BSNL and BCG Ties up with 132 Crore Deal, Employee Union Calls It a “Futile Move”

BSNL and BCG Ties up with 132 Crore Deal, Employee Union Calls It a “Futile Move”

Boston Consulting Group (BCG) is developing a three-year roadmap for Bharat Sanchar Nigam Limited (BSNL) to help it compete effectively with private telecom giants like Jio and Airtel. BSNL will pay BCG Rs 132 crore for this advisory service. The consulting firm will advise BSNL on key areas such as reducing operational costs, increasing revenue, enhancing customer satisfaction, leveraging emerging technologies, and implementing industry-standard sales and marketing strategies. 

BCG will establish a project management office at BSNL’s corporate headquarters in New Delhi, staffed by a director and seven managers. BSNL aims to increase its operational revenue to Rs 35,960 crore by 2027–2028, marking an 80% increase from the estimated Rs 20,008 crore in FY24, with a target of 20% annual growth between FY25 and FY27. 

The project will be conducted in two phases. In the first phase, BCG will analyze gaps in BSNL’s current strategy across major circles, focusing on strategies and solutions to drive the company’s recovery and achieve vertical revenue targets. 

BCG will also review BSNL’s customer complaint resolution process across eight circles to develop a comprehensive proposal addressing digital-led customer acquisition, retention, and discovery. The consultancy will explore ways to enhance BSNL’s brand and utilize data monetization as a revenue stream through emerging technologies. 

To attract new customers and gain market share, BSNL will focus on expanding its sales and marketing infrastructure, particularly through digital strategies. BCG will devise a new sales and distribution strategy for BSNL, aiming to reduce overall commission and incentive expenditure by 25%. 

What BSNL Employees Union Says? 

“The root of the problem lies elsewhere,” the union stated.  

“Basically, the decline of BSNL is attributable to the company’s inability to expand its networks with state-of-the-art technology,” it added. The union highlighted that government-imposed obstacles, such as the denial of permission to upgrade BSNL’s 4G-compatible BTSs and restrictions on procuring 4G equipment from global vendors, have hindered the company’s progress. 

The union suggested that the management should leverage the existing talent and experience within its workforce, rather than outsourcing the work and wasting resources. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Vodafone Executives Exit Indus Towers Board Following Bharti Airtel's Majority Stake Acquisition
Telecom Industry

Vodafone Executives Exit Indus Towers Board Following Bharti Airtel’s Majority Stake Acquisition

Executives from the UK’s Vodafone Group PLC, who served as non-executive directors on the board of Indus Towers, have resigned following Bharti Airtel’s increase in its stake to over 50 percent in the tower company. With the increased stake, Indus Towers is set to become a subsidiary of Bharti Airtel.  Vodafone Executives Step Down from […]

Read More
Delay in Vi’s ₹25,000 Crore Funding Worsens Financial Struggles
Telecom Industry

Delay in Vi’s ₹25,000 Crore Funding Worsens Financial Struggles

Vodafone Idea (Vi) is grappling with worsening financial challenges as its ₹25,000 crore debt-funding plan faces significant delays, casting doubt on its ability to achieve a turnaround. The setback follows the Supreme Court’s rejection of Vi’s curative petition to recalculate its adjusted gross revenue (AGR) dues, which has further strained the company’s financial outlook. Analysts […]

Read More
MTNL Defaults on Rs 1,094 Crore Loan to Bank of India
Telecom Industry

MTNL Defaults on Rs 1,094 Crore Loan to Bank of India

Mahanagar Telecom Nigam Ltd. (MTNL) added slippages of Rs 1,094 crore to Bank of India’s results for the July-September quarter, leading the lender to make provisions of Rs 200 crore. Total slippages for the quarter reached Rs 2,546 crore, up from Rs 1,930 crore in the previous quarter. Besides MTNL, slippages included Rs 702 crore […]

Read More