With a falling fixed line subscriber base, BSNL is now focusing on GSM services. About 80 per cent of the company’s proposed capital expenditure for financial year 2006-07 is for expansion of its GSM network. The remaining 20 per cent is being set aside for its CDMA fixed line networks and IT projects.
BSNL is, for example, exploring schemes such as fixed line prepaid services. To finance the investment, the company may raise Rs 20 billion by floating bonds, while the remaining will come from internal accruals.
