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BSNL predicts lower revenue growth this fiscal

In the financial year 2007-08, the telecom major earmarks an outlay of Rs 20,000 cr, which would be spent on both buying equipment and expansion of services.

india Updated: Mar 25, 2007 23:53 IST

Faced with falling average revenue per user, lower access deficit charge and withdrawal of government support for providing rural telephony, state-owned telecom operator Bharat Sanchar Nigam Limited is predicting a lower revenue growth this fiscal, Chairman and Managing Director AK Sinha said on Sunday.

"The growth in this financial year's revenue will be between five to six per cent as compared to 11 per cent in the previous fiscal", he told reporters in Kolkata.

Projecting this year's revenue at Rs 40,000 crore, he said with falling tariff levels, average revenue per user (ARPU) was declining, while receivables of account of access deficit charge (ADC) was also reducing. Government's support for rural telephony was also not there, Sinha said, adding owing to all these factors, revenue growth would be lower this year.

In spite of lower revenue growth, BSNL was going ahead with its investment plans. In the financial year 2007-08, the telecom major had earmarked an outlay of Rs 20,000 crore, which would be spent o both buying equipment and expansion of services.

BSNL on Sunday launched Voice SMS and multi-party video conferencing facilities of Calcutta Telephones in the city. Sinha said profitability of BSNL during the current fiscal would be in the region of Rs 9000 crore. BSNL would introduce schemes for popularising the landline. In this regard, minor corrections would be there in respect of rental and tariff, he said.