Category Archives: Telecom

PWD, TELEGRAPHS, P and T, DOT, BSNL, MTNL, VSNL – A LONG JOURNEY

17 Tuesday Mar 2020

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The Telecommunications services in India had a very long journey through the centuries.

Telegraphs was part of the Public Works department in 1951. Separate Department of Telegraphs was opened in 1954. There were one Superintendent in  Delhi and  three Deputy Superintendents at Bombay, Madras and Pegu (Burma) There were Inspectors at Indore, Agra, Cawnpore and Benares.

The Indo-European Telegraph Department ( later Overseas Communications) was administered by a Director-in-Chief from London. This was merged with the Indian Telegraph Department in 1888.

Postal Department was separate. In 1914, on the eve of the II World war, both the Departments were amalgamated and the new Department of Posts and Telegraphs was formed.

Posts and Telegraphs evoked keen interest among the people and also legislators. 152 questions were asked and replied in the Indian Legislative Assembly in 1923-24 alone. Separate accounting procedure was adopted for the four units of the Department viz. Postal, telegraph, telephone and wireless in 1925. During 1930-31 world economic recession, a large number of employees were retrenched. Pay scales were reduced.

P&T Department was set up as a welfare measure and profit was not the motto. 1950 saw a great change with the telephone services, of all the princely states, 196 exchanges,  being merged with the P & T Department. The staff of the princely states in telephones were merged with P&T Department. This was a major step in HRD. There was separate Budget for P and T.

Till 31st December 1984, Posts and Telegraphs was  one Department. However, by that time the separate Budget for P&T was already discontinued. On 1st January 1985, P&T was bifurcated in to two departments ie. Department of Posts and Department of Telecommunications. Telegraphs was part of Telecommunications.

In the 1986, MTNL was formed in carving out the  telecom services of metro cities Delhi and Mumbai as also VSNL was formed by corporatising  Overseas Communications. BSNL was formed in 2000 by corporatising the telecom services allover India, except in Delhi and Mumbai.

In 2020 VRS was implemented resulting in reduction of staff by about 50%. 78569 employees took VRS, leaving less tan that number in BSNL. The case is not different with  MTNL.

Telecom Services in India is completing 170 years. Govt is on the job of privatisation, though the Minister says that it will not be privatised or closed.

The destiny of BSNL  and MTNL now depends on the strength of the trade union movement to fight and defeat the govt’s anti PSU policy.

It is not a question of BSNL alone. It is the future of the entire PSUs that is in peril.

Fight and defeat the anti-worker, anti-PSU policy of the government.

 

 

Telecom Factory Circles merged with Territorial Telecom Circles.

14 Saturday Mar 2020

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Telecom Factory Alipore, Calcutta was the first telecom manufacturing factory in India, started by the British in the last decades of 19th century. TF Jabalpur was founded during II world war by transferring a portion of TF Calcutta, under threat of Japanese attack. The TFs at Bombay, Richai, Bhilai, Gopalpur and Kharagpur were started later in order to cater to the need of the ever increasing demand for telecom equipment. Telecom Stores were also opened nearby places to enable storing and supply of the equipments etc.

The Telecom Factories at Alipur, Gopalpur and Kharagpur was one Telecom Circle. Jabalpur, Richai and Bhilai was another circle. Bombay TF, the third circle. Telecom Stores was a separate Circle.

All these circles together had about more than 10,000 workers. A separate union for the P&T Industrial Workers were also there led by veteran leader Com. Sisir Bhattacharjee, which was one of the founder union of BSNL Employees Union in 2000.

The workers in all these units were reduced due to retirement and non-recruitment. The work in factories were shifted to private companies as part of neo- liberalisation policy. BSNLEU put all out efforts for revival of TFs, but the govt and DOT continued their negative policy.

Now, all these Telecom Factories Circles have been merged with the respective territorial telecom circles like W.Bengal, Maharashtra and M.P. Telecom Stores Circle has already been merged with territorial circle earlier.

All telegraph offices, which were the communication nerve centres of govt, both British and Indian for a long time, were closed a few years back, despite strong opposition from BSNLEU, on the plea that since mobile services started, the telegraph services has become superfluous.

Telecom Factories are to be modernised and enlarged to manufacture equipment required for the present telecom services with required staff instead of discontinuing and destroying the same. Now TFs’ circle status only has been stopped and it needs to be ensured that they are modernised and not closed as telegraph services.

BSNL adds more customers than Jio in December, 2019.

26 Wednesday Feb 2020

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Ever since entering into the telecom market in September, 2016, Reliance Jio has been adding the maximum number of customers every month. However, in December, 2019, BSNL has beaten Reliance Jio. BSNL has added 4,27,089 customers in December, 2019, while Reliance Jio has added only 82,000 new customers. Vodafone has lost a whopping 35 lakh of it’s existing customers and Airtel has lost 11,000 customers, during the same period. This is the impact of all the private companies raising their tariff by 40% in December, 2019. BSNL has not raised it’s tariffs.

[Date : 26 – Feb – 2020 BSNLEU Website]

Three Decades valiant Struggles against privatisation of Telecom /BSNL – 1

09 Thursday Jan 2020

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Three Decades valiant Struggles against privatisation of Telecom /BSNL – 1

(A note on the sustained struggles organised by the Unions in Department of Telecom and later in BSNL, against corporatisation, privatisation and closure of the govt. telecom services since 1991, when the New Economic Policy of Liberalisation, Privatisation, Globalisation (LPG) started being implemented in India. This will be serially published).

Telecom is one of the most important infrastructure and service which helps to speed up development and growth of any country. During the last century, technological advances have been fantastic and telecom sector was no exception. In fact, the changes in telecom sector were beyond comparison.
At the time of Independence in India in 1947, there were only about 80,000 or so. India was far behind the developed countries. By 1980s, India was catching up, due to introduction of new technologies and expansion programmes. Magneto, Central Battery, Automatic etc. systems changed for electronic exchanges. Underground cables were laid all over the country. Number of employees rose to about 4.5 lakhs. The telecom revolution was going to start.
The combined Postal and Telegraphs Department was bifurcated in to Departments of Posts and Telecom. Telecom Commission was formed subsequently with more powers. Telecom became a highly profitable sector, with introduction of newer and newer technologies. Vast expansion was expected.
The collapse of USSR and consequent weakening of Socialist system changed the entire world scenario. Capitalist countries, with USA at the head, started dictating terms and conditions for other countries to follow. The trimurtis – International Monetary Fund (IMF), World Bank (WB) and World Trade Organisation (WTO)- worked as effective tools for the implementation of the new capitalist order.
Discarding its earlier motto of, ‘Socialist Pattern of Society’, the ruling Congress party had already shifted to the neo-liberalisation policy of Liberalisation, Privatisation and Globalisation (LPG). Massive Indian markets were opened for the MNCs to enter and garner huge profits. The greedy eyes of the MNCs have already focussed on Telecom, which was fully under the central government.
Athreya Committee Report -1991
The Athreya Committee, which was appointed to study the restructure of Department of Telecom, submitted its majority report in 1991, recommending corporatisation of telecom services as also privatisation. There was strong protest and outcry from the telecom workers and their unions. They very well understood that corporation / privatisation will be not only bad for the workers, but bad for the entire country. The entire telecom workers went on a successful One Day Token All India Strike on 31 December 1993 against the recommendations for corporatisation and privatisation. The government was compelled to shelve the proposal for corporatisation and privatisation for the time being. This was a big victory for the struggling workers.

(Will be continued).

BSNL plans outsourcing to make up for VRS retirement.

03 Friday Jan 2020

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78,569. It is the number of employees in BSNL, who have taken retirement through VRS and which will be effected by 31st January 2020.The retirement of such a large number of employees, more than 50% of the existing employees, will certainly adversely affect the service of BSNL. The AUAB and unions have demanded that the post VRS scenario and what to be done should be discussed with the unions. A detailed discussion is yet to take place.

In the meanwhile, management has issued certain instructions regarding outsourcing as also reduce the Business Areas by rearranging. Many small stations may be adversely affected, causing difficulty to the subscribers. BSNL is not for profit only, but it has a commitment to its subscribers and customers. BSNL management should urgently discuss all the post-VRS situation with the unions and find out effective solutions. Outsourcing work is a method of exploiting the unemployed and denying them the social benefits. Outsourcing should be transparent and according to the laws of the land.

BSNL Employees Union is always in the front of struggle

12 Saturday Jan 2019

Posted by in BSNLEU, Telecom, TU News

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BSNL Employees Union always was in the forefront of the strikes called by the Central trade unions. There were 18 general strikes including the 48 hours strike on 8-9 January 2019, against the anti-people anti- worker neo-liberal policy of the government since 1991.The dates of the strikes are given below:

  1. 29th November 1991
  2. 16th June 1992
  3. 9th September 1993
  4. 29th September 1994
  5. 11th December 1996
  6. 11th May 2000
  7. 12th March 2001
  8. 16th April 2002
  9. 24th February 2004.
  10. 29th September 2005
  11. 14th December 2006
  12. 20th August 2008
  13. 7th September 2010
  14. 28th February 2012
  15. 20-21 February 2013
  16. 2nd September 2015
  17. 2nd September 2016
  18. 8-9 January 2019

The strike was participated by the mainstream of the P and T workers since 1991, the first strike. After formation of BSNL, the workers participated as per the call of BSNL Employees Union. In the first strike, about 2 crore workers participated and in the last strike  it was participated by more than 20 crores.

The struggle goes on!

STRUGGLE FOR UNITY,

UNITY FOR STRUGGLE  and

UNITY AND STRUGGLE FOR PROGRESS!

 

Indefinite Strike by BSNL employees starts 0n 3rd December 2018

02 Sunday Dec 2018

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The Indefinite Strike declared by the All Unions Associations of BSNL (AUAB) starts tomorrow, 3rd December 2018. The massive meetings held in State and District head quarters by the AUAB were participated by hundreds of workers who declared that they will fully implement the decision to strike. BSNL services are going to a stand still.

The consumers / people will be put in difficulties, but the workers can’t help, since it is a question of existence of the telecom PSU and its employees. The employees are meeting the press, the consumers and all  those connected with the services  requesting full support.

The panicky DOT and BSNL management had started some discussions, but due to their unjustified and rigid stand, the workers are left with no alternative other than strike.

This is a Do or Die Battle and the workers  are ready for the same.

We demand the government to immediately intervene and discuss and concede the demands of the workers, which are fully justified.

Financial position of BSNL and MTNL – A report in the media.

25 Monday Jun 2018

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A report in the press regarding the financial position of BSNL and MTNL is given.Both the PSUs are in the list of NITI Ayog for privatisation or closure. The full responsibility of the loss and decline is only the result of the government to favour private telecom companies and downgrade telecom PSUs. The government which can ensure loans and concessions to the extent of thpusands of crores of rupees to Adani and Ambani has no inclination to help its own companies. Hence the present situation. The report in the press is given below:

“The prime minister’s office and the department of telecom have discussed a survival mechanism for telecom PSUs BSNL and MTNL whose revenue, market share and subscriber base continue to erode.

According to sources, under the plan 4G spectrum worth Rs 13,000 crore could be allotted to them shortly and the more vulnerable MTNL can hope to get about Rs 1,100 crore from the Centre for a fresh VRS package.

Official sources said the situation is more serious for MTNL as the listed entity is almost on the verge of breaking down, completely surviving on bank working capital loans for operations expenditure.

A few decisions are expected shortly and things could be expedited now onwards, sources said, adding that the prime minister’s office (PMO) has shown interest and concern over telecom PSUs, may be after the failure of Air India disinvestment.

Competition from private telcos, especially Jio, is breathing down their necks. As per an estimate, BSNL and MTNL need about Rs 18,000 crore immediate fund infusion for their continued operations, which includes 4G spectrum if government issues fresh equity in them.
Both the PSUs have sought 4G spectrum partly through equity routes which make the cost of spectrum for MTNL at Rs 6,500 crore for 10 Mhz in Delhi in 1800 band and 5Mhz in Mumbai in 2100 band.

BSNL needs 5 Mhz in 2,100 band for rest of India operations which too comes to about Rs 6,500 crore as 50 per cent of the cost of spectrum and the rest of the spectrum cost is expected to be covered through government equity.

While BSNL meets its opex and capex through borrowings and service revenues, MTNL needs government support for meeting working capital needs. It also needs Rs 2,800 crore interest amount reimbursement on an old loan taken for spectrum and Rs 1,100 crore for financing a VRS for 5,000 employees.

MTNL has a bloating staff strength of 30,000, while BSNL has over 2 lakh employees. The financials of MTNL is so bad that it is carrying on with working capital loans on a government guarantee.

MTNL had told DoT that it is operating under three main constraints — a high manpower numbering 25,000, a Rs 17,500-crore loan burden and lack of investment in the last seven years.

To tackle the manpower problem, MTNL had suggested the government to fund its VRS programme as and when it takes place since the majority of this 25,000 staff is from the DoT. The PSU has worked out that for offering voluntary retirement to 5,000 employees, it will need at least Rs 1,100 crore,

The PSU is saddled with a debt of Rs 17,500 crore, out of which the interest component is Rs 1,450 crore. MTNL had earlier written to the DoT to allow it to carve out the land &and buildings and the debt so that the MTNL balance sheet becomes debt-free, without putting any burden on the exchequer.

Air India, MTNL and BSNL are among the top five loss making PSUs in the DPE list.

MTNL’s debt stands at a staggering Rs 17,000 crore and its annual interest burden is close to Rs 1,450 crore. Bruised by competition from private sector players, MTNL’s losses stood at Rs 2,893 crore in 2014-15, Rs 2,005 crore in 2015-16, and Rs 2,970 crore in 2016-17.

Telecom minister Manoj Sinha, in a written reply to the Lok Sabha in February had pointed out that both BSNL and MTNL have been incurring losses for a number of years, and therefore have been declared as incipient sick according to the Department of Public Enterprises (DPE) guidelines.

BSNL’s revenues in FY17 declined to Rs 31,533 crore against Rs 32,411 crore. The PSU was hoping to turn the corner by being profitable in 2018- 19, which is now shifted to 2019-20, if it starts 4G services and the competition eases. Its net loss marginally narrowed to Rs 4,793 crore against Rs 4,859 crore in the previous fiscal..

The accumulated loss of BSNL has now swelled to over Rs 36,000 crore ($6 billion), with the company making losses since 2009-10.

While MTNL has a negative market share with subscribers declining every quarter, BSNL’s market share in mobile market is 10 per cent.”

Draft National Digital Communications Policy-2018

02 Saturday Jun 2018

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The Department of Telecom (DOT) has published the Draft of the “National Digital Communications Policy – 2018” a few days back. This is in continuation of its National Telecom Policy- 1994, National Telecom Policy – 1999 and NTP – 2012.

All the earlier NTPs have been approved with the intention of bringing private corporates in the telecom sector and weaken the government/public sector telecom. The new Policy, which is not NTP, but named “National Digital Communications Policy – 2018” is also in the same direction. There is no much assistance to the PSUs, BSNL or MTNL. There is no provision to give 4G / 5G to them. High words are used, but it all amounts to favouring the private corporates.

With BSNL and MTNL in the field, India is providing one of the cheapest service in the world. Destroy these PSUs, the people will have to pay at least ten times for the service being provide to them. The wolves and hyenas, the MNCs, are waiting their time for finishing the PSUs, with the tacit support of the government. It will be a catastrophe for the entire population of this great country. A serious struggle and movement by the workers with the support of the people alone is the remedy.

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

23 Monday Apr 2018

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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.”