The Hindu today has shocked me when it reported that the BSNL has reported a loss for the first time ever in its history of 10 years after being delineated from the Department of Telecommunications.
Its Chairman says that the wage revision which happened this year has resulted in loss to the Telecom Major of India with a subscriber base of over a 100 million.
What are the reasons for the reported loss? The public body which operates under the Telecom Ministry is unique when compared to the private players in the market. It has a wide reach and also better services going in its favor. Then why is this department facing losses, when all the major private players are showing jump in their net profits? Is there more to the loss than meets the eye?
Surely just some wage revision cannot result in a loss for nearly 1800 crores. Some of the employees working for the BSNL offer a theory which might shock the general public.
The BSNL services which are always offered at reasonable rates are always on demand. The ever increasing public in the cities and the semi-urban areas are opting for the BSNL services instead of the high-priced private services, which fleece the consumer with hidden costs. But the BSNL authorities are not providing active plans to meet the increasing demand and instead are reducing the scope of their services showing technical reasons and cost cutting measaures as reasons. Even the services of the BSNL are said to be going from bad to worse forcing the consumers to opt for private services. The rectification of problems being reported by the consumers are taken up in a delayed and haphazard manner than responding aptly to the time.
The employees allege that there is an active conspiracy going in the high brass of the Department to privatise the department and these losses are on the books and with in a decade or so the Telecom major may be put up for sale to the glee of the private sector operators.
This deep rooted conspiracy theory may be wrong and may be the BSNL would show profits in the coming years. I would be the happiest man if my theory is proven wrong.