Bharat Sanchar Nigam Ltd is expecting its revenues to dip down to Rs 25,384 crore during 2012-13.
Total revenue for 2011-12 was Rs 27,933.5 crore compared with Rs 29,687.62 crore a year ago. Lower revenues this year could mean further losses for the public sector company.
This is a sharp contrast to 2004-05 when BSNL declared Rs 10,183 crore in profits. The net loss of BSNL widened to Rs 8,851 crore during 2011-12 against just Rs 1,823 crore two years ago in 2009-10. During 2010-11, losses rose to Rs 6,384 crore mainly due to hefty outgo on employees’ salary and expenses borne by the PSU for procuring 3G and BWA spectrum.
Rakesh Kumar Upadhyay, Chairman and Managing Director, BSNL, had told
There is an ongoing rift between Indian Telecom Services cadre officers and other employees on absorption issue that is threatening to weigh heavily on the company’s performance. There are about 1,500 ITS officers who hold top position in BSNL but do not want to get absorbed on the PSU’s pay roll. These officers have opted to stay as employees of Department of Telecom on grounds of better remuneration. But since they are critical to the running of the telecom PSU they have been allowed to work in BSNL on deputation.
But majority of BSNL workers, who have got absorbed under BSNL payroll, are protesting against this policy. They want the ITS officer to either get absorbed as BSNL employees or get out.
New biz areas
Meanwhile, the company has made a blueprint to generate additional revenue from new business areas. This includes leasing out its land bank for commercial development, hiving off tower assets, connecting 1.5 million schools with broadband and setting up wi-fi hotspots across the country.
The struggling telecom PSU is embarking on eight projects to get back in the game. BSNL has a land bank of 4,400 hectares that it plans to develop commercially. The company has already started pilot project in 10 locations. It hopes to get Rs 250 crore from rental income every year.
Hiving off tower biz
BSNL is also planning to hive off its tower assets in order to lease out space to private players. The company is hoping to earn Rs 1,600 crore over a five-year period, according to a presentation made by the telecom major to the Telecom Ministry.
The company is also embarking on another project to set up manufacturing facilities for telecom equipment in partnership with established technology firms. The company is aiming to earn Rs 500 crore once it finalises the partnership deals.
Offering broadband connectivity to schools across the country is another major project being planned. Under this project, 1.5 million schools will be connected. BSNL plans to charge Rs 5,000 a year for one connection offering 512 kbps speeds.