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The staff costs at BSNL is at 38.4% of the total revenue in FY23 while it is only 1.8% for Reliance Jio, 2.3% for Bharti Airtel and 4% for Vodafone Idea

BSNL considers network upgradation, staff costs rationalisation to compete with private peers: Report

<h2>The staff costs at BSNL is at 38.4% of the total revenue in FY23 while it is only 1.8% for Reliance Jio, 2.3% for Bharti Airtel and 4% for Vodafone Idea</h2>

The government is considering several measures, including network upgradation and employee cost rationalisation, to improve operational efficiencies in Bharat Sanchar Nigam Ltd (BSNL) to help the state-run telco compete with its private peers, reported The Economic Times. As per the report, the measures that were proposed also include enhancement of sales and distribution and providing more value-added services.
<h3>BSNL Employee Cost</h3>
Employee cost rationalisation would include reducing the employee cost benefits which is key for the loss-making public sector telecommunication company, as per the report.&nbsp;
"We have to benchmark employee expenses with other telecom operators," one of the officials told The Economic Times.
Also Read: <a href="https://www.editorji.com/business-news/bsnl-revival-package-cabinet-approves-89-000-crore-1686146356991">BSNL revival package: Cabinet approves ₹89,000 crore</a>
As per The Economic Times, the staff costs at BSNL is at 38.4% of the total revenue in FY23. It has to be noted that the cost is still very high despite 78,323 people taking voluntary retirement after 2019. The staff cost covered over 70% before the 2019 revival package. BSNL currently employs around 59,000 people
"The employee cost has come down after VRS, but it remains high compared to private telcos, impacting the profitability of the company," an Official told The Economic Times
Meanwhile, the employee cost at the country's leading telecommunication company Reliance Jio is around 1.8% of its revenue while that of Bharti Airtel is about 2.3%. Even Vodafone Idea which is struggling financially has an employee cost of 4%.&nbsp;
"This is sharply higher when compared to private telecom operators," a second official told The Economic Times.
The government is also working towards enhancing the productivity of BSNL staff. BSNL and Department of Telecommunications (DoT) had signed a Memorandum of Understanding to improve the working culture in the state-run firm. A key performance indicators (KPI)-based management system was put in place to measure the productivity of the staff.
<h3>Network Upgradation</h3>
The Public Sector company is also lagging behind network upgradation. As per The Economic Times, BSNL, which ended December with close to 92 million users, is yet to start 4G services and is steadily losing subscribers to rivals such as Jio and Airtel that have almost completed their 5G rollouts.
&nbsp;

A statement by the government says that this revivial package will help BSNL emerge as a stable telecom provider. 

BSNL revival package: Cabinet approves ₹89,000 crore 

A statement by the government says that this revivial package will help BSNL emerge as a stable telecom provider.&nbsp;

State run teleocm operator Bharat Sanchar Nigam Ltd (BSNL), has received a revival package of ₹89,000 crore from the Cabinet.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the third revival package for BSNL. This includes allotment of 4G/5G spectrum for BSNL through equity infusion.
As per a government press release, this revival package is expected to help BSNL emerge as "a stable telecom service provider focused on providing connectivity to remotest parts of India".&nbsp;
BSNL has been facing turbulent times due to being battered by competition from rivals such as Reliance Jio, Bharti Airtel, and Vodafone Idea, all of which offer low-cost 4G voice calls and data to customers. Revival packages for BSNL
This, however, is not the first revival package for BSNL announced by the Centre. Before this, the government approved the first revival package in 2019 worth Rs 69,000 crore.
The Centre also announced a revival package for BSNL in July 2022 worth Rs 1.64 lakh crore to provide 4G and 5G services to turn the telecom PSU into a more profitable organisation. The package comprised cash component worth Rs 43,964 crore and non-cash component worth Rs 1.2 lakh crore spread over a duration of 4 years.&nbsp;

Initially, the BSNL network will function like 4G. With a very minor software change, this will become 5G very soon, around November or December

 BSNL 4G to go live in next 2 weeks; 5G by December: Vaishnaw

Initially, the BSNL network will function like 4G. With a very minor software change, this will become 5G very soon, around November or December

BSNL has started rolling out of 4G network with 200 sites, and after a three-month trial, it will launch an average of 200 sites per day, Union IT and Communications Minister Ashwini Vaishnaw said on Wednesday.
The minister said the 4G network of BSNL will be upgraded to 5G by November-December.
"The 4G-5G telecom stack we have developed in India. That stack deployment started with BSNL. Between Chandigarh and Dehradun, 200 sites installations have been done and within the next maximum of two weeks, it will go live," Vaishnaw said.
BSNL has placed an advance purchase order of over Rs 19,000 crore with Tata Consultancy Services and ITI Limited for the deployment of a 4G network, comprising more than 1.23 lakh sites.
"The speed at which BSNL will deploy, you will be surprised. After testing for three months, we will be doing 200 sites a day. That is the average at which we will go. BSNL network will work initially like 4G. Very soon, somewhere around November- December, with a very small software adjustment this will become 5G," Vaishnaw said.
He was speaking to reporters after commissioning the 2,00,000th site in Gangotri along with Uttarakhand Chief Minister Pushkar Singh Dhami.
"We had set a target to have around 1.5 lakh sites by December 31, 2023. Already 2 lakh sites have been completed, I feel by December 31, it should be more than 3 lakh sites," Vaishnaw said.
He said that countries like the US have started deploying made-in-India telecom technologies.

BSNL and Bharti Airtel will set up 23 new mobile towers in Tawang.

Tawang: Indian govt decides to install more mobile towers after clash with Chinese soldiers

BSNL and Bharti Airtel will set up 23 new mobile towers in Tawang. The district administration had reportedly asked for 43 new towers.

Days after revealing that Chinese soldiers tried aggressive manoeuvres in Arunachal Pradesh's Tawang, the Indian government has decided to install more mobile towers in the area to improve connectivity.
BSNL and Bharti Airtel will set up 23 new mobile towers in Tawang. The district administration had reportedly asked for 43 new towers.
"The existing towers were not giving the desired services, causing problems not only for the defence forces but also the civilians living along the border," Tawang Deputy Commissioner KN Damo said.
Earlier, there was no mobile network in the border areas but the situation has changed now with residents enjoying internet service and mobile connectivity even at Bum-La and Y-Junction but more improvement is needed, he added.
Also read|<a href="https://www.editorji.com/india-news/india-china-tawang-clash-former-army-chief-china-makes-such-attempts-every-year-1671038834196">India-China Tawang clash | Former army chief: China makes such attempts every year</a>
The officer said that all preparations are in place for installing the new towers, but winter would pose a challenge, which might get the process delayed.
Though the hilltops of the district have been receiving snowfall, the headquarters town witnessed snowfall first time on 18 December 2022 with the mercury plummeting to (-)3 degrees Celsius.
(With PTI inputs)

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