Government's Determination For Turnaround of BSNL & MTNL to Compete The 4G waves
BSNL is one of the biggest internet service provider in India and Bharat Fiber (FTTH) is a unique technology being deployed by BSNL for the first time in India. The digital divide is going to further reduce with this innovative move of BSNL - Digital Gram Sewaks to deliver BharatFibre services with the high speed optical fiber based internet in rural sector.
The Modi government is considering seriously for the revival of the two state-owned telcos- Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited (MTNL), with the turnaround of #BSNL being devised by Department of Telecommunications, Government of India & BSNL India includes allotment of 4G spectrum & offering lucrative voluntary retirement scheme (VRS) to willing staff with attractive benefits.
According to a senior official, reduction of retirement age or laying off employees is not at all being considered. BSNL denies any such media appearances in this regard. The report also says, adding that the entire scheme would be optional and those attaining 50 years of age voluntary opt for it.
As per the record, BSNL had 1.72 lakh employees while MTNL had a headcount of 22,000. The VRS scheme for BSNL and MTNL will have a revenue impact of Rs 6,365 crore and Rs 2,120 crore, respectively, as per government estimates. It is estimated that 16,000 MTNL employees and 50 per cent of BSNL staff will retire in the next 5-6 years. The board of Bharat Sanchar Nigam Ltd (BSNL) has cleared a proposal to let go of close to 54,000 employees approx.., which is about 31% of the total work force.
The reason for the revival is, the revenue to wage ratio in case of MTNL has increased to 90 per cent while in the case of BSNL it is about 60-70 per cent, Now, the telecom ministry will seek approval from the Election Commission to move its Cabinet proposal offering VRS for MTNL and BSNL employees, a government official told reporters.
“Upon receiving necessary approvals, we will be able to launch high-speed 4G-Long-Term Evolution (LTE) services very soon,” BSNL chairman Anupam Shrivastava said, adding that the telco is initiating Pan-India trials on the existing 3G spectrum or the airwaves in 2100 Mhz band. The department has already sought regulator’s views on the 4G spectrum allocation to the two service providers.
The DoT plans to fund the VRS through issue of 10-year bond. The bonds would be paid back by lease revenue that they will get from land asset monetisation. Both telecom firms have requested the government to grant VRS for employees on the Gujarat model, which is highly successful and win-win ratio for the employees as well as for the organisation.
Under the Gujarat model, an amount equivalent to 35 days of salary for each completed year of service, and 25 days of salary for each year of service left till retirement is offered. The exact number cannot be determined as it is a voluntary scheme and cannot be forced on employees, the official added.
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