Want to know why BSNL being the only PSU is trying to recover. On the first hand you must know, why BSNL was pushed to loses. BSNL was one of the best profits making PSU till Shri Atal Bihari Vajpayee ji era. Then why BSNL gone in to this state of trying to recover!!!! Really clue less.., many are also on the same state like you, so just went in to some details about our BSNL. These are some for you.
One point.., technical expertise of BSNL employees, generally all are complaining about the technical trouble shooting and for allied areas. Hmm in those days or even the latest recruitment of BSNL, people who are cream of the country in all respects are in to BSNL. Still we all complain of the team BSNL. Its not the team BSNL, it’s the driving force, existing culture of work, using the employees with their area of expertise. For an example If a person posted in rural telephony and a person posted on urban area, we can’t compare among their revenues, because being the same work, their area of work is uncomparable.
After establishing Indian first telephony, with a top class employee, BSNL should be a world class leader rather than struggling in its home land. We as Indians are pioneers for science, mathematics and many other subjects, Still we follow western world’s innovations, which are derived from our ancestors. This can be only broken when we establish our own brand across globe. BSNL should have people who are visionaries, leaders and mentors to groom their employees in to a grove, which will lead the company and its employees towards Being World Class.
Going in to the details, BSNL obligation was to support rural telephony, with a huge investment, huge infrastructure and high operational cost. BSNL is doing this social obligation for the benefit of society by generating losses. As records say BSNL is spending around Rs 700 approximately against revenue of Rs 78 per month. BSNL has reported a loss of approximately Rs 9500 croes in this rural telephony segment. No other service provider is offering rural telephony more than 2% of all connections.
Telecom Regulatory Authority of India(TRAI) in 2003 imposed access deficit charges (ADC) on all service providers for boosting rural telephony. Furthermore government has promised to fund Rs 2000 crore every year from Universal Service Obligation (USO) fund. BSNL has invested around approximately Rs 10000 crore in rural telephony against which BSNL has got approx. Rs 1500 crore from 2011-12.
Coming 3G spectrum, BSNL was forced to take PAN India 3G license against which private players opted for revenue intense circles only. Furthermore BSNL was forced to take high frequency 3G bandwidth for it has to pay more for license cost and also for operating costs. Here really BSNL was forced to take up the task which yields sudden decline of its cash reserves.
In the year 2006 a tender worth of 45.5 million was delayed because of Government at that time and also in the year 2008 another tender of worth 93.3 million was also cancelled with the disqualification of Nokia Siemens in technical evaluation stage. All these issues effected BSNL upgrade plans and decreased BSNL market share from 38% to 25%, which made a huge loss for BSNL.
Nowadays BSNL seems to be ok, as the new Modiji Government is monitoring BSNL updates very closely and moves newly appointed CMD Shri Anupam Srivastava is also pushing the New BSNL Plans and renovation ideas with a high-speed precision timing, in part of Digital India.
In Mobile Segment, new BSNL Free Roaming All India attracts the Indians in a large extent, proved by increasing the market share, which in results shortage of SIMS also due to bulk migration through MNP and with new activations.
In Landline and Broadband Segment, BSNL Free Unlimited Calling to any Network across India, will gets immense response from Indians across the country by registering thousands to lakhs of New Landline Connections in each and every BSNL Circle resulting in record a new increase the Landline Market Share.
BSNL also concentrating on strengthening marketing channels, believing its own employees, improving leaders, mentors and guides to guide, lead the younger generation towards commitment for the company. BSNL should has to concentrate to have role / job clarity and to improve job responsibility. So we think this should surely empower BSNL as a catalyst in bringing back to its status of past glory with highest revenues.