State-owned BSNL''s mobile business across Assam and Northeast could soon bite the dust, thanks to its outdated franchisee policy. At the root of BSNL's woes is a recent telecoms department diktat that makes it mandatory for mobile phone companies in the region to sell new connections through the franchisee route.

While nimble private sector rivals like Aircel , Bharti Airtel , RCOM, Vodafone Essar and Idea Cellular have tweaked their respective marketing practices in the region to convert the existing 16,000-odd multi-brand telecom retailers into their franchisees, the BSNL management has been averse to change. So much so, BSNL continues to sell new connections, recharge vouchers, top-ups across the Northeast through its 100-odd authorised franchisees.

As a result, the loss-making telco is fast losing market share since its marketing outreach is no match to the formidable franchisee network that private sector rivals in the region have cobbled together. Consider the facts BSNL sold a modest 20k cellphone connections in the Assam/Northeast circles in May 2011. During the same month, private telcos - Aircel, Airtel, Vodafone, RCOM, Idea, Tata Tele - collectively sold a whopping 11 lakh new connections in the region. The Northeast is home to some 22 million mobile subscribers.

While BSNL executives declined to reveal numbers, industry circles claimed its market share was down to 6-7% in the region, compared to private sector rivals like Aircel, Airtel, Vodafone and RCOM who collectively control over 60% of the Northeast mobile turf.

"Since the BSNL management is averse to converting the vast pool of multi-brand telecom retailers in Assam and Northeast into its franchisees, we have no choice but to coax our own local staff to sell mobile connections since our existing franchisee network is ill-equipped to compete with private mobile companies who have many more telecom retail points," said a senior BSNL executive familiar with matter.