Bharat Sanchar Nigam Ltd.

formed in October, 2000, is World's 7th largest Telecommunications

Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM
Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.
Presently it is one of the largest & leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it,
expanding the network, introducing new telecom services with ICT applications in villages and wining
customer's confidence. Today, it has about 46 million line basic telephone capacity, 8 million WLL
capacity, 52 Million GSM Capacity, more than 38302 fixed exchanges, 46565 BTS, 3895 Node B (
3G BTS), 287 Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm of Microwave Network
connecting 602 Districts, 7330 cities/towns and 5.6 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-
Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with
its wide network giving services in every nook & corner of country and operates across India except
Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the
country. BSNL serves its customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company offers vide
ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3G customers as on
30.11.2009. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone
subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access
Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet(CLI). BSNL has
been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides
convergent services like voice, data and video through the same Backbone and Broadband Access
Network. At present there are 0.6 million DataOne broadband customers.
The company has vast experience in Planning, Installation, network integration and Maintenance of
Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training
Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US
$ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial
year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37
billion).

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to
excel has made BSNL the No. 1 Telecom Company of India.
 

History of Chennai Telephones

Within five years of it's invention, the "THE WONDER MACHINE OF
SPEECH", christened as telephone, made it's debut in the city of Madras in 1881.   

In November 1881, licenses were granted by His Excellency The Governor General
in Council to Messrs ORIENTAL TELEPHONE COMPANY for establishing
telephone exchanges at MADRAS, BOMBAY, CALCUTTA and RANGOON with
defined exchange boundaries.   

Under this agreement, the first Magneto telephone exchange with 17 connections was
commissioned on 19-11-1881 at building number 37, Errabalu Chetty Street, Madras.
Then Madras city was a compact metropolis with 27 square miles in extent and a
population of 4 lakhs with only 8 municipal divisions. By the end of 1881, the
telephone exchange was expanded to 40 lines with 24 subscribers.   

The then merchant community was not much inclined to have a telephone during
those days in spite of various concessions offered by the company through many
press advertisements. The direct exchange lines moved from 24 in 1882 to only 350
in 1910.   

Persistent personal canvasing blended with judicious press advertisements brought a

gradual realisation of the utility of telephones amongst the public of Madras, in spite
of many complaints of CROSS TALK AND DISLOCATION IN SERVICES.   

In 1922, the license granted to Messrs Oriental Telephone company came up for
renewal. By that time, the thinking of the Government on telephone services
underwent a metamorphosis in the phase of having nationalistic tide. Hence, on the
eve of renewal, three main conditions were laid.  

The business should pass into hands of local company  

The system should be modernized 

The rates can be raised to reach the second objective

Under the first objective a "RUPEE" company was formed on 24-1-1923 in the name
of "MADRAS TELEPHONE COMPANY LIMITED" with an authorized capital of
Rs.5 lakhs divided into 50000 equal shares of Rs.10 each. Mr. G.W. Bromhead was
the Managing Director of Madras Telephones company.   

Since then, the direct exchange lines rose to 1224 lines. The telephone exchange was
manned by one managing director, one assistant manager and one assistant engineer.
Only flat rate rental was collected from the subscribers. Apart from 1224 subscribers,
public call offices were also opened at 5 places namely   

 Central Station
 Egmore Station
 Madras Harbour
  Salt Cotaurs

Telephone Exchange 

Due to the flat rate system there was not much use for public call offices.
Subsequently measured rate tariff was introduced as adopted in London. Though
there were protests at the initial stage, from the business community, finally the
company convinced the subscribers to accept the measured rate system.   

The Rise Of Telephone House: 

The space at Errabalu Chetty street exchange became so much cramped for further
extension of the exchange capacity. Proposals were also made to automise the
manual exchange as in the pattern of the London telephone system. With a view to
achieve these twin objectives, a piece of land measuring 21000 square feet was
alloted by the Government at China Bazaar in 1925. In the same year, the building
was designed and expeditiously constructed. A new building was acclaimed to be
handsome, christened as " TELEPHONE HOUSE" and occupied in December 1925.
The ground floor of the building was earmarked for an automatic exchange, the first
floor for the office and the second floor for the quarters of the resident engineer.   

A Strowger Automatic Telephone Exchange of 10000 lines ultimate capacity was cut
over on second April 1926(Good Friday) at 7.00 A.M. with the numbering scheme
for the subscribers from 2000.   

Going Under Ground: 

In spite of automation of the exchange, frequent interruptions of subscribers lines
were caused due to the snapping of overheaded lines by vegetation, frequent temple
car festivals and heavy wind /gales. To overcome this problem, Madras telephones
started in terms of providing underground cable network for subscribers' connections.
Laying of under ground cables were started during 1927-28 and cables were laid upto
Guindy. Areas like Perambur, Royapuram and Harbour were covered by under
ground cables by 1932.   

The dawn of automatic exchange along with the under ground cable network laid the
road for telephone development for a victorious march.   

The number of DIRECT EXCHANGE LINES which was 1310 in 1925 rose to 1832
in 1930. The Madras Telephone Company also purchased a bungalow for having the
managing director at 4,Victoria Crescent at a cost of Rs.55000.   

The Advent Of Telephone Directory: 

Prior to 1932, the Telephone Directory was slender and with a mere paper cover.
During 1932, due to more entries in telephone directory, a face-lift was given to the
directory by providing a stiff broad cover. Sufficient advertisements were canvassed
to entirely cover the cost of directory publication. The October 1934 directory came
up with multi colour wrappers. Directory was released once in 6 Months (April &
October).   

1932- THE JUBILEE YEAR:   

In 1932, the telephones in Madras city had completed 50 years. It started with 24
connections in 1882 and rose to 1753 DIRECT EXCHANGE LINES , 997 extensions
and 74 private lines during 1932.   

During the jubilee year, apart from the higher share profits, a special jubilee bonus
dividend was announced.   

Opening Of Exchanges At Various Load Centers: 

Due to the automation of telephone services and its use for business promotion, the
demand for telephone connections spread over the South Madras area. In 1929, a
satellite automatic exchange of 200 lines capacity was commissioned at Mount road.
With the increase in the demand for phone connection, 100 lines were added at
Mount Road exchange in 1932. The exchange was further expanded in 1933.   

Perceiving a galloping growth in future, the Madras Telephone Company conceived a

"New Mount Road Exchange", as far back as October 1940.   

Though in 1941, the Government telephone board was controlled and the takeover of
the telephone companies in India was imminent, the company evinced greater interest
in the speedy consummation of the project. In spite of the tireless effort of the
company , the "New Mount Road Exchange" with 1500 lines was commissioned only
in 1947.   

Opening Of Mambalam Exchange: 

Due to the increase in the demand for more telephones in South Madras area, the
company decided to open one satellite exchange in the Mambalam area. The
company purchased a plot at Mambalam during November 1935. A Satellite
exchange of 500 lines capacity was commissioned during 1937.   

Opening Of St. Thomas Mount Exchange: 

With the outbreak of the second world war, military concentration in and around St.
Thomas Mount Exchange area became greater. The company felt the urgent need for
opening a satellite exchange at St. Thomas Mount. In 1944, a 100 lines satellite
exchange was commissioned at St. Thomas Mount.   

The Gathering Cloud: 

With the invasion of Poland by Germany in 1939, Second World War exploded.
Communications being the essential component of the war machine, all the plants
manufacturing telephone equipment in England were brought under the direct control
of the military and all telephone equipment were ready to be transported to the
nearest war fronts. For the Madras Telephones Company, war was no longer meant
deadly clash of men and machines. It began to mean a total stoppage of essential
telephone equipment supply from London. All development activities of Madras
telephones came to a grinding halt.   

On the other side, Madras telephones was asked to provide an air raid precaution
scheme for the city of Madras and an excellent scheme was devised. The government
readily accepted the scheme without any modification. The scheme was very
successful during the entire span of war.   

On the night of December 12, 1943, by about 2.00 A.M , the silence of the sleeping
city was pierced by the screams of sirens.   

A lone Japanese bomber sneeked through and was hovering over the city and
dropped a bomb at the Harbour area and flew past, through the maze of crossfire
unleashed by the anti aircraft guns, forming part of the city’s coastal batteries.   

Fortunately, there were no casualities. Madras Telephones derived a high sense of

satisfaction in the realization that it played its part well in leading to safety, the
sleeping city of Madras in a real air raid.   

The Emergence Of Government Telephone Board  

The war conditions highlighted to the government, the anachronism of a vital service
like telephones remaining in private hands. It desired to take over the system and to
achieve this objective, a conference was held in New Delhi as early as 1941. As an
outcome of this conference, a company under the name of "GOVERNMENT
TELEPHONE BOARD’ was formed with the Director General Posts and Telegraphs
as its Managing Director. The Government Telephone Board expeditiously finalized
the valuation of the assets and liabilities of Madras Telephone Company as on Ist
February 1941 and was valued as Rs 46,50,000.   

The board of directors of Madras Telephones company met for last time on 26 th.
March 1943 at Telephone House. A letter of indemnity from the Government of India
in favour of the directors absolving them from liabilities from any future claims
arising out of their past transactions relating to Madras telephone company as insisted
by the board, was complied with by the government.   

After signing various legal documents, the board of directors dispersed and
descended the baroque timbered staircase of the telephone house, many with
moistened eyes carrying with them the pleasant memories of their association with
the Madras Telephone Company.   

THUS THE CURTAIN FELL ON THE COMPANIES' ADMINISTRATION OF THE

CHENNAI TELEPHONES.