NWP-CFA Cell, BSN L, Corporate Office,

5t h Fl oor, Jan
pat h,
New Del hi -LL0001
Phone- 01,1,-237 IO324,
Fax- 011- 23712506.
( riiF
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BHARAT SANCHAR NIGAM LIMITED
{A
Govt. oi lndia Efrlerp se)
No.410-8/2010-TPS(c)/9
To
The CGMs
Dated 27
/08/2012
(South Zone- A P,Chennai TD,Karnataka
,Keral,TN
Zone-GUJ,MH,MP),(North Zone-
HR,J&K,PB,Raj,U P(E), UP(W),Uttarakhand),East AS,KfD,OS) BSNL Telecom Circle.
Sub: Expansion of Fixed line network in high revenue ea ng &NCR SSAS.
Please refer to this office letter
subj ect
(copy
avai l abl e on i nt ranet ) vi de
t he det ai l s
pert ai ni ng
t o t hei r U/ G cabl e
SSAs to this office latest bv 22-08-20L2.
of even
whi ch al l
& Cl i p req
But no information has been received from
yo
request ed t o expedi t e t he mat t er and f urni sh t he
37-08-2012, on Faxno011-237 125O6/23325976 as
,so
that further procurement process
can be initiat t i mel y.
Thi s may be t reat ed as MOST URGENT pl ease.
Encls: Annexure 1, 2, &3
Remi nder
URGENT
mber dated 02-08-201-2on the above
e field units were requested to intimate
i rement f or new devel opi ng areas of 45
Circle. All the Circles, therefore, again
ite information to this office latest bv
l as on E-mai l on nwp. t ps@gmai l . com
\,rn \
l'U&-:---t
( M
C Chaube)
Sr. GM (NWP-CFA)
^ ^ . \
s{|{fr
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BHARAT SANCHAR
NIGAM LIMITED
ir, Govl .' 1..i!3 a.!aqr' se)
Coi oorate Otfi ce, BSNL.
Net work Pl anni ng Cel l -CFA,
Bharat Sanchar
Bhawan, 5" Fl oo'
Janpat h, New Del hi -1 1 0001
Phone: 01 1
-23355209,
Fax' 23731590
Email : nwocfa@ornaiL.com
No.41 0-8/201 0-TPS(C) /9
To
The CGMs
Dared: 0210812012
URGENT
_
TI ME BOUND
(South Zone- AP. Chennai
TD. Karnataka. Ker
{North Zone- HR, J & K, PB, BAJ UP(L1 UP(\r
TN);(West Zone- GUJ, l\4H, MP);
Uttrakhand) i
(Easi Zone-AS, KTD, OS)
BSNL Tel ecom Ci r cl e
Sub: Expansion ol Fixed line network in high ue earning & NCR SSAS
It has been deci ded bY BSNL Manag that ci ti es/ urban areas havi ng very good
speci al focus shoul d be
gi ven for maki ng
poiential for CFA revenue should be identified
TNF areas technically
feasible so that vanous
like land- ine, broadband,
leased
ci rcui ts etc. can be
provi ded on demand i n ci ti es. Accordi ngl y, top 41 SSAs i n terms of
revenue and 4 SSAs i n NCR have been i denti fi and l he same i s encl osed as Annexure-l .
abad,
Noi da, Gurgaon and Fari dabad have
Due t o t hei r i mport ance, t he NCR t owns I e G
been i ncl uded i n t he l st .
You are requested to
get the
pl annl ng e for the respective SSAS in your Circle as
per the
guidelines enclosed at Annexure-2
lor
ng the servi ces on demand' Concerned
maxi mum ext enl whl l e
Pl anni ng
l he
expansion
of the Network The planning
SSAs shall
prepare business
plan with cash
shall
project the requirement ol the stores,
l evel
(U/ G cabl es, CLI P i nst rument s and
Equi pment , DSLAI Vs, PI JF UG Cabl es and
exercise should be done on realistic basis and
CAPEX.
The requiremenl of the slores, total
revenue
project wlse city wise durlng financial
Encl : Annexure 1, 2 & 3' .
Copy for kind intormation
Pl
:
1. PS i o CMD, BSNL, New Del hr
2. Director(CM/CFAJHR/EB/FlN),
BSNL
statement as
per Annexure-3 and Circles
are required to be
procured at corporale
ipments etc.). The existing Exchange
network shoul d be expl oi ted to i he
shoul d be abl e to recover the i ncremenl al
iture involved, anticipated additional
offi ce by 22"d August 2012. The busi ness
of SSAS concerned to your ci rcl e may be
scrutinized a' t circle office and requirement of
circle IFA and approval of Circle head.
the store/fund
should have concurrence o1
This has the approval of competent
2A12' 13 & 201314 may be sent to thi s
(1r/l C Chaube)
Sr.GM
(NWP-CFA)
New Del hi
-)-
Hi gh Revenue SSAs Annexur e- ' 1'
S. No Name of Ci rcl e Narre of SSA Zone
1 AP HYI
)ERABAD
Sout h
2 ASSAM KAI RUP East
3 Chennai TD CH : NNAI South
4 Gui arat AHI
,]EDABAD
West
5 Guj ar at SU iAT West
6 Gui arat
I ODARA
West
7 F' a rya na FAf I DABAD North
8 naryana GUTGAON North
I Haryana HI S\ R North
1 0 Haryana KAI NAL North
1 1 J & K JAI\ IVU North
' 11
J & K SHIINAGAR North
1 3 Karnakat a BAI GLORE Sout h
Karnakata IVA JGLORE South
t c Kerala ALL
qPPY
South
t o Kerala CAI I CUT South
1 7 Kerala CO
.IN
OR South
. 18
Kerala ERIIAKULAI!1 South
1 9 Kerala KO LAI!4 South
2A Kerala KO TAYAIV] South
21 Kerala .APU RAI\,1 Sout h
22 Keral a THI l UVANANTPURAIVl South
23 Kerala TH I SSUR South
24 Kol kata TD KO KATA East
25 tllH GO West
26 IVIH KAI YAN West
27 MH NA(PUR West
28 MH NAI IK West
29 MH PU E West
30 IV]P IND) RE West
31 Orri sa BH BN ESHWAR East
32 PB CHr .N DIGARH N orth
33 PB FO OZPU R N orth
34 PB JAL-AN DHAR North
35 PB LUI HI ANA North
36 Raj asthan JAI UR North
37 TN co\,l BATORE Sout h
38 TN MAi URAJ South
39 TN SALE I!1 Sout h
40 TN THIi UCHI RAPALLY South
41 TN VEt ORE South
42 UP( E) LU(KNOW N orth
43 UP(W) GHr .ZIABAD N orth
44 UP(W) NO IA North
45 Uttrakha nd DEI RADUN North
3.
4.
iii.
3
Annexure-2
The f i nanci al f easi bi l i t y of t he
pr i ncremenl al i nvestment needs to be
mpl i or s snoul d be used f or assessi ng
ensur ed. l n t hi s r egar d t he f ol l owi ng
f i nanci al vi abi l i t y of t he scheme.
1. Onl y di r ect i ncr ement al expendi t u should be considered, i.e. recurring
premises, BSNL staff expenses, Power
peri odi c expendi ture l i ke rental of the
& fuel (except where consurned for i ementai infrastructure) & depreciation
of exi sti ng A&P shoul d be . The obj ecti ve i s to approach tne
investment f rom two perspectives
i. Protection of existing which has already been made in the
switching infrastructure and this i s i dl i ng.
tment currently
planned.
fhe b' eak even pe' i oo shoL d be
scheme shoul d be
prepared for mon
en as 3 to 5 years. A depl oyment
ring the
progress made against detined
milestones, so that mid course corr
wi t hi n t i me.
s i f any are feasi bl e to be made
Assessment of demand should be on a ral i onal pri nci pl e. The market
share of wireline services
pr by BSNL in the circle should be
by CP&M cel l of BSNL CO. A mark
i i . Assur e r et Lr n on I ncr er enl al I
considered. These figures are
publi
up of 5". t o 10' ; on l he exsl i ng
demand
proj ect i on. For exampl e i l t
concerned SSA over si x m
exi st i ng cust omers shoul d be
Urban Voi ce onl y: For ARPU
in Combo and Broadband
plan
rket share should be considered for
contribution of BSNL wireline services
shoul d be consi der ed. ARPU of t he
l ated for fol l owi ng categori es:
revenue from & numbers of customers
omers to be excluded.
i n Ci rcl e X i s
15o/o
ot total tel epho' l es.
i t wi l l be reasonabl e to assume that i n a
new t ownshrp of
' 000
housi ng - up to 25% i.e. 250 customers will be
acqui red by BSNL. The current
t erms) i n t he SSA shoul d be co
penetration levels (in percentage
as a benchmark for assessing the
demand for broadband in new areas.
All cases where SSA/ Circles acqui business through tie ups with builders
f or excl usi ve r i ght s, shoul d be as per actual figures. Such actual
ent of f i nanci al f easi bi l i t y onl y i f such
f i gur es shoul d be consj der ed f or
agreement has a ready been fi nal l . Even i f such busi ness i s under
negot i at i on but not f ormal l y acqul ,
it will be advisabie to assess the
f easi bi l i t y as
prescri bed i n para 3
5. Regarding revenue receipts for
be f ollowed:
t i on
purpose f ol l owi ng pri nci pl e shoul d
Since the tariff
plans are to be f or a mi nl mum
peri od of si x
months as per regul ai ory . Si mp. e Average of ARPU ot t he
Urban dat a & Voi ce: For A U the revenue from & numbers of
cL st omer s wi l h Br oadband
pl ans.ncl udi ng Combo
pl ans shoul d be used.
7.
t
6. For executing
the schemes
it is
that all associated
activities are
This is also lmportant
from the
be assessed
for incremental
I
inf rastructure
including
carried out in a co-ordinated
manner
Further,
if the
Proposed
invesr
ARPU should
be computeo
In a
SSA.
ln case of a mix of rural & urban
the ARPU should be calculated
bY
using the
proposed allocation
of urban
numbers
as wei gnt age.
that feasibility
is
Proposeo
to
It is entirely
in Rural area' then the
ilar manner
for Rural customers
of the
ment only and no costs of exlsting
network
is proposed lo be allocated'
The avallability
of finalized tender
rates
m local civic authorities
or any olher
sidered a
pre requisite by the Circle for
ts should
not be caused to idle for wanl
of financial
feasibility
of lhe
proposed
Excel Sheets
-
Annexure
2A
on of Fi nanci al
Feasi bi l i ty
of Schemes
should be Prescribed
for
Procuren
Periodic review at Circle/BSNL
CO
also be made against
the\
achievement
against
the estimates
be analyzed
assess
financial
feasibility
with utmost
.qqment. A tolerance
threshold
of 10%
may be taken
for variation.
bet'
need be analyzed
in the
Perloolc
the estimate
and actL,al
results
which
9. lt will be reasonable
that an IRR
g than
15% should
be considered
as
acceptable
for considering
the
ent
proposal as financially
feasible'
8. The SSAJCircle
functionaries
shall
diligence,
and rational dernand
asl
for cable laYing and
Permlsslons
authorities
as necessary
should be
issue of stores to SSAS
Acquired
of
preliminarY
PreParations'
Moni tori nq
ot these
schemes
sn(
i nstructi ons
on the subj ect
A PEFT
scheme
with time line starting
f rom
wel l def i ned
mi l e st one
f or
10. A suggested
template
tor
schemes
ls
given below
a. Pl ease
refer
fi nancl al
(Soft copy attached
b. Expl anatory
Notes
for
f or Mar gi nal
l nvest ment
- r t oi . . Ot "
ot ut l di mensi ons
shoul d be
expendi t ur e
i s i ncur r ed
l n case of pr e exi st l ng
upfront,
i .e i n the fi rst
YeaL
Cabt e cost
( PUF/ OFC) : The Pu
consi der ed
i n t he
Year
i n whi c
st or es
t he cost shoul d
be t ak
"-ffi tt*
th*H
b" consi dered
on accrued
t er s of l avi ng
done I n a
- r bl u l " yi ng
" ^P" ndi t ur e:
Th
basi s f or t he number
of Ki l o
oSGfvt
"t.
tt ut .ay reed to be undertaken
ot her caPex i ncl udi ng
A&
;.""tt
f"t tt"t *h"t" shoul g
!qq!:!994
gu.
CPt t , onl Y i ncr ement al
i b. Overheads
: 10ol o of sum
New addi t i ons
du r r
6.
- Rur al
connect i ons
i . 15 above wi t h V ri ce on' y 6a wi th Data
(Broadband)
7. Ur ban connect i ons
i n 5 above wl t h
y' oi ce
onl y 7a wi th Data
(!roadband)
8 . Revenue Recei Pts from Voi ce servi
above wi t h voi ce ARPU of t he SSA. \
es
-
Ur ban ; Resul t of mul t i pl i cat i on
of 7
oi ce ARPU i s t o be cal cul at ed as f ol l ows:
No of cust omer s Bi l l ed f or voi ce o
& Combo
pl ans)
l y pl ans( excl udi ng Br oadband
uN".,."
l ' -R"u"nu"
(aBr) from the custorner ment i oned above
uR"". "
Ieneu trro* onrul
uR""i ."/uN""i .,
9. Revenue recei pts from Voi ce & da'
Dat a ARPu of t he SSA, t o be cal cul ;
a
-
Urban : Resul t of 7 (b) above wi th voi ce &
. ed as
' ol l ows:
I No of cust omer s Bi l l ed f or under I r oadband & Combo
Pl ans
uN.,-."",,,.
h" *. *
( ^- F) f r " t t he cust ome; menti oned above
ARPU
( Voi ce & dat a)
uR"or."&d.t"/U N
10. Same as 8 above for Rural customr5
11. Same as I above for Rural custom
' rs
Any swi t chi ng equi pment
on whi ch AMC was
j
due to re-commissignl
il J9!9!lty,-
12, AMc of tncremental assets
-
A&P
not
pai d
ear l i er but wi l l now be
Pa
13. oAM fo, *bt" @10791
a.o11;99q.1
I cost
+ l ayi ng exPendi ture):
1.4. fi cense fee
@
appl i cabl e on Total
i n t he concer ned Ci r cl e shoul d be I
l evenue : Rate as appl i cabl e for Voi ce & Data
) ken.
-
o/
( 8 l o 11 above) and t he sum of
( 12 t o 14)
on new CAPt X
rm of
(1to3) and 19 above
15. cash Income : Di fference of the su
aoove
15. Depreci ati on
(WDV q4!e9'
qI
17. Net Profi t : 15
-
16 above
18. I ncome Tax
@30%
on 17 above
19. Net Profi t after TAX 17
-
18
abov
20. Net Cash f l ow : Di f f er ence of t he:
21,. l nternal Rate of Return of 20 abo'e
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