Another VRS Will Kill BSNL, Adopt Policies to Save PSUs, Says BSNLEU

New Delhi: The BSNL Employees Union (BSNLEU) has flayed the flawed policies of the Union government and the management for the crisis in the public sector telecom major BSNL and has urged it to withhold any plans to implement another round of voluntary retirement scheme (VRS).

The union has questioned the “double standards” of the management on its claims of manpower shortage for engaging third parties for provisioning and maintenance of the Fiber to the Home (FTTH) connections, while excess workforce has been cited for the loss incurred by the organisation.

BSNL has been facing multiple challenges since 2014, with the Central government indefinitely delaying the implementation of 4G services, while most private players provide 5G services.

Another VRS in the organisation would potentially end employment opportunities for educated youth and leave the workforce at the mercy of the private organisations waiting to exploit, said the union.

‘STOP PLANS TO IMPLEMENT VRS’

The public sector telecom major implemented the first VRS in 2020, resulting in around 80,000 employees opting for the scheme, “considering the apathetic approach of the union government towards BSNL and its pro corporate policies”, it said.

In a detailed letter to the Chairman and Managing Director of the organisation, the BSNLEU has lashed out at the proposed plans for another VRS to further reduce the workforce of the central public sector undertaking (CPSU). As of March 2024, only 29,750 executives and 26,750 non-executives were working with the organisation, exposing the low strength of the workforce. 

BSNL is reportedly spending 38% of its revenue toward payment of salary to the employees, while this figure of other private operators is said to be in single digit.

“Jio and Airtel are earning a massive revenue and thus the percentage of their expenditure for salary payment is insignificant, when compared to their revenue”, the BSNLEU letter pointed out. 

While the policies of the government and management remain a major cause for the BSNL crisis, the management is attempting to paint a picture that employee strength is the reason for the crisis, the union has alleged.

INORDINATE DELAY IN PROVIDING 4G SERVICES

Three revival packages were implemented in BSNL, in 2019, 2022 and 2023, but the revenue of the organisation has not shown any improvement. The lack of 4G services, despite private firms rolling out 5G services, is cited as a major concern for loss of customers and subsequently, the revenue. 

Customers continue to face problems in getting quality voice and data services wherever the 4G installation is completed by TCS, there is an inordinate delay in completion of installation in several parts of the country, the letter said. 

BSNLEU said the “terrible situation” has arisen after the Centre prevented BSNL from procuring high-quality equipment from reputed international vendors, while private players continue to utilise such equipment that helps them in providing quality services. 

DISADVANTAGE TO BSNL: PARLIAMENTARY COMMITTEE 

A parliamentary committee on Public Sector Undertakings (PSUs), in a report submitted to Parliament in December 2024 has cited the disadvantages and hurdles faced by BSNL in providing quality services on par with private providers. 

The committee also noted BSNL's delayed adoption of 4G technology, placing it at a disadvantage in a market dominated by 4G and 5G, with only 200 of one lakh planned sites commissioned so far.

REVENUE SOURCES HAMPERED

BSNL was earning most of its revenue from landline connections, whose services were badly affected by the VRS implemented in 2020, while another important revenue source, broadband connections were outsourced. 

Despite a massive optic fibre network, BSNL was systematically prevented from expanding its landline connection base, while Jio has managed to emerge as the biggest service provider, the union said.

FTTH services, too, generated a considerable amount of revenue for BSNL, but the present system of engaging private partners for provisioning and maintenance of FTTH is costing the organisation badly.

“Customers are disconnecting BSNL FTTH services and opting for private services, given the lack of service from private parties engaged by BSNL,” the letter pointed out.

The BSNLEU has urged the management and the Union government to adopt policies to favour one of the biggest CPSUs in ensuring quality services to rural and semi-urban areas, instead of framing policies favouring the corporates.