Telecom Sector – An overview

Communication has grown to be an essential infrastructure for socio-

economic development in an increasingly knowledge intensive world. The
reach of telecom services to all parts of the country is integral to
development of an innovative and technologically driven society. Studies
have shown that there is a positive correlation between the penetration of
Internet & Mobile Services and the growth of GDP of a country. As a result
of the measures taken by the Government over the years, the Indian
Telecom Sector has grown exponentially and has become the second
largest network in the world, next only to China.

teleCom SeCtor GroWtH:

The telecom sector exhibited strong growth over the last few years on the back of strong
consumer demand and supportive policies of the Government of India. The government has
ensured fair competition among service providers, and a fair and proactive regulatory
framework that has resulted in telecom services being available to consumer at affordable
prices. Further it has made sustained efforts at encouraging telecom equipment
manufacture. The deregulation of Foreign Direct Investment norms has led an increase in
FDI in the sector.

India is currently the world’s second-largest telecommunications market with a subscriber

base of 1.18 billion. India’s growing mobile economy now constitutes about 98% of all
telephone subscriptions. The mobile industry has witnessed exponential growth over the
last few years driven by affordable tariffs, wider availability, roll out of Mobile Number
Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns and
supportive policy and regulatory environment. As per a GsMA report3 , the mobile industry
supports about 6.5% of India’s GDP. The figure accounts for both the direct economic
activity generated by mobile operators and an indirect effect on the rest of the economy
resulting from increased use of mobile technology by individuals and firms. Telecom
industry contribution to GDP is expected to reach 8.2% by 2020.4
ABOUT BSNL

Role and Functions: Bharat Sanchar Nigam Limited (BSNL) was formed on 1st October 2000
by Corporatisation of the erstwhile Department of Telecom Operations & Department
Telecom Services. The company has taken over the erstwhile functions of the Department of
Telecom in respect of provision of telecom services across the length and breadth of the
country excluding Delhi and Mumbai. BSNL has large work force of around 1.53 lakh as on
04.12.2019. BSNL is a 100% Govt. of India owned Public Sector Undertaking.

BSNL provides all types of telecom services namely wireline, Mobile, Broadband, Internet,
leased circuits and long distance telecom service. The company has also been in the
forefront of technology with 100% digital technology switching network. BSNL nation-wide
telecom network covers all District headquarters, Sub-Divisional headquarters, Tehsil
headquarters and almost all the Block Headquarters.

Financial Performance:

The details of profit / loss figure for the year, 2016-17, 2017-18, 2018-19 & 2019-20 (up to
30.09.2019) are given as under: