03/01/2012
03-01-2012: We have met SDE / HRD on 03-01-2012 for earlier settlement of security refund case & arrangement of next DPC for the residual part of the DRTTAs.
SDE /HRD assured to intiate earlier to refund the security money & the DPC will probably take place by this month.
03-01-2012: 30% fitment court case update........
******BSNL ultimately submitted the reply to the Chandigarh CAT on 03-01-2012. Next date of hearing 30-01-2012.. detail will be uploaded later.....
03-01-2012: Annual District conference of SNATTA/krishnagar scheduled on 8th JAN 2012 at TRC hall...
Annual District conference of SNATTA/krishnagar scheduled on 8th JAN 2012 at TRC hall, krishnagar Main Exchange Building at 10:30 am. The conference will strictly needs to be started at scheduled time , all the members are requested to come in time. further detail will be uploaded later. Members are requested to keep himself available on the day.
02/01/2012
02-01-2012:BSNL Voted Best 3G Service Provider 2011 ......telecomnews
BSNL Voted Best 3G Service Provider 2011
There are many 3G Service providers who claim to offer 28* MBPS, 24* MBPS, 16* MBPS speed on 3G Network but
31/12/2011
31-12-2011: we expect the better BSNL will be back in " NEW YEAR 2012"
We all the young employees of BSNL wish all the best for BSNL . we hope 2012 will set up our next hope.
28/12/2011
27/12/2011
21/12/2011
21-12-2011: Parliament reply of MOS Milind Deora regarding BSNL corruption & usage charge given by BSNL....on 21-12-2011...source PTI
NEW DELHI: The government received a total of Rs 236.99 crore from BSNL and MTNL as spectrum usage charges for the first half (April-September) of the current fiscal, Parliament was informed today.
"Up to the second quarter ended on September 30, 2011, the government has received Rs 16.99 crore from MTNL and Rs 220 crore from BSNL as spectrum usage charges, totalling to Rs 236.99 crore," Minister of State for Communications and IT Milind Deora informed the Lok Sabha today.
Telecom service providers have to pay a percentage of their adjusted gross revenue (AGR) to the government as spectrum usage charges.
Replying to another question, Deora informed that BSNL has sought support of Rs 9,306 crore per annum from the USOF toward the Rural Direct Exchange Lines (R-DEL) scheme following expiry of the current subsidy support of Rs 2,000 crore per annum given to BSNL for the period of three years from July 19, 2008, to July 17, 2011.
On another question related to cases of corruption reported in BSNL and MTNL, Deora said during the last three years and the current year, the total number of corruption cases reported in BSNL stood at 36, while it stood at 22 for MTNL.
"The nature of these cases are demanding and accepting illegal gratification, disproportionate assets, misappropriation," Deora said.
Punitive action, as prescribed under the rules, is taken against officers working in both companies that are found involved in such incidents. In addition to deterrent punitive action, preventive measures like inspection and training in vigilance matters are being adopted by both companies to eradicate such incidents, he said.
"Up to the second quarter ended on September 30, 2011, the government has received Rs 16.99 crore from MTNL and Rs 220 crore from BSNL as spectrum usage charges, totalling to Rs 236.99 crore," Minister of State for Communications and IT Milind Deora informed the Lok Sabha today.
Telecom service providers have to pay a percentage of their adjusted gross revenue (AGR) to the government as spectrum usage charges.
Replying to another question, Deora informed that BSNL has sought support of Rs 9,306 crore per annum from the USOF toward the Rural Direct Exchange Lines (R-DEL) scheme following expiry of the current subsidy support of Rs 2,000 crore per annum given to BSNL for the period of three years from July 19, 2008, to July 17, 2011.
On another question related to cases of corruption reported in BSNL and MTNL, Deora said during the last three years and the current year, the total number of corruption cases reported in BSNL stood at 36, while it stood at 22 for MTNL.
"The nature of these cases are demanding and accepting illegal gratification, disproportionate assets, misappropriation," Deora said.
Punitive action, as prescribed under the rules, is taken against officers working in both companies that are found involved in such incidents. In addition to deterrent punitive action, preventive measures like inspection and training in vigilance matters are being adopted by both companies to eradicate such incidents, he said.
20/12/2011
21-12-2011:GSM subscriber addition in NOV, 2011.......COAI & ET
Bharti Airtel, the largest GSM player, added 0.96 million subscribers, taking its total to 174.69 million users. It had a market share of 27.64 per cent.
Vodafone Essar, with a 23.23 per cent market share, added 0.92 million new subscribers during the month, taking its subscriber base to 146.84 million at the end of November 2011.
State-owned BSNL and MTNL added 0.55 million and 33,666 new users, taking their total to 92.14 million and 5.39 million, respectively.
Aircel added 0.67 million customers taking its subscriber base to 60.95 million, while Uninor added 1.86 million new users to take its subscriber base to 34.18 million at the end of last month.
Vodafone Essar, with a 23.23 per cent market share, added 0.92 million new subscribers during the month, taking its subscriber base to 146.84 million at the end of November 2011.
State-owned BSNL and MTNL added 0.55 million and 33,666 new users, taking their total to 92.14 million and 5.39 million, respectively.
Aircel added 0.67 million customers taking its subscriber base to 60.95 million, while Uninor added 1.86 million new users to take its subscriber base to 34.18 million at the end of last month.
18/12/2011
18-12-2011: BSNL firms up plan to wipe out rs 12,000-cr losses in three years...ET news
HYDERABAD : Revival Measures
OBTAINING A REFUND of Rs 6,000 crore from the government by surrendering broadband wireless access (BWA) spectrum and offering voluntary retirement scheme (VRS) to around 1 lakh employees
DEVELOPING ON COMMERCIAL scale the huge land bank of hundreds of acres in prime locations across the country through PPP model
IMPROVING REVENUE and profits through value-added services
India's state-owned telecom provider Bharat Sanchar Nigam (BSNL) hopes to wipe out its losses of around Rs 12,000 crore over the next three years on the back of a series of revival measures being initiated now, its chairman and managing director Rakesh K Upadhyay told ET.
The key revival measures include obtaining a refund of Rs 6,000 crore from the government by surrendering broadband wireless access (BWA) spectrum and offering voluntary retirement scheme (VRS) to around 1 lakh employees that could result in around Rs 2,400 crore of savings per annum, he said.
OBTAINING A REFUND of Rs 6,000 crore from the government by surrendering broadband wireless access (BWA) spectrum and offering voluntary retirement scheme (VRS) to around 1 lakh employees
DEVELOPING ON COMMERCIAL scale the huge land bank of hundreds of acres in prime locations across the country through PPP model
IMPROVING REVENUE and profits through value-added services
India's state-owned telecom provider Bharat Sanchar Nigam (BSNL) hopes to wipe out its losses of around Rs 12,000 crore over the next three years on the back of a series of revival measures being initiated now, its chairman and managing director Rakesh K Upadhyay told ET.
The key revival measures include obtaining a refund of Rs 6,000 crore from the government by surrendering broadband wireless access (BWA) spectrum and offering voluntary retirement scheme (VRS) to around 1 lakh employees that could result in around Rs 2,400 crore of savings per annum, he said.
16/12/2011
17-12-2011:Recovery of dues by BSNL and MTNL ...report " PIS bureau..)
Shri Milind Deora, the Minister of State for Communications and Information Technology informed Rajya Sabha today in a written reply that the amounts realized by BSNL and MTNL from its customers during the year 2010-11 against the outstanding bills of previous years and bills issued during the year are Rs 12,587 crores and Rs 863 crores respectively. As on 31.3.2011, the total outstanding dues of BSNL and MTNL are Rs 5341 crores and Rs 1,103 crores respectively. Measures taken/being taken by BSNL and MTNL to recover their outstanding dues are as follows:
17-12-2011: BSNL seeks Rs 12,000 cr for VRS.......
State-owned telecom service operator Bharat Sanchar Nigam Limited (BSNL) is seeking Rs 12,000 crore from the central government towards one-time compensation package to the employees opting for its voluntary retirement scheme (VRS), according to RK Upadhyay, chairman and managing director.
“The total cost of the VRS, designed to revive the loss-making company, works out to Rs 16,000 crore if 100,000 employees opt for it. I think approximately Rs 12,000 crore is required to be given by the government and the remaining Rs 4,000-odd crore will be borne by the company,” Upadhyay told mediapersons here on Friday.........source ( BS )
“The total cost of the VRS, designed to revive the loss-making company, works out to Rs 16,000 crore if 100,000 employees opt for it. I think approximately Rs 12,000 crore is required to be given by the government and the remaining Rs 4,000-odd crore will be borne by the company,” Upadhyay told mediapersons here on Friday.........source ( BS )
12/12/2011
13-12-2011: 30% court case update......
it is relaibly confirmed that the cort case for 30 % fitment case is further delayed and the hearing date is further extended to 3rd january, 2012. details will be uploaded later....
07/12/2011
06/12/2011
05/12/2011
05-12-2011: addition of mobile connection in sept 2011.........source ( PTI)
Meanwhile, growth in the wireless category was led by Idea Cellular which added 1.73 million users, taking its subscriber base to 100.18 million at the end of September.
Bharti Airtel added 0.93 million subscribers in the reported month, taking its user base to 172.78 million.
Reliance Communications added 1.02 million new users to take its total customer base to over 147.08 million.
Vodafone added 0.84 million new customers during the month, taking its user base to 144.99 million, while Aircel added over 0.60 million users during the period.
State-owned BSNL added 0.38 million new users, taking its total subscriber base to 95.79 million. The other state-run telecom company MTNL saw 28,360 new users registering for its service in the reported month.
Bharti Airtel added 0.93 million subscribers in the reported month, taking its user base to 172.78 million.
Reliance Communications added 1.02 million new users to take its total customer base to over 147.08 million.
Vodafone added 0.84 million new customers during the month, taking its user base to 144.99 million, while Aircel added over 0.60 million users during the period.
State-owned BSNL added 0.38 million new users, taking its total subscriber base to 95.79 million. The other state-run telecom company MTNL saw 28,360 new users registering for its service in the reported month.
02/12/2011
03-12-2011: New GM / Krishnagar visited the exchange building, Krishnagar on 02-12-2011
this is the first time after our joining in BSNL , since last three years that our GM .i.e our SSA Head visited the exchange buildings etc. we apprecate this trend. we appeal to him so that regularly inspection sholud be done so that at least we believe that we have a SSA head.
30/11/2011
30-11-2011:update of 30% fitment Court case......
*******.....next date of hearing 12-12-2011...... details will be uploaded later.....
22/11/2011
21/11/2011
21-11-2011:GSM operators add 7.12 million new subscribers in October: Cellular Operators Association of India
GSM Connection added in the month of OCT , 2011......
1)AIRTEL = 0.94 mn
2)Vodafone =0.92 mn
3) IDEA = 1.63 mn
4) BSNL = 0.51 mn
1)AIRTEL = 0.94 mn
2)Vodafone =0.92 mn
3) IDEA = 1.63 mn
4) BSNL = 0.51 mn
20/11/2011
20-11-2011: দুর্বলতমের উদ্বর্তন – পুঁজিবাদের অবসান ঘটাতে ঠিক এই মন্ত্রকে হাতিয়ার করেই এগোতে হবে সারা বিশ্বকে... Arindam Choudhury from " The sunday indian..
বলাই বাহুল্য, ওয়াল স্ট্রিটের এই সাম্প্রতিক বিক্ষোভ থেকে কিন্তু ভারতেরও অনেক কিছু শেখার আছে৷ পাশ্চাত্যে যদি নিজেদের বঞ্চনা নিয়ে মানুষ রাস্তায় নেমে এসে ভাঙচুর চালাতে পারে, ভারতেও কিন্তু এমন ঘটনা যে কোনও দিন ঘটতে পারে৷ আমাদের নেতারা যে কতভাবে শুষে নিয়েছে আমাদের প্রতি বিন্দু রত্তু, তার কোনও হিসেব নেই৷ তাই এর প্রতিবাদে-প্রতিশোধে মানুষ সত্যি যদি কোনওদিন উত্তাল হয়ে ওঠে, তাহলে কি সত্যি তা খুব বিস্ময়কর হবে?
2010-এর মানব উন্নয়ন সূচক বলছে 169টি দেশের মধ্যে ভারতের স্হান 119৷ আর তেন্ডুলকর কমিটির 2010-এর রিপোর্ট অনুযায়ী ভারতের মোট জনসংখ্যার প্রায় 37 শতাংশ বসবাস করেন দারিদ্রসীমার নিচে৷ সরকার যদিও এই তথ্যকে মান্যতা দেয়না৷ শুধু তাই নয়, ভারতীয় রাজনীতিক ও নীতি নির্রকরা কতখানি নির্লজ্জ একবার ভেবে দেখুন – শহুরে ভারতবাসীদের ক্ষেত্রে দরিদ্র বলতে তাঁরা বোঝেন যাদের দৈনিক 32 টাকা, আর গ্রামে সেই তুল্যমান গিয়ে দাঁড়ায় দৈনিক ছাব্বিশ টাকা৷ এর নাম দারিদ্রসীমা? একে তো সর্বহারা সীমা বললেও কম বলা হয়৷ সরকার বলছে, জন প্রতি মাসিক 960 টাকা আয় করলেই নাকি তা দারিদ্রসীমার উধের্ব ওঠার পক্ষে যথেষ্ট৷ সারা বিশ্বে মোট যে রফতানি হয়, তাতে ভারতের অংশীদারিত্ব 1.32 শতাংশ৷ চিনের ক্ষেত্রে এই অঙ্কটা 9.6 শতাংশ৷ প্রতিযোগিতামূলক বাজারে এটাও নেহাতই কম মনে হওয়ার কথা৷ কারণটা আপনি ইউরোপ কিংবা আমেরিকার যে কোনও দোকান হাতড়ালেই বুঝতে পারবেন৷ আলপিন থেকে এলিফ্যান্ট – যে কোনও প্রোডাক্টের গায়েই দেখবেন লেখা আছে ‘মেড ইন চায়না’!
আজ মুম্বাই-এর প্রায় চল্লিশ শতাংশ মানুষ বস্তিতে বসবাস করেন৷ আর দিল্লির প্রায় পঁয়ত্রিশ শতাংশ মানুষ খোলা আকাশের নিচেই মলমূত্র ত্যাগ করেন৷ হাঙ্গার ইনডেক্সে ভারতের স্হান সাতষট্টি৷ এর সঙ্গে ভগ্নস্বাস্হ্য কিংবা অকালমৃতু্য তো আছেই৷ আর আমদের পরম প্রিয় রাজনীতিবিদরা কী করছেন? কেবলই পরস্পরের প্রতি কাদা ছোড়াছুড়ি৷
তাই আগেও যেটা বলেছি, সেটা দিয়েই শেষ করছি৷ শুধু মানবতার খাতিরেই নয়, নিজের আখের গোছানোর ক্ষেত্রেও তাই দুর্বলতমের তত্ত্বের হাত ধরে হঁাটা ছাড়া পুঁজিবাদের আর কোনও পথ নেই৷ এটাই সেরা সময় যখন পুঁজিবাদী অর্থনীতি এবং বিজনেস লিডারশিপ সার্বিক অর্থেই নিজের ভোল বদলে নতুন ভাবে শুরু করতে পারে৷ সমাজের প্রত্যন্ত মানুষগুলোর মুখ চেয়ে আমাদেরও উচিত আরও বড় হূদয় নিয়ে যথাযথ বিশ্বনাগরিকের দায়িত্ব পালন করা৷ আর যদ্দিন পর্যন্ত তা না হচেছ, ততদিন ওয়াল স্ট্রিটে বিক্ষোভ চলতে থাকুক আর কি! সে বিক্ষোভ ছড়াতে ছড়াতে যদি সারা বিশ্ব গ্রাস করে নেয়, তাতেই বা আশ্চর্যের কী?
19/11/2011
16/11/2011
17-11-2011: Who are purely eyeing on " improvement of BSNL serviec in our SSA"?
the answer of the question is obviously the DR employees of BSNL of the SSA. we saw no-planning , no-designing, no intension but all are engaged for the business other than the business of BSNL. All the trade unions/association have no design of cordial approach for the cause to save BSNL & improve its revenue. But we the DR employees are serious of the issue & all time thinking of it. we saw various agitation & demonstration , conference etc but surely all these are not done to assure Improvement of BSNL . We appeal to all such union / association & management & other direct & indirecly employed personnel..to have pure action to save BSNL.
15/11/2011
15-11-2011: DS amit khan met New GM / Krishnagar, Sri J.K.Sanyal , with warm welcome....& issued welcome letter to GM...
GM / Krishnagar Sri J.K. Sanyal express his anxiety over BSNL ..& offered his best co-operation to us.. & BSNL...
11/11/2011
11-11-11: Confirmation Letter for DRTTAs of Krishnagar SSA issued 09-11-2011. Click here for letter
the confirmnation letter for the DRTTAs of Krishnagar SSA was issued on 09-11-2011 after continous persuation to the authority. we have recieved this confurmation within 6 months of our confirmation date. only three DRTTA freinds had not submitted the documents in time for which they were not included in the list., although they were intimated several times to submit the same in time but it was not done. to some extent we had requested to authority to issue the same at a time. however we shall persue their cases so soon so that DPC may be arranged for the rest part. this is our unity by which we can assure our claim in time & solve our issues by us. thus our unity should be tightened for our cause.
09/11/2011
09-11-2011: number of ITSs in first phase......cirle wise
BSNL Corporate office has issued relieving orders INSTRUCTION on 09-11-2011 for following Nos. of Group "A" ITS officers to report to Sr.DDG(TEC),DOT New Delhi :
(1). Punjab-14, (2) Bihar-08, (3). BSNL CO -38, (4). Raj-21, (5). Kerala-08, (6).J&K-02, (7).UP(West)-19, (8).HR-12, (9). Uttrakhand-9, (10). KTK-12. (11).JHK-03, (12).OR-04, (13).HP-03, (14).UP(East)-16, (15).CHTD-7, (16).MH-17, (17).Guj-13, (18).TN-10 (19). MP-11, (20). WB-7, (21). ALTTC-11, (22). BRBRAITT-04, (23). NTR-04, (24) WTR-04, (25). STR-06, (26). Chattisgarh-06, (27).CTD-02, (28).AP-11……..TOTAL= 282 NOS..
09-11-2011: today 282 nos ITSs Relieving order instruction issued by name... out of which in WBTC--- total 7 nos ITSs order issued...Click here for name..
1) Ratan Ghosh
2) Soumendra.Nath. Bannerjee
3)Jabed Iqbal
4) Pabitra Sarkar
5)Sushil Hembram
6) V.K.Kodake
7)Kaushal Kumar
2) Soumendra.Nath. Bannerjee
3)Jabed Iqbal
4) Pabitra Sarkar
5)Sushil Hembram
6) V.K.Kodake
7)Kaushal Kumar
08/11/2011
08-11-2011:BSNL leadership may reduce the total number of circle heads by clubbing key circles as part of a contingency plan
BSNL leadership may reduce the total number of circle heads by clubbing key circles as part of a contingency plan. For instance, Tamil Nadu and Chennai circles may be clubbed and managed by one CGM.
At present, Chennai and Tamil Nadu have distinct circle heads. The same concept may hold for Bihar/Jharkhand, Uttarakhand/UP-West, Madhya Pradesh/Chhattisgarh, West Bengal & Andaman Nicobar Islands and Northeast I & II circles..... ET
At present, Chennai and Tamil Nadu have distinct circle heads. The same concept may hold for Bihar/Jharkhand, Uttarakhand/UP-West, Madhya Pradesh/Chhattisgarh, West Bengal & Andaman Nicobar Islands and Northeast I & II circles..... ET
07/11/2011
06/11/2011
04/11/2011
04-11-2011: We protest the trend of "price hike of Fuel". by the by the essential commoditeis of indians...
We the people of India paid by the bad shamefull experience of price hike.... Today the fuel price has taken another jump. Alas! its the indian Govt & its Monitor succeded to hike the price of fuel 11th times in year of time. Huge corruption does not deny its part to push the hike. we appeal the politician " enough is enough " , lets allow the people to live their life. please actuate the honest trial to reduce corruption. you people feel the pulse of " AAM ADMI ".
04-03-2011: repatriation order for "unabsorbed ITSs are issued" by DOT on 3rd nov, 2011.
Order for the ITSs is issued , now they are not allowed to stay in dual mode. The officers who have opt to remain in BSNL/MTNL will be absorbed in BSNL/MTNL. The rest part of the ITS group in BSNL/MTNL who have not opt to be absorbed in BSNL will be reverted to DOT.
"""""""""""""" thank GOD"""""""""""""
"""""""""""""" thank GOD"""""""""""""
03/11/2011
03-11-2011: Court Case for 30% fitment Update...... as reported by Patron,Snatta Chq
Due to leave of Hon'ble Judge , the hearing of case for 30 % fitment is again delayed upto 30 th NOV, 2011. Next hearing date 30th NOV,2011. the reports are taken over phone from CHQ leaders.
02/11/2011
01/11/2011
30/10/2011
25/10/2011
25-10-2011: meeting of BWA with GM , Krishnagar..............
a meeting of BWA with GM/Krishnagar was held on 24-10-2011 , variuos issues was discussed in the meeting alongwith service related matters.. like poor infrustructure of CSC/Krishnagar, dispute & consumer grievence & increase of deisconnection of LL & BB due to irregular & delay payment details submission by POST OFFICE , shortage of ADSL modem, reduction of car expenditure, reduction of other expenses etc.
22/10/2011
19/10/2011
19-10-2011: GSM operators add 6.52 million new subscribers in September, BSNL only 0.45 mn.....as per COAI
In September, Bharti Airtel, the largest GSM player, added 0.94 million users, taking its total subscriber base to 172.78 million, the data released by the Cellular Operators Association of India (COAI) showed.
It had 27.95 per cent market share at the end of September.
Vodafone Essar, with a 23.45 per cent market share, notched up 0.85 million new subscribers during the month. Its subscriber base reached 144.99 million in September.
Aditya Birla group firm Idea Cellular added 1.74 million users during the month to take its total user base to 100.18 million, while Aircel added 0.60 million customers to take its subscriber base to 59.79 million.
State-owned telecom firms BSNL and MTNL added 0.45 million and 0.03 million new users, respectively, taking their subscriber base to 91.07 million and 5.33 million, respectively.
The COAI data excludes data from Reliance Communications. GSM (Global System for Mobile Communications) is the most popular standard for mobile telephony systems in the world. ...
It had 27.95 per cent market share at the end of September.
Vodafone Essar, with a 23.45 per cent market share, notched up 0.85 million new subscribers during the month. Its subscriber base reached 144.99 million in September.
Aditya Birla group firm Idea Cellular added 1.74 million users during the month to take its total user base to 100.18 million, while Aircel added 0.60 million customers to take its subscriber base to 59.79 million.
State-owned telecom firms BSNL and MTNL added 0.45 million and 0.03 million new users, respectively, taking their subscriber base to 91.07 million and 5.33 million, respectively.
The COAI data excludes data from Reliance Communications. GSM (Global System for Mobile Communications) is the most popular standard for mobile telephony systems in the world. ...
14/10/2011
14-10-2011: Nine months more for BSNL....(Source...FE editorial 12th, OCT)
A serious problem is staring at the government in general and telecom minister Kapil Sibal in particular—a problem that the New Telecom Policy 2011 will not be able to address. Come next June, the state-owned BSNL would not have money to pay salaries to its nearly 2.8 lakh employees, and if the government wants to avert this crisis, it needs to expeditiously draft and clear a voluntary retirement scheme (VRS) for roughly 1 lakh employees of the PSU. The government can do its arithmetic, but back of the envelope calculations show that it would have to shell out around R15,000-18,000 crore to fund this VRS programme. Is it ready to cough up this kind of money? One does not know, but what is certain is that come next June, a bailout would become necessary for the company.
This is the economics of the company—which is not listed and so does not...come out with quarterly results, and its earnings for the fiscal 2010-11 are yet to be officially announced. However, officials say that its net loss for the year stands at R6,384 crore. Add to this a net loss of around R400 crore that the company is understood to have posted in the April-June period of the current fiscal. Since July, the yearly R2,000 crore it used to get from the Universal Service Obligation Fund in lieu of the discontinued access deficit charge has also stopped. This means during the current fiscal the company is losing around R25 crore each day and R750 crore each month!
How is the company, then, still managing operations? The answer is simple: by dipping into its cash and depreciation reserves. But this will also not last long and, therefore, the deadline of June 2012. BSNL had huge cash reserves of around R30,000 crore. However, last year’s...3G and broadband wireless spectrum auction cost it dear. It had to dip into it to pay for them—an exorbitant R18,500 crore. It is now left with some R5,000 crore, which would enable it to last a maximum till June next year.
There isn’t much to expect on the revenue side because, for the last three years, the company’s revenues have been stagnant at around R28,000 crore while its costs—especially wage costs—keep rising. The company’s wage bill is at R12,000 crore and is expected to rise by 10% because of the mandatory revision it has to make each year. Simply put, its wage bill constitutes around 42% of its revenue. In contrast, for private telecom operators, the wage bill is only 5-6% of their total revenues.
Whether it was former telecom minister A Raja or the current minister Kapil Sibal or their predecessors, all of them, time and again, have been mouthing...platitudes about how the company needs to turnaround and everything would be done to achieve that. In reality, with every platitude being mouthed, the company’s performance has only declined. Prime Minister Manmohan Singh has also expressed his concern in the past and constituted an expert committee under the chairmanship of former telecom czar Sam Pitroda. As happens in government with regard to PSUs, a revolutionary report was prepared, presented and summarily buried with no action taken.
Recently, a new chairman and managing director was appointed who has been making the right noises, but how much of that would get translated into action and yield result is anybody’s guess, considering the company’s short history. Its mobile market share has been falling and today is below 10%. It was given 3G spectrum two years before competition but has failed to make anything out of it. It has tried to find franchisees to market...its 3G services but failed to find any so far because of the shoddy manner in which its request for proposal was drafted—it still thought BSNL was in a sellers’ market. It hired Boston Consulting Group to restructure its functioning and, according to its recommendations, did alter its functioning by creating service verticals. It today talks about hiving off its tower business to unlock value, which makes sense, though the idea has dawned a trifle late at a time when the tower space itself has become overcrowded, threatening the viability of many. Reliance Infratel and GTL have been looking at buyers for months with no success.
What really will then turnaround BSNL? Well, in the past, as is happening now, noises are again being made that the company would offer VRS, create a cooperative for the surplus employees, become more market-friendly and customer-oriented and market certain services through franchisees. However, none...of these would work, considering that time has run out for such strategies to yield desired results. Today, the gap between it and the competition had widened so much that any of these steps are bound to fail. The core of BSNL staff—the Indian Telecommunication Services personnel—are no doubt a bright lot, but have been trained and equipped for a different era, not today’s competitive telecom service market. Further, till today, they have resisted absorption into the corporation and continue to be government staff. This means that if tomorrow BSNL turns sick, the government will have to post them somewhere else or keep paying their salaries.
There’s only one way the government can save the company and that is by diluting its stake to below 51%. Considering the asset base, spectrum and network of the company, it would be a steal for any private sector company, especially since all the new...licensees who could be potential targets for M&A are tainted and under litigation and investigation.
But this is a bold move. Is the UPA government ready for it? .... FE
This is the economics of the company—which is not listed and so does not...come out with quarterly results, and its earnings for the fiscal 2010-11 are yet to be officially announced. However, officials say that its net loss for the year stands at R6,384 crore. Add to this a net loss of around R400 crore that the company is understood to have posted in the April-June period of the current fiscal. Since July, the yearly R2,000 crore it used to get from the Universal Service Obligation Fund in lieu of the discontinued access deficit charge has also stopped. This means during the current fiscal the company is losing around R25 crore each day and R750 crore each month!
How is the company, then, still managing operations? The answer is simple: by dipping into its cash and depreciation reserves. But this will also not last long and, therefore, the deadline of June 2012. BSNL had huge cash reserves of around R30,000 crore. However, last year’s...3G and broadband wireless spectrum auction cost it dear. It had to dip into it to pay for them—an exorbitant R18,500 crore. It is now left with some R5,000 crore, which would enable it to last a maximum till June next year.
There isn’t much to expect on the revenue side because, for the last three years, the company’s revenues have been stagnant at around R28,000 crore while its costs—especially wage costs—keep rising. The company’s wage bill is at R12,000 crore and is expected to rise by 10% because of the mandatory revision it has to make each year. Simply put, its wage bill constitutes around 42% of its revenue. In contrast, for private telecom operators, the wage bill is only 5-6% of their total revenues.
Whether it was former telecom minister A Raja or the current minister Kapil Sibal or their predecessors, all of them, time and again, have been mouthing...platitudes about how the company needs to turnaround and everything would be done to achieve that. In reality, with every platitude being mouthed, the company’s performance has only declined. Prime Minister Manmohan Singh has also expressed his concern in the past and constituted an expert committee under the chairmanship of former telecom czar Sam Pitroda. As happens in government with regard to PSUs, a revolutionary report was prepared, presented and summarily buried with no action taken.
Recently, a new chairman and managing director was appointed who has been making the right noises, but how much of that would get translated into action and yield result is anybody’s guess, considering the company’s short history. Its mobile market share has been falling and today is below 10%. It was given 3G spectrum two years before competition but has failed to make anything out of it. It has tried to find franchisees to market...its 3G services but failed to find any so far because of the shoddy manner in which its request for proposal was drafted—it still thought BSNL was in a sellers’ market. It hired Boston Consulting Group to restructure its functioning and, according to its recommendations, did alter its functioning by creating service verticals. It today talks about hiving off its tower business to unlock value, which makes sense, though the idea has dawned a trifle late at a time when the tower space itself has become overcrowded, threatening the viability of many. Reliance Infratel and GTL have been looking at buyers for months with no success.
What really will then turnaround BSNL? Well, in the past, as is happening now, noises are again being made that the company would offer VRS, create a cooperative for the surplus employees, become more market-friendly and customer-oriented and market certain services through franchisees. However, none...of these would work, considering that time has run out for such strategies to yield desired results. Today, the gap between it and the competition had widened so much that any of these steps are bound to fail. The core of BSNL staff—the Indian Telecommunication Services personnel—are no doubt a bright lot, but have been trained and equipped for a different era, not today’s competitive telecom service market. Further, till today, they have resisted absorption into the corporation and continue to be government staff. This means that if tomorrow BSNL turns sick, the government will have to post them somewhere else or keep paying their salaries.
There’s only one way the government can save the company and that is by diluting its stake to below 51%. Considering the asset base, spectrum and network of the company, it would be a steal for any private sector company, especially since all the new...licensees who could be potential targets for M&A are tainted and under litigation and investigation.
But this is a bold move. Is the UPA government ready for it? .... FE
13/10/2011
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