Memoranda for Submission to the Chief Ministers of the Two Telugu States.

Telecom Engineering

Engineering College by BSNL

 

Dt: 25/10/12

 

Engineering College by BSNL

 

Dr T.H.Chowdary*

 

 

It is reported that the BSNL is intending to start an engineering college .  The Chairman of the  AICTE  is ready to approve of it.   It is indeed surprising  why the BSNL should now think of   having an engineering college when the country is having more than 3600 engineering colleges, and a dozen and a half  Indian Institutes of  Technology (IITs). Every year,  the  intake is  over 12 lakhs  and nearly one third of them are related to telecoms, electronics,  communications  and IT. There is therefore an over -abundance of  engineers to meet the requirements of  BSNL.  Further, the BSNL has been for the last three years incurring  huge  losses (see table).  So the  establishment of  an engineering college  seems to be a misapplication of its faltering resources.

 

Financial Performance of Telecom PSUs (2008-12)

  (Fig. in Rs. Cr)

Year

BSNL

MTNL

2010

-1,823

-2,610

2011

-6,384

-2,802

2012

-8,851

-4,109

(Source: Voice & Data, Oct 2012)

 

 

2. Let me recall the story of  engineers in the  Department of Telecoms and its successors MTNL & BSNL.

 

 

3. DOT  had been recruiting 10 to30 graduate engineers through  a competitive exam conducted by the  UPSC for central engineering   services. These are trained in Jabalpur and  afterwards deployed into various segments of  telecom engineering. In addition, it was  recruiting  science  graduates as Technical Assistants(later designated as Engineering Supervisor and still later as Junior Engineers) and training them in the technologies and  networks  that the    DOT was deploying to render telegraph and telephone  services. In the late  1970s, with the  assistance of the  UNDP  an Advanced  Telecom Training Center-ALTTC was established in Ghaziabad (near Delhi). It designed  courses for updating the graduate engineers of the DOT into new technologies that were being inducted from time to time. By the early 1980s, the DOT had about 15 Regional Telecom Training Centers (RTTCs)  mostly in  various state capitals to train the B.Sc graduates as Engineer  Supervisors /Junior Engineers.

 

4. I have been since the late 1980s submitting a memorandum to every new Secretary and  new Minister of the   DOT that the  ALTTC in Ghaziabad should be built up as a University and  in addition to giving  unit courses, it should give both undergraduate and post graduate and even doctorate level courses specifically designed for telecom and  later on IT applications. It should undertake  research and development also  for application of wireless and computers for telecom services.

 

5. I had further mentioned that the Peoples Republic of China has the Beijing University of Posts & Telecoms ( BUPT) in Beijing and one or two more   institutions elsewhere  giving  undergraduate and post -graduate courses. The DOT has been grievously  lacking in the development  of Management talents amongst its ranks. Engineers by seniority are designated as General Managers and then  Dy. Directors Generals and  Members of the   Telecom Board/  Commission.

 

6. As long as the telecom services were administered as a departmental  undertaking,” management” had no meaning. It was just administering rules and procedures laid down in more than a dozen code books and hundreds of circulars. Ideas like costs, prices, efficiency, productivity,  financial  performance had no meaning at all. All money  required for capital investment was to be generated from within since the 1980s  DOT increased  prices and  generated the  surpluses required.  Accounts were maintained. More than a dozen code books laid down all sorts of rules from how to register an application for telephone to delivery of a  telegram, billing and so on. It was the rules   incorporated in the code books that were being applied or administered by the General Managers.

 

7. I foresaw that the  telecom services would be  a disaster unless these are constituted into a  corporate  structure, under the Indian  Companies  Act.  In the 1980s I submitted a proposal  for a TAIL-  Telecom   Authority of India Ltd.,  just like  SAIL – Steel Authority  of India Ltd, and  GAIL - The   Gas Authority of India Ltd.   In the 1980s corporatization and privatisation  were bad words.  If I openly advocated them, I would have been accused as  a CIA agent or America’s  stooge .

 

8. I knew that sooner or later telecoms would  have   to be  corporatized, demonopolised, subjected to competition under statutory  regulation. By 1984 in the most important  countries  USA, Japan and the UK  telecoms were demonopolised and  fierce competition set in . India  would have to do the same if the telecoms are  to serve the new economy  that was in the offing. When Rajiv Gandhi became the Prime Minister, he was thinking of a new structure for not only telecoms but for many state-owned corporations. It is necessary that  the engineer- managers in the DOT and its future   corporations are instructed in economics, finance,  banking, costing, pricing, dividends, competition and markets and so on. Therefore I proposed that   the ALTTC be converted into an university,  along with advances in engineers  for serving   DOT engineers and its  future  corporations, courses would contain all other subjects that would go to make a General Manager,  Directors and the CEOs of a company . I have been submitting this proposal to  every new telecom Minister and to every Secretary of the  DOT and the Chairman of the Telecom Commission.  Not one was moved. The consequences are  very  plain.  We see the BSNL and the MTNL managed by mere  engineers  are  declining and destined to be like Air Indi a, ITI,HMT, HCL etc guzzlers of public money as Government of India  companies. Doubts are   raised as to whether they would  survive at all and whether it would not be  better to wind them up.

 

9. The proposal to start an engineering college  by the BSNL now is too little  and too late and absolute  waste of the  resources  of the BSNL /MTNL.  There  are enough number  of excellent  engineering &Management  institutes in the country. Those who cannot  manage the BSNL well cannot be expected  to shape and manage an engineering  institute of excellence. (956 words)

 

END