BSNL plans to add 13.5 lakh connection capacity by year-end

Bharat Sanchar Nigam Ltd (BSNL), which has exhausted the capacity of its pre-paid connections in Gujarat, has chalked out plans to add an additional capacity of 13.50 lakh connections in the state by the end of the financial year.

Capacity for 3.50 lakh new connections will be made available in the next three to four months, while the remaining ten lakh connection capacity is scheduled to be made available by the end of the current fiscal year.

"We still have a capacity of about one lakh post-paid connections in Gujarat, but BSNL's pre-paid cellular service CellOne is in heavy demand.

"We continue to provide new post-paid connections, but pre-paid connections will be available as per demand only after about four months, when the capacity expansion takes place," a BSNL official said.

BSNL's post-paid cellular service in Gujarat is sold under the brand name Excel.

BSNL has replaced Lucent Technologies with Alcatel India for upgrading the cellular service network in Gujarat.

Alcatel India has been awarded the contract and the company has already taken up the task of increasing the capacity of BSNL's cellular network in the state.

After investing over Rs 200 crore in setting up the current cellular network in Gujarat, BSNL is expected to invest an additional Rs 200 crore over the next five months in expanding the network.

Work on the expansion is expected to begin in the next fortnight.

BSNL has over 4.81 lakh customers in the state by the end of February this year.

BSNL has exhausted its capacity and although fresh post-paid connections are being issued, it will take around five months for the new infrastructure to be put into place before the company embarks on a full-fledged campaign to promote its cellular service, officials said on Thursday.

After growing rapidly for a year and a half, slowdown in the number of BSNL's cellular customers began in November 2003.

From 4,79,474 at the end of November 2003, its subscriber base grew marginally to 4,80,395 by the end of December.

BSNL cellular subscriber base in Gujarat grew from 4,81,148 in January 2004 to 4,81,531 in February, a rise of just 383 new connections in a month.

This figure grew to 4,82,113 by the end of March, an increase of 582 connections in a month.

The subscriber base has almost been stagnant for the past two months, with 4,82,301 connections registered by the end of April.

According to figures of the Cellular Operators' Association of India, Bharat Sanchar Nigam Ltd cellular base in Gujarat at the end of May 2004 was 4,82,429, a rise of just over 100 connections in May.

Almost all the new Bharat Sanchar Nigam Ltd cellular connections since November last have been in the post-paid category.

Officials said the equipment "" mobile switching centres (MSCs), or cell sites, and other sensors and machines "" will be imported.

"The equipment is expected to land this month itself and procedures like testing and installing will take about four months more," said a Bharat Sanchar Nigam Ltd official.

Ahmedabad, which has the largest cellular market in the state, will have 100 towers instead of the present 50, BSNL sources said. Similarly, the city coverage will be beefed up in all major cities and towns of Gujarat.