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. 

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