Category Archives: Telecom

Issues connected with telecom matters

Is the government moving for sale of MTNL ? Defeat it with all our might!

23 Monday Apr 2018

Posted by in Telecom

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The financial sharks and corporates are pushing the government for sale of MTNL. Arguments in favour of the same are given wide publicity. Such a report from the Financial Express is given below. Unless there is strong opposition and fight, the government may move in that direction. Eternal vigilance is required.

” Sources told FE that closing MTNL’s operations is feasible from all angles barring one — it has a huge staff strength of 27,919 which needs to be taken care of. (PTI)
As state-owned Mahanagar Telephone Nigam (MTNL), which provides telecom services in Delhi and Mumbai circles, continues to struggle with declining revenues and mounting losses in a fiercely competitive market, the government is finally exploring the option of shutting down the debt-laden firm and monetise its land, buildings and tower business. What has forced the government to explore the option is that MTNL’s 20-year licence fee will come up for renewal in April next year, which would require the company to pay an unaffordable Rs 11,000 crore.

Sources told FE that closing MTNL’s operations is feasible from all angles barring one — it has a huge staff strength of 27,919 which needs to be taken care of. Barring the group A officers who are mostly Indian Telecom Service officers on deputation from the department of telecommunications, bulk of the workforce belongs to the company and this segment would resist any attempt of closure. As far as the firm’s mobile subscribers are concerned, they can easily port out to other operators which has happened of late when some private operators shut down their services. MTNL’s landline business can be assigned to fellow PSU, BSNL which currently does not have presence in Delhi and Mumbai.

In the past, different governments explored the possibility of merging MTNL and BSNL and creating one single company but it could not fructify because of HR-related issues. Any merger is not possible today because even BSNL is incurring losses for the past 5-6 years and is saddled with a huge workforce. Unlike BSNL, the land and real estate asset of MTNL can be monetised as their ownership vests with the company. It has a total of around 2.5 million sq ft of commercial land and 4 million sq ft of residential assets, spread over the two cities and a large part of these can be monetised either through sale or leasing for commercial purposes.

In fact, some time ago, the company had got a valuation of its property done by the real estate consultancy firm Jones Lang LaSalle, which had said that it can raise around Rs 4,000 crore through a combination of selling its land bank and leasing its buildings. A look at the company’s financials prove that it is beyond redemption. Its employee cost is at an unsustainable level of close to 100% of its revenues. Its losses are more than its revenue — the company reported a net loss of Rs 2,941 crore in 2016-17 while revenues were at Rs 2,870 crore (see chart). It is meeting annual interest costs of about Rs 1,500 crore by taking more loans.

In its annual report for 2016-17, the company acknowledged the danger its handicap and protrayed a bleak outlook by saying:“Because of high leverage and heavy repayment schedule of loans as well as interest payment to banks and financial institutions in the coming years, there is possible risk of liquidity crunch in near future, which will be a great threat to MTNL to keep it as ongoing concern in near future”.

The company has already conveyed to the department of telecommunications its inability to provide over Rs 11,000 crore by April next year to pay for one-time spectrum charges and other fees to the government to renew its 2G licences. Being in a debt trap of Rs 19,510 crore as on March 31, 2017 (including Rs 4,533.97 crore of the bonds, the liability for interest and principle of which are with the Centre), it is not even in a position to meet the capex requirement to upgrade its telecom infrastructure.

The policy of the NDA government has been to get rid of non-viable units and invest its scarce resources on developmental programmes. As per this policy, the Niti Aayog has recommended winding up over two dozen ailing PSUs, many of which are currently under the closure process.In order to facilitate the process, the settlement of statutory dues and payment to secured creditors are now being completed within two months after the Cabinet approval. It has set timelines for the disposal of movable assets, sale of land and retrenchment of employees not opting for voluntary retirement scheme (VRS) to fast-track the closure of sick PSUs.

MTNL has land and buildings at premium location in Delhi and Mumbai which could fetch a substantial amount, if monetised. According to the annual report of MTNL, the gross value of its property, machinery and equipment were about Rs 10,000 crore on March 31, 2017.

According to the department of public enterprises’ guidelines issued in FY16, the sick units would be closed within one year from the date of issue of minutes of the Cabinet approval. However, the process practically drags on for years. The Centre holds a 56.9% stake in MTNL, Life Insurance Corporation 18.81% and the balance stake is with the public.”

NTP 2018 is in the final stage

09 Monday Apr 2018

Posted by in BSNL, Telecom

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The National Telecom Policy is being finalised by the Dept. of Telecom and will be submitted to the government within one month as per press reports. There is no doubt that it will be in favour of the private telecom companies and especially for Reliance Jio. Each earlier NTP has been against the interest of BSNL and in favour of private companies and nothing different is expected from this one. What else can be expected from the Modi Government?

Warm Greetings on BSNLEU Foundation Day, 22nd March 2018.

22 Thursday Mar 2018

Posted by in BSNLEU, Telecom

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(Com.V.A.N.Namboodiri, GS, E.III(N) Union presenting the report at the Visakhapatnam Conference.)

BSNLEU is 17 years old. BSNL Employees Union, the majority recognised union of the BSNL workers, was formed on 22nd March 2001, in the National Convention of eight telecom unions held at Visakhapatnam, in the presence of Com. E.Balanandan, President of CITU and one of the greatest working class leaders India has seen.

Though started with about 50,000 – 60,000 workers, it grew to be the biggest union in BSNL with more than one lakh workers, despite the fact that there was no recruitment and thousands were retiring every year. This was a herculean task, but the united team of the BSNLEU leadership made the impossible in to possible.

BSNLEU as the recognised union separately, and also jointly with other unions, both executive and Non-executives, defeated the nefarious designs of the central government, both NDA and UPA, to disinvest BSNL, retrench about one lakh workers through VRS, unbundle the precious copper cables and so on. BSNLEU took the initiative to form the Joint Forum of the Unions and Associations, under which organisation, the battles were fought and the anti-worker decisions of the government defeated.

BSNL and its workers are  facing serious challenges to their existence. The neo-liberal policy initiated by the Congress government in 1991 and aggressively being implemented by  the present BJP government is making it difficult for the PSUs to sustain and grow. The NDA government as per the recommendations of the NITI Ayog is moving for privatisation of about 70 PSUs this year, in which the name of BSNL is also there. Wage revision due from 01-01-2017 is being denied. To destabilise BSNL, a Tower Company is being formed, taking away the towers of the company, which will seriously dent the existence of BSNL. Pension Revision is also delayed / denied. However, after two days strike and massive Sanchar Bhawan March, the Secretary  DOT and Minister has come forward for discussion and positive development is taking place on these issues. Sustained effort and struggle will be required to achieve the above demands.

The two associations, AIBDPA and BSNLCCWF formed at the initiative of BSNLEU has grown and strengthened. The demands of the workers, the pensioners and the casual contract labours are interconnected and inseparable. That is why united struggle.

It is in this situation that the workers are observing and celebrating the 18th Foundation Day of BSNLEU. Various programmes, including meetings and rallies are being held all over the country, observing BSNLEU Day. Let us remember our past struggles and sacrifices so that we can advance with more vigour, determination and strength.

BSNLEU Zindabad!

Workers Unity Zindabad!

No Restrictions on Promotional Offers – TRAI

19 Monday Feb 2018

Posted by in General, Telecom

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The TRAI has issued instructions ending the restrictions put on the promotional offers by the telecom companies. It is clear that this position is taken by the TRAI only to help Mukesh Ambani owned Reliance Jio, which was offering several packages violating the then existing TRAI orders. Now free hand is given to Reliance Jio for its predatory tactics. The TRAI statement says:

“The authority is of the view that no restrictions need to be imposed on the number of promotional offers that can be simultaneously launched and time lag between same or similar promotional offers in a licensed service area. Restrictions may not be in the interest of consumers apart from possibly hindering competition.”

Mukesh Ambani seems to be the central point on which every decision is being taken by the TRAI. How absurd!

2G Spectrum scam case dismissal – BJP and Congress governments responsible

22 Friday Dec 2017

Posted by in General, Spectrum, Telecom

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The CBI Special Court has acquitted all the accused in the 2G spectrum scam case, including former Communications Minister A.Raja and DMK M.P.Kanimozhi. The judge has stated that the prosecution utterly and miserably failed to prove the charges.

There is nothing much to get surprised. The UPA government wanted to save its face and Prime Minister Manmohan Singh and went slow in the matter. BJP, which during the last general election utilised the scam effectively also went slow after winning the election.

The main reason? In addition to the political leaders there are many corporates and telecom companies in the list of accused. Besides Raja and Kanimozhi, there were other accused like Shahid Balwa, Vinod Goenka, Asif Balwa, Rajiv Aggarwal, Karim Morani, P. Amirtham, M.K. Dayalu Ammal and Sharad Kumar. The charge sheet filed by the ED had also named the following nine companies as accused- Kalaignar TV, STPL (now Etisalat DB Telecom (P) Ltd), Kusegaon Realty (P) Ltd, Cineyug Media & Entertainment (P) Ltd, Dynamix Realty, Eversmile Construction Company (P) Ltd, Conwood Construction & Developers (P) Ltd, DB Realty Ltd and Mystical Construction (P) Ltd (earlier known as Nihar Constructions (P) Ltd).

NDA government wants to tag in DMK. It also wants that no wrong message goes to the corporates that the government is against the interest of the corporates.

Hence even after 7 years of continuous sittings by the CBI court, three years under UPA and four years under NDA, no important evidence was presented by the CBI to ensure that the accused are punished. It is once again proved that corporates’ interests are more important than political interests.

National Telecom Policy 2018 by next year – Communications Minister

21 Thursday Dec 2017

Posted by in BSNL, Telecom

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The government is looking to finalise the National Telecom Policy 2018 by March next year, Communications Minister Manoj Sinha informed Parliament today.

“The Department of Telecommunications envisages to formulate a new National Telecom Policy in view of rapid technological advancement in the sector. The work on formulation of the National Telecom Policy 2018 has been initiated and is targeted to be finalised by March 2018,” Sinha said in a written reply to the Lok Sabha.

He said that several working groups have been constituted on different themes for this purpose.

DoT officials have earlier said that the draft of the new telecom policy will be placed in public domain for seeking their views.

The DoT has formed 13 working groups to prepare a draft of the National Telecom Policy. (New Delhi, Dec 20 (PTI)

National Telecom Policy 2018.

28 Saturday Oct 2017

Posted by in BSNL, Spectrum, Telecom

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The government is in the process of formulating the National Telecom Policy 2018, it is reported.

The National Telecom Policy 1994, initiated private entry in Telecom. NTP -1999/2000 gave many subsidies to the private operators. NTP-2006 continued the same policy and in fact resulted in cancellation of BSNL tenders for mobile lines. What will the proposals in the NTP – 2018? May be more benefits to the private operators and injustice and ignoring the PSUs BSNL and MTNL?

In his letter to Com.V.A.N.Namboodiri, Convener Joint Forum and General Secretary BSNLEU, dated 04-01-2006, just before the start of the strike on 4/5 January, then Secretary DOT has given written assurance that “the views of the union will be duly considered as and when the draft of the telecom policy is formulated.” This was in addition to the assurance that there will be no disinvestment of BSNL and also that there will be no unbundling of the copper cables. The strike was withdrawn on the basis of these assurances in the last minute.

As such, the government is committed to hear the views of the unions/associations in BSNL on the formulation of the next Telecom Policy which is expected by next year.

Private entry inside BSNL infrastructure – Oppose and defeat the sinister move

13 Wednesday Sep 2017

Posted by in BSNL, Telecom

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The DOT and the central government have always been moving to share the infrastructure of BSNL for the benefit of the private telcos. Years back, DOT gave permission to private telecom companies to construct/install their towers on the BSNL buildings. It was defeated by the workers by blocking the private telecoms from entering the premises and strong protest from the unions.

Next, there was move to unbundle the valuable copper cable all over India and share it with the private operators. A complete strike was organised and the DOT was compelled to give a written assurance that there will be no unbundling and no disinvestment.

Now the government has decided to form the Tower company, which will cripple BSNL and its revenue. Further, once the company is formed, it will be independent and will take decisions which will be completely in the interest of the private companies. It will be just like the priority given to private airlines in the routes ignoring Air India, the PSU. BSNL will get the least benefit from the new Tower company, which will be at the behest of the private companies as per the direction of the government.

The story of the Arab and the Camel, where the former was completely kicked out of the tent by the latter, will be the result. The united force of the workers saved our copper cables and in the same way we should be able to save our towers.

The decision of all the unions/associations to meet on 15th and discuss the issue and plan the course of action is timely. The government move to form the Tower Company should defeated at the initial stage itself.

Next round of Spectrum Auction soon – TRAI

29 Tuesday Aug 2017

Posted by in Spectrum, Telecom

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The process for the next round of auction of Spectrum (air-waves) is expected shortly. TRAI has given indication in this direction. Spectrum in almost all category is available. Last time, the government got Rs. 65,789 crore in the auction.

The government should concede the demand of the BSNL and the Unions for allotment of spectrum free, considering that BSNL is a 100% government company and is short of funds at present. It is serving the people in all parts of the country, including lakhs of remote villages, where the private companies are shy of providing service due to high costs and losses.