Question : DECLINE IN REVENUE OF VSNL



(a) whether there is a decline in the revenue of Videsh Sanchar Nigam Limited (VSNL);

(b) if so, the details thereof and the reasons therefor; and

(c) the steps being taken by the Government in this regard?

Answer given by the minister


THE MINISTER OF COMMUNICATIONS (SHRI RAM VILAS PASWAN)

(a) to (c): A statement is laid on the Table of the House.

STATEMENT IN RESPECT OF PARTS (a) to (c) OF LOK SABHA STARRED QUESTION NO. 218 FOR 4TH DECEMBER, 2000 REGARDING DECLINE IN REVENUE OF VSNL.

The revenues of VSNL have progressively increased as is evident from the following figures:-

Year	Revenue in Rs. (Million)
1997-98 64,361 1998-99 71,756 1999-2000 72,305



However, the increase of revenue is not in proportion to the growth in telephony traffic volume primarily due to substantial reduction in international call charges to be in line with the global trend in this regard. On account of this trend and also the anticipated introduction of competition in international voice traffic, VSNL is proposing to diversify in other areas of telecommunications and making efforts to increase the market share of internet subscribers to generate additional revenue.