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Telecom Commission against disinvestment of BSNL

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New Delhi | Wednesday, Mar 6 2013 IST
The Telecom Commission today decided that it was not time for the listing and disinvestment of public sector telecom behemoth BSNL as the company was on a downward performance and the disnvestment may not realise true value of the company, the government told the Lok Sabha today.

Answering a question in the Lok Sabha, Communications Minister Kapil Sibal said in a written reply that then Telecom Commission had considered the recommendations of Sam Pitroda Committee on the performance of the BSNL in 2010.

The Commission also deliberated on the recommendation to hire professionals from market changing for the company's Board Constitution or separating Chairman and Managing Director posts and decided that it may not be feasible in just one PSU and might trigger off protests from the BSNL and similar treatment by other PSUs.

The Commission felt that in the absence of listing option of giving stocks as incentive to key managment was not available for the present.

The VRS across the board in the BSNL may not be required but the company could examine option of VRS for select categories in the context of financial burden and cost/benefit to the company.

On the issues concerning adopting managed capacity or manated services model and unbundling of local loop, the BSNL may take a view after critically examining the issue, the Minister said.

Giving details regarding the revenues and profit and losses suffered by the BSNL, the Minister said the revenues which stood at Rs 32,045 in March 2010 had come down to Rs 19,305 crore in December 2012.

The losses which were at Rs 1,823 in 2010 had increased to Rs 6,536 crore. The market share which was 15.66 per cent in 2010 had also slipped to 13.51 per cent in 2012.

The reasons for losses were due to decline in revenue and increase in expenditure.

The reason for decline was fixed to mobile substitution, stiff competition in mobile sector, payment towards 3G and Broadband Wireless Access spectrum charges resulting in reduction in interest income and decrease in average revenue per user in mobile sector.

The reason for increase in expenditure was mainly due to wages of large legacy of work force, he added. UNI MCN RJ 2015 NNNN

-- (UNI) -- 06DI21.xml

 
  LATEST COMMENTS (10)
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Suresh (Chennai)
Every PSU including BSNL should be listed on the stock exchanges so that we can have first hand details of their performance. BSNL is going to sink like Air India. So list the company before it is completely destroyed.
Saturday, October 12, 2013 9:33:11 PM | Reply
Satish N Belgundi (Belgaum )

BSNL board has already placed a VRS proposal before the Government for consideration. Now the government should clear and also finance money for VRS. Or BSNL board can sanction five (5) advance increments for those who seek VRS.

This will not be a burden on the BSNL expenditure. And at the same benefit the BSNL from huge expenditure on wages on legacy work force.Hope the officers of ITS for take a decision before they are repatriated as per orders of the delhi Highcourt.

Monday, March 11, 2013 3:48:47 PM | Reply
 
Vijayachandra reddy (raichur)
Hi satish sir, i hope u r the one who was transferred to Raichur, and u stayed at jawarah nagar, sir i am need of u and ur contact. plz call me at 9686537740 or email to me on vjay.econ@gmail.com
Tuesday, March 26, 2013 1:01:42 AM
Swarnkar (Ajmer)

Dear friends, BSNL is eternal it is the dirty politicians who are playing double game one side they made us fool by false promises and other side they are busy in scams, it is the compulsion of theirs that

BSNL must survive otherwise who will distribute the Free mobiles to BPLs and who will errect GSM towers in the neta ji's village where population is very thin, and who will errect WIMAX towers in their village where there is no single connection of wimax till today since years gone,such donkey labour, will private operator are going to do no never. it is BSNL only who will shower them with votes, the only thing is our unity which is to be maintained throught other wise these people will put us in trouble.

Monday, March 11, 2013 3:38:25 PM | Reply
Vivek (Kolkata)
Whatever be the present scenario of BSNL, but the future seems golden due to the following reasons-

1. Huge expenditure decline in progress as aged employees taking away huge salaries are retiring in bulk every month.

2. Inside company protests showing results; as soon the ITS would be either included or completely excluded in the main employee strength of BSNL. This will make the leftover ITS officers more responsible towards betterment of the company.

3. Fresh injection of JTOs and TTAs to the company is showing promising results in near future, as they are placed in the lower strata of the company where the work is truly done on the ground level. Sooner they will start occupying administrative executive posts giving them more powerful and more beneficial for the company.

4. Last but not the least is the people's belief in BSNL, which I can see in the subscribers and customers as I myself am an executive in BSNL.

So lets not lose hope and B +ve.

Monday, March 11, 2013 12:51:04 AM | Reply
koteswaraRao.Nerella (Hyderabad)
In the prevailing circumastances when BSNL is posting loss year after year the Telecom Commission can not go for IPO and for this bad state of affairs of the co., finacially, the govt. itself is the sole culprit.

When BSNL was formed on 1st Oct,2000 the then MOC Mr.Paswan told that the BSNL will be taken care in all respects and NO LICENSE FEE will be collected and even if collected it will be reimbursed.Because of these assurances all the Group B,C, and D staff totaling more than 3.5 lakhs joined enmasse. The UPSC recruited group I ITS officers did not join evn till date and when the Delhi High Court struck down petition after petition of the Govt/ITS association, the Govt. is not relieving them and keeping them on illegal deputation and these bosses who are the policy deciders are not helping the BSNL since they know they will not lose anything even if BSNL ship drowns since they are in Govt.All the benifits like ADC,USO fund etc., were also stopped to starve the BSNL for funds and cannot do any expansion work.Even the Govt. not refunded 8500/- crores spectrum charges for the spectrum surrendered a year back.With all this back drop the MOC or Telecom Commission can never be able to issue IPO.

Be positive towards BSNL since it is doing social obligated works like Rural telephony, etc., bearing loss.

Friday, March 8, 2013 6:37:27 PM | Reply
Nikhil swapan dasgupta (kolkata)
The loss of calcutta telephones was due to the then CGM,Somnath Maity, The then GM/HR MR S K KAYAL and DGM/VIG Mr Achintya Biswas,For survival of the company extension of service of expert officers is urgently felt.

I am the winner of Excellent award in 2003 and vishist samnchar sevapadak in the yr 2010, Still i was awarded minor penalty for making statement regarding two days attendance of my subordinate officer.

Friday, March 8, 2013 5:55:13 PM | Reply
Swarnkar (Ajmer)
Friends the actual reason is still not coming in the eyes of the leaders that how a company can be run by two category of staff one is merged and other is out sider and the high chairs are with out siders,this is our mis fortune that pain is in the stomach and doctor is twisting the ear for medicinal effect how this patient will be cured god knows.
Friday, March 8, 2013 5:04:25 PM | Reply
KANNAN (KERALA)
I THINK WHY THE STATE OWNED COMPANY BSNL HAS ONLY A DECLINE IN REVENUE AND ALL OTHER PRIVATE OPERATORS ,Viz ,AIRTEL,IDEA,VODAFONE etc THEY INCREASE THEIR REVENUE PER YEAR , HOW IT IS HAPPENING IN BSNL/MTNL ONLY ???
Friday, March 8, 2013 4:01:54 PM | Reply
Koteswara Rao, Nerella (Hyderabad)
The Telecom Commission's decision to defer the IPO in BSNL is only the option and IPO is not going to take place anytime in future since the shares will not be bought as expected.Basically the decline of the co., is man made and the DOT/Govt. are squarely responsible for this .As per the original promise of Ram Vilas Paswan the then MOC when corporation was carved out that NO LICENSE FEE will be collected from BSNL and even if collected but will be refunded and this is NEVER HAPPENING.

Even for the Spectrum surrendered more than a year back the DOT is to pay back Rs.8400/- crores which they are delaying on one pretext or the other.The MOC rightly told that because of the legacy large No. of staff are there in the co., and UNDER THE SAME LEGACY UNWANTED EXPENDITURE LIKE TAC MEMBERS etc., have been thrusted on the co., by the Govt.The DOT is forcing to take PAN INDIA license by paying nearly 19 K crores as license fee while private operators paid only Rs.8K or so each.The BSNL should be given autonomy to take its decisions like other telcos.

The BSNL CO which was hoping to get NAVARTNA STATUS was pushed into debt trap and losses due to policies of the Govt. and not due to failure the staff even though a little bit more who are retiring in large No. year after year.

Friday, March 8, 2013 1:55:48 PM | Reply
Darvin (Maharashtra)
Required additional Mobile switches (GSM) Equipments were not purchased by BSNL due to various problems at auction/bidding level from last 5 years. Existing network is overloaded 130%, hence no scope for expantion and above all, Managers are not BSNL employees, as per NEWS, so no pressure for work getting done.

THIS IS DORMANT STAGE OF BSNL. If it starts using its latent potential, it can create wonders for betterment of INDIAN brothers and sisters.

Friday, March 8, 2013 12:55:43 PM | Reply
 
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