BSNL customers deserve better treatment
The Cabinet Committee on Economic Affairs approved a Rs 70,000 crore package to revive MTNL and BSNL, with the two companies being merged and a voluntary retirement scheme being initiated to retrench employees.
Here's what we know about the Rs 70,000 crore revival package: Real estate assets worth Rs 37,500 crore will be monetised, with the funds being used to clear debts, upgrade networks and offer VRS to bring down the employee count by 50 per cent.
The plan also includes the allotment of 4G spectrum to the two companies, with the cost borne by the government. The idea is to make the companies more competitive, even as the other players get ready to compete in the 5G market.
The plan also includes a phased merger of MTNL, which operates in Mumbai and Delhi, and BSNL, which operates in the rest of the country.
That said, the possibility of such a merger was vehemently denied by the government as recently as last year, with such a plan being fraught with impediments, requiring the government to think through every last detail.
For instance, in the past, the leadership of BSNL has highlighted the different pay scales at the two companies as one of the impediments.
Another is that MTNL is a widely-owned listed entity. The government might also be being over-optimistic in its hope that 4G spectrum will make the companies competitive, because the real issue that needs to be addressed is whether BSNL will be equipped to function competitively.
4G spectrum alone does not guarantee customers. Customers respond to easy access and responsiveness. This is because customers are demanding, and this requires a company's processes to be geared to respond to customers with immediacy.
If anything, BSNL and MTNL's poor customer service is one of the biggest reasons for subscribers choosing to take their business elsewhere.
P Harsha Vardhan, Siddipet
The Cabinet Committee on Economic Affairs approved a Rs 70,000 crore package to revive MTNL and BSNL, with the two companies being merged and a voluntary retirement scheme being initiated to retrench employees.
Here's what we know about the Rs 70,000 crore revival package: Real estate assets worth Rs 37,500 crore will be monetised, with the funds being used to clear debts, upgrade networks and offer VRS to bring down the employee count by 50 per cent.
The plan also includes the allotment of 4G spectrum to the two companies, with the cost borne by the government. The idea is to make the companies more competitive, even as the other players get ready to compete in the 5G market.
The plan also includes a phased merger of MTNL, which operates in Mumbai and Delhi, and BSNL, which operates in the rest of the country.
That said, the possibility of such a merger was vehemently denied by the government as recently as last year, with such a plan being fraught with impediments, requiring the government to think through every last detail.
For instance, in the past, the leadership of BSNL has highlighted the different pay scales at the two companies as one of the impediments.
Another is that MTNL is a widely-owned listed entity. The government might also be being over-optimistic in its hope that 4G spectrum will make the companies competitive, because the real issue that needs to be addressed is whether BSNL will be equipped to function competitively.
4G spectrum alone does not guarantee customers. Customers respond to easy access and responsiveness. This is because customers are demanding, and this requires a company's processes to be geared to respond to customers with immediacy.
If anything, BSNL and MTNL's poor customer service is one of the biggest reasons for subscribers choosing to take their business elsewhere.
P Harsha Vardhan, Siddipet
