kesav 127 Report post Posted August 20, 2010 BSNL to restructure business to make it profitable The state owned telecom firm has undertaken an exercise of organisational restructuring with the help of Boston Consulting Group (BCG), a management consulting firm. The transformational exercise has been named Project Shikhar and will attempt to arrest the company's financial decline, and restructure the business to make it profitable. As part of this exercise, BSNL’s organisational structure has also being redesigned along different business verticals to provide end to end focus on key growth segments and to clearly define accountability for different businesses and functions at all levels of the organisation, Sachin Pilot, Minister of State for Communications and Information Technology, said in a written reply to the Rajya Sabha. A separate vertical has been created to focus on growth in mobile, broadband and enterprise segments. BSNL had earlier reported a net loss of over Rs 1,800 crore during 2009-2010. This was the first-ever loss registered by the public sector unit since its inception in October 2000. Sachin Pilot, in his reply, added that the loss “is mainly on account of reduction in revenue and increase in expenditure. The reduction in BSNL revenue is mainly because of decline in revenue from wire lines due to churning of fixed line subscribers in view of preference to mobile telephony and fall in ARPU (average revenue per user). Though there is a net increase in number of wireless connections, yet revenue decreased mainly due to reduction in tariff by BSNL in the competitive market.” The main reason for increase in expenditure was attributed to the increase in staff expenditure, which alone has caused an additional expenditure of Rs 2,900 crore over the previous year. Also, increase in depreciation is due to amortisation of one time spectrum fee for 3G and (broadband wireless access) BWA spectrum. source :: http://telecomyatra.afaqs.com/news/?sid=1622_BSNL+to+restructure+business+to+make+it+profitable Share this post Link to post Share on other sites
