Most telecom cable produces are expected to report losses in 2002-03 due to a significant decline in sales volume, cable prices and an increase in competition, according to Cris Infac's report on the sector. The report points out that the decline in the operating losses is primarily on account of a 51 per cent dip in the main order from Bharat Sanchar Nigam Ltd (BSNL) and a 19 per cent decline in jelly-filled telecom cables (JFTC) prices. JFTC accounts for 78 per cent of telecom cables and the remaining 22 per cent share is held by optical fibre cables. The demand for JFTC is expected to lower from 546 lakh core kilometre in 2001-02 to 243 lakh core kilometre by 2006-07. Consequently, the share of JFTC is expected to decline to 45 per cent by 2006-07. The demand has nose-dived as BSNL is targeting the use of wireless access system for a significant part of its telephone installations considering the ease and lower installation costs of the system in rural areas.
NSTL
