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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.

Updated on: Mar 25, 2007 11:53 PM IST
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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.

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HT Image

"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.

 
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