As users surrender landline,BSNL loses over Rs 7 cr annually

With the surrender of nearly 20,000-25,000 landline connections in a year,the BSNL is annually losing over Rs 7 crore in the district.

Written by Ishfaq Naseem | Pune | Published: May 13, 2012 7:04 am

With the surrender of nearly 20,000-25,000 landline connections in a year,the BSNL is annually losing over Rs 7 crore in the district. In the last three years,over 77,000 landline connections have been surrendered in the district.

According to officials,28,534 connections were surrendered in 2009-10,27,229 in 2010-11 and 21,588 in 2011-12. The number of connections that have been surrendered is nearly 20 per cent of the existing landline connections in the Pune district – 3.5 lakh.

The officials count the surrender as a big loss as the average revenue per user (ARPU) per month from the landline service is between Rs 350-400 in comparison to the cell phone ARPU of Rs 150-180. The BSNL charges a minimum of Rs 180 per month as rent for the landline,while most of its cell phone connections are pre-paid.

Officials says frequent faults in landline service was one of the reasons for the surrender.

Officials said salaried people who get transferred outside the state also surrender their telephones and the telecom provider is unable to fulfill the requests of new installations on surrender of connections due to change of residential addresses by people.

“We are unable to provide the new connections to people who shift their houses due to difficulties in laying optical fibre lines in new areas,” said a BSNL official.

BSNL general manager (Administration) Arvind Vadnerkar,however,said people are surrendering their landlines mostly as “more and more people are switching to wireless system of network”.

“People are preferring cell phones over landline telephones. But the number of telephones that we are adding to our network is better than the surrenders. The surrenders doesn’t mean that people are not satisfied with our service,” he added.

The surrender of landline connections is coming despite the fact that the telecom provider in its promotional campaigns has been offering Internet broad band connectivity on landline service which is of better speed than the Internet facility available on the wireless network.

BSNL Employees Union district secretary N K Nalwade said revenue loss to the company is major due to surrenders.

He said there is a need for pursuing the issue of delay in permissions for road digging with higher authorities in corporations so that “there are no difficulties in laying fresh cable networks for more landline services”.

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