Telecom Engineering
Don’t Revive BSNL and MTNL - Privatise Them
Dt: 19/6/15
Don’t Revive BSNL and MTNL - Privatise Them
Dr T.H.Chowdary*
The Bharat Sanchar Nigam Limited (BSNL) has been incurring losses since several years of about Rs. 20,000 cr. No government company which was a monopoly once, when subjected to competition, is performing well. Over staffing and non-accountability are the main reasons and in the final analysis, the political Minister is having the final word in regard to purchases .
2. With several private companies providing telecom & IT services, there is hyper- competition . Neither BSNL nor MTNL can compete with the private companies. Just as an example of this: There is over staffing and extravagant expenditure. BSNL has drivers getting Rs. 30,000 to Rs. 40,000 per month but no vehicles. Since vehicles are costly to maintain and their availability to be on the road is doubtful, General Managers are hiring private cars with private drivers. The company’s drivers are sitting idle and getting all welfare besides salary.
3. The United States has no state-owned telephone company. Telecom services are by private companies. Government of the USA has no “security” concern on this account.
4. State and Central governments can hire transmission capacity and configure state wide and nation- wide telecom/ IT networks with inter connections with the other telephone networks . Enough security can be built at the inter connection points. This is how the USA has a secure telecom/IT network for itself though there is no state-Owned telephone company.
5. DOT once owned Hindustan Teleprinters (HTL) in Chennai. It was privatised and sold to a private company. Within a short time, the private company discontinued the production of teleprinters and electronic typewriters as there was no demand for them. It sold the land as real estate and realised twice the amount it paid to the government for buying the HTL.
6. The DOT has very commercially valuable sites for its telephone exchanges and other faculties in all our cities and even in small towns. It can sell them as real estate and with the money realised it can pay off all the staff and still have a surplus.
7. Just take the example of nation -wide optical fibre network, ( NOFN) a project which was largely entrusted to the BSNL for execution. The targets are ever -shifting and the cost has trebled. The BSNL has no sufficient investible money nor has it been able to take loans.
8. Trying to keep a terminally ill company will be waste of national money. Government officers can promise but if they fail there is no consequence for them but only for the government and therefore, for the people of India.
9. It may be difficult to find a buyer for the entire BSNL. It can be broken up into state-wide companies and sold and privatised piecemeal. (455 words)
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