Google+ Followers

Latest News inf. By Ashok Hindocha

DD NEWS

.

ZEE NEWS

.

Monday, November 30, 2009

TradeUnionNews


TUAC - TRADE UNION ADVISORY COMMITTEE TO THE OECDHome > Public Space > About TUAC
English Français MEMBERS' ONLY AREA

TUAC News
TUAC Papers
Other Trade Union Papers
OECD Documents
Other Material
Browse by topic
OECD & Union Rights
G8 & OECD Summits
Economy & Jobs
Education & Social Affairs
Sustainable Development
Multinationals & Trade
Development Cooperation
Governance & Finance
Browse by keywords
TUAC
About TUAC
Affiliates
Contacts
Make tuac.org my homepage
Access to pre-2007 tuac website
Newsfeed RSS
Subscribe / Unsubscribe TUAC Newsletter
ABOUT TUAC
The Trade Union Advisory Committee (TUAC) to the OECD is an interface for trade unions with the OECD. It is an international trade union organisation which has consultative status with the OECD and its various committees.
Downloads
"Labour and the OECD: the Role of TUAC" - OECD Policy Brief, February 2006
Pdf - 596 Ko

The Trade Union Advisory Committee (TUAC) to the OECD is an interface for trade unions with the OECD. It is an international trade union organisation which has consultative status with the OECD and its various committees.

TUAC's origins go back to 1948 when it was founded as a trade union advisory committee for the European Recovery Programme - the Marshall Plan. When the OECD was created in its current form in 1962 as an intergovernmental policy making body, TUAC continued its work of representing organised labour's views to the new organisation. The OECD is now changing again, taking in new members and becoming a leading forum for intergovernmental policy making to manage globalisation. TUAC's role is to help ensure that global markets are balanced by an effective social dimension. Through regular consultations with various OECD committees, the secretariat, and member governments TUAC coordinates and represents the views of the trade union movement in the industrialized countries. It is also responsible for coordinating the trade union input to the annual G8 economic summits and employment conferences.

TUAC's affiliates consist of over 58 national trade union centres in the 30 OECD industrialised countries which together represent some 66 million workers. It is they who finance TUAC activities decide priorities and policy and elect the TUAC officers.

The large majority of TUAC affiliates' are also affiliated to the International Trade Union Confederation (ITUC). Most European affiliates also belong to the European Trade Union Confederation (ETUC). TUAC therefore works closely with these international trade union organisations as well as with the International Labour Organisation (ILO). TUAC also works closely with Global Union Federations to ensure effective trade union input to OECD sectoral work such as education, public sector management, steel, or maritime transport. TUAC with the ITUC and GUFs are members of the Council of Global Unions.

TUAC operates through a small secretariat, based in Paris, of 5 policy staff and 3 administrative staff. John Evans is the General Secretary of TUAC.

TUAC's day to day work involves meeting with the OECD Secretariat, Committees and Member governments to appraise them of the views of the trade union movement on the issues on the OECD's agenda.

At the same time TUAC briefs affiliates on a regular basis on the work under way in the OECD, coordinates policy statements on major areas of interest and evaluates the outcome of OECD meetings and publications. The TUAC secretariat are frequently called on to make presentations to meetings or Congresses of affiliates and other international trade union organisations. This process enables the trade union movement to have access to the intergovernmental policy debate and at the same time allows policy makers to have dialogue with the Social Partners. Given the growing impact of globalisation on working people and their families and the realisation of the need for participatory strategies by governments for all the stakeholders in market based economies, this dialogue is more important than ever.

The formal decision making body within TUAC is the Plenary Session, which meets twice a year (April/May and November/December). All TUAC affiliates and the representatives of the international trade union organisations are invited to attend, and normally around fifty union Presidents or General Secretaries, International Secretaries and Economic or Research heads attend. The Plenary Session discusses and approves major policy statements, discusses the work programme and priorities, it also sets a budget and affiliation fees and elects TUAC Officers.

The Plenary also elects an Administrative Committee which is in charge of overseeing the administration of TUAC. At the moment it consists of the following organisations: DGB, Germany; CLC, Canada; TUC, United Kingdom; AFL-CIO, United States; FO and CFDT, France; CGIL, Italy; RENGO, Japan; ÖGB, Austria; TCO, Sweden and CSC, Belgium together with the President, the Vice-Presidents and the General Secretary.

The Officers are elected for four year renewable terms. Currently the President of TUAC is John Sweeney, President of the AFL-CIO (USA). The Vice-Presidents are Luc Cortebeeck, President of the Belgian Confederation of Christian Trade Unions (CSC-Belgium),Tsuyoshi Takagi,President of RENGO Japan, and Marie-Louise Knuppert, Secretary of LO-Denmark. The General Secretary is John Evans.

In addition to the General Secretary the TUAC Secretariat consists of Policy Advisors (Kirsty Drew, Pierre Habbard, Anabella Rosemberg & Roland Schneider), an Administrative and Financial Assistant (Michelle Vedel), and two Secretaries (Pierre Benielli and Brigitte Pomel).

Working Groups exist on Economic Policy, on Global Trade and Investment, and on Education, Training and Labour Market Policy. The Working Groups prepare TUAC positions for both the Plenary Session and for consultations with the OECD. They are open to all affiliates, the international organisations and TUAC "partner" organisations in Central and Eastern Europe. In addition a range of ad hoc meetings are held under specific areas being considered by the OECD.

TUAC normally has consultations with the Bureaux of OECD Ministerial meetings where statements are submitted. Trade union presentations are also made to the OECD in the course of consultations with different OECD Committees. There is also an annual meeting with the OECD Liaison Committee for Non-Governmental Organisations, which is made up of members of the OECD Council. TUAC representatives now also participate in some OECD Committees or Working Groups as active observers. On average some four hundred trade union representatives take part each year in different TUAC and OECD meetings mostly at OECD headquarters in Paris.

There is also an OECD Labour/Management Programme, partially financed by the OECD, which serves as a forum for preconsultations between trade union and management experts on matters that eventually come up in the OECD's programme of work.

TUAC also organises on a regular basis conferences with affiliates and other trade union bodies in OECD countries reports are usually presented as publications.

Top © 2007 TUAC
Trade Union Advisory Committee to the OECD - 15, rue La Pérouse - 75016 PARIS - FRANCE
Tel : (33) 01.55.37.37.37 - Fax : (33) 01.47.54.98.28 - tuac@tuac.org
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999

LeasedCircuitesinformation


Leased circuits pending for Provisioning: Circle wise details are given below. Total 7651 leased ccts are pending as on 31.10.09 throughout BSNL of which 3750 are SWAN (State Wide Area Network) ccts. The average revenue for one cct per annum is Rs. 5 lakhs for SWAN ccts and Rs. 50000 for other 64 Kbps ccts. By rearrangement of cards in different MUXs, maximum connection can be given, BSNL CO << Letter>> <
> By this BSNL can earn at least Rs. 207 crore per annum.

S. No. Circle Oct. 09 S. No. Circle Oct. 09 S. No. Circle Oct. 09 S. No. Circle Oct. 09
1 A & N 24 8 HR 231 15 MP 135 22 TN 241
2 AP 1939 9 HP 112 16 MH 696 24 UP(E) 294
3 AS 122 10 J & K 121 17 NE I 64 25 UP(W) 316
4 BR 552 11 JKD 154 18 NE II 48 26 UTL 63
5 CHTD 389 12 KTK 449 19 OR 205 27 WB 238
6 CHG 173 13 KRL 148 20 PB 174 TOTAL 7651
7 GUJ 395 14 KLO TD 106 21 RAJ 262
www.bsnlnewsbyashokhindocha.blogspot.comM-9426201999

BSNLEULatestPromotionPolicyNews



www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999
[30.11.2009]Promotion Policy:- Com. V.A.N. Namboodiri, GS and Com. P. Asokababu, AGS met the Joint Secretary (T), DoT Shri J.S. Deepak today (30.11.2009) and requested for intervention for early approval of the Promotion Policy (9250-250-13200 payscale). Shri J.S. Deepak assured necessary intervention for settling the issue.

[30.11.2009]Wage Negotiation Committee Meeting will be held on 04.12.2009 at 14.30 hrs.

[28.11.2009]Pensioners problems taken up with DOT and CMD BSNL by AIBDPA<>

[26.11.2009]Meeting of the Wage Negotiation Committee is held today. Discussions continued on the construction of new pay scales, including the span. Staff side strongly argued that the conversion factor should be at least 2, whereas the management side was not prepared to accept anything more than 1.91.After discussion, management side said that they wanted some more time for their internal discussion. Hence, today's meeting ended without taking any decision. Next meeting will take place on 04-12-2009. In that meeting along with payscales, revision of perks and allowances will also be discussed.

[23.11.2009] On the issue of Multiplication factor and span of the pay scale in the wage revision - A letter to Shri S.R. Kapoor, Chairman, Wage Negotiation Committee <>

[21.11.2009] A brief on the recent discussions on wage revision <<>>

<>

www.bsnleuchq.com
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999

LatestNewsByAshokhindocha


www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999

BSNLEULatestNews

ALL INDIA BSNL--DOT PENSIONERS’’ ASSOCIATION
Centtrall Head Quartters,,
D--7,, Tellegraph Pllace,, Golle Markett,, New Dellhii – 110 001
Adviisor: V..A..N.. Namboodiirii Presiident : Anant Kr.. Bhattacharjjee
Patron : P..V.. Chandrasekharan Generall Secretary : K..G.. Jayarajj
Phone No.. : 011 23342848
Mobiille No.. : 09447455633
AIIBDPA// GL 28..11..2009
To,,
Shrii P..J.. Thomas,,
Tellecom Commiissiion,,
Sanchar Bhawan,,
New Dellhii--110 001..
Siirr,,
We brriing tto yourr kiind attttenttiion,, tthe ffollllowiing mostt iimporrttantt iissues off BSNL--DoT pensiionerrs fforr
yourr earrlly necessarry acttiion and rredrressall..
1.. Proposall tto reviise pensiion ffrom IIDA pattttern tto CDA pattttern..
We underrsttand tthatt ttherre iis a prroposall tto rreviise tthe pensiion ffrrom IIDA patttterrn tto CDA
patttterrn tto tthe BSNL rrettiirrees.. DoT emplloyees absorrbed iin BSNL and rrettiirred arre now
drrawiing pensiion iin IIDA patttterrn by viirrttue off Rulle 37A and subsequentt supporrttiive orrderrs
iissued by DoT and allso Govtt.. off IIndiia deciisiion viide Deptt.. off P&PW – OM No.. 4//61//99--
P&PW((D)) datted 20..12..2002.. The prroposed change iis rreporrtted tto be on tthe basiis off
Deparrttmentt off Pensiion orrderr No.. A//14//2001--P&PW((D)) datted 19..09..2003 whiich iis nott
applliicablle tto BSNL.. Furrttherr,, tthe change iiff iimpllementted wiillll be dettrriimenttall tto tthe iintterrestt off
BSNL pensiionerrs siince tthey arre cerrttaiin tto iincurr huge lloss iin ttheiirr pensiions..
2.. 50% IIDR merger
Siimiillarrlly 50% IIDR merrgerr has nott been iimpllementted tto tthe BSNL pensiionerrs rrettiirred befforre
01..01..2007 on tthe pllea tthatt DPE orrderr diid nott coverr tthiis secttiion off pensiionerrs and allso due
tto absence off any prroviisiion fforr rreviisiion off pensiion iin Rulle 37A.. The deniiall off IIDR merrgerr tto
BSNL absorrbed emplloyees rrettiirred befforre 01..01..2007 amountts tto grross iinjjusttiice and
diiscrriimiinattiion.. Thiis iis a cllearr negattiion off Law esttablliished by tthe Suprreme Courrtt iin D..S..
Nakarra Vs.. Govtt.. off IIndiia case wherre iin iitt cllearrlly prronounced tthatt allll pensiionerrs shoulld be
ttrreatted wiitthoutt diiscrriimiinattiion.. Therrefforre on tthe basiis off tthe above,, we woulld rrequestt you tto
rreconsiiderr tthe iissue so tthatt jjusttiice iis exttended tto tthe diiscrriimiinatted secttiion off BSNL
pensiionerrs..
3.. Anomally iin ffiixattiion off pensiion tto DoT emplloyees absorbed iin BSNL who rettiired
bettween 01..10..2000 and 31..07..2001..
The anomally has been caused due tto rrettiirrementt befforre compllettiion off 10 montths iin IIDA
scalles w..e..ff.. 01..10..2000.. Such anomalliies arre natturrall wheneverr pay rreviisiion ttakes pllace
and arre settttlled subsequenttlly iin one way orr ottherr.. Durriing tthe wage rreviisiion based on
rrecommendattiions off siixtth pay commiissiion w..e..ff.. 01..01..2006 tthe anomally iis settttlled by tthe
Centtrrall Govtt.. viide sub rrulle 12 off iitts orrderr No.. 38//37//08--P&PW datted 02..09..2008 by ttakiing
pay + DP + DA rrellevantt and drrawn on 01..01..2006 as emollumentts fforr tthe prre rreviised perriiod..
Such a beneffiitt was exttended att tthe ttiime off wage rreviisiion based on 5th CPC
rrecommendattiions allso viide DOP & PW No.. 45//86//97--P&PW((A)) Parrtt II datted 18..10..1999 by
nottiionall iincrrease off rreviised pay on parr wiitth rreviised pay..
The BSNL managementt has sentt tthe iissue tto DoT.. We rrequestt you tto kiindlly cause
necessarry acttiion tto settttlle tthe iissue adopttiing a rreasonablle crriitterriia..
4.. Grantt off ffiixed mediicall allllowance off Rs..1000 tto tthe DoT rettiired pensiioners..
A comprrehensiive mediicall scheme has tto be evollved and iimpllementted tto otthe DoT rrettiirrees
consiiderriing iinadequacy off tthe prresentt systtem.. As you arre awarre onlly Rs..100//-- iis paiid tto
DoT pensiionerrs fforr OP ttrreattmentt.. The costt off mediiciines have gone up exorrbiittanttlly and tthiis
meagerr amountt iis nott even suffffiiciientt fforr purrchase off mediiciine fforr one ttiime.. Thiis Rs..100//--
allllowance was grrantted yearrs back and tthe same may be enhanced tto Rs..1000//-- wiitthoutt
ffurrttherr dellay unttiill tthe new mediicall scheme come iintto effffectt..
5.. Dellay iin paymentt off IIDR
When quarrtterrlly IIDA iis orrderred by DPE,, BSNL iin tturrn use tto endorrse tthe orrderr fforr paymentt
tto BSNL emplloyees and pensiionerrs as wellll.. Butt tthe rrespecttiive JCA & CCA arre ttakiing tthe
sttand tthatt tthey wiillll actt onlly afftterr rreceiiptt off endorrsementt orrderr ffrrom DoT.. Though you have
iinsttrructted fforr earrlly iissuance off DoT endorrsementt unnecessarry dellay iin sttiillll experriienced..
Forr examplle fforr IIDR payablle ffrrom 01..10..2009,, endorrsementt orrderr ffrrom DoT iis seen iissued
viide No..36--04//2008--PEN((T)) datted 30..10..2009.. Butt compllaiintts have been rreceiived ffrrom
many ciirrclles tthatt CCAs have nott rreceiived tthe orrderr even afftterr 25 days.. Thiis may be
enquiirred and acttiion caused tto ensurre prromptt paymentt off IIDR tto tthe rrettiirrees.. ..
6.. Dellay iin iimpllementtattiion off DoT orders by CCAs..
((a)) Counttiing off one exttra iincrementt grantted tto Grade IIIIII sttaffff off BSNL covered
under OTBP//BCR scheme ffor pensiionery beneffiitts..
Orrderr fforr tthe above was iissued by DoT viide orrderr No.. 40--12//2004--PEN((T)) datted
27..07..2009.. Butt iin many ciirrclles tthe orrderr iis nott iimpllementted;; wherre as iin some ciirrclles,, tthe
orrderr iis iimpllementted onlly tto tthose rrettiirriing currrrenttlly;; iignorriing pastt cases on some llame
excuses and wrrong iintterrprrettattiion off tthe orrderr as tthe case may be..
((b)) Enhancementt iin maxiimum lliimiitt off DCRG – w..e..ff.. 01..01..2006 – deniiall tto elliigiiblle
pensiioners by CCAs..
Orrderrs exttendiing rrettiirrementt beneffiitts tto BSNL rrettiirrees iinclludiing enhancementt off DCRG was
iissued by DoT viide No.. F..No.. 40--31//2008--PEN((T)) datted 12..08..2009.. Therre arre compllaiintts
ffrrom many ciirrclles,, tthatt tthe beneffiitt iis lliimiitted onlly tto currrrentt rrettiirrees and tthose rrettiirred earrlliierr
butt afftterr 01..10..2006 arre beiing deniied..
Yourr kiind iintterrventtiion iis soughtt tto gett tthe above orrderrs iimpllementted ffulllly exttendiing tthe beneffiitts tto
allll tthose pensiionerrs enttiittlled fforr tthe same..
Thankiing you,,
Yourrs ffaiitthffulllly
[[K..G.. Jayarajj]]
Generall Secrettary
ALL INDIA BSNL--DOT PENSIONERS’’ ASSOCIATION
Centtrall Head Quartters,,
D--7,, Tellegraph Pllace,, Golle Markett,, New Dellhii – 110 001
Adviisor: V..A..N.. Namboodiirii Presiident : Anant Kr.. Bhattacharjjee
Patron : P..V.. Chandrasekharan Generall Secretary : K..G.. Jayarajj
Phone No.. : 011 23342848
Mobiille No.. : 09447455633
AIIBDPA// GL--BSNL 28..11..2009
To,,
Shrii Kulldeep Goyall,,
CMD,, BSNL,,
Bharatth Sanchar Bhawan,,
New Dellhii--110 001..
Siirr,,
A kiind rrefferrence iis iinviitted tto ourr lletttterr No.. AIIBDPA//GL datted 26..10..2009 ffurrniishiing tthe lliistt off offffiice
bearrerrs off Allll IIndiia BSNL--DoT Pensiionerrs Associiattiion..
Now,, as autthorriized by tthe Nattiionall conventtiion helld on 21..10..2009 att New Dellhii fforr fforrmattiion off tthe
associiattiion,, II am encllosiing herrewiitth tthe charrtterr off Demands fforrmullatted,, diiscussed and apprroved
by tthe conventtiion..
You arre rrequestted tto kiindlly use yourr good offffiice tto cause necessarry acttiion tto settttlle tthe prrobllems
whiich arre iin yourr purrviiew and diisposall..
We shallll be much oblliiged iiff you arrrrange a diiscussiion on tthe charrtterr off demands att an earrlliierr
conveniientt datte..
Thankiing you,,
Yourrs ffaiitthffulllly
[[K..G.. Jayarajj]]
Generall Secrettary
Chartter off Demands off BSNL//DoT Pensiioners
1.. The PFRDA((Pensiion Fund Regullattorry and Devellopmentt Autthorriitty)) biillll aiimed att prriivattiiziing
pensiion paymentts shoulld be wiitthdrrawn.. The New Conttrriibuttorry Pensiion Scheme beiing
iimpllementted fforr tthe Centtrrall Goverrnmentt emplloyee rrecrruiitted on orr afftterr 1--1--2004 shoulld be
scrrapped and allll off tthem shoulld be brroughtt underr tthe purrviiew off CCS((Pensiion))Rulles,,1972..
2.. The BSNL shoulld nott be diisiinvestted//prriivattiized and allll stteps shoulld be ttaken fforr makiing iitt a
viibrrantt and fforremostt Company iin tthe ttellecom serrviice secttorr..
3.. Therre shoulld be ffullll parriitty iin pensiionarry beneffiitts off prre and postt 1--1--2006 Centtrrall
Goverrnmentt and DoT rrettiirrees.. The pensiionarry beneffiitts off DoT emplloyees rrettiirred befforre
fforrmattiion off BSNL,, iin ffiifftth CPC scalles,, shoulld be brroughtt on parr wiitth tthe Centtrrall
Goverrnmentt emplloyees iin iidenttiicall scalles,, who rrettiirred on orr afftterr 1--1--2006.. Those rrettiirred
befforre iimpllementtattiion off ffiifftth Pay Commiissiion scalles shoulld allso be paiid pensiionarry
beneffiitts on parr wiitth tthose rrettiirred on orr afftterr 1--1--2006..
4.. The pensiion shoulld be 60% off tthe llastt montth emollumentt orr llastt 10 montths emollumentts,,
whiicheverr iis beneffiiciiall..((Banglladesh and Myanmarr arre payiing 60% off llastt pay drrawn as
pensiion wherreas Pakiisttan iis payiing 70%))
5.. Casuall llaborr//TSM RTP serrviice be countted fforr pensiion..
6.. Addiittiionall quanttum off pensiion//ffamiilly pensiion on attttaiiniing tthe age off 65,,70,,75,,80,,85,,90,,95
and 100 yearrs att tthe rratte off 10,,15,,20,,30,,40,,50,, 75 and 100% off tthe basiic pensiion//ffamiilly
pensiion..
7.. Commuttattiion off pensiion uptto 50%((Prriiorr tto 17--4--1950,, commuttattiion was 50% off pensiion))
8.. Commutted amountt be rresttorred afftterr 12 yearrs iinsttead off 15 yearrs orr on rreachiing 70 yearrs
whiicheverr iis earrlliierr,, and commuttattiion ffacttorr shoulld nott be changed..
9.. Famiilly pensiion att enhanced rrattes shoulld be paiid fforr tten yearrs afftterr tthe deatth off tthe
pensiionerr,, as iis beiing paiid fforr tten yearrs afftterr tthe deatth off emplloyee iin serrviice..
10.. Miiniimum qualliiffyiing serrviice shoulld be rreduced ffrrom 10 tto 5 yearrs..
11.. Miiniimum pensiion shoulld be made equall tto miiniimum sallarry
12.. Fullll grrattuiitty shoulld be callcullatted on tthe basiis off 25 days agaiinstt 30 days iin a montth as
admiissiiblle underr tthe grrattuiitty actt.. The ceiilliing off 16..5 montths shoulld be rremoved..
13.. Auttomattiic merrgerr off DA when iitt crrosses 25%;; orrderr on DA merrgerr fforr serrviing and rrettiirred
emplloyees shoulld be iissued siimullttaneouslly..
14.. Forr tthe DoT offffiiciialls absorrbed iin BSNL and rrettiirred befforre compllettiion off 10 montths iin IIDA
scalles,, tthe pensiion iis rreduced on accountt off wage rreviisiion ffrrom CDA tto IIDA scalles w..e..ff 1--
10--2000((due tto rreducttiion iin DA rratte)).. Thiis anomally shoulld be settttlled by grranttiing nottiionall
IIDA pay fforr parrtt off tten montth perriiod befforre 1--10--2000 and callcullattiing tten montths averrage
emollumentts on tthatt basiis..
15.. Merrgerr off 50% IIDA fforr tthose rrettiirred befforre 1--1--2007 shoulld be iimpllementted iimmediiattelly..
16.. Pensiion rreviisiion fforr BSNL rrettiirrees shoulld be on IIDA scalles onlly and tthe prroposall tto rreviise
iitt on tthe basiis off CDA scalles shoulld be drropped..
17.. Therre shoulld be ffullll parriitty iin tthe matttterr off pensiionarry beneffiitts bettween BSNL emplloyees
rrettiirred befforre and afftterr 1--1--2007..
18.. HRA be paiid tto pensiionerrs @ tthe rratte paiid tto serrviing emplloyees.. Quarrtterrs llyiing vacantt be
allllotttted tto BSNL//DoT rrettiirrees on goverrnmentt sttandarrd rrentt basiis orr solld tto tthem att
rreasonablle rratte.. Olld age homes be buiilltt fforr BSNL//DoT rrettiirrees..
19.. LTC ffaciilliitty be prroviided tto pensiionerrs and ttheiirr ffamiilly memberrs..
20.. Festtiivall grrantt be paiid att tthe rratte off Rs 5000//-- perr yearr fforr pensiionerrs..
21.. Rs 15,,000//-- be grrantted as grrantt tto meett tthe ffunerrall expenses off tthe pensiionerr..
22.. The prroviisiion off ex--grrattiia off Rs 10 llakhs due tto deatth occurrrriing due tto acciidentts iin tthe
courrse off perrfforrmance off duttiies// deatth occurrrriing iin tthe courrse off duttiies attttrriibuttablle tto tthe
actts off viiollence by tterrrrorriistts ettc be made applliicablle fforr BSNL emplloyees..
23.. The annuall lliimiitt fforr outtdoorr ttrreattmentt fforr BSNL rrettiirrees shoulld be callcullatted on tthe basiis off
llastt montth Pay+DA and subsequentt DAs;; Adequatte compensattiion fforr outtdoorr ttrreattmentt
underr CCS ((Mediicall Attttendance)) rrulles;; iimprrovementt iin CGHS rrattes as wellll as tthe ffaciilliittiies..
24.. BSNL//DoT pensiionerrs shoulld be giiven brroadband connecttiion att tthe same concessiionall
rratte giiven tto serrviing BSNL emplloyees..
25.. BSNL MRS shoulld be exttended tto tthe ffamiilly pensiionerrs..
****************

Friday, November 27, 2009

WAGEREVISIONLATESTNEWS


WWW.BSNLNEWSBYASHOKHINDOCHA.BLOGSPOT.COM m-9426201999
[26.11.2009] Meeting of the Wage Negotiation Committee is held today.Discussions continued on the construction of new pay scales,including the span.Staff side strongly argued that the conversion factor should be atleast 2, whereas the management side was not prepared to accept anything more than 1.91.After discussion, management side said that they wanted some more time for their internall discussion.Hence, today's meeting ended without taking any decision.Next meeting will take place on 04-12-2009.In that meeting alongwith payscales,revision of perks and allowances will also be discussed.
WWW.BSNLNEWSBYASHOKHINDOCHA.BLOGSPOT.COM
m-9426201999

Thursday, November 26, 2009

GujaratCircleRCMAGENDA


www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999
2nd Regional Council Meeting Agenda
1. All pending agenda points & Review on 1 st Circle Council held on 14-05-
2009.
2. Law & Order less Administration in ATD, AM
3. Posting of TTA.
4. Acceptance of Transferred under rule-8.
5. Strict implementation on rural tenure transfer.
6. Uniform immunity policy.
7. Posting of Regular DGM at Surendranagar.
8. SR.TOA Training.
9. Introducing of cost cutting measures.
10. Relaxation in Emergency.
11. Abnormal delay in pension case.
12. BSNL medical reimbursement benefits be made available to the dependent
family members of the employees even after his death.
13. Abnormal delay in provision of our products and services.
14. SAX having 15 or less line in working condition may not be manned. A
group team is to be formed for the maintenance of such exchanges.
15. In Gujarat Circle only Alkapuri CSC and Ambalal Park CSC are kept open
on second Saturday. This imparity be removed.
16. Roll number for all the departmental examination should be alphabetically
only.
17. CLI instrument to be provided to all BSNL employees' residence connection.

BSNLDGMEXAMResheduledinsomeCities


www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999

Re-scheduling of DGMs (Telecom Management Service/ Telecom Accounts and Finance Service) Exam, 2009

Posted on: 25-11-2009
--------------------------------------------------------------------------------


Written examination for the post of DGMs (Telecom Management Service/ Telecom Accounts & Finance Service) in BSNL will now be held on 03.01.2010 (Sunday) from 10 A.M. to 1 P.M. in five cities i.e. Chennai, Delhi, Guwahati, Kolkata and Mumbai. Revised Admit Card/Intimation Letter is being issued shortly to eligible candidates. The details of examination centres etc. will be uploaded on the website shortly.
www.bsnl.co.in
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999








www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999

BSNL-The Ring Of Death
Anurag Prasad , Avinash Singh Outlook Nov 28,2009



Unless the government calls in the changes, what’s happening to Air India today might well happen to BSNL—India’s second largest telecom company—tomorrow.


Air India and BSNL? Bankruptcy and BSNL, India’s second largest telecom company? It seems far out. After all, here’s a company whose cash reserves, at Rs 38,000 crore, equals the turnover of India’s 12th largest listed company. Here’s a company that has so much telecom infrastructure and real estate that it is valued, by some estimates, at Rs 4,00,000 crore. If it were to list today, it would be India’s most valued company, with a 25% lead on number two. Here’s a company that has a larger telecom network than any other player in the sector. Here’s a company that operates in a business that will always be fundamental to the lives of people. So, how can it just go down on its knees? Ask Air India.
A decade or two ago, such pronunciations on Air India would have met with similar disbelief. Now, the result of years of neglect is there to see: from flying high to a freefall. The ownership that presided over the national carrier’s fall from grace, the government of India, is currently presiding over a similar decline at BSNL. And its response is much the same: ignorance and apathy.

BSNL is losing market share—and relevance—at an alarming pace. In June 2006, it was within shouting distance of the top spot in the mobile telephony business. Today, it is languishing at number four, after Bharti, Reliance and Vodafone. Worse, number five (Idea) and number six (Tata) are now within shouting distance of BSNL. Even in landlines, once its monopoly and from where it derives 63% of it revenues, more Indians are giving up BSNL phones than taking them.

Its profitability is under serious assault. Between 2005-06 and 2008-09, the golden period of the Indian telecom story, it has managed to turn a profit from operations of Rs 4,231 crore into a loss of Rs 4,086 crore. In 2008-09, it also relinquished the mantle of India’s largest telecom company to Bharti. It has only itself and its promoter, the government, to blame for this loss of numbers and reputation.

Like Air India, it has an identity crisis, as the government owns and disowns BSNL on a need basis. Its management doesn’t have a free hand. Its business interests are being sabotaged by moves that are widely reported to be the handiwork of private rivals. It has become a playground for currying political favours. Its workforce is a bloated, disillusioned and unproductive lot, with issues of its own. It debates and debates commercial decisions, but the final signature on the file is made after the time has come and gone.

Kuldeep Goyal, BSNL Chairman and Managing Director (CMD), admits “there is a problem”. He doesn’t say as much, but the soft-spoken CMD, who worked wonders in MTNL Mumbai previously, walks the tightrope between what he wants to do and say and what he can do and say. He ends up saying little.

What he doesn’t say is articulated by people who have been in or close to his position in BSNL previously, but are now free of the fetters that come with these big chairs. Says SD Saxena, former Director (Finance), BSNL: “The CMD of a company of this size should be all powerful. Instead, today, he is held accountable for everything, to everyone.” Adds DPS Seth, the first CMD of BSNL: “Just leave him (the BSNL CMD) to do his job.” Unless that happens, it’s only a matter of time before this company that has more assets—optic fibre, towers, spectrum, real estate, cash reserves—than any other telecom player in India ends up next to Air India in the PSU hall of shame.

Tender Bender

To understand why BSNL is now being spoken of in the same sentence as Air India, one has to go back to the circumstances of the telecom major’s birth. BSNL used to be part of the Department of Telecommunications (DoT), which looked after all matters telecom—operations, policy and regulation—before the sector was privatised. If DoT had to compete against private players in operations, there was a conflict of interest if it also made the rules and regulated the sector.

The government had also realised that telecom services were not just viable, but lucrative, and that the opportunities could be tapped best by an entity that had commercial flexibility. So, it carved out the telecom operations of DoT into a company, BSNL, in 2000. “All these objectives were achieved on paper, but not in reality,” says Mahesh Uppal, Director, Com First (India), a company that specialises in telecom policy and regulation.

***

Downward Mobility

In the last three years, BSNL has been a laggard in the mobile business in every which way. In this high-growth business, it has grown the slowest in the last two years. Its co-leaders have broken away, even as new players are closing in on it.

Subscribers Growth Market share



Figures in million Year-on-year growth in % Figures in % Source: Trai

***

The worst illustration of that dichotomy is seen in the procurement of equipment. “BSNL rarely has the equipment to expand its services when it needs it the most,” says Seth. “There was always a lot of pressure and interference in the procurement of equipment.” That hasn’t changed. What has changed is that the mess in procurement is pulling BSNL down like never before. In the last three years, BSNL has grown slower than the industry average in the mobile segment and has lost market share (See graphic: Downwardly Mobile).

The story, which typifies the tragedy and comedy that is BSNL, goes back to April 2006, when the company decided to buy 63 million lines (each line is equivalent to one mobile connection). Of this, as per rules, 30% (18 million lines) was to be awarded to DoT’s manufacturing arm, ITI. A tender—the standard medium of purchasing equipment in PSUs—was floated for the remaining 45 million lines.


BSNL’s 2006 mobile tender dragged on for two years and delivered 22 million lines less. Private players like Bharti get new lines on demand.


BSNL opted for Ericsson (which quoted $107 per line) and Nokia ($176 per line, but which had to match the Ericsson bid), while disqualifying Motorola and China’s ZTE on ‘technical grounds’, a term that has taken on the same meaning in BSNL as ‘foreign hand’ in Indian politics in the 1970s. Motorola took BSNL to court, something that can be done liberally. In the name of transparency and accountability to taxpayers, anyone can challenge any decision by a PSU in court. BSNL didn’t have the lines to expand.
Subsequently, Motorola withdrew the case. There was also a ministerial change in May 2007, with A Raja replacing Dayanidhi Maran. In July 2007, BSNL decided to go ahead with the original tender. But Raja said reduce the number of lines from 45 million to 23 million and renegotiate the price with Ericsson and Nokia, as $107 is too high, compared to what “other parties” were buying at. Ericsson agreed for $80-90. Nokia, however, withdrew, and its portion was awarded to ITI-Huawei. Net-net, BSNL got 22 million lines less and about two years later than it wanted.

In stark contrast, private players like Bharti need to simply make a phone call to its two service partners, Nokia and Ericsson, to whom it has outsourced this job, and the additional lines are made available. No tenders, no litigation, continuous rollout on demand.


We are under going a transformation. The BCG changes will be rolled out in the next two years.Kuldeep Goyal, CMD, BSNL


BSNL’s struggles with tenders have continued. In May 2008, BSNL floated a new, bigger tender of 93 million lines—perhaps, the single largest mobile lines contract in the world. This too is being tossed around, hurting BSNL. The tender was awarded to China’s Huawei (for South and West India) and to Ericsson (for North and East), with Nokia, ZTE, Alcatel and Nortel disqualified on ‘technical grounds’ (Motorola didn’t participate).
The Home Ministry raised security concerns over a Chinese manufacturer installing equipment in areas with foreign borders, and so West was taking away from Huawei. As the matter bounced around in government circles, DoT, earlier this month, told BSNL to redo the tender on the grounds that there was only one supplier in each circle. Last heard, BSNL had rejected that demand and was going ahead with the award—almost 18 months after the tender was floated.

The tender process for procurement can’t be done away with. But it can be tightened so that it can’t be questioned, says Seth, who has had top-level stints in all three areas of telecom, namely operations, policy and regulation. Recounts Seth: “A French consultant who worked with DoT told me that the difference between working systems in the West and in India was: ‘We plan for a year and execute in six months. You plan for a week and execute in five years’.”

It has been true for BSNL. Says Rajan Mehta, former Vice-President of Nortel Networks in India: “By the time a BSNL tender is finalised and executed, the technology has evolved. And its next tender cannot be conceived and initiated unless it exhausts its existing capacity.”

Goyal says BSNL is reviewing its procurement processes. Perhaps, the rejection of DoT’s advice in the latest tender is a sign of BSNL asserting itself, but the damage has been done. BSNL has lost out on a lot of subscriber growth in the last three years. Between June 2006 and June 2009, BSNL added 33.3 million mobile subscribers, which was way below Bharti (79.3 million) and even Idea (38.6 million). This was despite having greater coverage than any other player in terms of mobile towers and backhaul across the country.

A Question Of Ownership

If it’s not external factors that are pulling BSNL down, there is internal friction pulling it in different directions. Everyone who has been involved in or dealt with BSNL speaks highly of its talent pool. “The private sector has been built by ex-BSNL employees. It is said that if you put in five years on the technical side of BSNL, you have made it,” says Seth. “The problem arises in BSNL in placing the right man at the right time, at the right place, because the powers to post senior officers lie with DoT, not BSNL.”


BSNL rarely has equipment to expand its services when it needs it. There was always a lot of interference in buying.DPS Seth, EX-CMD, BSNL


When BSNL was carved out, DoT employees were given the option to choose between the two. Below the Deputy General Manager (DGM) level, or the third and fourth line of management, DoT employees moved in large numbers. But above that, the majority didn’t move in spite of the higher salary, choosing the security of a government job over the perceived uncertainty of a corporate job. As a result, the managerial cadre of BSNL was weak.
So, DoT officials, primarily from the ITES (Indian Telecom Engineering Service, or the telecom equivalent of the IAS), started going to BSNL on deputation. Thus, they get the best of both worlds: higher salary from BSNL and the higher standing and job security of DoT. But it has created a peculiar situation. The top brass—the CMD and directors—are permanent BSNL employees. As are those below the DGM level. But the third and fourth lines of management are mostly on deputation, and not necessarily an ideal fit for their profile.

It’s a practice that has continued, and is a source of resentment among the permanent employees of BSNL. “These 1,500 people are non-committal to the growth of BSNL. They are talented, but they lack the will to work to their capabilities,” says VAN Namboodiri, General Secretary, BSNL Employees Union. “This is impacting the company’s growth.”


BSNL needs a strategic partner. Any operator will be willing. It has a customer base and good infrastructure.Mahesh Uppal, Director, Com First (India)


At the time of corporatisation, many non-executive employees (linesmen, exchange employees) were promoted to do administrative work. They were not engineers, but they had functional knowledge. The young engineers joining today have to work under them, despite being more qualified. They feel that BSNL is suffering because of such non-executive people occupying executive posts.
Says Uppal: “Most (BSNL employees) lack the commercial acumen.” He cites BSNL’s approach to infrastructure sharing, both in landline and mobile, as an example of narrow thinking. BSNL was the first operator to have a pan-India coverage. When private players were expanding, it refused to rent its unused infrastructure to them. So, they had no choice but to build their own infrastructure. Says Uppal: “Had it shared infrastructure, it would have earned immediate revenues and derived a long-term competitive advantage by making its rivals dependent on it, instead of speeding up their infrastructure.” It’s only now that it has started sharing its mobile towers.

Till as recently as last year, BSNL’s marketing policies were centred around the belief that customers will come to it. In mobile services, it wasn’t doing any push marketing; it didn’t even leverage its pan-India coverage to good effect. In landline, it wasn’t doing any marketing at all. Customers had to go to its exchange to apply for a connection.


These 1,500 people (who are on deputation from DoT) are non-committal to the growth of BSNL.VAN Namboodiri, General Secretary, BSNL Employees Union


Customers in non-metro areas went as they trusted BSNL as a brand and didn’t have many choices besides it, but it didn’t cut much water in the metros. BSNL didn’t even have a customer service call centre till last year. Awareness of its plans is very low. In the recent ‘pay per second’ recalibration, it was the last company to make the shift. And unlike others, there was no ad blitz informing consumers of the change.
There is change, but it’s slow and faces typical BSNL hurdles. “About 10,000 employees from networking are being deputed to sales and marketing,” says Goyal. “They will do incentive-based selling.” Supporting the move, Namboodiri laments that this pool largely consists of non-executive employees (like linesmen). “Executive officers should meet the middle- and high-income class to give a positive image of the company, but they are not ready to join,” he says. “The average age of non-executive employees is 45 years. They might not be able to answer all customer queries.”

Even as the blame game continues, BSNL is the ultimate loser. Its landlines, once its mainstay, have been falling consistently, from 35 million subscribers in June 2006 to 29 million subscribers in June 2009. Some of these losses are because of the shrinking of landline demand, but most of it is due to consumers shifting to private players.

Likewise, in mobiles. Extrapolating from historical trends and current market conditions, Research And Markets, a consultancy, paints a grim picture for BSNL. It has forecast that BSNL’s market share in the mobile segment will decline from 12.7% in June 2009 to 7.3% by 2013. Given the 2013 projected subscriber base of 876 million, that is 70 million subscribers for BSNL—an addition of just 16 million subscribers from current levels. By comparison, Bharti and Vodafone are expected to add 137 million and 74 million subscribers, respectively, during the same period.

Ringing In Changes

The assumption built into those projections is that the decline of BSNL will continue unabated. CMD Goyal doesn’t agree. Over the past year, he has been quietly initiating reforms, for which, he hired the Boston Consulting Group. In a personal letter to BSNL employees in January, he outlined ‘Project Shikhar’, whose big objective for BSNL is to regain the number one slot by 2013.

“BSNL is undergoing a transformation,” says Goyal. BCG has recommended four broad changes, to be implemented over the next two years. One, rather than split the organisation according to divisions (finance, marketing, and so on), split it according to verticals (fixed, mobile, enterprise and new businesses). Two, morph from a network-technologies company to a sales-oriented company. Three, build the BSNL brand. Four, use IT to streamline business processes. Goyal’s three-year term ends in June 2010.

***

Land Locked

Landlines, BSNL’s main business, is a shrinking market. On top of that, it is losing share to rivals and is making huge losses.



***

Given the history of apathy and abuse in BSNL, it’s anyone’s guess whether this change will become institutionalised in the company or move out with the man.

It’s a testimony to the unpredictable nature of corporate governance in BSNL that Goyal makes a pitch for a public listing as a mechanism for checks and balances. It’s a tacit admission that it can’t keep vested interests in the government at bay, public pressure might. “An IPO will make us more accountable, keep us on our toes and make us more transparent,” says Goyal. “And it will be easier for us to raise funds.”

Not that it needs the cash today. BSNL is sitting on a cash pile of Rs 38,000 crore, the returns from which help it show a profit at the net level. It wants to use some of that cash to acquire companies abroad to push growth. It is evaluating a bid for Zain, a Kuwaiti operator with operations in 21 countries in Africa and the Middle-East. Earlier this year, BSNL made a failed attempt for Millicom’s Sri Lankan operations.

The overseas foray has stumped many. “It must first set its India operations right,” says Mangesh Sathe, Manager, PRTM. “Any distraction could mean diverting management bandwidth and missing the India opportunity.” As with everything BSNL, there’s an element of intrigue. It is bidding for Zain in a consortium that is led by Vavasi Technologies, a Delhi-based company that has no revenues and whose antecedents are a mystery. Why couldn’t BSNL bid by itself? And even if it needed a partner, why Vavasi? As with the procurement tender, several conspiracy theories are doing the rounds. And BSNL, as usual, has maintained a studied silence, exposing itself to the old criticism: just who is running the show?

Hands-Free Management

The government is running the show—and yet, it isn’t. It’s why the rallying call is to leave BSNL to BSNL officials. Says ex-CMD Seth: “Leave BSNL officials to do their jobs. There are enough audits and vigilance monitoring to nail them if something goes wrong.” Adds Uppal: “Only a robust separation from DoT can save BSNL.”

The biggest issues are managing the cultural change and people issues as it moves from a state-owned incumbent to a competitive carrier. “Cultural change in a large organisation is very slow,” says Rob Bratby, Partner, Olswang LLP, a UK-based law firm, who has seen the European telecom experience from close. “Companies commited to change are better able to embrace revenue opportunities, while those that took a defensive posture have stagnated.”


The third and fourth lines of management in BSNL are on deputation from DoT, which is a source of resentment among the permanent staff.


Uppal feels BSNL needs a strategic partner. “Any operator will be willing. It has a readymade customer base and good infrastructure in place.” It’s a move that won’t be palatable to trade unions, who fear large-scale job losses. In revenues, BSNL and Bharti are locked close together. The difference is that Bharti does it with 25,000 employees, BSNL does it with 300,000—12 times as many. The unions are, in fact, even opposed to an IPO for the same reason.
There are several models to insulate BSNL from the government, even while leaving control with the government. “The proven way to do it in India is to hand over the company to a consortium of financial institutions (FIs),” says Ashish Sharma, Principal, Booz & Co. “The company remains with the government, but there is no direct interference. The FIs manage it on behalf of the government.”

A step further is what Malaysia and Singapore have done. They have formed a domestic wealth fund and the equity of the company lies with the fund. The government’s interaction is only with the wealth fund, which manages the company.

The third step, and the most radical, is to list the company, but retain ‘step-in’ rights. This is what France Telecom did. The equity holding of a single shareholder is capped at a certain limit. If anyone increases their stake beyond that limit, the government has the right to step in. This will ensure that BSNL remains a controlled Indian player.

Another radical step that can be taken is to break up BSNL into four entities and hand it over to independent Indian entities. The government can continue to be on the board with a minority stake. “This is a proven model—VSNL, which is now Tata Communications, did that,” says Sharma. He adds that conditions can be built in that mandate a company to achieve universal penetration in its area of operations before going beyond it. The government needs to do something. BSNL in drift mode will simply be Air India, part two.

‘BSNL Will Go The Air India Way’
SD Saxena



When he was Director (Finance) of BSNL between 2002 and 2008, SD Saxena made as many friends as enemies with his straight talk. Even now, he still refers to BSNL as “us” and “we”, and is furious at the direction BSNL is headed in.
What’s the problem with BSNL?

BSNL is caught up in the procurement tangle. Ironically, this is because it has to maintain a transparent and open system.


BCG has not been able to put its finger on the pulse of the problem. Its proposals are cosmetic.SD Saxena,ex-Director (finance),bsnl


The system is fragile and vulnerable to sabotage. If someone wants to stop something from happening, it can be done. Many are doing it. Any decision can be taken to court. Had the second tender happened, we would have been at the top.
Then, there are trade union issues. The union wants salary and fixed pension, but it doesn’t want to work. We told them, if you are drawing a salary, show work and growth. Go talk to the customers and make them stay with BSNL. There is no accountability. They, in turn, say officials are corrupt.

Is BSNL an Air India in the making?

BSNL will surely go the Air India way. Profits have plunged and will fall further. Let’s go back. BSNL was carved out into a company because everyone believed it was not working as efficiently under the government. Now, if you have made a company, created shares, made it accountable to company laws, why don’t you leave BSNL to function under it?
The working environment in PSUs is worse than in the government. You are not allowed to work. There are 250 working days in a year. PSU officials spend more than 265 days preparing answers for queries in the Parliament and other places. Local politicians use BSNL to dole out favours.

Why is BSNL fingered on everything? Why don’t you evaluate us on the basis on our profits? Leave us alone and see how we function. Auditors go through our accounts. There is CAG and CVC to monitor. There is a systematic flaw in the PSU system. The government has to first decide what it wants: does it want to run a company or not? If not, then quit and let the PSU function as an independent company.

Why doesn’t the leadership say so strongly?

There is a leadership problem too. The CMD of a company this size should be all powerful. Instead, today, he is held accountable for everything, to everyone. If his accountability goes beyond a point, it impacts the growth of the company.

The leadership doesn’t take a stand that is good for the company. They accept whatever comes from the top. Take BSNL’s interest in Zain. It took Sunil Bharti Mittal six months to negotiate and agree to pay $24 billion for MTN. The decision-making process at BSNL would not let it happen. It needs guts to acquire companies outside India.

Also, the deputation culture has created such a disparity in the system that DoT employees don’t want to join BSNL for good. They end up spending a long time in BSNL, but as DoT employees, which is demoralising to those within. BSNL has a working culture, people are passionate. If you bring in outsiders, the entire system will collapse.

BCG has suggested some changes…

BCG has not been able put its finger on the pulse of the problem. The changes it has recommended are more cosmetic in nature.

What’s the one thing you would fix at BSNL urgently?

Procurement. It’s the make-or-break process. Tenders have to come out. The eligibility criteria is the key here. It should be an open affair, where you call vendors and discuss. The focus should be on project execution, without any interference. Vested interests prevent BSNL from getting the best. We pay more and don’t even get access to the latest technology.

Each tender brings new technology. Interfacing is a problem. Do you think private players are fools? They have managed service contract with a couple of vendors and they just order. Why can’t BSNL do the same thing? Put any scrutiny or audit or norms, but allow us to behave like private players when it comes to procurement.

Landline:Don’t Write it Off Yet

Globally, fixed-line traffic is almost six times mobile voice traffic, but generates one-sixth the revenues. At BSNL, although the share of its non-cellular business (landline and Internet telephony) in its revenues is steadily decreasing, it is still a substantial 63.1%. However, losses on this side are mounting: Rs 5,836 crore in 2008-09 (See graphic: Land Locked). Says BSNL CMD Kuldeep Goyal: “Fixed-line is proving to be a burden, but we can’t do away with it.”
Goyal is approaching it from the point of larger goals set by the government. In the context of economic and social nationalism and security, every country needs a vibrant fixed-line player. That role has been played by national carriers.

Despite the distressing numbers, in the evolving environment, landline might still have a business case. “The boundary between fixed and mobile is converging very fast,” says Ashish Sharma, Principal, Booz & Co. When it comes to delivering data, entertainment and voice on the same network, fixed lines score over wireless. Applications like mobile TV have had limited appeal among users and operators because of it spectrum-hogging properties.

For a player like BSNL, which has copper and fibre already in place across the country for voice, broadband and other services like IPTV (TV via landline) can ride pillion. No other Indian telecom player even comes close on a national scale. Their coverage is mostly select. Bharti, for instance, offers it in 95 cities that have the highest revenue potential as identified by it. Tata and Reliance do the last mile mostly on wireless.

But reaching everywhere is not enough. BSNL still has to create a market there, and a profitable one at that, for broadband and IPTV. Traditionally, creating markets has never been BSNL’s strength. But if it can crack the marketing, and leverage its existing network, its landline liability can become an asset again.

The Global Rescue

At some point, the Indian government has to ask itself: what to do with BSNL? From the experience of other countries, one thing is clear: national operators have flourished when the government retained control, but let go of management.

British Telecom
The British government gave BT a soft-landing. In 1982, it took away its monopoly status by allowing one more player. In 1984, it privatised BT, by offering 50.2% equity to the public. In 1991, Britain opened its telecom market to the private sector, thus giving BT some lead time to prepare for competition. But post-privatisation, BT was subject to a regulatory onslaught related to its infrastructure. It overbid for mobile, and almost died. Then, it reinvented itself as a network services company.

France Telecom

Privatised in 1998 through a public listing, Europe’s third-largest telecom company is 27% owned by the French government. The government has step-in rights in case any shareholder exceeds 5%—basically, ask the shareholder to cut back to 5%. It also nominates the CEO. Within two years of privatisation, the company bought UK mobile phone company Orange for £25.1 billion from Vodafone. The company has since spread its footprint across the world by acquiring both operators and licences.

SingTel

To Indians, this might be better known as the company that owns 32% of Bharti Airtel. Singapore’s national operator was listed in 1993. Ever since, it has been indirectly controlled by its government, through its shareholding in its sovereign fund, Temasek. Temasek ensures transparency and works to enhance shareholder value by running SingTel as a commercial entity rather than as a public company. The company has gone overseas and acquired stakes in private operators like Airtel.

Telekom Malaysia

Like Singapore, Malaysia handed over companies owned by it, except Petronas, to its sovereign fund, Khazana. The idea was to maximise shareholder value. Telekom Malaysia was split into two: TM took care of the domestic landline and broadband operations, while Axiata went after the mobile business, both domestic and global. Both companies follow a different growth strategy. TM gets government funds to improve the broadband infrastructure, while Axiata has been looking for opportunities in low-penetrated markets.

Telenor

Established as a public corporation in 1994, privatised in 2000, the Norwegian national operator is 53% owned by the government. Still, the company has a professional board to run its affairs. The company has gone global, with operations in 12 countries in Scandinavia, East Europe and Asia. It is the sixth-largest telecom services company in the world.







Last updated on 20/11/2009



Reply Reply to all Forward Invite hindocha_ad1@bsnl.in to Gmail






Reply
Reply to all
Forward
Print
Add ashok to Contacts list
Delete this message
Report phishing
Show original
Message text garbled?
ashok hindocha hindocha to bhikosu, v.chiragsvaidya, hindochaad1
show details 3:59 pm (0 minutes ago)

www.bsnlnewsbyashokhindocha.blogspot.com
- Show quoted text -


---------- Forwarded message ----------
From: hindocha_ad1@bsnl.in
Date: Nov 26, 2009 3:41 PM
Subject: NFTE-BSNL,Erode SSA,Tamilnadu
To: Ashok
Cc: hindochaashok@gmail.com








BSNL-The Ring Of Death
Anurag Prasad , Avinash Singh Outlook Nov 28,2009



Unless the government calls in the changes, what’s happening to Air India today might well happen to BSNL—India’s second largest telecom company—tomorrow.


Air India and BSNL? Bankruptcy and BSNL, India’s second largest telecom company? It seems far out. After all, here’s a company whose cash reserves, at Rs 38,000 crore, equals the turnover of India’s 12th largest listed company. Here’s a company that has so much telecom infrastructure and real estate that it is valued, by some estimates, at Rs 4,00,000 crore. If it were to list today, it would be India’s most valued company, with a 25% lead on number two. Here’s a company that has a larger telecom network than any other player in the sector. Here’s a company that operates in a business that will always be fundamental to the lives of people. So, how can it just go down on its knees? Ask Air India.
A decade or two ago, such pronunciations on Air India would have met with similar disbelief. Now, the result of years of neglect is there to see: from flying high to a freefall. The ownership that presided over the national carrier’s fall from grace, the government of India, is currently presiding over a similar decline at BSNL. And its response is much the same: ignorance and apathy.

BSNL is losing market share—and relevance—at an alarming pace. In June 2006, it was within shouting distance of the top spot in the mobile telephony business. Today, it is languishing at number four, after Bharti, Reliance and Vodafone. Worse, number five (Idea) and number six (Tata) are now within shouting distance of BSNL. Even in landlines, once its monopoly and from where it derives 63% of it revenues, more Indians are giving up BSNL phones than taking them.

Its profitability is under serious assault. Between 2005-06 and 2008-09, the golden period of the Indian telecom story, it has managed to turn a profit from operations of Rs 4,231 crore into a loss of Rs 4,086 crore. In 2008-09, it also relinquished the mantle of India’s largest telecom company to Bharti. It has only itself and its promoter, the government, to blame for this loss of numbers and reputation.

Like Air India, it has an identity crisis, as the government owns and disowns BSNL on a need basis. Its management doesn’t have a free hand. Its business interests are being sabotaged by moves that are widely reported to be the handiwork of private rivals. It has become a playground for currying political favours. Its workforce is a bloated, disillusioned and unproductive lot, with issues of its own. It debates and debates commercial decisions, but the final signature on the file is made after the time has come and gone.

Kuldeep Goyal, BSNL Chairman and Managing Director (CMD), admits “there is a problem”. He doesn’t say as much, but the soft-spoken CMD, who worked wonders in MTNL Mumbai previously, walks the tightrope between what he wants to do and say and what he can do and say. He ends up saying little.

What he doesn’t say is articulated by people who have been in or close to his position in BSNL previously, but are now free of the fetters that come with these big chairs. Says SD Saxena, former Director (Finance), BSNL: “The CMD of a company of this size should be all powerful. Instead, today, he is held accountable for everything, to everyone.” Adds DPS Seth, the first CMD of BSNL: “Just leave him (the BSNL CMD) to do his job.” Unless that happens, it’s only a matter of time before this company that has more assets—optic fibre, towers, spectrum, real estate, cash reserves—than any other telecom player in India ends up next to Air India in the PSU hall of shame.

Tender Bender

To understand why BSNL is now being spoken of in the same sentence as Air India, one has to go back to the circumstances of the telecom major’s birth. BSNL used to be part of the Department of Telecommunications (DoT), which looked after all matters telecom—operations, policy and regulation—before the sector was privatised. If DoT had to compete against private players in operations, there was a conflict of interest if it also made the rules and regulated the sector.

The government had also realised that telecom services were not just viable, but lucrative, and that the opportunities could be tapped best by an entity that had commercial flexibility. So, it carved out the telecom operations of DoT into a company, BSNL, in 2000. “All these objectives were achieved on paper, but not in reality,” says Mahesh Uppal, Director, Com First (India), a company that specialises in telecom policy and regulation.

***

Downward Mobility

In the last three years, BSNL has been a laggard in the mobile business in every which way. In this high-growth business, it has grown the slowest in the last two years. Its co-leaders have broken away, even as new players are closing in on it.

Subscribers Growth Market share



Figures in million Year-on-year growth in % Figures in % Source: Trai

***

The worst illustration of that dichotomy is seen in the procurement of equipment. “BSNL rarely has the equipment to expand its services when it needs it the most,” says Seth. “There was always a lot of pressure and interference in the procurement of equipment.” That hasn’t changed. What has changed is that the mess in procurement is pulling BSNL down like never before. In the last three years, BSNL has grown slower than the industry average in the mobile segment and has lost market share (See graphic: Downwardly Mobile).

The story, which typifies the tragedy and comedy that is BSNL, goes back to April 2006, when the company decided to buy 63 million lines (each line is equivalent to one mobile connection). Of this, as per rules, 30% (18 million lines) was to be awarded to DoT’s manufacturing arm, ITI. A tender—the standard medium of purchasing equipment in PSUs—was floated for the remaining 45 million lines.


BSNL’s 2006 mobile tender dragged on for two years and delivered 22 million lines less. Private players like Bharti get new lines on demand.


BSNL opted for Ericsson (which quoted $107 per line) and Nokia ($176 per line, but which had to match the Ericsson bid), while disqualifying Motorola and China’s ZTE on ‘technical grounds’, a term that has taken on the same meaning in BSNL as ‘foreign hand’ in Indian politics in the 1970s. Motorola took BSNL to court, something that can be done liberally. In the name of transparency and accountability to taxpayers, anyone can challenge any decision by a PSU in court. BSNL didn’t have the lines to expand.
Subsequently, Motorola withdrew the case. There was also a ministerial change in May 2007, with A Raja replacing Dayanidhi Maran. In July 2007, BSNL decided to go ahead with the original tender. But Raja said reduce the number of lines from 45 million to 23 million and renegotiate the price with Ericsson and Nokia, as $107 is too high, compared to what “other parties” were buying at. Ericsson agreed for $80-90. Nokia, however, withdrew, and its portion was awarded to ITI-Huawei. Net-net, BSNL got 22 million lines less and about two years later than it wanted.

In stark contrast, private players like Bharti need to simply make a phone call to its two service partners, Nokia and Ericsson, to whom it has outsourced this job, and the additional lines are made available. No tenders, no litigation, continuous rollout on demand.


We are under going a transformation. The BCG changes will be rolled out in the next two years.Kuldeep Goyal, CMD, BSNL


BSNL’s struggles with tenders have continued. In May 2008, BSNL floated a new, bigger tender of 93 million lines—perhaps, the single largest mobile lines contract in the world. This too is being tossed around, hurting BSNL. The tender was awarded to China’s Huawei (for South and West India) and to Ericsson (for North and East), with Nokia, ZTE, Alcatel and Nortel disqualified on ‘technical grounds’ (Motorola didn’t participate).
The Home Ministry raised security concerns over a Chinese manufacturer installing equipment in areas with foreign borders, and so West was taking away from Huawei. As the matter bounced around in government circles, DoT, earlier this month, told BSNL to redo the tender on the grounds that there was only one supplier in each circle. Last heard, BSNL had rejected that demand and was going ahead with the award—almost 18 months after the tender was floated.

The tender process for procurement can’t be done away with. But it can be tightened so that it can’t be questioned, says Seth, who has had top-level stints in all three areas of telecom, namely operations, policy and regulation. Recounts Seth: “A French consultant who worked with DoT told me that the difference between working systems in the West and in India was: ‘We plan for a year and execute in six months. You plan for a week and execute in five years’.”

It has been true for BSNL. Says Rajan Mehta, former Vice-President of Nortel Networks in India: “By the time a BSNL tender is finalised and executed, the technology has evolved. And its next tender cannot be conceived and initiated unless it exhausts its existing capacity.”

Goyal says BSNL is reviewing its procurement processes. Perhaps, the rejection of DoT’s advice in the latest tender is a sign of BSNL asserting itself, but the damage has been done. BSNL has lost out on a lot of subscriber growth in the last three years. Between June 2006 and June 2009, BSNL added 33.3 million mobile subscribers, which was way below Bharti (79.3 million) and even Idea (38.6 million). This was despite having greater coverage than any other player in terms of mobile towers and backhaul across the country.

A Question Of Ownership

If it’s not external factors that are pulling BSNL down, there is internal friction pulling it in different directions. Everyone who has been involved in or dealt with BSNL speaks highly of its talent pool. “The private sector has been built by ex-BSNL employees. It is said that if you put in five years on the technical side of BSNL, you have made it,” says Seth. “The problem arises in BSNL in placing the right man at the right time, at the right place, because the powers to post senior officers lie with DoT, not BSNL.”


BSNL rarely has equipment to expand its services when it needs it. There was always a lot of interference in buying.DPS Seth, EX-CMD, BSNL


When BSNL was carved out, DoT employees were given the option to choose between the two. Below the Deputy General Manager (DGM) level, or the third and fourth line of management, DoT employees moved in large numbers. But above that, the majority didn’t move in spite of the higher salary, choosing the security of a government job over the perceived uncertainty of a corporate job. As a result, the managerial cadre of BSNL was weak.
So, DoT officials, primarily from the ITES (Indian Telecom Engineering Service, or the telecom equivalent of the IAS), started going to BSNL on deputation. Thus, they get the best of both worlds: higher salary from BSNL and the higher standing and job security of DoT. But it has created a peculiar situation. The top brass—the CMD and directors—are permanent BSNL employees. As are those below the DGM level. But the third and fourth lines of management are mostly on deputation, and not necessarily an ideal fit for their profile.

It’s a practice that has continued, and is a source of resentment among the permanent employees of BSNL. “These 1,500 people are non-committal to the growth of BSNL. They are talented, but they lack the will to work to their capabilities,” says VAN Namboodiri, General Secretary, BSNL Employees Union. “This is impacting the company’s growth.”


BSNL needs a strategic partner. Any operator will be willing. It has a customer base and good infrastructure.Mahesh Uppal, Director, Com First (India)


At the time of corporatisation, many non-executive employees (linesmen, exchange employees) were promoted to do administrative work. They were not engineers, but they had functional knowledge. The young engineers joining today have to work under them, despite being more qualified. They feel that BSNL is suffering because of such non-executive people occupying executive posts.
Says Uppal: “Most (BSNL employees) lack the commercial acumen.” He cites BSNL’s approach to infrastructure sharing, both in landline and mobile, as an example of narrow thinking. BSNL was the first operator to have a pan-India coverage. When private players were expanding, it refused to rent its unused infrastructure to them. So, they had no choice but to build their own infrastructure. Says Uppal: “Had it shared infrastructure, it would have earned immediate revenues and derived a long-term competitive advantage by making its rivals dependent on it, instead of speeding up their infrastructure.” It’s only now that it has started sharing its mobile towers.

Till as recently as last year, BSNL’s marketing policies were centred around the belief that customers will come to it. In mobile services, it wasn’t doing any push marketing; it didn’t even leverage its pan-India coverage to good effect. In landline, it wasn’t doing any marketing at all. Customers had to go to its exchange to apply for a connection.


These 1,500 people (who are on deputation from DoT) are non-committal to the growth of BSNL.VAN Namboodiri, General Secretary, BSNL Employees Union


Customers in non-metro areas went as they trusted BSNL as a brand and didn’t have many choices besides it, but it didn’t cut much water in the metros. BSNL didn’t even have a customer service call centre till last year. Awareness of its plans is very low. In the recent ‘pay per second’ recalibration, it was the last company to make the shift. And unlike others, there was no ad blitz informing consumers of the change.
There is change, but it’s slow and faces typical BSNL hurdles. “About 10,000 employees from networking are being deputed to sales and marketing,” says Goyal. “They will do incentive-based selling.” Supporting the move, Namboodiri laments that this pool largely consists of non-executive employees (like linesmen). “Executive officers should meet the middle- and high-income class to give a positive image of the company, but they are not ready to join,” he says. “The average age of non-executive employees is 45 years. They might not be able to answer all customer queries.”

Even as the blame game continues, BSNL is the ultimate loser. Its landlines, once its mainstay, have been falling consistently, from 35 million subscribers in June 2006 to 29 million subscribers in June 2009. Some of these losses are because of the shrinking of landline demand, but most of it is due to consumers shifting to private players.

Likewise, in mobiles. Extrapolating from historical trends and current market conditions, Research And Markets, a consultancy, paints a grim picture for BSNL. It has forecast that BSNL’s market share in the mobile segment will decline from 12.7% in June 2009 to 7.3% by 2013. Given the 2013 projected subscriber base of 876 million, that is 70 million subscribers for BSNL—an addition of just 16 million subscribers from current levels. By comparison, Bharti and Vodafone are expected to add 137 million and 74 million subscribers, respectively, during the same period.

Ringing In Changes

The assumption built into those projections is that the decline of BSNL will continue unabated. CMD Goyal doesn’t agree. Over the past year, he has been quietly initiating reforms, for which, he hired the Boston Consulting Group. In a personal letter to BSNL employees in January, he outlined ‘Project Shikhar’, whose big objective for BSNL is to regain the number one slot by 2013.

“BSNL is undergoing a transformation,” says Goyal. BCG has recommended four broad changes, to be implemented over the next two years. One, rather than split the organisation according to divisions (finance, marketing, and so on), split it according to verticals (fixed, mobile, enterprise and new businesses). Two, morph from a network-technologies company to a sales-oriented company. Three, build the BSNL brand. Four, use IT to streamline business processes. Goyal’s three-year term ends in June 2010.

***

Land Locked

Landlines, BSNL’s main business, is a shrinking market. On top of that, it is losing share to rivals and is making huge losses.



***

Given the history of apathy and abuse in BSNL, it’s anyone’s guess whether this change will become institutionalised in the company or move out with the man.

It’s a testimony to the unpredictable nature of corporate governance in BSNL that Goyal makes a pitch for a public listing as a mechanism for checks and balances. It’s a tacit admission that it can’t keep vested interests in the government at bay, public pressure might. “An IPO will make us more accountable, keep us on our toes and make us more transparent,” says Goyal. “And it will be easier for us to raise funds.”

Not that it needs the cash today. BSNL is sitting on a cash pile of Rs 38,000 crore, the returns from which help it show a profit at the net level. It wants to use some of that cash to acquire companies abroad to push growth. It is evaluating a bid for Zain, a Kuwaiti operator with operations in 21 countries in Africa and the Middle-East. Earlier this year, BSNL made a failed attempt for Millicom’s Sri Lankan operations.

The overseas foray has stumped many. “It must first set its India operations right,” says Mangesh Sathe, Manager, PRTM. “Any distraction could mean diverting management bandwidth and missing the India opportunity.” As with everything BSNL, there’s an element of intrigue. It is bidding for Zain in a consortium that is led by Vavasi Technologies, a Delhi-based company that has no revenues and whose antecedents are a mystery. Why couldn’t BSNL bid by itself? And even if it needed a partner, why Vavasi? As with the procurement tender, several conspiracy theories are doing the rounds. And BSNL, as usual, has maintained a studied silence, exposing itself to the old criticism: just who is running the show?

Hands-Free Management

The government is running the show—and yet, it isn’t. It’s why the rallying call is to leave BSNL to BSNL officials. Says ex-CMD Seth: “Leave BSNL officials to do their jobs. There are enough audits and vigilance monitoring to nail them if something goes wrong.” Adds Uppal: “Only a robust separation from DoT can save BSNL.”

The biggest issues are managing the cultural change and people issues as it moves from a state-owned incumbent to a competitive carrier. “Cultural change in a large organisation is very slow,” says Rob Bratby, Partner, Olswang LLP, a UK-based law firm, who has seen the European telecom experience from close. “Companies commited to change are better able to embrace revenue opportunities, while those that took a defensive posture have stagnated.”


The third and fourth lines of management in BSNL are on deputation from DoT, which is a source of resentment among the permanent staff.


Uppal feels BSNL needs a strategic partner. “Any operator will be willing. It has a readymade customer base and good infrastructure in place.” It’s a move that won’t be palatable to trade unions, who fear large-scale job losses. In revenues, BSNL and Bharti are locked close together. The difference is that Bharti does it with 25,000 employees, BSNL does it with 300,000—12 times as many. The unions are, in fact, even opposed to an IPO for the same reason.
There are several models to insulate BSNL from the government, even while leaving control with the government. “The proven way to do it in India is to hand over the company to a consortium of financial institutions (FIs),” says Ashish Sharma, Principal, Booz & Co. “The company remains with the government, but there is no direct interference. The FIs manage it on behalf of the government.”

A step further is what Malaysia and Singapore have done. They have formed a domestic wealth fund and the equity of the company lies with the fund. The government’s interaction is only with the wealth fund, which manages the company.

The third step, and the most radical, is to list the company, but retain ‘step-in’ rights. This is what France Telecom did. The equity holding of a single shareholder is capped at a certain limit. If anyone increases their stake beyond that limit, the government has the right to step in. This will ensure that BSNL remains a controlled Indian player.

Another radical step that can be taken is to break up BSNL into four entities and hand it over to independent Indian entities. The government can continue to be on the board with a minority stake. “This is a proven model—VSNL, which is now Tata Communications, did that,” says Sharma. He adds that conditions can be built in that mandate a company to achieve universal penetration in its area of operations before going beyond it. The government needs to do something. BSNL in drift mode will simply be Air India, part two.

‘BSNL Will Go The Air India Way’
SD Saxena



When he was Director (Finance) of BSNL between 2002 and 2008, SD Saxena made as many friends as enemies with his straight talk. Even now, he still refers to BSNL as “us” and “we”, and is furious at the direction BSNL is headed in.
What’s the problem with BSNL?

BSNL is caught up in the procurement tangle. Ironically, this is because it has to maintain a transparent and open system.


BCG has not been able to put its finger on the pulse of the problem. Its proposals are cosmetic.SD Saxena,ex-Director (finance),bsnl


The system is fragile and vulnerable to sabotage. If someone wants to stop something from happening, it can be done. Many are doing it. Any decision can be taken to court. Had the second tender happened, we would have been at the top.
Then, there are trade union issues. The union wants salary and fixed pension, but it doesn’t want to work. We told them, if you are drawing a salary, show work and growth. Go talk to the customers and make them stay with BSNL. There is no accountability. They, in turn, say officials are corrupt.

Is BSNL an Air India in the making?

BSNL will surely go the Air India way. Profits have plunged and will fall further. Let’s go back. BSNL was carved out into a company because everyone believed it was not working as efficiently under the government. Now, if you have made a company, created shares, made it accountable to company laws, why don’t you leave BSNL to function under it?
The working environment in PSUs is worse than in the government. You are not allowed to work. There are 250 working days in a year. PSU officials spend more than 265 days preparing answers for queries in the Parliament and other places. Local politicians use BSNL to dole out favours.

Why is BSNL fingered on everything? Why don’t you evaluate us on the basis on our profits? Leave us alone and see how we function. Auditors go through our accounts. There is CAG and CVC to monitor. There is a systematic flaw in the PSU system. The government has to first decide what it wants: does it want to run a company or not? If not, then quit and let the PSU function as an independent company.

Why doesn’t the leadership say so strongly?

There is a leadership problem too. The CMD of a company this size should be all powerful. Instead, today, he is held accountable for everything, to everyone. If his accountability goes beyond a point, it impacts the growth of the company.

The leadership doesn’t take a stand that is good for the company. They accept whatever comes from the top. Take BSNL’s interest in Zain. It took Sunil Bharti Mittal six months to negotiate and agree to pay $24 billion for MTN. The decision-making process at BSNL would not let it happen. It needs guts to acquire companies outside India.

Also, the deputation culture has created such a disparity in the system that DoT employees don’t want to join BSNL for good. They end up spending a long time in BSNL, but as DoT employees, which is demoralising to those within. BSNL has a working culture, people are passionate. If you bring in outsiders, the entire system will collapse.

BCG has suggested some changes…

BCG has not been able put its finger on the pulse of the problem. The changes it has recommended are more cosmetic in nature.

What’s the one thing you would fix at BSNL urgently?

Procurement. It’s the make-or-break process. Tenders have to come out. The eligibility criteria is the key here. It should be an open affair, where you call vendors and discuss. The focus should be on project execution, without any interference. Vested interests prevent BSNL from getting the best. We pay more and don’t even get access to the latest technology.

Each tender brings new technology. Interfacing is a problem. Do you think private players are fools? They have managed service contract with a couple of vendors and they just order. Why can’t BSNL do the same thing? Put any scrutiny or audit or norms, but allow us to behave like private players when it comes to procurement.

Landline:Don’t Write it Off Yet

Globally, fixed-line traffic is almost six times mobile voice traffic, but generates one-sixth the revenues. At BSNL, although the share of its non-cellular business (landline and Internet telephony) in its revenues is steadily decreasing, it is still a substantial 63.1%. However, losses on this side are mounting: Rs 5,836 crore in 2008-09 (See graphic: Land Locked). Says BSNL CMD Kuldeep Goyal: “Fixed-line is proving to be a burden, but we can’t do away with it.”
Goyal is approaching it from the point of larger goals set by the government. In the context of economic and social nationalism and security, every country needs a vibrant fixed-line player. That role has been played by national carriers.

Despite the distressing numbers, in the evolving environment, landline might still have a business case. “The boundary between fixed and mobile is converging very fast,” says Ashish Sharma, Principal, Booz & Co. When it comes to delivering data, entertainment and voice on the same network, fixed lines score over wireless. Applications like mobile TV have had limited appeal among users and operators because of it spectrum-hogging properties.

For a player like BSNL, which has copper and fibre already in place across the country for voice, broadband and other services like IPTV (TV via landline) can ride pillion. No other Indian telecom player even comes close on a national scale. Their coverage is mostly select. Bharti, for instance, offers it in 95 cities that have the highest revenue potential as identified by it. Tata and Reliance do the last mile mostly on wireless.

But reaching everywhere is not enough. BSNL still has to create a market there, and a profitable one at that, for broadband and IPTV. Traditionally, creating markets has never been BSNL’s strength. But if it can crack the marketing, and leverage its existing network, its landline liability can become an asset again.

The Global Rescue

At some point, the Indian government has to ask itself: what to do with BSNL? From the experience of other countries, one thing is clear: national operators have flourished when the government retained control, but let go of management.

British Telecom
The British government gave BT a soft-landing. In 1982, it took away its monopoly status by allowing one more player. In 1984, it privatised BT, by offering 50.2% equity to the public. In 1991, Britain opened its telecom market to the private sector, thus giving BT some lead time to prepare for competition. But post-privatisation, BT was subject to a regulatory onslaught related to its infrastructure. It overbid for mobile, and almost died. Then, it reinvented itself as a network services company.

France Telecom

Privatised in 1998 through a public listing, Europe’s third-largest telecom company is 27% owned by the French government. The government has step-in rights in case any shareholder exceeds 5%—basically, ask the shareholder to cut back to 5%. It also nominates the CEO. Within two years of privatisation, the company bought UK mobile phone company Orange for £25.1 billion from Vodafone. The company has since spread its footprint across the world by acquiring both operators and licences.

SingTel

To Indians, this might be better known as the company that owns 32% of Bharti Airtel. Singapore’s national operator was listed in 1993. Ever since, it has been indirectly controlled by its government, through its shareholding in its sovereign fund, Temasek. Temasek ensures transparency and works to enhance shareholder value by running SingTel as a commercial entity rather than as a public company. The company has gone overseas and acquired stakes in private operators like Airtel.

Telekom Malaysia

Like Singapore, Malaysia handed over companies owned by it, except Petronas, to its sovereign fund, Khazana. The idea was to maximise shareholder value. Telekom Malaysia was split into two: TM took care of the domestic landline and broadband operations, while Axiata went after the mobile business, both domestic and global. Both companies follow a different growth strategy. TM gets government funds to improve the broadband infrastructure, while Axiata has been looking for opportunities in low-penetrated markets.

Telenor

Established as a public corporation in 1994, privatised in 2000, the Norwegian national operator is 53% owned by the government. Still, the company has a professional board to run its affairs. The company has gone global, with operations in 12 countries in Scandinavia, East Europe and Asia. It is the sixth-largest telecom services company in the world.













Last updated on 20/11/2009




--
ashokhindocha-Rajkot
M-9426201999
http://ashokhindocha.blogspot.com
www.bsnlnewsbyashokhindocha.blogspot.com










BSNL-The Ring Of Death
Anurag Prasad , Avinash Singh Outlook Nov 28,2009



Unless the government calls in the changes, what’s happening to Air India today might well happen to BSNL—India’s second largest telecom company—tomorrow.


Air India and BSNL? Bankruptcy and BSNL, India’s second largest telecom company? It seems far out. After all, here’s a company whose cash reserves, at Rs 38,000 crore, equals the turnover of India’s 12th largest listed company. Here’s a company that has so much telecom infrastructure and real estate that it is valued, by some estimates, at Rs 4,00,000 crore. If it were to list today, it would be India’s most valued company, with a 25% lead on number two. Here’s a company that has a larger telecom network than any other player in the sector. Here’s a company that operates in a business that will always be fundamental to the lives of people. So, how can it just go down on its knees? Ask Air India.
A decade or two ago, such pronunciations on Air India would have met with similar disbelief. Now, the result of years of neglect is there to see: from flying high to a freefall. The ownership that presided over the national carrier’s fall from grace, the government of India, is currently presiding over a similar decline at BSNL. And its response is much the same: ignorance and apathy.

BSNL is losing market share—and relevance—at an alarming pace. In June 2006, it was within shouting distance of the top spot in the mobile telephony business. Today, it is languishing at number four, after Bharti, Reliance and Vodafone. Worse, number five (Idea) and number six (Tata) are now within shouting distance of BSNL. Even in landlines, once its monopoly and from where it derives 63% of it revenues, more Indians are giving up BSNL phones than taking them.

Its profitability is under serious assault. Between 2005-06 and 2008-09, the golden period of the Indian telecom story, it has managed to turn a profit from operations of Rs 4,231 crore into a loss of Rs 4,086 crore. In 2008-09, it also relinquished the mantle of India’s largest telecom company to Bharti. It has only itself and its promoter, the government, to blame for this loss of numbers and reputation.

Like Air India, it has an identity crisis, as the government owns and disowns BSNL on a need basis. Its management doesn’t have a free hand. Its business interests are being sabotaged by moves that are widely reported to be the handiwork of private rivals. It has become a playground for currying political favours. Its workforce is a bloated, disillusioned and unproductive lot, with issues of its own. It debates and debates commercial decisions, but the final signature on the file is made after the time has come and gone.

Kuldeep Goyal, BSNL Chairman and Managing Director (CMD), admits “there is a problem”. He doesn’t say as much, but the soft-spoken CMD, who worked wonders in MTNL Mumbai previously, walks the tightrope between what he wants to do and say and what he can do and say. He ends up saying little.

What he doesn’t say is articulated by people who have been in or close to his position in BSNL previously, but are now free of the fetters that come with these big chairs. Says SD Saxena, former Director (Finance), BSNL: “The CMD of a company of this size should be all powerful. Instead, today, he is held accountable for everything, to everyone.” Adds DPS Seth, the first CMD of BSNL: “Just leave him (the BSNL CMD) to do his job.” Unless that happens, it’s only a matter of time before this company that has more assets—optic fibre, towers, spectrum, real estate, cash reserves—than any other telecom player in India ends up next to Air India in the PSU hall of shame.

Tender Bender

To understand why BSNL is now being spoken of in the same sentence as Air India, one has to go back to the circumstances of the telecom major’s birth. BSNL used to be part of the Department of Telecommunications (DoT), which looked after all matters telecom—operations, policy and regulation—before the sector was privatised. If DoT had to compete against private players in operations, there was a conflict of interest if it also made the rules and regulated the sector.

The government had also realised that telecom services were not just viable, but lucrative, and that the opportunities could be tapped best by an entity that had commercial flexibility. So, it carved out the telecom operations of DoT into a company, BSNL, in 2000. “All these objectives were achieved on paper, but not in reality,” says Mahesh Uppal, Director, Com First (India), a company that specialises in telecom policy and regulation.

***

Downward Mobility

In the last three years, BSNL has been a laggard in the mobile business in every which way. In this high-growth business, it has grown the slowest in the last two years. Its co-leaders have broken away, even as new players are closing in on it.

Subscribers Growth Market share



Figures in million Year-on-year growth in % Figures in % Source: Trai

***

The worst illustration of that dichotomy is seen in the procurement of equipment. “BSNL rarely has the equipment to expand its services when it needs it the most,” says Seth. “There was always a lot of pressure and interference in the procurement of equipment.” That hasn’t changed. What has changed is that the mess in procurement is pulling BSNL down like never before. In the last three years, BSNL has grown slower than the industry average in the mobile segment and has lost market share (See graphic: Downwardly Mobile).

The story, which typifies the tragedy and comedy that is BSNL, goes back to April 2006, when the company decided to buy 63 million lines (each line is equivalent to one mobile connection). Of this, as per rules, 30% (18 million lines) was to be awarded to DoT’s manufacturing arm, ITI. A tender—the standard medium of purchasing equipment in PSUs—was floated for the remaining 45 million lines.


BSNL’s 2006 mobile tender dragged on for two years and delivered 22 million lines less. Private players like Bharti get new lines on demand.


BSNL opted for Ericsson (which quoted $107 per line) and Nokia ($176 per line, but which had to match the Ericsson bid), while disqualifying Motorola and China’s ZTE on ‘technical grounds’, a term that has taken on the same meaning in BSNL as ‘foreign hand’ in Indian politics in the 1970s. Motorola took BSNL to court, something that can be done liberally. In the name of transparency and accountability to taxpayers, anyone can challenge any decision by a PSU in court. BSNL didn’t have the lines to expand.
Subsequently, Motorola withdrew the case. There was also a ministerial change in May 2007, with A Raja replacing Dayanidhi Maran. In July 2007, BSNL decided to go ahead with the original tender. But Raja said reduce the number of lines from 45 million to 23 million and renegotiate the price with Ericsson and Nokia, as $107 is too high, compared to what “other parties” were buying at. Ericsson agreed for $80-90. Nokia, however, withdrew, and its portion was awarded to ITI-Huawei. Net-net, BSNL got 22 million lines less and about two years later than it wanted.

In stark contrast, private players like Bharti need to simply make a phone call to its two service partners, Nokia and Ericsson, to whom it has outsourced this job, and the additional lines are made available. No tenders, no litigation, continuous rollout on demand.


We are under going a transformation. The BCG changes will be rolled out in the next two years.Kuldeep Goyal, CMD, BSNL


BSNL’s struggles with tenders have continued. In May 2008, BSNL floated a new, bigger tender of 93 million lines—perhaps, the single largest mobile lines contract in the world. This too is being tossed around, hurting BSNL. The tender was awarded to China’s Huawei (for South and West India) and to Ericsson (for North and East), with Nokia, ZTE, Alcatel and Nortel disqualified on ‘technical grounds’ (Motorola didn’t participate).
The Home Ministry raised security concerns over a Chinese manufacturer installing equipment in areas with foreign borders, and so West was taking away from Huawei. As the matter bounced around in government circles, DoT, earlier this month, told BSNL to redo the tender on the grounds that there was only one supplier in each circle. Last heard, BSNL had rejected that demand and was going ahead with the award—almost 18 months after the tender was floated.

The tender process for procurement can’t be done away with. But it can be tightened so that it can’t be questioned, says Seth, who has had top-level stints in all three areas of telecom, namely operations, policy and regulation. Recounts Seth: “A French consultant who worked with DoT told me that the difference between working systems in the West and in India was: ‘We plan for a year and execute in six months. You plan for a week and execute in five years’.”

It has been true for BSNL. Says Rajan Mehta, former Vice-President of Nortel Networks in India: “By the time a BSNL tender is finalised and executed, the technology has evolved. And its next tender cannot be conceived and initiated unless it exhausts its existing capacity.”

Goyal says BSNL is reviewing its procurement processes. Perhaps, the rejection of DoT’s advice in the latest tender is a sign of BSNL asserting itself, but the damage has been done. BSNL has lost out on a lot of subscriber growth in the last three years. Between June 2006 and June 2009, BSNL added 33.3 million mobile subscribers, which was way below Bharti (79.3 million) and even Idea (38.6 million). This was despite having greater coverage than any other player in terms of mobile towers and backhaul across the country.

A Question Of Ownership

If it’s not external factors that are pulling BSNL down, there is internal friction pulling it in different directions. Everyone who has been involved in or dealt with BSNL speaks highly of its talent pool. “The private sector has been built by ex-BSNL employees. It is said that if you put in five years on the technical side of BSNL, you have made it,” says Seth. “The problem arises in BSNL in placing the right man at the right time, at the right place, because the powers to post senior officers lie with DoT, not BSNL.”


BSNL rarely has equipment to expand its services when it needs it. There was always a lot of interference in buying.DPS Seth, EX-CMD, BSNL


When BSNL was carved out, DoT employees were given the option to choose between the two. Below the Deputy General Manager (DGM) level, or the third and fourth line of management, DoT employees moved in large numbers. But above that, the majority didn’t move in spite of the higher salary, choosing the security of a government job over the perceived uncertainty of a corporate job. As a result, the managerial cadre of BSNL was weak.
So, DoT officials, primarily from the ITES (Indian Telecom Engineering Service, or the telecom equivalent of the IAS), started going to BSNL on deputation. Thus, they get the best of both worlds: higher salary from BSNL and the higher standing and job security of DoT. But it has created a peculiar situation. The top brass—the CMD and directors—are permanent BSNL employees. As are those below the DGM level. But the third and fourth lines of management are mostly on deputation, and not necessarily an ideal fit for their profile.

It’s a practice that has continued, and is a source of resentment among the permanent employees of BSNL. “These 1,500 people are non-committal to the growth of BSNL. They are talented, but they lack the will to work to their capabilities,” says VAN Namboodiri, General Secretary, BSNL Employees Union. “This is impacting the company’s growth.”


BSNL needs a strategic partner. Any operator will be willing. It has a customer base and good infrastructure.Mahesh Uppal, Director, Com First (India)


At the time of corporatisation, many non-executive employees (linesmen, exchange employees) were promoted to do administrative work. They were not engineers, but they had functional knowledge. The young engineers joining today have to work under them, despite being more qualified. They feel that BSNL is suffering because of such non-executive people occupying executive posts.
Says Uppal: “Most (BSNL employees) lack the commercial acumen.” He cites BSNL’s approach to infrastructure sharing, both in landline and mobile, as an example of narrow thinking. BSNL was the first operator to have a pan-India coverage. When private players were expanding, it refused to rent its unused infrastructure to them. So, they had no choice but to build their own infrastructure. Says Uppal: “Had it shared infrastructure, it would have earned immediate revenues and derived a long-term competitive advantage by making its rivals dependent on it, instead of speeding up their infrastructure.” It’s only now that it has started sharing its mobile towers.

Till as recently as last year, BSNL’s marketing policies were centred around the belief that customers will come to it. In mobile services, it wasn’t doing any push marketing; it didn’t even leverage its pan-India coverage to good effect. In landline, it wasn’t doing any marketing at all. Customers had to go to its exchange to apply for a connection.


These 1,500 people (who are on deputation from DoT) are non-committal to the growth of BSNL.VAN Namboodiri, General Secretary, BSNL Employees Union


Customers in non-metro areas went as they trusted BSNL as a brand and didn’t have many choices besides it, but it didn’t cut much water in the metros. BSNL didn’t even have a customer service call centre till last year. Awareness of its plans is very low. In the recent ‘pay per second’ recalibration, it was the last company to make the shift. And unlike others, there was no ad blitz informing consumers of the change.
There is change, but it’s slow and faces typical BSNL hurdles. “About 10,000 employees from networking are being deputed to sales and marketing,” says Goyal. “They will do incentive-based selling.” Supporting the move, Namboodiri laments that this pool largely consists of non-executive employees (like linesmen). “Executive officers should meet the middle- and high-income class to give a positive image of the company, but they are not ready to join,” he says. “The average age of non-executive employees is 45 years. They might not be able to answer all customer queries.”

Even as the blame game continues, BSNL is the ultimate loser. Its landlines, once its mainstay, have been falling consistently, from 35 million subscribers in June 2006 to 29 million subscribers in June 2009. Some of these losses are because of the shrinking of landline demand, but most of it is due to consumers shifting to private players.

Likewise, in mobiles. Extrapolating from historical trends and current market conditions, Research And Markets, a consultancy, paints a grim picture for BSNL. It has forecast that BSNL’s market share in the mobile segment will decline from 12.7% in June 2009 to 7.3% by 2013. Given the 2013 projected subscriber base of 876 million, that is 70 million subscribers for BSNL—an addition of just 16 million subscribers from current levels. By comparison, Bharti and Vodafone are expected to add 137 million and 74 million subscribers, respectively, during the same period.

Ringing In Changes

The assumption built into those projections is that the decline of BSNL will continue unabated. CMD Goyal doesn’t agree. Over the past year, he has been quietly initiating reforms, for which, he hired the Boston Consulting Group. In a personal letter to BSNL employees in January, he outlined ‘Project Shikhar’, whose big objective for BSNL is to regain the number one slot by 2013.

“BSNL is undergoing a transformation,” says Goyal. BCG has recommended four broad changes, to be implemented over the next two years. One, rather than split the organisation according to divisions (finance, marketing, and so on), split it according to verticals (fixed, mobile, enterprise and new businesses). Two, morph from a network-technologies company to a sales-oriented company. Three, build the BSNL brand. Four, use IT to streamline business processes. Goyal’s three-year term ends in June 2010.

***

Land Locked

Landlines, BSNL’s main business, is a shrinking market. On top of that, it is losing share to rivals and is making huge losses.



***

Given the history of apathy and abuse in BSNL, it’s anyone’s guess whether this change will become institutionalised in the company or move out with the man.

It’s a testimony to the unpredictable nature of corporate governance in BSNL that Goyal makes a pitch for a public listing as a mechanism for checks and balances. It’s a tacit admission that it can’t keep vested interests in the government at bay, public pressure might. “An IPO will make us more accountable, keep us on our toes and make us more transparent,” says Goyal. “And it will be easier for us to raise funds.”

Not that it needs the cash today. BSNL is sitting on a cash pile of Rs 38,000 crore, the returns from which help it show a profit at the net level. It wants to use some of that cash to acquire companies abroad to push growth. It is evaluating a bid for Zain, a Kuwaiti operator with operations in 21 countries in Africa and the Middle-East. Earlier this year, BSNL made a failed attempt for Millicom’s Sri Lankan operations.

The overseas foray has stumped many. “It must first set its India operations right,” says Mangesh Sathe, Manager, PRTM. “Any distraction could mean diverting management bandwidth and missing the India opportunity.” As with everything BSNL, there’s an element of intrigue. It is bidding for Zain in a consortium that is led by Vavasi Technologies, a Delhi-based company that has no revenues and whose antecedents are a mystery. Why couldn’t BSNL bid by itself? And even if it needed a partner, why Vavasi? As with the procurement tender, several conspiracy theories are doing the rounds. And BSNL, as usual, has maintained a studied silence, exposing itself to the old criticism: just who is running the show?

Hands-Free Management

The government is running the show—and yet, it isn’t. It’s why the rallying call is to leave BSNL to BSNL officials. Says ex-CMD Seth: “Leave BSNL officials to do their jobs. There are enough audits and vigilance monitoring to nail them if something goes wrong.” Adds Uppal: “Only a robust separation from DoT can save BSNL.”

The biggest issues are managing the cultural change and people issues as it moves from a state-owned incumbent to a competitive carrier. “Cultural change in a large organisation is very slow,” says Rob Bratby, Partner, Olswang LLP, a UK-based law firm, who has seen the European telecom experience from close. “Companies commited to change are better able to embrace revenue opportunities, while those that took a defensive posture have stagnated.”


The third and fourth lines of management in BSNL are on deputation from DoT, which is a source of resentment among the permanent staff.


Uppal feels BSNL needs a strategic partner. “Any operator will be willing. It has a readymade customer base and good infrastructure in place.” It’s a move that won’t be palatable to trade unions, who fear large-scale job losses. In revenues, BSNL and Bharti are locked close together. The difference is that Bharti does it with 25,000 employees, BSNL does it with 300,000—12 times as many. The unions are, in fact, even opposed to an IPO for the same reason.
There are several models to insulate BSNL from the government, even while leaving control with the government. “The proven way to do it in India is to hand over the company to a consortium of financial institutions (FIs),” says Ashish Sharma, Principal, Booz & Co. “The company remains with the government, but there is no direct interference. The FIs manage it on behalf of the government.”

A step further is what Malaysia and Singapore have done. They have formed a domestic wealth fund and the equity of the company lies with the fund. The government’s interaction is only with the wealth fund, which manages the company.

The third step, and the most radical, is to list the company, but retain ‘step-in’ rights. This is what France Telecom did. The equity holding of a single shareholder is capped at a certain limit. If anyone increases their stake beyond that limit, the government has the right to step in. This will ensure that BSNL remains a controlled Indian player.

Another radical step that can be taken is to break up BSNL into four entities and hand it over to independent Indian entities. The government can continue to be on the board with a minority stake. “This is a proven model—VSNL, which is now Tata Communications, did that,” says Sharma. He adds that conditions can be built in that mandate a company to achieve universal penetration in its area of operations before going beyond it. The government needs to do something. BSNL in drift mode will simply be Air India, part two.

‘BSNL Will Go The Air India Way’
SD Saxena



When he was Director (Finance) of BSNL between 2002 and 2008, SD Saxena made as many friends as enemies with his straight talk. Even now, he still refers to BSNL as “us” and “we”, and is furious at the direction BSNL is headed in.
What’s the problem with BSNL?

BSNL is caught up in the procurement tangle. Ironically, this is because it has to maintain a transparent and open system.


BCG has not been able to put its finger on the pulse of the problem. Its proposals are cosmetic.SD Saxena,ex-Director (finance),bsnl


The system is fragile and vulnerable to sabotage. If someone wants to stop something from happening, it can be done. Many are doing it. Any decision can be taken to court. Had the second tender happened, we would have been at the top.
Then, there are trade union issues. The union wants salary and fixed pension, but it doesn’t want to work. We told them, if you are drawing a salary, show work and growth. Go talk to the customers and make them stay with BSNL. There is no accountability. They, in turn, say officials are corrupt.

Is BSNL an Air India in the making?

BSNL will surely go the Air India way. Profits have plunged and will fall further. Let’s go back. BSNL was carved out into a company because everyone believed it was not working as efficiently under the government. Now, if you have made a company, created shares, made it accountable to company laws, why don’t you leave BSNL to function under it?
The working environment in PSUs is worse than in the government. You are not allowed to work. There are 250 working days in a year. PSU officials spend more than 265 days preparing answers for queries in the Parliament and other places. Local politicians use BSNL to dole out favours.

Why is BSNL fingered on everything? Why don’t you evaluate us on the basis on our profits? Leave us alone and see how we function. Auditors go through our accounts. There is CAG and CVC to monitor. There is a systematic flaw in the PSU system. The government has to first decide what it wants: does it want to run a company or not? If not, then quit and let the PSU function as an independent company.

Why doesn’t the leadership say so strongly?

There is a leadership problem too. The CMD of a company this size should be all powerful. Instead, today, he is held accountable for everything, to everyone. If his accountability goes beyond a point, it impacts the growth of the company.

The leadership doesn’t take a stand that is good for the company. They accept whatever comes from the top. Take BSNL’s interest in Zain. It took Sunil Bharti Mittal six months to negotiate and agree to pay $24 billion for MTN. The decision-making process at BSNL would not let it happen. It needs guts to acquire companies outside India.

Also, the deputation culture has created such a disparity in the system that DoT employees don’t want to join BSNL for good. They end up spending a long time in BSNL, but as DoT employees, which is demoralising to those within. BSNL has a working culture, people are passionate. If you bring in outsiders, the entire system will collapse.

BCG has suggested some changes…

BCG has not been able put its finger on the pulse of the problem. The changes it has recommended are more cosmetic in nature.

What’s the one thing you would fix at BSNL urgently?

Procurement. It’s the make-or-break process. Tenders have to come out. The eligibility criteria is the key here. It should be an open affair, where you call vendors and discuss. The focus should be on project execution, without any interference. Vested interests prevent BSNL from getting the best. We pay more and don’t even get access to the latest technology.

Each tender brings new technology. Interfacing is a problem. Do you think private players are fools? They have managed service contract with a couple of vendors and they just order. Why can’t BSNL do the same thing? Put any scrutiny or audit or norms, but allow us to behave like private players when it comes to procurement.

Landline:Don’t Write it Off Yet

Globally, fixed-line traffic is almost six times mobile voice traffic, but generates one-sixth the revenues. At BSNL, although the share of its non-cellular business (landline and Internet telephony) in its revenues is steadily decreasing, it is still a substantial 63.1%. However, losses on this side are mounting: Rs 5,836 crore in 2008-09 (See graphic: Land Locked). Says BSNL CMD Kuldeep Goyal: “Fixed-line is proving to be a burden, but we can’t do away with it.”
Goyal is approaching it from the point of larger goals set by the government. In the context of economic and social nationalism and security, every country needs a vibrant fixed-line player. That role has been played by national carriers.

Despite the distressing numbers, in the evolving environment, landline might still have a business case. “The boundary between fixed and mobile is converging very fast,” says Ashish Sharma, Principal, Booz & Co. When it comes to delivering data, entertainment and voice on the same network, fixed lines score over wireless. Applications like mobile TV have had limited appeal among users and operators because of it spectrum-hogging properties.

For a player like BSNL, which has copper and fibre already in place across the country for voice, broadband and other services like IPTV (TV via landline) can ride pillion. No other Indian telecom player even comes close on a national scale. Their coverage is mostly select. Bharti, for instance, offers it in 95 cities that have the highest revenue potential as identified by it. Tata and Reliance do the last mile mostly on wireless.

But reaching everywhere is not enough. BSNL still has to create a market there, and a profitable one at that, for broadband and IPTV. Traditionally, creating markets has never been BSNL’s strength. But if it can crack the marketing, and leverage its existing network, its landline liability can become an asset again.

The Global Rescue

At some point, the Indian government has to ask itself: what to do with BSNL? From the experience of other countries, one thing is clear: national operators have flourished when the government retained control, but let go of management.

British Telecom
The British government gave BT a soft-landing. In 1982, it took away its monopoly status by allowing one more player. In 1984, it privatised BT, by offering 50.2% equity to the public. In 1991, Britain opened its telecom market to the private sector, thus giving BT some lead time to prepare for competition. But post-privatisation, BT was subject to a regulatory onslaught related to its infrastructure. It overbid for mobile, and almost died. Then, it reinvented itself as a network services company.

France Telecom

Privatised in 1998 through a public listing, Europe’s third-largest telecom company is 27% owned by the French government. The government has step-in rights in case any shareholder exceeds 5%—basically, ask the shareholder to cut back to 5%. It also nominates the CEO. Within two years of privatisation, the company bought UK mobile phone company Orange for £25.1 billion from Vodafone. The company has since spread its footprint across the world by acquiring both operators and licences.

SingTel

To Indians, this might be better known as the company that owns 32% of Bharti Airtel. Singapore’s national operator was listed in 1993. Ever since, it has been indirectly controlled by its government, through its shareholding in its sovereign fund, Temasek. Temasek ensures transparency and works to enhance shareholder value by running SingTel as a commercial entity rather than as a public company. The company has gone overseas and acquired stakes in private operators like Airtel.

Telekom Malaysia

Like Singapore, Malaysia handed over companies owned by it, except Petronas, to its sovereign fund, Khazana. The idea was to maximise shareholder value. Telekom Malaysia was split into two: TM took care of the domestic landline and broadband operations, while Axiata went after the mobile business, both domestic and global. Both companies follow a different growth strategy. TM gets government funds to improve the broadband infrastructure, while Axiata has been looking for opportunities in low-penetrated markets.

Telenor

Established as a public corporation in 1994, privatised in 2000, the Norwegian national operator is 53% owned by the government. Still, the company has a professional board to run its affairs. The company has gone global, with operations in 12 countries in Scandinavia, East Europe and Asia. It is the sixth-largest telecom services company in the world.
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999


















Last updated on 20/11/2009




--
ashokhindocha-Rajkot
M-9426201999
http://ashokhindocha.blogspot.com
www.bsnlnewsbyashokhindocha.blogspot.com





--
ashokhindocha-Rajkot
M-9426201999
http://ashokhindocha.blogspot.com
www.bsnlnewsbyashokhindocha.blogspot.com






10 attachments — Download all attachments View all images
Feature_BSNL_Chart3.jpg
72K View Download

BSNL_Main.jpg
8K View Download

Feature_BSNL_Chart2.jpg
81K View Download

Van-Namboodiri.jpg
2K View Download

Feature_BSNL_Chart1.jpg
32K View Download

Titlenew.jpg
52K View Download

Kuldeep-Goyal.jpg
2K View Download

Mahesh-Uppal.jpg
3K View Download

Feature_BSNL_SD-Saxena.jpg
25K View Download

Seth_jan.jpg
3K View Download




Reply Reply to all Forward




New window
Print all
Collapse all
Forward all

Sponsored Links
More about...
Tender Cee »
Mobile Numbers »
Tender Emerging Markets »
Tender Europe »

About these links

« Back to InboxArchiveReport SpamDeleteMore actions...--------Apply label: New label...1 of 13576 Older ›



Send messages from your other email addresses using your Gmail account. Learn more
You are currently using 1271 MB (17%) of your 7395 MB.
Gmail view: standard with chat | standard without chat | basic HTML Learn more
©2009 Google - Terms - Gmail Blog - Google Home




"Ashok Hindocha"
"hareshbhatt12"







"hindocha_ad1"
"hindocha_ad1"
www.bsnlnewsbyashokhindocha.blogspot.com M-9426201999