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Profit-oriented corporates will squeeze public in the absence of BSNL
BSNL celebrated its 12th anniversary on October 1, 2012. Formed on the same date twelve years ago as part of the neo-liberal policy of the government, BSNL has been witnessing a major downfall in its operations across the story - courtesy govt efforts to encourage the private players in the telecom sector.

FIVE YEARS before, the government had opened the telecom sector by granting licences to private telecom companies to start mobile services, which were denied to the Department of telecommunications and MTNL. Both the National Telecom Policy 1995 (NTP-1995) as also NTP – 1999 were brought with the clear intention to help the private companies and to weaken the PSUs, BSNL and MTNL.

Videsh Sanchar Nigam Limited (VSNL) has been privatised and is a Tata company now. More than 45% of MTNL shares are disinvested, paving way for privatisation.

BSNL had a robust growth, both in revenue, as well in profits till 2007 and was on the march to be the leader in telecom sector, both in landline as well as mobile section. By cancelling the procurement of 45 million mobile equipments in 2007 and 95 million later, the government maintained that BSNL is stunted and blocked it from expanding the services. In addition, all the assurances on financial viability by the government at the time of corporatisation, like grant of ADC, Reimbursement of Licence Fee, subsidy from USO Fund etc, were either withdrawn or reduced drastically making BSNL unviable.

The company revenue, which used to be around Rs. 40,000 crore has come down to about Rs. 27,000 crore now. Profit has made way for loss for the last three years. This situation has resulted mainly due to the anti-PSU policy of the government and the inefficient management. The casual attitude of the employees also has a share in the present situation.

The government has been continuously adopting a pro-private policy succumbing to the pressures of the corporates more than the interests of BSNL, its own company. There has been no equal field between BSNL and the PSUs at any stage. This situation has been capitalised by the corporates which has resulted in big scams and evasion of taxes and big loss to the company like in 2G scam.

The Unions of non-executives and executives have initiated a programme called “Subscriber Delight Year” for improving the services and also the financial viability. This has resulted in a favourable change, though nominal. The management has agreed to procure mobile equipment, cables, telephone instruments, broadband modems etc., the non-availability of which has adversely affected development, expansion and service. The procurement process has started which will improve the services. Seminars, meetings etc. are being organised by the unions to educate and train the workers for improving the services.

About 10,000 to 15,000 employees are retiring every year and no new recruitments are being done. As a result, the staff has been reduced from about 3,50,000 in 2000 to 2,74,000 in 2012. This naturally has adversely affected the services. Instead of regular workers, contract workers are being engaged. There are about one lakh casual and contract workers who are inhumanly exploited, by denying minimum wage, social security measures etc.

To bring back BSNL to its glorious past, the government has to implement its assurance on the financial viability of the company; the management has to improve its functioning and the workers have to work with more commitment and determination to improve the services. With its more than 30,000 offices, exchanges all over the country, the largest network of infrastructure including cables, more than 50,000 skilled engineers and two lakh committed workers and support from the public, there is no reason why BSNL could not expand, develop and improve the services. The telecom services in the country could not be handed over to the profit-motivated corporates who will squeeze the public once BSNL and MTNL become non-existent.

(About the Contributor: V.A.N. Namboodiri is President of the BSNL Employees Union, the recognised union in the telecom PSU. He is the President of BSNL Casual and Contract Workers Federation as also the convener of Joint Action Committee of BSNL Unions /Associations of Non-Executives and Executives)

COMMENTS (4)
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Devesh
private telecoms are already squeezing. In the name of rising input cost they increase the tariffs on their will. However, people are helpless to choose them because telecom PSUs BSNL and MTNL have failed to prove them up to the expectations. BSNL and MTNL could again rise if government and BSNL itself vows for that.
Rishikesh
You mentioned the casual attitude of employees as one of the various reasons of BSNL's downfall. why this casual attitude is not changing? I would like to tell you that public is not happy with the casual attitude of BSNL employees. if this is improved one of the major problems of bsnl will be solved.
Alam Khan
In most cases citizens take PSUs for granted without understanding the value it brings to the country. BSNL suffers from a bad brand image - but very few actually realise the reason behind it. Thanks to Mr. Namboodiri for highlighting them for common man. I always believe that if common man is sensitized, govt will be forced to withdraw.
Krishna Kumar
The govt. is actually trying to kill all such PSUs. They tried hard to sell off Indian Oil to Reliance - couldnt manage. They nearly killed Air India for sake of other private players. Now they are aiming to kill companies like BSNL by pushing them to operate in putting it in adverse conditions.
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