Bharat Sanchar Nigam Limited (BSNL) has roped in Boston Consulting Group (BCG) to help or rather drive its revival plans. The government has spent plenty of taxpayers' money on the revival budget for BSNL - thrice in the last few years, yet things do not seem to be improving at the required pace. BCG, a US firm, will be paid Rs 132 crore for its consultancy services for 34 months. According to an ET report, BCG will be responsible for helping BSNL achieve the government-set targets by strengthening the existing business portfolio and reducing costs. The consulting group will also oversee that BSNL is able to deliver services at the industry benchmarked standards.
There's also a need for BSNL to improve or transform its sales and marketing strategies and capabilities, all of which BCG will help with. BCG will be given performance incentives as well.
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The work for BCG will be distributed in two phases. Phase 1 will focus on verticals including consumer mobility, consumer fixed access, and enterprise business. The Quality of Services (QoS) for BSNL is not up to the mark, and thus, under phase 1, BSNL will focus on 11 circles to improve services - Kerala, Tamil Nadu, Karnataka, Punjab, Gujarat, UP West, UP East, West Bengal and Rajasthan & CNTX South/North circles.
The target for the state-run telecom operator is to reach an annual revenue from operations of Rs 35,960 crore by FY28. BSNL is also looking for a redesigned and freshly developed sales and distribution policy with a 25% lower outgo on commissions and incentives. In the second phase, the telco may consider implementing the recommendations in a phased manner, subject to the availability of resources.
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Employee Union is Unhappy
BSNL's employee union is unhappy with the move. According to the union, the government should focus on utilising the existing talent and resources of BSNL instead of hiring an outside firm. The government expects BSNL to turn profitable from FY27.
