Should BSNL Be Saved as a Telecom Company?

The debate over whether BSNL, the state-owned telecom company of India, should be preserved as a major player in the telecommunications sector has been heating up. The prospects of a potential closure by private players like Jio, Airtel, and Vodafone in the coming years have reignited this discussion. In this article, we will explore the arguments for and against the continuation of BSNL as a public sector unit (PSU) and analyze the key factors that influence this decision.

Supporting Arguments for BSNL’s Survival

Mixed Economic Outlook: Given the current economic landscape, where recessions are affecting Western countries but not India, it is important to recognize the role of a mixed economy. Both government-owned (PSUs) and private companies should coexist and compete to offer fair prices and better services. The government should serve as a brand ambassador for PSUs while promoting the private sector.

Responsibility During Economic Crises

Public-Private Sector Balance: In times of economic downturn, private companies may face difficulties, and the government-run PSU like BSNL could play a critical role. While some may argue that BSNL should not receive bailout funds from taxpayers, it is essential to consider the broader implications of its closure on the national economy and job market.

Challenges Faced by BSNL

Operational Issues and Governance: The decline of BSNL is partly attributed to poor corporate governance and management practices. Historically, the company has faced issues such as delayed payments by government organizations and political figures. These delays have led to a lack of capital, which in turn has hampered the company's ability to modernize and improve customer service.

Customer Experience and Service Delivery

Burdensome Processes: Customers have reported that setting up new connections with BSNL is a cumbersome process, requiring visits to their office and filling out complex forms. This stands in stark contrast to the convenience offered by private companies, where customers can easily obtain new services through franchises or online.

Poor Customer Service: The quality of customer service at BSNL has also been a recurring issue. This affects the trust customers have in the company and impacts its ability to attract and retain users.

Options for BSNL’s Future

Bailout and Revamp: One option could be to provide a bailout package along with a comprehensive overhaul of management and strategy. This would require a lengthy process and significant changes, but it could potentially revitalize the company.

Privatization: Another approach is to sell BSNL, but this would likely come with an extensive restructuring and loss of jobs. Even if a buyer is found, it would be a difficult process to mitigate the accumulated losses.

Retrenchment and Focus: A more pragmatic solution might be to phase out non-viable units, refocus BSNL’s operations, and sell off assets to cover losses. This strategy would require changes in management and operational strategies to make the company more competitive and customer-centric.

Conclusion

Whether BSNL should continue as a major player in India’s telecom sector is a complex issue that involves economic, social, and political considerations. While there are valid arguments for and against its continuation, it is clear that significant changes are necessary to align the company with the needs of modern consumers and to ensure its long-term sustainability. The government and stakeholders need to carefully consider the best course of action to safeguard the interests of both users and employees.