BSNL and MTNL strategies to improve financial performance

Telecom Lead India: BSNL and MTNL and undertaking a
number of steps to improve financial performance.


The number of telephone subscribers of BSNL and MTNL is
increasing on year-by-year basis. However, the growth in case of BSNL &
MTNL is less as compared to that of some private operators, according to Milind
Deora, the Minister of State for Communications and Information Technology.


Milind Deora said that Department of Telecommunications
(DoT) regularly reviews the performance of BSNL and MTNL to improve their
financial health.


Some of the steps taken by BSNL and MTNL to make them
profitable are as follows:

– Optimizing CAPEX and OPEX through convergence and consolidation of

– Strengthening of stable revenue streams through concerted focus on broadband
and enterprise business with major focus on Government projects.

– Focusing on the revenue from top 100 Cities for monitoring purpose.

– Sustained operational focus on customer care, service delivery, service
assurance, revenue management and asset management.

– Aggressive push on Data usage and value added services.

– Clear cut segregation of commercial activities from social obligation to
ensure sustainable growth.

– Progressive migration of current network to Next generation network thereby
ensuring convergence, consolidation and seamless delivery of various services
to end customers across different technologies.

According to the minister, to bring about synergies between various telecom
units of DoT, a committee was constituted by DoT. The committee has recommended
that DoT may encourage creation and recognition of synergistic alliance of BSNL
and MTNL through appropriate policy interventions and support for optimum
utilization of their resources and strengths to their mutual benefit.

In addition, one of the provisions in the draft revised National Telecom Policy
(NTP- 2012), inter-alia also contains the provision to encourage recognition
and creation of synergistic alliance of public sector and other organizations
of Department of Telecommunications.

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