Is BSNL really going to be Sick PSU, if yes, then why BSNL is loss making PSU. Opening the BSNL revenue Pandora BOX to some extent
Why every time when it comes to BSNL, people are thinking BSNL is a loss making firm, technically speaking, according to the trend of telecom sector development no telecom company should incur loss. This is why many of the leading service providers are registering profits day by day. What happens to BSNL to do the same? Is there anything genetic defect in BSNL to be a loss making firm. From my side it is a big “NO”. Being BSNL a state owned company there are many aspects that might be responsible for this stature of Brand BSNL.
BSNL was the icon of Indian Telecom industry. Yes it is true. As a PSU BSNL is having commitment to serve the society beyond its revenues. If it is going beyond where will be the profits come from. Suppose if you consider of providing a land line to a remote village, what is the amount BSNL is getting and what is the amount BSNL is paying as a capital cost. Entire a setup has to be made like, a call routing switch, laying of inter connectivity between the central switch and the local switch in the nearby the phone connection.
From the village/taluk mini exchange (switch) to the house hold, it has to lay a cable with pillars. After doing this much extent what BSNL is getting in return? God question na. It is getting around Rs 90 per month for bimonthly payment. For this Rs 90 connection, It has to establish the setup and has to maintain it accordingly. But as we all know there will be minimal connections in remote villages.
Why BSNL is doing these things making itself a loss making Firm? This is also a big question from my side. Just think you have taken a loan of Rs 1 lakh and had invested it in somewhere. Monthly you are getting Rs 100. Your monthly expenditure will be of Rs.200 and have to pay the interest of Rs.1000, means you cannot pay even the interest also. This is why the debt are going day by day for BSNL. Investing at non-profit areas making BSNL a loss making firm.
Furthermore whatever BSNL has established for rural connectivity is also being used by private players on rent. Thought it is being one relief for BSNL. But the rent is not being credited to BSNL. BSNL can think of its business model and close its bleeding pockets and adopt the successful profit making models.
Like a standard concept of delivering rural telephony and data connectivity only through wireless segment, existing switches and new infra for landline and broadband will serve to existing exchanges. Marketing groups should have commitments with good incentives to boost the sales. Publicity is below the acceptable levels from BSNL, No body from BSNL is out there for publicity. This typical PSU culture of not owing the company should break. Sense of belongingness to the company among its own employees should be encouraged. Customer Support should be robust and existing portal complaint system is really yielding the results at some pockets of the country, it should be encouraged by even low level executives at all locations.
Beyond all these losses BSNL Kerala Circle is the one which making three digit profits, The same Model can be implemented to other circles, so that proven methodology is readily available with in BSNL.BSNL employees they themselves knows the lacuna of the companies policy, so they can suggest for improvement at policy making level. Which has to be encouraged at organisation level.
Government decisions like merging of sick companies with BSNL, further makes BSNL in to loss making company and make itself sick. This has to be thought hard to go further. Government should speed up its decision making time. So that whatever BSNL wants to update or increase its infrastructure will be in line with the market technologies.
If this decisions delayed, time between planning and execution is more making BSNL to lose its customer base for providing latest technology at later point of time. Which give private players an edge. Decision making of BSNL top management should be in time to minimise the delay between planning and execution time which will really yield revenues.
Ok, With all these points in hand, how BSNL is moving ahead. as BSNL all trade unions have declared that they are going to be on indefinite strike from March 17 2015. They trying to escalate these issues to the top men like Shri. Ravi Shankar Prasad ji, who is having a big plan for BSNL and also to the common man. That thier own BSNL is not loss making and also they want to pull resources from central to manage the crisis and look forward. As a common man we all support BSNL to be fore font in past, present and future..BSNL should not be only in History books. With out BSNL market equilibrium will be lost. Hope all is going to be well.
So, its the time for all the Readers to share their opinions via comments
Why every time when it comes to BSNL, people are thinking BSNL is a loss making firm, technically speaking, according to the trend of telecom sector development no telecom company should incur loss. This is why many of the leading service providers are registering profits day by day. What happens to BSNL to do the same? Is there anything genetic defect in BSNL to be a loss making firm. From my side it is a big “NO”. Being BSNL a state owned company there are many aspects that might be responsible for this stature of Brand BSNL.
BSNL was the icon of Indian Telecom industry. Yes it is true. As a PSU BSNL is having commitment to serve the society beyond its revenues. If it is going beyond where will be the profits come from. Suppose if you consider of providing a land line to a remote village, what is the amount BSNL is getting and what is the amount BSNL is paying as a capital cost. Entire a setup has to be made like, a call routing switch, laying of inter connectivity between the central switch and the local switch in the nearby the phone connection.
From the village/taluk mini exchange (switch) to the house hold, it has to lay a cable with pillars. After doing this much extent what BSNL is getting in return? God question na. It is getting around Rs 90 per month for bimonthly payment. For this Rs 90 connection, It has to establish the setup and has to maintain it accordingly. But as we all know there will be minimal connections in remote villages.
Why BSNL is doing these things making itself a loss making Firm? This is also a big question from my side. Just think you have taken a loan of Rs 1 lakh and had invested it in somewhere. Monthly you are getting Rs 100. Your monthly expenditure will be of Rs.200 and have to pay the interest of Rs.1000, means you cannot pay even the interest also. This is why the debt are going day by day for BSNL. Investing at non-profit areas making BSNL a loss making firm.
Furthermore whatever BSNL has established for rural connectivity is also being used by private players on rent. Thought it is being one relief for BSNL. But the rent is not being credited to BSNL. BSNL can think of its business model and close its bleeding pockets and adopt the successful profit making models.
Like a standard concept of delivering rural telephony and data connectivity only through wireless segment, existing switches and new infra for landline and broadband will serve to existing exchanges. Marketing groups should have commitments with good incentives to boost the sales. Publicity is below the acceptable levels from BSNL, No body from BSNL is out there for publicity. This typical PSU culture of not owing the company should break. Sense of belongingness to the company among its own employees should be encouraged. Customer Support should be robust and existing portal complaint system is really yielding the results at some pockets of the country, it should be encouraged by even low level executives at all locations.
Beyond all these losses BSNL Kerala Circle is the one which making three digit profits, The same Model can be implemented to other circles, so that proven methodology is readily available with in BSNL.BSNL employees they themselves knows the lacuna of the companies policy, so they can suggest for improvement at policy making level. Which has to be encouraged at organisation level.
Government decisions like merging of sick companies with BSNL, further makes BSNL in to loss making company and make itself sick. This has to be thought hard to go further. Government should speed up its decision making time. So that whatever BSNL wants to update or increase its infrastructure will be in line with the market technologies.
If this decisions delayed, time between planning and execution is more making BSNL to lose its customer base for providing latest technology at later point of time. Which give private players an edge. Decision making of BSNL top management should be in time to minimise the delay between planning and execution time which will really yield revenues.
Ok, With all these points in hand, how BSNL is moving ahead. as BSNL all trade unions have declared that they are going to be on indefinite strike from March 17 2015. They trying to escalate these issues to the top men like Shri. Ravi Shankar Prasad ji, who is having a big plan for BSNL and also to the common man. That thier own BSNL is not loss making and also they want to pull resources from central to manage the crisis and look forward. As a common man we all support BSNL to be fore font in past, present and future..BSNL should not be only in History books. With out BSNL market equilibrium will be lost. Hope all is going to be well.
So, its the time for all the Readers to share their opinions via comments
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