FORUM OF BSNL UNIONS / ASSOCIATIONS

D-7, Telegraph Place, Gole Market, New Delhi – 110 001.

PressRelease                                                                                                                                                                             10^th May, 2013

 On Revival of BSNL

 The Forum of BSNL Unions / Associations has submitted a Memorandum to the Group of Ministers appointed to look in to the revival of BSNL & MTNL, the Public Sector Telecom Companies.

Considering the fact that BSNL is a 100% govt. owned company, that the transition from a govt. department to a PSU where cut throat competition exists from the private operators resulting in financial difficulty as also that BSNL is the only telecom company providing the land lines and also majority of mobile lines in the lakhs of villages and remote areas which are loss making, as part of the govt. policy of providing universal services, the following proposals / demands have been included in the Memorandum.

The top management, which mainly belongs to the ITS officers are at present on deputation to BSNL. They should either be absorbed in BSNL or repatriated back to DoT to ensure efficient and committed leadership. Recruitment of capable management personnel as also promotion of efficient officers are required.

Compensation for loss-making rural services should be ensured. For this purpose, the ADC which was stopped some years back should be restored and liberal assistance from USO Fund should be provided.

The main reason for the loss for the last four years for BSNL is the equipment crunch. The cancellation of the 45.5 million mobile lines in 2007 was the starting point. Further, cancellation of 95 million lines, twice cancellation of 5 million lines etc. crippled BSNL in providing new connections. Had the mobile lines made available, BSNL could have well competed with private companies as it was doing well till 2007. Hence, it is necessary that a mechanism for procurement of equipment should be evolved enabling quick purchases, of course, ensuring accountability.

BSNL should be reimbursed the Rs.18,500 crore of licence fee charges for 3G and BWA spectrum, since it was imposed on BSNL without giving any opportunity to select the circles etc. It has already offered return of the BWA spectrum. The govt. should not wait for the re-auction for refunding the amount.

A very huge amount is collected by govt. for BSNL towards pension contribution. While the govt. had already issued orders to collect pension contribution based on the actual basic pay of the employee, pension contribution from BSNL is collected on the maximum of the payscale, which is unfair causing a huge burden on BSNL. This should be rectified and contribution on the actual basic pay only should be collected.

The govt. has collected interest at the high rate of 14.5% and penalty from BSNL towards a notional loan of Rs.7,500 crores (which was never given to BSNL). This should be refunded to BSNL and the injustice undone.

BSNL should be exempted from payment for the additional spectrum already granted. It should be mandatory for all Central, State govt. departments and PSU to take telecom services from the PSUs BSNL & MTNL as was directed in case of Air India. This will address the security concerns also.

The 7 telecom factories under BSNL should be modernised to manufacture telephone instruments modems, batteries, cables, optic fibre cables etc. so that the huge prices being paid to private companies can be reduced and the available staff in these factories can be fully utilised.

The Forum has also demanded that the Telecom Advisory Committee (TAC) at all levels be disbanded which has outlived its utility in the present competitive situation and is only causing huge expenditure to BSNL.

The Forum has expressed its strong protest against any proposal for disinvestment or for VRS, which will only destabilise the BSNL, as is clear from the experience of MTNL, where VRS and disinvestment have taken place more than once.

Many other suggestions for reviving the BSNL, improving its service and restoring its earlier position have been included in the memorandum. Copies of the memorandum has also been submitted to Prime Minister, all members of the committee including Communication Minister, Secretary DoT and CMD BSNL.

Forum of BSNL Unions / Association requests the Group of Ministers and the govt. to consider the above suggestions and take positive decisions so that BSNL will be revived and strengthened.

V.A.N.Namboodiri Convener

Mob: 9868231431