Thursday, October 8, 2009


Boston Consulting Group’s recommendations on BSNL…in brief. M-9426201999

The country's second largest telecom operator by overall subscriber base, state-owned BSNL, which has seen massive erosion in net profits and is surviving only on interests from its cash reserves, is putting up a four-pronged revival plan based on the recommendations of Boston Consulting Group (BCG).

As per the strategy, the company will focus on four key operations--consumer mobility, broadband, enterprise business and new business which includes infrastructure sharing.

According to sources, the telecom major is going to strengthen its consumer interface and distribution network. "BSNL's products are available in only 40% of the outlets as compared to the market leader. The company is aiming to increase its product availability to 90% of 8 lakh plus outlets. Secondly, time for activating connections, roaming services and customer care will be shortened significantly and marketing of the existing services as well as the new 3G ones will become very aggressive from now onwards", sources explained.

"As far as broadband is concerned, BSNL is the market leader with more than 50% market share, which is increasing 5% annually. We have set ambitious targets of doubling our connections from the current 3.5 million to 7.5 million. The biggest impetus would come from the WiMAX-based broadband services," officials told FE.

According to BCG, BSNL's enterprise business is a weak link in its entire operational chain. For instance, the BCG report has said, "There are significant gaps in the company's 'go to market' approach. There is almost no customer segmentation and special service level agreement over large enterprises." A company executive said that in order to revive its enterprise business, the company would now address the issue at three levels--product sales, service delivery and service assurance. Customers would be divided into platinum, gold and silver accounts with special service-level agreements within each segment.

In the new business, the company is banking on its tower asset base to generate a new income stream. As part of this strategy, the company recently announced that it was eyeing revenue of over Rs 1,000 crore. from leasing out its towers to private operators. BSNL has an asset base of over 40,000 towers across the country and 37,000 BTS on existing towers.


The details behind the loss of 2 crores. 05.10.2009
The reason for BSNL loosing Rs.2 crores at Vellore is utter carelessness shown in verification of the records at the time of giving mobile connections and giving ISD facility to about 70 numbers without even noticing that the connections were sought for a Chennai address and the billing address alone is that of Vellore. There are many other glaring errors in the application and the supporting records. But, the Administration has suspended a JTO for not carefully verifying the ( billing) address and left all others untouched. In Tamil Click here

Aircel has also entered into infrastructure sharing agreement with BSNL. Under the agreement, Aircel will get access to around 45000 towers of BSNL spread over the country. Aircel has around 32000 towers and sharing of these towers, that covers 96 percent of the Districts all over the country, will help them in expanding foot print and give them more space to concentrate on market expansion, according to Aircel's COO.

The Government has rejected the proposal for merger of 50% IDA to pre 01.01.2007 BSNL pensioners.

BSNL has already introduced 1 second pulse in the States of Orissa, Andhra Pradesh and Karnataka.

Orders have been issued for the payment of remaining 60% arrears to Executives. As usual, the meeting of our Wage Negotiation Committee is postponed by another 15 days.

TATA Teleservices to share BSNL Towers.

Agreement has been signed yesterday between BSNL and TATA Teleservices to share BSNL Mobile towers for the next 15 years for their TATA Docomo GSM services. This type of agreement is the first one in India and it may be noted that its not between 2 Private Operators.

IDA increase : 11.6% for Non Executives and 6.8 % for Executives-w.e.f 1.10.2009.
28.09.2009: What is in store for us ?
When the GS of AIBSNLEA met CMD and demanded payment of the balance 60% wage revision arrears and fitment on 78.2% IDA, it was informed by CMD that in the last meeting of the BSNL Board it was decided to explore the possibilities of reducing the 30% fitment benefit and the Executive Associations would be invited soon to discuss the matter.

24.09.2009: BSNL defrauded to the tune of Rs.Two Crores in Vellore SSA.
With out any basic supporting Documents, someone (or a group) was able to get 120 mobile connections under CUG from the CCC., Vellore in the name of a Major Indian Company and of those 120 connections, ISD facility was provided to 60, which is very abnormal for a branch office in a District H/Q [ even if we presume that the applications were from a genuine company ].

With in a span of about 40 days, the bill for the connections was for about Rs.2 Crores and there is no one to pay in the given address. Ofcourse, the Administration has preferred a complaint with the Police.The amount is more than the monthly take home pay of our SSA. Will the Administration fix responsibility for the lapses on those involved and take departmental action ?

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