Soon, BSNL subscribers can use Voda network in Delhi, Mumbai

Soon, BSNL subscribers can use Voda network in Delhi, Mumbai

BSNL mobile subscribers will soon be able to piggyback on the network of private telecom player Vodafone in Delhi and Mumbai.

The move will improve the coverage of BSNL's mobile network in these two areas where it doesn't offer services.

Currently, BSNL users automatically get connected to the network of another state-owned player MTNL.

The tie-up will be done through an inter-circle agreement between the two players, BSNL's chairman and managing director Anupam Shrivastava told DNA Money.

"We have recently tied up with Vodafone where their users can ride on our network in Madhya Pradesh and Chhattisgarh. Similarly, we are exploring a partnership with them in Delhi and Mumbai. This will help us in offering better services as well as covering black holes," Shrivastava said.

Under the tie-up, users will have an option to connect to Vodafone network while MTNL will continue to be a default option.

BSNL is actively pursuing such arrangements to generate additional source of revenues through passive and active infrastructure sharing.

"The agreement with Vodafone is almost finalised. We are working on technical feasibility...on how billing will be done and CDR (call data record) mechanism will function," he said.

While MTNL operates in Delhi and Mumbai, BSNL operates in rest of the country. The government has been exploring a merger between the two telecom PSUs since long but there has been no forward movement because of various issues including unions' resentment, different pay structure of both entities with MTNL being a listed firm. Recently, a parliamentary panel had recommended the merger of the two.

Currently, the loss-making telecom PSU generates Rs 1,500 crore revenues from infrastructure sharing, out of which Rs 900 crore comes from just tower sharing with other telecom operators. "We plan to double this revenue from infrastructure sharing to Rs 3,000 crore by the end of current fiscal," Shrivastava said.

For the current fiscal, it has pegged capital expenditure at Rs 4,500 crore. In the highly competitive telecom industry, BSNL has been looking for new streams for generating additional revenues, which include foraying into smart cities, offering satellite communication services and focusing more on enterprise business besides infrastructure sharing.

BSNL's financial numbers for the last fiscal are still not out because of a change in accounting principles. But the company expects to be Ebitda (operating profit) positive despite a troubled year for whole telecom industry where profits and topline of others have fallen. "Even if we are able to match the same financial level of previous year, it would be wonderful," he said.

Many experts believe that BSNL has under-utilised spectrum at many places which it can share with private telecom players. Even the huge number of BSNL towers are not utilised fully.

The entry of Reliance Jio last September has increased the level of competition manifold where all operators have been forced to match tariffs offered by Jio -- free voice calls and data at cheaper rates.