BSNL posts a massive Rs 1,822 cr loss
New Delhi, Aug 19: Public sector telecom company BSNL Ltd has posted a net loss of Rs 1,822.65 crore in the financial year 2009-10, said the Minister of State for Communications and Information Technology, Sachin Pilot in the Rajya Sabha.
The losses have been due to reasons like fall in wireline subscribers, higher expenses due to increased remuneration to employees and reduction in telecom tariff by the company, he said.
The company saw a decline in Average Revenue Per User (ARPU) due to the reduction in telecom tariff. There was a fall in wireline subscribers due to increased customer preference for wireless phones resulting in losses in the year.
The company also had to implement a wage revision for employees in accordance with the recommendations of Wage Revision Committee, which alone caused an additional expenditure of Rs 2900 crore in 2009-10 over the previous year, due to the payment of arrears for the period January 2007 to March 2010.
There was also an increase in depreciation due to amortization of one time spectrum fee for 3G and Broadband Wireless Access (BWA) service. BSNL has been undertaking efforts like revitalizing the businesses like creating a separate vertical for New Business focusing on growth in Mobile, Broadband and Enterprise segments, improving sales, distribution, product management, pricing, customer service and revenue assurance activities.
The company has also undertaken an organisational restructuring effort with the help of consulting firm Boston Consulting Group (BCG) to provide end-to-end focus on key growth segments and to clearly define accountability for different businesses and functions at all levels of the organization.
New Delhi, Aug 19: Public sector telecom company BSNL Ltd has posted a net loss of Rs 1,822.65 crore in the financial year 2009-10, said the Minister of State for Communications and Information Technology, Sachin Pilot in the Rajya Sabha.
The losses have been due to reasons like fall in wireline subscribers, higher expenses due to increased remuneration to employees and reduction in telecom tariff by the company, he said.
The company saw a decline in Average Revenue Per User (ARPU) due to the reduction in telecom tariff. There was a fall in wireline subscribers due to increased customer preference for wireless phones resulting in losses in the year.
The company also had to implement a wage revision for employees in accordance with the recommendations of Wage Revision Committee, which alone caused an additional expenditure of Rs 2900 crore in 2009-10 over the previous year, due to the payment of arrears for the period January 2007 to March 2010.
There was also an increase in depreciation due to amortization of one time spectrum fee for 3G and Broadband Wireless Access (BWA) service. BSNL has been undertaking efforts like revitalizing the businesses like creating a separate vertical for New Business focusing on growth in Mobile, Broadband and Enterprise segments, improving sales, distribution, product management, pricing, customer service and revenue assurance activities.
The company has also undertaken an organisational restructuring effort with the help of consulting firm Boston Consulting Group (BCG) to provide end-to-end focus on key growth segments and to clearly define accountability for different businesses and functions at all levels of the organization.
News Posted: 20 August, 2010
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