For the defence of the country, an efficient army ( including Navy and Airforce ) is required. For an efficient army,  disciplined and well-trained personnel are required. At the same time, it is also most important that the army is well equipped with the latest and strategic arms and ammunitions.

It is not much different with BSNL. For growth and expansion, for better and efficient service, the procurement of the necessary equipment has got an important role. The latest technologies should be used in order to give the required service to the customers. Communication is one sector, which has grown by leaps and bounds, with latest technologies being invented one after another. It is said that those who lived in the 20th century belong to a generation which has seen unlimited inventions which have changed the world, which never happened for many centuries. And Telecommunication has been one sector in which these latest inventions have taken place.

Telephones, though invented in 1870s and applied for the use of the common people  in India in the 1890s only, it has changed from the Magneto exchanges to Central battery system to auto exchanges and then to electronic system one after another in quick succession. In the transmission, switches, cables, airwaves, the progressive changes have been beyond description. Technologies changed quickly. Now multiple technologies exit and are used for the communication services.

Can BSNL survive in the fierce competitive atmosphere in a casual manner, and without adapting to the new situation. In this, procurement of sufficient equipment of latest technology is required. But  unfortunately, BSNL top management has utterly failed in this respect. As mentioned earlier, the anti-PSU policy of the government also had a role in this.

The BSNL revenue started reducing after 2007-2008 not because the market was not there, but sufficient equipment was not purchased to meet the huge requirement. BSNL has been growing in the mobile sector, till 2006-2007. Out of a population of more than 100 crore, only 50 % had mobiles and 50 crore market existed. The 45.5 million mobile tender floated by BSNL was suited to meet this requirement. But it had to face legal hurdles created by private companies, apathy on the part of the management and a negative attitude from the government. However all the hurdles were over by about two years and the purchase was to be made which would have armed BSNL to march ahead and conquer a good market share in the mobile section.

The government, fully aware that the growth of BSNL would have a negative effect on the private companies and MNCs which it wanted to favour, reacted immediately. It directed the BSNL to see that the tender is cancelled and the BSNL Board, even without a protest, just like ‘Masters Voice’ cancelled the tender, though there was no written direction from the government. It should have fought for getting the equipment purchased on the basis of the tender. It was only through a complete successful one day strike on 11th July 2007 on the call of the Joint Forum of BSNL Unions/Associations that at least half of the tender, 22.5 million lines were procured. It helped BSNL to escape from complete stagnation.But that was only a temporary solution. (to be continued)

At the time of corporatisation, Govt. assured that BSNL will have to pay Licence Fee, but the same will be reimbursed to the latter. What was the basis on which this reimbursement was decided by the government?

As per procedure, it may be necessary that Licence should be taken for providing the telecom services, after private companies also were allowed to provide services. As long as Govt. /DOT alone was the telecom service provider, it was not necessary. The licence is intended to regulate and control the services by the private operators, since the government has its mechanism for its departments.

But why the government takes Licence Fee from its own companies? BSNL is not working to amass wealth or maximise profit, but is functioning for implementing the policy decisions of the government in the telecom sector for universal service as also for security of the country and its people. How can such a PSU be equated with the private telecom companies whose main aim is to increase their profit, evade the taxes as much as possible and even cheat the government and also public through fraudulent methods. A large number of cases have already been exposed. Whether it is non-payment of huge income tax by Vodafone, cheating in providing roaming services without licence for the particular circle or providing SLD / ISD services by the Reliance, Idea and Airtel or cheating by converting the SED/ISD/STD calls in to local calls for avoiding higher taxes – it has been a continued process of avoiding tax and licence fee. Whether one such instance can be shown on the part of BSNL or for that matter MTNL, the two government companies?

Due to certain policy decisions, these PSUs have been formed. If they had continued as government services, there would not have any necessity to pay the Licence Fee. The correct policy should be that the government telecom company need not pay Licence Fee, tax etc. When there is profit, dividend can be paid and for the first six-seven years when there was profit, the dividend and  taxes have also been paid.

BSNL is in loss now for the last four years. It was the cancellation of the mobile equipment and non-procurement of other equipment also that was the main reason for the present situation.

Taking all the above issues in to consideration, no Licence Fee should be charged from the BSNL and MTNL, at least till the present crisis is over. The government can stop the system of Licence Fee for BSNL and MTNL or at least waive the same till the financial crisis is over.

The Forum of BSNL Unions / Associations have demanded the cancellation of Licence Fee for BSNL and it wants the GoM of Revival of BSNL to take the positive decision in this matter.