Cash-starved BSNL is planning to reduce its workforce by nearly 50 percent once the Centre clears its voluntary retirement scheme, chairman Pravin Kumar Purwar told Economic Times. The state-run telco will make the scheme “attractive” so that 70,000-80,000 people opt for it, lowering its steep employee costs: BSNL spent two-thirds of its FY18 operating revenues on personnel expenses compared to just 3% at Airtel. The public sector company is monetizing land assets and cutting operational costs even as its potential merger with MTNL hangs in the balance.
Its high time now for the government to take the decision of whether it is a social impact agency or a corporation. Indian government is focusing more on privatization instead of running the show in their hands. Specially BSNL. Unfortunate to see this transition (Leader once, is going down constantly). At least, government is not taking any interest to stabilize / normalize it as per the latest standards.
If its is a social impact agency then it should focus on developing infrastructure around 5 key important areas like Sanitation, Security, Health, Education, Employment, Self and organisations,
It should leave running the business to the corporates and figure out the right mix of PPP model for success. Instances like BSNL, MTNL, Air India, Banks are enough examples that government is best as a social impact agency.
For example – BSNL has 2 lakh on payroll which includes employees plus outsourced services.Most of the other Telcos of PAN India scale has the on roll employees in the range of 15-20k in addition to outsourced services.
The recent payout from RBI should be judicially spent else the economy will be doomed!! It should focus on infrastructure development which will in turn generate more jobs instead of reviving and fixing ailing organisations – Revival of organisation wont generate any new jobs!
The crisis in the Indian #telecom sector and what DoT (Department of Telecom) can do about it.Introspective insights and imploring for the corrective actions by former Telecom Regulator Authority of India (TRAI) Chairman. A wake-up call for Department of Telecom (DoT) ? With the private and public sectors suffering, it is time DoT woke up and addressed issues like skewed regulation, financial stress, exorbitant #spectrum prices, and price wars.
BSNL – Value diminishes as the company tries to match competition. This is a classic case of a company trying to find it’s way when the market has changed. A company which once ruled Indian telecom now is amiss and trying to understand value creation.
A belated 4G foray, merger with MTNL, and asset monetisation: Will these be enough to rescue BSNL?