BSNL saw its overall share in the mobile services segment declining from 10.72 per cent at the end of March 2012 to 8.62 per cent on March 31, 2014, Telecom Minister Ravi Shankar Prasad said in a written reply to the Rajya Sabha.
BSNL has operations in 20 circles except Delhi and Mumbai, where another state-run firm MTNL operates.
While the market share of BSNL declined in most regions, the Andhra Pradesh and Telangana circle saw the operator's share grow from 13.5 per cent in March, 2012 to 14.08 per cent on March 31, 2014.
Prasad attributed the decline in BSNL's share to stiff competition in the mobile sector, aggressive marketing of services by the private telecom operators and inadequate investment in expansion/modernisation of its network over the period 2008-12 leading to network coverage issues.
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"The investment projects being undertaken by BSNL include augmentation of its mobile network as part of its Phase VII Project to create additional capacity of 15 million lines at an estimated cost of Rs 4,804.77 crore," Prasad said.
"Migration of entire C-DOT (Centre for development of Telematics) legacy telephone exchanges with technology solutions being developed by C-DOT at an estimated cost of Rs 350 crore for which MoU has been signed between C-DOT and BSNL," he said.