BSNL plans broadband expansion

Bharat Sanchar Nigam Limited (BSNL) plans to invest Rs 800 crore to expand its broadband network across the country over the next three years. The state-owned telecom major will also invest Rs 27,000 crore over the next three years for the expansion of the cellular network primarily in rural areas.

The company expects to get the 3G spectrum by the end of 2007. BSNL is also planning to roll out the multiplay services in Chennai, Bangalore, Kolkata and Hyderabad over the next three to six months.

“For broadband, we will invest Rs 800 crore over the next three years to expand the network. From January 2008, we will add five million broadband connections per year. In the next year, we will spread broadband to 1,100 towns and will connect 20,000 villages with broadband connection.

We are planning to provide one crore cellular connections by end of 2007. From January 2008, we plan to provide three crore connections per year. We plan to invest Rs 27,000 crore for the infrastructure to reach to villages of India,” said BSNL chairman and managing director A K Sinha.

The telecom major, which on Thursday launched the first multiplay service in the country in Pune said that it is scouting for content providers in cities such as Chennai, Bangalore, Kolkata and Hyderabad and has tied up with a few of them.

“We are currently the connection provider but there are places where we will not be able to find content providers with whom we can partner for multiplay services. We are planning to invest Rs 300 to 400 crore for content development,” said Mr Sinha.

The telecom major said Value Added Services (VAS) contributed Rs 100 crore to its 2005-06 revenues. With the introduction of multiplay services, it expects VAS to contribute Rs 500 crore this fiscal and Rs 200 to 300 crore every subsequent year.