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BSNL awards Rs 132-crore deal to America’s BCG for revival strategy; employees criticize it as ‘futile’

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In Short:

BSNL has hired American Boston Consulting Group to help revive its business and compete with private telecom operators. The 34-month deal involves BSNL paying BCG Rs 132 crore for consultancy services. The focus is on achieving government-set targets, improving service delivery, and modernizing sales and marketing strategies. BSNL employees’ union has criticized the move, arguing that previous consultants haven’t helped the company’s deteriorating condition.

BSNL Ropes in BCG for Revival Strategy

Government-owned Bharat Sanchar Nigam Limited (BSNL) has entered into a 34-month deal with Boston Consulting Group (BCG) to devise a revival roadmap to compete with private telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea.

Consultancy Services and Expected Outcomes

BSNL will pay BCG Rs 132 crore for its services to help achieve government-assigned targets, strengthen business segments, leverage new technologies, reduce costs, and improve service delivery according to industry standards. BCG will also receive performance incentives.

Revival Strategy Phases and Targets

The first phase will focus on reviving BSNL’s consumer fixed access, consumer mobility, and enterprise business verticals. BSNL aims to increase its revenue from operations to Rs 35,960 crore by FY28 and achieve an EBITDA of Rs 12,110 crore.

Improvement Areas and Strategies

BSNL plans to enhance its network quality, capture 4G subscribers through digital sales and marketing, and reduce operating expenses annually in line with industry best practices.

Employee Union’s View

The BSNL Employees Union has expressed concerns over the engagement of consultants like BCG, citing unnecessary expenditure and underutilization of existing talent within the organization. They urge management to leverage internal resources effectively.

Future Implementation

BSNL may consider implementing the recommendations in phases, starting with 10 circles and expanding country-wide. The TCS-led consortium and ITI Limited are currently working on deploying a homegrown 4G network for BSNL.

Government Support for BSNL Revival

Recent statements from the Telecom Regulatory Authority of India indicate positive developments for BSNL and Vodafone Idea after receiving financial support from the government to enhance competitiveness.

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