Here’s why BSNL, MTNL perform poorly

By March 4th, 2016 AT 5:05 PM

Legacy manpower, delay in network modernisation, and less aggressive market skills are the reason behind the poor financial performances of state-run telecom operators, BSNL and MTNL.


Telecom Minister Ravi Shankar Prasad said both the telcos are taking several steps to enhance revenues through investments to strengthen their network and focus on customer care and service delivery to improve revenue generation.

He however added that one of the reasons for less revenue increase is a decline in subscriber base of landline connections due to shifting towards mobile services. BSNL, which operates nationally except Delhi and Mumbai, posted 2.32 percent jump in 2014-15 revenue at Rs 28,645 crore.

MTNL, on the other hand, witnessed an increase of 0.90 per cent to Rs 3,821 crore for the same period. In a bid to improve network, BSNL has planned installing 10,510 of 3G base transceiver stations (BTSs) and 14232 BTS for 2G. It also plans to install additional 9,600 of 3G cites and replacing of 5300 old BTS.

MTNL, according to the minister, is taking steps for upgrading and expanding its existing network and is also exploring synergy with BSNL for its mobile services.

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Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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S GopalColoradoRinuYash Paul GuptaJyotirmoy Manna Recent comment authors
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sai charan kv
sai charan kv

Very rigid people. I am sending many requests to provide international roaming in prepaid. To cmd bsnl and Chennai cgm till now no reply in india this only one company not consider this… reasons told that not profitable to company. Now tt will highlight this in your site to focus on this

Jyotirmoy Manna
Jyotirmoy Manna

I think you should not try to increase their revenue where they themselves are not eager!

S Gopal
S Gopal

BSNL-MTNL seem to have suffered a setback in the international roaming front after exiting the Conexus Mobile Alliance with Vodafone having taken BSNL-MTNL’s vacated space. This alliance presumably was financially beneficially, however, Vodafone being a global network will any day be preferred over BSNL-MTNL which has operations at most in three nations (India, Nepal & Mauritius).

Rahul Aryan
Rahul Aryan

I think that as far as the top level managers (IAS guys) who comes into bsnl on deputation are not responsible for their actions, nothing will change. The difference between a private company and public company is that. From the CEO to the smallest jobs, any non performance means they will be out of a job in private companies. But every one can go through the motions and behave badly in public companies, and nothing happens… The Bsnl staff in Kerala are much better compared to 10 years ago. But still not close to a private company standards whennit comes… Read more »

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