Government takes several initiatives to revive BSNL which is currently reeling under heavy losses

By August 12th, 2014 AT 5:15 PM

The Government owned BSNL is in the fry for the past couple of years due to the mounting losses and the inadequate service. The BSNL story has been doing rounds in the Media and in majority of articles the losses are stated wrongly. We decided to dive deep and pull out the exact facts that are contributing for the BSNL losses.

A document that was issued recently in a Rajya Sabha session when the reason behind the mounting losses was enquired threw some light on the issue. The Document shed some light on the revenue of BSNL for the past 5 years. It can be depicted that BSNL started going into losses in the 2009-2010 period and ever since it has not been able to bounce back positively.

Financial Year Profit/Loss after tax (in Rs Crores)
2004-05                       10,183
2005-06                        8,940
2006-07                        7,806
2007-08                        3,009
2008-09                         575
2009-10                     (-) 1,823
2010-11                      (-) 6,384
2011-12                      (-) 8,851

Negative Denotes Losses.

The Minister of Communications and Information Technology quotes that the decrease in Landline and the broadband connection has reduced the revenues. Other contributing factors include stiff competition from private operators and Employee expenses that exceed the industry norms.

The step taken by Government to revive BSNL includes a Financial Support of Rs.6724.51 Crores on surrender of Broadband Wireless access spectrum. Government will formulate a plan to coordinate and address higher employee expenses and a meaningful utilization of assets to facilitate availability of finances for network expansion and improving the Quality of the service

BSNL is also on verge of offering VRS (Voluntary Retirement Scheme) for employees so that they can cut the employee expenses. The VRS scheme will cover a total of 1 lakh employees. We feel that BSNL should completely revamped and can BSNL bounce back to good old days ? What do you think do let us know via comments.

Mahit Huilgol is a Mechanical Engineering graduate and is a Technology and Automobile aficionado. He ditched the Corporate boardroom wars in the favor for technology battle ground. He is also a foodie by heart and loves both the edible chips and non-edible silicon chips.

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losaGrahakkuBASAVARAJAReliance Jio strikes a pact with BSNL for leasing its towers, a good move ?Umesh Recent comment authors
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Grahakku
Grahakku

BSNL is really disappointing in level of customer service. I got frustrated by the staff at my local telecom office, and took a video of a lazy officer chatting on a personal call instead of helping customers waiting in the queue. The video is at youtube.com/watch?v=4YQhdN5EIXc This is just a small clip, but she talked with her friend for more than 20 minutes. When we finally left the office, she was still talking! It is not meant as a personal attack on the BSNL worker, but I feel someone must be made aware of what is happening on the ground… Read more »

losa
losa

yaa i tried to get BSNL sim,the video is similar but language is telugu.they gave me form to fill after filling form they said come after 10 days sims are not available

BASAVARAJA
BASAVARAJA

BSNL can servive by recriuting fresh technical and professional person to cope with modern technology for basic service and allied value added service. Must reduce the bulk employees by offering option basis VRS.Management should be serious and made accountable.

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