Government Mulls Overhaul to Boost BSNL Competitiveness

The government is reportedly deliberating several strategies aimed at enhancing operational efficiencies within Bharat Sanchar Nigam Limited (BSNL) to enable the state-run telecom giant to effectively compete with private counterparts.

Proposed Measures for Improvement of BSNL: 

Initiatives under consideration include network modernization, rationalization of employee costs, enhancement of sales and distribution channels, and diversification through value-added services (VAS), as per a report in the Economic Times (subscription required).

The proposed measures seek to streamline expenses, particularly in terms of employee benefits, with the objective of positioning BSNL on a more equitable footing vis-à-vis its private sector rivals, government sources revealed.

Focus on Employee Expenditure:

BSNL’s employee expenses, constituting a substantial 38.4% of its total revenue as of FY23, remain a significant impediment despite prior efforts to reduce workforce through voluntary retirement schemes since 2019, according to the Economic Times.

Delay in BSNL 4G Service Launch:

BSNL’s nationwide rollout of 4G services faces a setback, with the launch now slated for December 2024, attributed to delays by vendor Tata Consultancy Services Ltd (TCS) in deploying 4G equipment, as reported by Mint.

In light of the 4G rollout delay, BSNL workers have appealed to Union telecom minister Ashwini Vaishnaw to permit the utilization of Vodafone Idea’s 4G network, citing the government’s substantial stake in the financially troubled private entity.

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