Saturday, 6 April 2019


An argument that the reason for BSNL  crisis is just its huge workforce and cheap tariff and profit is possible only with less staff as in private sector  is spreading widely.
A critical analysis of  BSNL crisis will reveal many facts. The present crisis where BSNL is not allowed 4G even years after 4G launch(with high data speed)  and is asked to compete with private vendors is just the final example of how present govt is eager to close down BSNL for promoting its favourite private players. The predatory pricing of JIO should be seen in this context. Even IIM entrusted by DOT to study BSNL crisis in its pro-corporate report to govt was compelled to support existence of public sector BSNL for at least five more years before changing its form to avoid the emergence of private monopoly that will loot customers.
Is JIO the major stake holder in Petroleum industry ready to lower its prices for petroleum products like it does in telecom ? It is crystal clear that what GIO wants is destabilise BSNL, emerge as monopoly in the industry, seize the major market share and then start its loot. With support of corrupt politicians and bureaucrats like the present, who are just puppets in their hands  it is easy for them.
Before the emergence of Electronics and IT boom with copper cables and Strowger or Cross bar exchanges telecom was not an attractive business destination for corporates. There was hardly any profit. So it was the duty of govt to provide and maintain the costly infrastructure. Advancements in technology has made  Telecom and its successor IT the most profit possible business areas. Even then BSNL is compelled to operate with copper (BSNL major work force still in copper landline )whereas the need of the hour is transition from copper to fibre for which no effective strategy is evolved, diversification of services to all IT related areas, strengthening Mobile sector with 4G and then gradually to 5G etc for which it is not allowed. The funds are blocked... loans are not granted... 4G is denied... services are not diversified...
Right from its formation BSNL was not allowed to expand its domain and business. Not allowing entry into mobile sector, blocking of tenders and mobile expansion on flimsy grounds, lack of autonomy and govt control, many low profile ITS officers who have not joined BSNL holding all management positions, lethargy and negative attitudes that need change, age old rules and regulations, spectrum corruption, dumping all kinds of useless equipments, software and machinery just for corrupt purchases, blocking all types of diversification of business, not allowing 4G, not allowing to take loan even when BSNL  debt is less than 2 percent of telecom industry debt …. etc are all just examples of the process of destabilising the public sector BSNL through policies whereas the need of the hour is its expansion as a strong public sector not only on security and national interests, but also to make available the benefits of technology to the masses. Root cause of the crisis is pro-corporate policy  which can easily be reversed if there is a policy change…..

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