Is BSNL really going to be Sick PSU, if yes, how it happened to be in such a situation? Who made BSNL a loss making PSU? – BSNL Employees or the Management or the Government?
When it comes to BSNL, people always saying that it is a loss making firm. We can see private telecom players are increasing their profits day by day. Then Why BSNL can’t do the same? This will be the question in the minds of many people in India.
Once BSNL was the icon of Indian Telecom industry. As a PSU BSNL is having commitment to serve the society beyond its revenues. BSNL already invested thousands of Crore in Rural non-profit areas where the number of customers as well as revenue is very less. The PSU provides connectivity and broadband services to the Rural remote villages without considering the financial losses.
Dr.Thomas Issac M.L.A writes about BSNL Services and the Present Situation. Please see the write-up.
Without BSNL market equilibrium will be lost. Hence as a common man, we all need to support BSNL. The PSU should not be in History books.
Dear readers please share your thoughts and opinions via comments with us.
3 Comments
FIGHTING THE SYNDROMES !
As an employee of a Public Sector company, a part of national asset, the last 6 year experience in this organization makes me to write this article .. BSNL the company which is being running under the vested interests of a minority.
BSNL and MTNL should be revived. but before going to the revival plans, one should understand, how these companies are being ill-treated and "forced" to run under losses. It is the BSNL, which turned from 10000 crore profit making company having 40000 crores cash reserves to a 10000 crore loss making company having almost zero cash reserves within just 7 years. Remember the fact that this has happened to a company which is operating in the worlds second fastest growing telecom industry after china !! And at a time when the telecom bussiness value jumped from just 60000 crs in 2006 to nearly 2.6 Lakh crores in 2015. Can anybody think that it is natural.. ? No.. Indian state owned BSNL, once worlds 7th largest telecom company fading away from the picture, and the indian private players finding place in the top chart.. this give us a clear picture on what is happening. No, the competition alone can make the situation worst as now. It is the owner of the company who is responsible for the sad state of these telcos. While being a national asset, it is the responsibility of the govt to keep its childs like BSNL to face the challenges in the industry and make it competetive with the private telcos. but unfortunately, indian govt is not paying any attention on these companies. All those are arguing for level paying field in telecom sector forget the facts that BSNL is a Shackled jumbo at all levels. It starts from the wrong policies of the govt of india.
The very next thing is the absence of a Management of its own. EVEN AFTER 14 YEARS OF FORMATION OF BSNL, THE COMPANY DOESN’T HAVE A MANAGE MENT OF ITS OWN.. Can anybody believe ? How can a company can run without having a management and without maintaining a healthy relation between the management and its employees ? This is one of the major reasons behind the sad state of affairs. It is the hot issue between the management and its employees since 2005, when the deputation of managers got over by rules (during the formation of BSNL in 2000, officers holding Management posts didnot opt for BSNL , but govt made an agreement with employees in such a way that ITS officers can continued in bsnl on deputation for next 5 years to setup BSNLs own management within that time). Even after 10 years now, after the completion of deputation in BSNL, the govt is not interested in concluding the absorption issue either by repatriating the non BSNL optees or by adopting permanent deputaion in actual practice. But keeps the uncertantity on the absorption process stay live. Ie when the industry shows exponential growth, in BSNL, the managers are not sure whether they are the part of the company or they will be sent back to DoT next day. Employees unions are fighting in the courts against the management for namestake… In such a situation how can they work for betterment of BSNL ? How can they guide its employees ? How can the employees and management join hands for the company ?
The Report submitted by the Committee On Public Undertakings (COPU) in parliament on May 2013 Clearly said the above facts. Ie Wrong policies of Govt and Misamanagement are the major issues behind the sad state of BSNL ( Read COPU report Here : http://docdroid.net/rmoq Read review 2014 here http://docdroid.net/rms4 )
Now the employees unions are associations are going for an indefenite strike during march 2015. But the demands are not at all good to save the company.. Just go through the demands
1. Filling up the posts of CMD/BSNL and Director(Finance) and DIR(HR) of BSNL
Board, which are vacant for months.
My View : The worst state of BSNL today is not because of the absence of CMD and other directors.. Since 2000 after formation of BSNL, The company's "headless" period is very short. So the filling up of these vacancies willnot have any major impact at this stage. (anyway new CMD appointed last month).. If the presence of a CMD and directors can make profits.. why not so far ?
2. Stop formation of subsidiary companies of BSNL :
My View – Formation or Nonformation of subsidiary company willnot have any impact on BSNL,s revenue or its bussiness. If a company management and its owners(govt) have good intentions, there are so many ways to make profit.
3. Compensation for loss on landlines for rural / remote area service
My View : Compensation for loss making services will defenitely improve our revenue. But the company must take the decision on continuing loss making services. Who will take the decisions… A good management must be there in place to take decisions at all .
4. Procurement of equipment for development, expansion and better service, more focus on laying OF cable to strengthen the transmission network.
My View : Procurement alone willnot improve its revenue.. who will manage ! Just take the example of BWA spectrum. BSNL has spent more than 8500 Crores for its spectrum, and purchaced equipments for thousands of crores in 20 circles from some shell companies and expansion was going on .. but in the midway bsnl management has decided to surrender (instead of demanding spectrum replacement.) the spectrum in 6 major circles stating that the spectrum was nonstandard for LTE & useless and still waiting for the refund from govt.. We may get the refund for spectrum.. But will we get the refund for the equipments… ? 1/4th of the equipments are geting faulty everyday.. No proper maintanance in the field… Do u still believe "Purchase can save the company" ? It is the best example for absence of management in BSNL..
NB : in BWA auction BSNL got 2.3Ghz spectrum & all the pvt operators got 2.6Ghz spectrum which is suitable for 4G LTE services for the same BID PRICE)
Transfer of Assets to BSNL :
My View : It may help in monetizing the assets and thereby improve revenue..
6. Drop proposal for Merger of BSNL and MTNL.
My View : If the intentions are good, Merger will be a good thing for both companies..
7. Spectrum Liberalisation and Trading. :
My View : being the custodian of Huge spectrum, it will help BSNL in monetizing it
8. Pension Contribution on actual basic pay instead of maximum of the pay scale for the employees absorbed from DoT to BSNL.
My View : I am wondering why this demand help to SAVE BSNL.
9. Reject the recommendation of TRAI to force BSNL to surrender 1.2 MHz spectrum in premium 900 MHz band.
No comments
10. Reject M/s Deloittee Consultant recommendations
My View : There are so many good suggestions in Deloittees recommendations.. BSNL has the freedom to accepts its positive findings. Dont have to reject it.
11. Free allotment of spectrum to BSNL
My View : There is no need for govt to allot free spectrum to BSNL to make it profitable.. BSNL has the potential and we also have the market here to grow. Absence of management is the problem with us. not lack of resources.
12 Provide financial assistance to BSNL to expand network.
My view : No financial assistance in the present state of BSNL will help in turning around the company without a clear roadmap and an effective management.
13 BBNL should be merged with BSNL
My View : BBNL is created for somewhat to distroy BSNL using the BSNLs resources. It was a crooked move by the govt. but no objection by the associations/unions so far. The demand will help us if BSNL have a good management
14 BSNL should start 4G Services.
My View : Refer demand 4. It will not help BSNL if we dont have a good management.
15 Refund of BWA spectrum charges to BSNL by the Government for the spectrum surrendered by BSNL.
My view : No financial assistance in the present state of BSNL will help in turning around the company without a clear roadmap and an effective management.
16 78.2% IDA merger fixation for pre-2007 and post-2007 Pensioners.
My View : I am wondering why this demand help to SAVE BSNL.
17 Pension Revision of BSNL Pensioners
My View : I am wondering why this demand help to SAVE BSNL.
18 Fresh Recruitment of Staff.
My View : The average age of employees working in BSNL is nearly 50. In a company which operates in a sector where technology and operating enviornment and consumer interests are changing fastly induction of young blood will be a great move in turning around the company.
19. BSNL service to be mandatory to Central Government, State Government and PSUs.
My view : There is no need to make it mandatory. First make it mandatory for BSNL to provide quality of service. If BSNL is ready to provide good quality of services and good customer care they will not left us.
20 Condition of mandatory purchase of equipments from ITI to be scrapped.
My view : Demand is not genuine ! Just see the 19th point. Its double standard ..
21 Implement cabinet decision on 30% superannuation benefits to BSNL direct
recruited employees.
My View : I am wondering why this demand help to SAVE BSNL.
The vary cause of the sad state of BSNL iis the WRONGDOINGS OF GOVERNMENT and the aBSENCE OF MANAGEMENT ( Pls refer COPU report on BSNL in parliament 2013 http://docdroid.net/rmoq ). I dont use the word mismanagement because there is some management even in mismanagement ! So the first demand must be the completion of ITS absorption, which will pave the way for building a MANAGEMENT of Its own. Without a responsible management in place none of the demands will fullfill our dreams..
All the unions/associations are conducting atleast 2 strikes in BSNL every year since 2004 in the name of ITS absorption as one of the demands. If they are really interested to save BSNL.. settlement of ITS absorption would have been there as the first demand in the charter !! Actually They are fighting the symptoms.. not the causes …
to be continued …