Profits made by BSNL- Due to wage bill profits decrease

It also plans to contain costs by making a fundamental shift in its procurement policy. Instead of following the decades-old system of ordering and buying a fixed number of mobile lines, BSNL recently floated a request for proposal (RFP) for a “managed capacity” model, which means outsourcing its network operations and management like private competitors do. The new contracts will be for a duration of two to three years.
The change has been prompted by recommendations from the Sam Pitroda committee to scrap a 93 million line GSM order due to various controversies.
The BSNL board has accepted the recommendation.
Ahead of the new contract, the company has also prepared a contingency plan to meet its immediate need for new capacity. It will issue an additional order of 5-10 million lines to Ericsson, its current vendor, which has supplied equipment in the north and east. In the south and west, the company has 20 million lines under installation, which is considered sufficient to meet demand for the next 12 months.
Goel admitted, however, that the company might slip into the red this year on account of arrears on wages that have been raised. “We had a net profit of Rs 175 crore for the half-year ended December this year and were expecting profits of Rs 200 crore to Rs 300 crore at the end of the financial year. If we have to pay arrears on wages, which comes to around Rs 3,700 crore, we will surely make a loss this year.”
He also admitted that profits have been impacted by a drop in wireline revenues.
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