Bharat Sanchar Nigam Limited (BSNL) has roped in Boston Consulting Group (BCG) to help or rather realize its revival plans. The government has spent a lot of taxpayers' money on the revival budget for BSNL – three times in the last few years, but still things don't seem to be improving at the required pace. BCG, an American company, will receive Rs 132 crore for its consultancy services for 34 months. According to an ET report, BCG will be responsible for helping BSNL achieve the goals set by the government by strengthening its existing portfolio of businesses and reducing costs. The advisory group will also ensure that BSNL can deliver services as per industry benchmarked standards.
There is also a need for it BSNL to enhance or transform its sales and marketing strategies and capabilities, all of which BCG will assist with. BCG will also receive performance incentives.
Read more – Vodafone Idea's 5G and BSNL's 4G in the picture in India
The work for BCG will be divided into two phases. Phase 1 will focus on vertical markets including consumer mobility, consumer fixed access and enterprise activities. The Quality of Services (QoS) for BSNL is not adequate and hence in phase 1, BSNL will focus on 11 circles to improve service delivery: Kerala, Tamil Nadu, Karnataka, Punjab, Gujarat, UP West, UP East, West Bengal and Rajasthan and CNTX South/North circles.
The target for the state-run telecom operator is to achieve annual revenue from operations of Rs 35,960 crore by FY28. BSNL is also looking for a revamped and newly developed sales and distribution policy with a 25% reduction in outlay on commissions and incentives. In the second phase, the telecom provider may consider implementing the recommendations in phases, depending on the availability of resources.
Read more – BSNL's 5G Technology in the Making: Report
Employees' union is unhappy
The BSNL employees' union is not happy with the move. According to the union, the government should focus on utilizing BSNL's existing talent and resources instead of hiring an outside firm. The government expects BSNL to become profitable from FY27 onwards.
