If there is a PSU that has stood out from the rest during last two years, it is Bharat Sanchar Nigam Limited (BSNL). Interestingly, when both the government and the media are gung ho about projecting achievements of NDA rule, no one is talking about BSNL.
 
First let me put facts before the readers. From an operating loss of Rs 691 crore in FY 2013-2014, BSNL registered an operating profit of 672 crore in 2014-15. It is expected to increase to Rs 2000 crore in FY 2014-15. Its revenue increased by four per cent to about Rs 28,645 crore during FY 2014-15. It will increase to about Rs 30,000 crore in FY 2015-16.
 
For a telecom operator, Average Revenue Per User (ARPU) is an important parameter. It shows how much money does a customer pay to an operator in one month. BSNL’s ARPU of mobile subscribers increased from Rs 108 to Rs 118 per month in one year.
 
In view of the call drop issue, Quality of Service (QOS) has become important. BSNL is the only operator that is expanding its network. In last two years it has added 24,000 BTS all over the country. It will install 20,000 more towers this year taking its tally to 125,000. This will be an expansion of 40% network in three years! This means that both the reach and the QOS of BSNL would improve. Those who understand the working of a PSU would appreciate how difficult it is to procure equipment and execute project on such a large scale.
 
Its enterprise segment has also improved and registered a growth of 40% in government business.
 
Now the question is why BSNL is important? It is significant due to the strategic importance of the sector. For example, only BSNL could implement government’s project of implementing network in Left Wing Extremism (LWE) areas. It is implementing world’s largest greenfield solar-based network in these districts.
 
BSNL is also involved in implementing National Optical Fibre Network (NOFN) project. It has already connected 50,000 villages through optical fibre.
 
It is not that everything has become perfect in BSNL. Its customer interface still needs a lot of improvement. Though its employees took a pledge in December - service with a smile – its results are yet to be seen. What is important is that the idea came from the employee association. Hope it does not remain a slogan.
 
BSNL’s performance of last two years is an example of how a PSU can turn around. What has helped is that the minister Ravi Shankar Prasad’s approach toward the company. He does not interfere in day to day working and gives direction when necessary. This approach was earlier followed by Arun Shourie when he was the minister. This gives free hand to the BSNL management. The ministers should only review performance of PSUs.