Particulars Rs. per
Rs. per minute
pulse
Outgoing calls within the same circle (a) cell to cell (i) pulse 16 16
rate in seconds (ii) charges per minute 1.40 0.36
(a) Cell to fixed line i/c WLL (m) (i) pluse rate in seconds 15 15
(ii) charges per minute irrespective of distance 1.80 0.45
(ii) STD calls [calls outside the circle] (a) cell to cell (i) pulse 15 15
rate in seconds 1.80 0.45
(ii) charges per minutes
(b) cell to fixed line i/c WLL (m) 15 15
(i) Pulse rate in seconds 1.80 0.45
(ii) charges per minute upto 200 lcms 2.40 0.60
>2000-500 lcms 3.60 0.90
>500 lcms
 57

ISD Calls As per PSTN

Incoming FREE FOR ALL

24 HOUR
IV OPTIONAL SERVICES AS PER
ENCLOSIRE
V OTHERS
Service Tax extra at actual billing cycle monthly charges
included in para 3 above loyalty scheme new [with effect from
1.2.2004]

Free call worth Rs 75 and Rs 150 per month under plan — 325 &

plan 525 respectively subject to:(a) The customer is an existing BSNL

cell one subscriber of 6months or more as on 1st Feb 2004. Those

customers. For whom 6months are not yet over on 1st Feb 2004. will get

the free talk. Value from the 1st the next month in which it completes 6

months. Free call worth Rs. 75 and Rs. 150 per month under plan 325

plan — 525 will be applicable to Maharashtra Telecom circle without the

above condition as per existing order.

TABLE 4.3

CALL CHARGES [INCLUDING AIRTIME PLUS IUC] IN

RS PER MINUTE

For all 24 hrs

Particulars
Rs. per minute Rs. per pulse

Outgoing calls within the same circle (a) cell to 15 15

cell (i) pulse rate in seconds (ii) charges per
minute 0.40 0.10

(a) Cell to fixed line i/c WLL (m) (i) pluse rate 15 15
in seconds
1.20 0.30
 58

(ii) charges per minute irrespective of distance

(ii) STD calls [calls outside the circle] (a) cell 15 15

to cell (i) pulse rate in seconds
1.00 0.45
(ii) charges per minutes

(b) cell to fixed line i/c WLL (m) 15 15

(i) Pulse rate in seconds 1.80 0.45

(ii) charges per minute upto 200 kms 2.40 0.60

>2000-500 tans 3.60 0.00
>500 lcms

ISD Calls As per PSTN

Incoming FREE FOR

ALL 24
HOURS

IV OPTIONAL SERVICES AS PER

ENCLOSURE

V OTHERS
Service Tax extra at actual billing cycle
monthly in charges included in para 3 above
loyalty scheme new [with effect from 1.2.04]
Free cell worth Rs. 75 and Rs. 150 per month
under plan 325 and plan 525 respectively
subject to : a) the customer is an existing BSNL
cell one subscriber 6 months or more as on 1st
Feb 2004.
b) Those customers for whom 6 months are not
yet over on 1st Feb 2004, will get the free, talk
from the 1st the next month in which it complete
6 months
(ii) Free call worth Rs. 75 and Rs. 150 per
month under plan 325 plan 525 will be
applicable to maharashtra telecom circle
without the above condition as per existing
order.
 59

THE NEW TELECOM POLICY — 1999 [NTP — 991

Given the central aim of NTP-99 to ensure rapid expansion of

teledentsity, given the unprecedented expansion on telecom services that

competition has brought about given the steep reductions in tariffs that

competition has ensured given the fact that advances in technologies

crase distinctions imposed by earlier licensing systems, the fact that

even more rapid advances in technologies are imminent, given the steep

reduction in costs of providing telecom services, given the rapid

convergence of tariffs for wireless services, given the fact that the

provision of such services at the cheapest possible rates and by the most

reliable mode is the sine qua non for India to consolidate its position as a

leading hub of communications systems and information Technology.

IT enabled services and of establishing itself as a leader in new

disciplines such as bioinformatics and biotechnology. Given the

recommendations of TRAI in this regard, Government, in the public

interest in general and consumer interest in particular and for the proper

conduct of telegraphs and telecommunications services, has decided that

their share also be the following categories of license for

telecommunications service.

Unified license for Telecommunications services permitting

licensee to provide all telecommunication / Telegraph service covering

various geographical areas using any technology. Licence for unified

 60

Access [Basic and cellular] services permitting licensee to provide basic

and / or cellular services using any technology in a defined service area.

THE OBJECTIVES OF THE NTP 1999 AS UNDER

Access to telecommunications is of almost importance for

achievement of the country's social and economic goals. Availability of

affordable, and effective communications for the citizens is at the core

of the vision and goal of the telecom policy. Strive to provide a balance

between the provision of universal service to all uncovered areas,

including the rural areas, and the provision of high level services

capable of meeting the needs of the country's economy. Encourage

development of telecommunication facilities in remote, hilly and tribal

areas of the country.

Create a modern and efficient telecommunications infrastructure

taking into account the convergence of IT, media, telecom and consumer

electronics and thereby propel India into becoming an IT superpower

Convert PCOS, wherever justified, into public Tele info centres having

multimedia capability like ISDN services, remote database access,

government and community information systems etc.,

Transform in a time bound manner, the telecommunications

sector to a greater competitive environment in both urban and rural areas

providing equal opportunities and level playing field for all players.

Strengthen research and development efforts in the country and provide

 61

an impetus to build world class manufacturing capabilities. Achieve

efficiency and transparency in spectrum management. Project the

defence and security interests of the country. Enable Indian Telecom

companies to become truly global players. In line with the above

objectives, the specific targets that the NTP 1999 seeks to achieve would

be make available telephone on demand by the year 2002 and sustain it

there after so as to achieve a teledensity of 7 by year 2005 and 15 by the

year 2010. Encourage development of telecom in rural areas making it

more affordable by suitable tariff structure and making rural

communications mandatory for all fixed service providers.

Increase rural teledensity from the current level of 0.4 to 4 by the

year 2010 and provide reliable transmission media in all rural areas.

Achieve telecom coverage of all villages in the country and provide

reliable media to all exchanges by the year 2002. Provide internet access

to all district head quarters by the year 2000. Provide high speed data

and multimedia capability using technologies including ISDN to all

towns with a population greater than block by the year 2002.

NEW POLICY FRAMEWORK

The new policy framework must focus on creating an

environment, which enables continued attraction of investment in the

sector and allows creation of communications infrastructure by

leveraging on technological development. Towards this end, the new

policy framework took at the telecom service sector as follows

 62

ACCESS PROVIDERS
Cellular Moblie Service Providers
The cellular mobile service providers [CMSP] shall be permitted

to provide mobile telephony services including permission to carry its

own long distance traffic within their service area without seeking any

additional license. Direct Interconnectivity between licensed [CMSP's]

and any other type of service provider [including another cmsp] in their

area of operation including sharing of infrastructure with any other type

of service provider shall be permitted. Interconnectivity between

service providers in different service areas shall be reviewed in

consultation with TRAI and the same was announced by August 15,

1999 as a part of the structure for opening up national long distance. The

CMSP was allowed to directly inter connect with the VSNL after

opening of national long distance from January 1 2000. The CMSP shall

be free to provide, in its service area of operational all types of mobile

service including voice and non-voice messages, data services and

PCOS utilizing any type of network equipment including circuit and/or

packet switches, that meet the relevant international Telecommunication

union (ITU) / Telecommunication Engineering center (TEC) standards.

CMSP operators would be required to pay a one time entry fee.

The basis for determining the entry fee and the basis for selection of

additional operators would be recommended by the TRAL Apart from

 63

the one time entry fee, CMSP operators would also be required to pay

licence fee based on revenue share.

Denominations and validity

Replacement of SIM

Carry over of balance any grace period

Facility to know rupee balance

Cost of the card/Recharge coupon

Airtime/call charges

Procedure to connect

Procedure for accessing customer care center

Availability of toll free-numbers

Supplement/value added services

Fixed Service Providers

The fixed service providers (FSP) shall be freely permitted to

establish last mile linkages to provide fixed services and carry long

distance traffic within their service area without seeking an additional

license. Direct interconnectivity between FSP's and any other type of

service provider [including another FSP] in their area of operation and

sharing of infrastructure with any other type of service provider shall be

permitted.

Interconnectivity between service providers in different service

areas shall be reviewed in consultation with TRAI and the same would
 64

be announced by August 15, 1999 as a part of the structure for opening

up of national long distance. The FSP shall be allowed to directly

interconnect with the VSNL after the opening up of national long

distance from January 1, 2000.

The WLL frequency shall be awarded to the FSOPS requiring the

same, based on the payment of an additional one time fee over and

above the FSP entry fee. The basis for determining the entry fee and the

basis for assigning WLL frequency shall be recommended by the TRAI.

All FSP operators utilizing WLL shall pay a license fee in the form of a

revenue share for spectrum utilization.

Cable Service Providers

Under the provisions of the Cable Regulation Act 1995, Cable

Service Providers (CSP) shall continue to be freely permitted to provide

"Last Mile" linkages and switched services within their service areas of

operation and operate media services, which are essentially one-way,

entertainment related services. Direct interconnectivity between CSPs

and only other type of service provider in their area of operating and

sharing of infrastructure with any other type of service provider shall be

permitted.

INTERNET TELEPHONY
Internet telephony shall not be permitted at this stage. However

Government will continue to monitor the technological innovations and

 65

their impact on national development and review this issue at an

appropriate time.

The Radio Paging Service Providers (RPSP) shall be permitted to

provide paging services within their service area of operation. Direct

interconnectivity between licensed RPSPs and any other type of service

provider in their area of operation including sharing of infrastructure

shall be permitted. Interconnectivity between service providers in

different service areas shall be reviewed in consultation with TRAI and

the same would be announced by August 15, 1999 as a part of the

structure for opening up of national long distance. Further, TRAI may

also examine and recommend the revenue sharing arrangement between

RPSP and other access providers, subject to technical feasibility.

PUBLIC MOBILE RADIO TRUNKING SERVICE

PROVIDERS:- (PMRTSP)
PMRTSP shall be permitted to provide mobile area of operation.

Direct interconnectivity between licensed PMRTPs and any other type

of service provider in their area of operation shall be permitted after

examining the legal implications in view of the CMSP licenses.

The PMRTSP shall be granted separate license, on a non-

exclusive basis, for each service area of operation. Licenses would be

awarded for an initial period of twenty years and will be extended by

additional periods of ten year as thereafter for this purposes, the service
 66

areas would be categorized as per the existing structure. The PMRTSP

shall be eligible to obtain licenses for any number of service areas.

NATIONAL LONG DISTANCE OPERATOR

National long distance service beyond service area to the private

operators will be opened for competition with effect from January 1,

2000. To promote setting up long distance bandwidth capacity in the

country, provide a choice to consumers and promote competition, all

NLDOS should be able to access subscribers.

Resale would be permitted for domestic telephony,

announcement for the modalities thereof to be announced along with the

opening up of national long distance by August 15, 1999. Resale on

international long distance will not be permitted till the year 2004.

INTERNATIONAL LONG DISTANCE SERVICES

The subject of opening up of international telephony service to

competition will be reviewed by the year 2004.

OTHER SERVICE PROVIDERS

For applications like tele-banking, tele-medicine, tele-education,

tele-trading, etc., commerce, other services providers will be allowed to

operate by using infrastructure provided by various access providers, no

license fee will be charged but registration for specific services being

offered will be required. These service providers will not infringe on the
 67

jurisdiction of other access providers and they will not provide switched

telephony.

GLOBAL MOBILE PERSONAL COMMUNICATION

SERVICES
The Government has opened up the GMPCS market in India and

has issued a provision license. The terms of the final license would need

to be finalized in consultation with TRAI by June 30, 1999. All the calls

originating or terminating India shall pass through VSNL gateways or in

case of bypass. It should be possible to monitor these calls in the India

gateways. VSNL is also to be compensated in case gateway is

bypassed.

The GMPCS operator shall be free to provide voice and non-

voice messages, data service and information services utilizing any type

of network equipment, including circuit and/or packet switches that

meet the relevant International Telecommunication Union (ITU)/

Telecommunication Engineering Centre (TEC) standards.

SATCOM POLICY
The Satcom Policy shall provide for users to avail of transponder

capacity from both domestic\ foreign satellites. However, the same has

to be in consultation with the Department of space.

Under the existing ISP Policy, international long distance

communication for data has been opened up. The gateways for this
 68

purpose shall be allowed to use SATCOM. It has also been decided that

frequency band shall be allowed to be used for communication purpose.

VSAT Service Providers

The VSAT service providers shall be granted separate license, on

a non- exclusive basis for an initial period of twenty years and will be

extended by additional periods of ten year thereafter interconnectivity

between service providers in different service areas shall be reviewed in

consultation with TRAI and the same would be announced as a part of

the structure for opening up national long distance by August 15, 1999.

It is proposed that the appropriate level of entry fee and

percentage of revenue share arrangement would be recommended by

TRAI in a time- bound manner, keeping in view the objectives of the

new telecom.

ELECTRONIC COMMERCE
On line electronic commerce will be encouraged so that

information can be passed seamlessly. The requirement to develop

adequate bandwidth of the order of 10 Gb on national routes and even

terabits on certain congested important national routes will be

immediately addressed to so that growth of IT as well as electronic

commerce will not be hampered.

 69

RESOLUTION OF PROBLEMS OF EXISTING OPERATORS

The new policy framework which seeks to significantly redefine

the competitive nature of industry, would be applicable to new licensees.

There are, however, multiple licenses that heave been issued by the

Government for cellular mobile phone service, basis services, radio

paging services, intention to satisfactorily resolve the problems being

faced by existing operating operators in a manner which consistent with

their contractual obligations and is legally tenable.

BHARAT SNACHAR NIGAM LTD

When it comes to connecting the four corners of the nation , and

much beyond, one solitary name lies embedded at the pinnacle-BSNL.

A company that has gone past the number games and the quest to attain

the position of a leader. It is working round the clock to take India into

the future by providing world class telecom services for people of India.

BSNL is India's no.1 Telecom Service provider and most trusted

Telecom brand of the Nation. Driven by the very best of telecom

technology from chosen global leader, it connects each inch of the

nation tot the infinite corners of the globe. To enable you to step into

tomorrow.

SERVICES

AN OVERVIEW OF THE SERVICES OFFERED BY THE

BSNL
 70

BASIC TELEPHONE SERVICESS

The plain old. Countrywide telephone Service through 32,000

electronic exchanges. Digitalized Public Switched Telephone Network

(PSTN) with a host of phone plus value additions.

BSNL launched Data one broadband service in January 2005

which shall be extended to 198 cities very shortly. The service is being

provided on existing copper infrastructure on ADSL2 technology. The

minimum speed offered to the customer is 256 Kbps at Rs. 500/- per

month only. Subsequently, other services such as VPN, Multicasting,

Video conferencing, Video-on Demand, Broadcast application etc will

be added.

INTERNET

Keeping the global network of Networks networked, the

countrywide Internet Services of BSNL under the brand name includes

Internet dial up/Leased line access, CLI based access (no account is

required) and DIAS service, for web browsing and E-Mail applications.

You c'an use your dialup sancharnet account from any place in India

using the same access no '172233', the facility which no other ISP has.

BSNL. Has customer base of more than 1.7 million for sancharnet

service.

Internet Telephony service is also started under the brand name,

using this you can make calls to person in UK, USA, Canada and many
 71

more countries for as cheap as Rs. 4.50/- per minute only. BSNL also

offer Web hosting and co-location services at very cheap rates.

ISDN
Integrated Service Digital Network Service of BSNL utilizes a

unique digital network providing high speed and high quality voice, data

and image transfer over the same line. It can also facilitate both desktop

video and high quality video conferencing.

INTELLIGENT NETWORK
Intelligent Network Service (In Service) offers value-added

services, Such as:

Free Phone Service (FPH)

India Telephone Card (Prepaid card)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)

Universal Access Number (UAN) and more

I-NET

India's X .25 based packet Switched Public Data Network is

operational in 104 cities of the country. It offers X.25X.28 leases, X.28

Dial up (PSTN) Connection) and frame relay services.

 72

LEASED LINES & DATACOM

BSNL provides leased lines for voice and data communication

for various application on point to point basis. It offers a choice of high,

medium and low speed leased data circuits as well as dial-up lines.

Bandwidth is available on demand in most cities. Managed Leased Line

Network (MLLN) offers flexibility of providing circuits with speeds of

nX64 kbps upto 2mbps, useful for Internet leased lines and International

Principle Leased Circuits (IPLCs).

CELLULAR MOBILE SERVICE

COUNTRYWIDE CELLULAR SERVICE PRE-PAID CARD

BSNL's GSM cellular mobile service Cellone has a customer

base of over 5.2 million. Cellone provides all the services like MMS,

GPRS, Voice Mail, E-mail short Message Service (SMS) both national

and international, unified messaging service (send and receive e-mails)

etc. You can use Cellone in over 160 countries wordwide and in 270

cellular networks and over 1000 cities/towns across India. It has got

coverage in all National and State Highways and train routes. Cellone

offers all India Roaming facility to both pre-paid and post-paid

customers (including Mumbai & Delhi).

WIRELESS IN LOCAL LOOP

This is communication system that connects customers to the

Public Switched Telephone Network (PSTN) using radio frequency

 73

signals as a substitute for conventional wires for all part of the

connection between the subscribers and the telephone exchange.

Countrywide WLL is being offered in areas that are non-feasible

for the normal network. Helping relieve congestion of connections in the

normal cable/wire based network in urban areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge.

TARANG WLL SERVICE

TARIFF CARD plans two plans should be available and such as

given bellow.

1. WLL with limited mobility [WLL-M]

2. Fixed telephone lines on WLL [FWL]

1. WLL WITH LIMITED MOBILITY [WLL — MI

i) These services plane only in those causes where the
connection is not available across the counter and the
customer has to be kept in the waiting list. The registration
amount is adjustable in the first bill. In case where the
connection is immediately available, the demand for other one
time charges i.e security deposit and the deposit for hand set,
shall be issued forthwith.

ii) The security deposits amount of Rs. 2400/- WLL [m]

connection, may be exempted.
 74

CONDITIONS
Subscriber has a wired line PSTN connection from (BSNL) and

had paid prescribed security deposit on the existing wired line PSTN

connection.

WLL (M) CONNECTION IS WITHOUT ISD

Subscriber remains liable to higher security Deposit in case of

default or usage pattern as in case of PSTN phone. The revised tariff

plans, ie standard tariff plan of TRAI and the three alternate tariff plans

take effect from 1.9.2002. However, the following points are to be

considered in respect of existing WLL — (m) connections.

Monthly Rental
The monthly rental @ Rs.200 per month for connections without

clip facility is applicable with effect from 4.7. 2002. As such where the

cup facility had been provided to the subscribers during this period, the

applicable rental should be @ Rs.250 per month. The excess amounts

(ie. Rs, 450 per month less Rs. 250/-, Rs. 200/- per month) effect from

4.7.2002 (based on actual working days) may be refunded to the

subscribers by way of credit in their future bills.

Security Deposit For Connection

The short tail in security deposit amount if any, may be recovered

from the subscriber in the next bill. However, the excess amount, subject

to note, to the admixture, may be adjusted refunded to the subscribers.

 75

FIXED TELEPHONE LINES ON WLL (FWL)

The fixed telephone on WLL registration amounts security

deposit, installation charges, rental pulses for local, STD, & ISD calls

etc. Shall be the same as applicable to a regular wired line connection in

that area, except the special deposit for subscriber terminal, for which

the following two options are available to the subscriber.

The special refundable but non-interest bearing deposit amount

for the subscriber terminal payable by the subscriber shall be Rs.

10,000/-

The subscriber shall be provided an• option for obtaining the

subscriber terminal under an insurance cover in line of special deposit of

Rs. 10,000 /- at the monthly insurance charge of Rs. 20/- for the first

year in addition to monthly rental service tax. extra).

BSNL TARANG CDMA MOBILE

BSNL's WLL Tarang Service is the most reliable and affordable

service giving you the best of both fixed line telephony & Mobile

telephony. It offers host of value added services at virtually no cost to

our esteemed subscribers. Customer may get the handset by paying

premium approx. Rs. 20/- per month only for the comprehensive policy

taken for the cost of handset.

 76

SERVICES
Tarang WLL-M offers you a host of value-added services.

Voice-mail Service: 24 hour personal call answering service.

Call Waiting: allows you to receive an incoming call while

already engaged in one call.

Call hold allows you to put a current call on hold and make a

second call

Call Divert: allows you to divert calls within your SDCA

3-Way Call Conferencing: allows a conference between 3

persons from your mobile.

Handset

CLIP (Caller Line Identification Presentation): Enables you to

view the number of the calling person when you receive a call.

CUR (Call Line Identification Restriction): enables you a block

presentation of your

Own number on a called person's phone

Internet be accessed from WLL-FWT line

Dynamic STD.ISD locking.

Data /Fax transmission (upto 14.4 kbps).

Morning alarm / Hotline.

 77

Data One (Broad Band) (Outimes)

Services available through Broadband

High speed Internet Access: This is the always-on Internet

access service with speed ranging from 256 kbps to 8 Mbps.

Bandwidth on Demand: This will facilitate customer to change

bandwidth as per his / her requirement. For example a customer

with 256 kbps can change to Mbps during the video

Conferencing session.

Multicasting: This is to provide video multicast services for

application in distance education, telemedicine etc.

Dial VPN Service: This service allows remoter users to access

their private network securely over the NIB-II infrastructure.

VIDEO AND AUDIO CONFERENCING

Content based Services : Like Video on Demand, Interactive

Gaming, Live and time shifted TV

What the customer needs in order to be able to use Broadband?

BSNL's Bfone (Basic phone) connection

Personal Computer with 10/100 Ethernet Port

ADSL CPE (Customer Premise Equipment). This can be taken

from BSNL at nominal rental per month.

When is the service being launched.

 78

The Broadband Service has been launched in Bangalore,

Chennai, Hyderabad and Koltata from 14th January 2005. Soon, it

will be extended to 198 more cities.

DATA ONE (Broad Band)

BSNL launched Data one broadband service in January 2005

which shall be extended to 198 cities very shortly. The service is being

provided on existing copper infrastructure on ADSL 2 technology. The

minimum speed offered to the customer is 256Kbps at Rs. 500 /- per

month only. Subsequently, other services such as VPN, Multicasting,

Video Conferencing, Video-on-Demand, Broadcast application etc will

be added.

GROWTH AND DEVELOPMENT OF BSNL

BSNL's future plan include a fast expansion programme of

increasing the present 34 million lines to twice that number by 2005 and

some 120 million lines by 2010. The shift in demand from voice to data

domination, and from wireline to wireless, has revolutionized the very

nature of the network. BSNL has already set in place several measures

that should enable it to evolve into a fully integrated multi-operator by

2005 and its incumbent status, size, infrastructure and human resources

should certainly, give it a distinct advantage.

Consolidation of the network and maintaining high quality of

service comparable to International standards is the key aim of the

Growth Plan.
 79

OBJECTIVE OF THE PLAN

+ The telephone connection shall be provided on demand and it shall

be sustained.

+ The Network shall be made fully digital. All the technologically

obsolete analog exchanges will be replaced.

+ With digital exchanges.

+ To provide digital transmission links up to all SDC A.

+ Digital connectivity shall be made available to the local, Junction

and long distance network so as to make available sufficient

bandwidth for the spread of Internet and Information technology.

+ ISDN services shall be extended to all the district headquarters,

subject to demand. To provide Intellignet Network Services,

progressively all over the country (Major cities have already been

covered).

+ To set up Internet Nodes progressively up to district headquarters

level.

+ Upgrading existing STD/ISD PCO s to full fledged public Tele-Info

Centers (PTIC) for supporting Multi media capability and Internet

Access.

+ Replacement of life expired, analogue coaxial and radio systems.

 80

• Introduction of Wireless technology (Supporting Internet Access)

and optical fiber technology in subscriber loop. Introduction of latest

telecom services like National directory enquiry, computerization

etc.

• Cellular Mobile Service 'Cell One' of BSNL was launched on 19th

October 2002.

+ The scheme will cover 4 million customers in two phases, Phase-I

will cover about 1.5 million customers covering about 1000 cities

during 2002-03, which will be expanded to 4 million in phase-II.

PROJECTS RECENTLY IMPLEMENTED / UNDER

DEVELOPMENT
National Internet Backbone of BSNL

Voice over IP

Broadband Services — ADSL & High Speed Internet

Managed Leased Line Network (MLLN)

Access Network — LMDS, DLCs, RLC etc.

Internet Exchange Points — IXP & Internet Data Centers (IDC)

E-Commerce
 81

TABLE 4.4

DEVELOPMENTS

Year Ending Telephone Internet Broadband

Subscribers Subscribers Subscribers

2003 20 Million 2 Million 1.5 Million

2005 60 Million 6 Million 3 Million

2007 90 Million 18 Million 9 Million

2010 120 Million 40 Million 20 Million

MOBILE SERVICES (As on 28.02.2005)

Total number of connections 88,46,882
(As on 31.01.2005)

District Headquarters Covered 589

Total number of villages covered 4853

National Highway covered (Km) 37190

State Highway covered (Km) 17227

Railway route covered (Km) 5532

REVENUE
The Department of Telecom operations now known as BSNL,

has shown sustained growth in the last seven years. The growth rate in

2004-05 was 15%.

 82

TABLE 4.5
REVENUE

S.No Year Revenue (Rs. in Crores)

1 1998-1999 17744

2 1999-2000 18253

3 2000-2001 19814

4 2001-2002 22000

5 2002-2003 25293

6 2003-2004 33918

7 2004-2005 36303
 83

Chart - 4.1
The Revenue on BSNL

40000

36303

35000
33918

30000

25293
25000

22000
Rs. in Crores

19814
20000
18253
17744

15000

10000

5000

0
1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

Year
 84

CAPTIAL INVESTMENT

Annual Investment in the network has increased from Rs. 9450

crores in 1998-1999 to over Rs. 14777 crores in 2004-2005. This

investment has been financed mainly by the Department's internal

accruals. The planned capital outlay during the current year is Rs. 14777

crores.

TABLE 4.6

CAPTIAL INVESTMENT

Annual Capital Investment

S.No Year
(Rs. in Crores)

1 1998-1999 9450

2 1999-2000 12510

3 2000-2001 15784

4 2001-2002 16571

5 2002-2003 12057

6 2003-2004 16500

7 2004-2005 14777
 85

Chart 4.2
Annual Capital Investment on BSNL

18000

16571 16500

16000 15784

14777

14000 I

12510
12057
12000
Rs. in Crores

10000
9450

8000

6000 •

4000 ,

2000

0 I
1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

Year
 86

TELEPHONE
Basic Telephone (Bfone)

Total Number of connections as on 28.02.2005 3,56,06,844

WLL (Tarang)

Total Number of Connections as on 28.02.2005 15,56,260

Village Public Telephones

Total Number of Telephones as on 31.12.2004 5,12,820

Public Telephones (Local, STD and Highway)

Total Number of Public Telephones as on 31.12.204 17,84,643

STD Stations

Number of STD Stations as on 31.12.2004 31,790

Digital

(Route lcms) (Route kms)

Coaxial 6,024

Microwave 69,287

UHF 45,130

Optical Fiber 4,45,561

Satellite Based Services (As on 31.12.2004)

Total Number of MCPC — VSATs 279

Number of IDR ROUTES 71

 87

TABLE 4.7
TOP TEN SERVICE PROVIDERS

Rank Vendors Revenue

(Rs Core)

1 BSNL 36,303

2 Bharti Tele-Ventures 8,035

3 MTNL 6,084

4 Reliance Infocomm 5,387

_ 5 Hutch Max Telecom 4,365

6 VSNL 3,410

7 Idea 2,409

8 Tata Teleservices 1,253

9 Tata Teleservices (Mah.) 837

10 Aircel 741
 88

Chart 4.3
Top Ten Service Providers Based on Revenue
(Year 2004-2005)

40,000

36,303

35,000

30,000

25,000
Rs. in Crores

20,000

15,000

10,000 ,
8,035

6,084
5,387
5,000 4,365
3,410
2,409
71 1,253
837 741
0 ca
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e <,••
\e'z'
cp
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,se

Vendor
 89

TABLE 4.8

CELLULAR SERVICES

Revenue
Rank Services
(Rs. in Crores)

1 Bharti 5,436

2 Hutch 4,365

3 Realiance 4,089

4 BSNL 3,700

5 Idea 2,409

TABLE 4.9
INTERNET SERVICES

Rank Services No. of Subscribers

1 BSNL 1,839,185

2 MTNL 1,012,041

3 Sify 811,965

4 VSNL 702,629

5 Reliance 246,832
 90

Chart 4.4
Cellular Services Based on Revenue
(Year 2004-2005)

6,000

5,436

5 ,00 0

4,365

4,089

4,000

3,700
Rs. in Crores

3,000

2,409

2,000 i

1,000 I

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 92

TABLE 4.10

BHARAT SANCHAR NIGAM LIMITED

Balance Sheet As At 31st Match, 2003

SOURCE OF FUNDS SCHEDULE As at 31" March As at 31"

2003 (Rs. 000s) March 2002
(Rs. 000s)

Shareholders Funds

Capital A 125,000,000 125,000,000

Reserves and Surplus B 434,218,011 437,428,000

Loan Funds

Secured Loan C 5,100,000 5,100,000

Unsecured Loans D 78,864,381 106,385,085

Tax Liability 38,289,125

Total 688,671,517 673,913,085

APPLICATION OF FUNDS

Fixed Assets E

Cross Block 853,406.778 717,100,695

Loss Depreciation 223,305,948 127,100,695

Net Block 630,100,830 589,222,112

 93

Capital Work in progress F 92,650,554 107,095,895

722,751,384 697,095,895

Investment G 2,000,000

Current Assets and Loans and

Advances

Inventories H 31,703,150 37,951,084

Sundry Debtors I 53,670,786 57,158,686

Cash and Bank Balance J 34,396,844 23,607,635

Loans and Advances K 43,867,117 52,505,223

163,637,897 171,222,628

Less: Current Liabilities and

provisions

Liabilities L 173,100,827 178,527,717

Provisions M 33,898,939 23,069,166

206,999,766 201,596,883

Net Current Assets 43,361,869 30,374,255

Intra/Inter Circle Remittance 7,282,002 7,191,445

Total 688,671,517 673,913,085

 94

SUBSCRIBER GROWTH

In the year 2004-2005 was a watershed year for the fixed line services

in India as mobile subscribers outnumbered fixed phone subscribers. The year

saw explosive growth in mobile services and increased adoption of value-

added services. In the year 2002-2003 is the number of subscribers is 40.9

millions, 2003-2004 is the number of subscribers 43.1 millions and 2004-2005

is the number of subscribers 44.9 millions. Year will be increased at the same

time subscribers also increased.

TABLE 4.11
SUBSCRIBER GROWTH

S.No. Year No of Subscribers

(in Millions)

1 2002-2203 40.9

2 2003-2004 43.1

3 2004-2005 44.9
 95

Chart 4.6
Subscribers Growth

2003-2004
33%

D 2002-2203 0 2003-2004 02004-2005