Will history repeat itself at the Bharat Sanchar Nigam Limited-The Indian Telecom Giant?

Will history repeat itself at the Bharat Sanchar Nigam Limited-The Indian Telecom Giant

?

The public sector unit of the Government of India is sitting on a cash pile of Rs 35,000 crores, but on the the other side of the coin lies the loss from operation which stands at Rs 3,641 crores. With money in the kitty and a telecom infrastructure and real estate worth more than Rs 4,00,000 crore the company if it gets listed today would be the most valued company in the stock market with a 25% lead on the number two.

The company is at the number 4 position in the wireless communication market following Bharti, Reliance and Vodafone because of the one time big cash minting business of landline service going on a free fall. BSNL is the only Pan India license holder in the country for 3G services and have gained a most of Pan India presence, and have already provided new avenues for mobile subscribers for high speed data and voice transmission. Here comes the Biggest Question now as to whether BSNL will repeat history or will change its strategy for a better future and will share its 3G infrastructure with its competitors. Future of BSNL will rely on this crucial decision it takes at this critical juncture.

After the much awaited bidding process from the Telecom Ministry none of the mobile operators could afford to bid for the pan India license and are already facing problems with increasing debt in the accounting books for paying 3G fees and expansion of services and would prefer to provide seamless pan India 3G services to its customer and would eventually look towards BSNL for providing infrastructure for the same.

If we go by the history when private players entered the market, BSNL with its 2G network had given a big NO! to the players and the players eventually started setting up their own infrastructure and are now giving a tough fight to the giant and creating problems, which would have been avoided if BSNL in the late ninties would have gone with the network sharing deal. The company could have minted money in just maintaining the network and private players would have paid handsome money to the PSU for providing services for its customers and would have also been dependent on the company which is not the case now in the 2G service.

Will BSNL share its 3G network? it will be known very soon but if chosen it will surely give a boost to the telecom major by generating revenue by infrastructure sharing and will also have a competitive edge over its competitors as private players will be dependent on the PSU and with lower end 3G handsets coming at cost of Rs 5499/- 3G is the next big thing to happen in the Indian Telecom arena.

BSNL in the 2G arena also has the best reach in the country which has been able to connect all the rural areas very well than any other private players and have not been able to make the most out of this infrastructure and the company should use it as USP and share its network like other cellular operators like Reliance Infratel of Reliance Communication, Indus Towers by the 3 major service provides Airtel, Vodafone and Idea which will generate more revenue from its tower units than now, by sharing services with new telecom operators like Vodafone, Airtel and Reliance Communications who would love to provide seamless 3G connectivity to its subscribers in India.

As of now let's wait for few months and we will soon be able to guess what lies in the future for the PSU giant in the Indian Telecom space which is also one of the fastest growing market in the world.

POST COMMENT

You Can Change Yourself By Memorizing These 18 Pieces Of Sayings Self Defense Tips For Men Protect Yourself from Cancer with More Fibre Manifolds, Metrics, and Self-versus-Other What You Should Know about the Different Kinds of Camping Gear Self Empowerment By Overcoming Procrastination Empower Yourself With Rapport Building Self Empowerment By Utilizing Your Sub-Conscious Free Reverse Cell Phone Lookup - Do it Yourself Self Esteem Affirmations - A Voyage Of Acceptance Part One Twitter Tips—Make Yourself Heard Treating depression with self help Healing Cancer Yourself by Teri Arnold