Essar-BPL Telecom Play + BSNL Expansion

Ruia brothers of Essar are one of the most hostile business partners one can find in India [Modi’s of Spice Telecom rank higher in the worst business partners in India]. They have stuck a deal with Vodafone to safeguard their stake in Hutch-Essar a.k.a Vodafone Essar by getting a price marginally higher [in the worst case] than what Hutch got in the Vodafone-Hutch deal.

Now the prank Ruias are playing is, they hold 9.9% direct stake in BPL Mobile of Mumbai and controlling stake through various investment and Benami companies; using BPL Mobile, they have applied for PAN India GSM license. The only solution to discourage non-serious applicants is to auction the spectrum through which Government will make more money.

BSNL, troubled state owned telco has announced expansion plans which is hard to believe. They want to add 500,000 broadband subscribers every month starting from Jan-2008. In April-2007, India had mere 2.05 Million broadband subscribers, and BSNL wants to add 500,000 every month. Whom are they kidding with ???

BSNL also plans to offer Internet Telephony to its subscribers like MTNL in Delhi and Mumbai. BSNL’s GSM mobile services expansion is the only place where they may taste some success as Ericsson has accepted the revised bid. BSNL unfotunately has arrogant employees with really no sense on how to talk to customers / potential customers.

Author: Webmaster