Friday, April 16, 2010

Indefinite strike from 20 04 10. Press reports.

NEW DELHI: Telecom services of Bharat Sanchar Nigam Ltd (BSNL) will be affected from Tuesday next as 300,000 of its employees, including executives, will go on an indefinite strike protesting the state-run firm's disinvestment plan.

The employees unions are against the BSNL management's decision to accept the Sam Pitroda committee report which has recommended a 30 percent divestment in the company and voluntary retirement for 100,000 employees.

The strike call has been given by a joint forum of unions that has both executives and non-executives as members.

"The management is not paying any attention to our demands. So, we have decided to go on an indefinite strike from April 20," V A N Namboodiri, the forum convenor, told a press conference Thursday.

The unions are also demanding absorption of the 1,500 Indian Telecom Services (ITS) officers in the company who have been continuing on deputation for the last 10 years.

"The profits of the BSNL are declining as the ITS people working in the management are still on deputation. We demand their absorption as this will make them accountable to BSNL."

Prime Minister Manmohan Singh had set up the Pitroda panel, with HDFC chairman Deepak Parekh and Telecom Secretary P J Thomas as members, to review the functioning of the company and suggest ways to improve its financial health.

Market share of BSNL declines from 31.29% to 15.75%

NEW DELHI: The market share of state-run Bharat Sanchar Nigam Ltd (BSNL) has declined to 15.75 per cent as on Feb 28, 2010, from 31.29 per cent in 2006-07, the government said on Thursday.

An independent study, carried out by market research firm IMRB, revealed that increased usage of mobile phones, prolonged breakdown of service due to various reasons like road widening, cable thefts and faults, and poor customer care and billing problems were the main reasons behind surrendering the wireless local loops and landline telephones of BSNL.

"BSNL is making all out efforts to retain landline customers and increase utility by providing several value added services," Communications Minister A. Raja said in a written reply to the Rajya Sabha.

The company is also making efforts to modernise its landline network, introduce new services at affordable prices and improve marketing strategies, he said.

To increase its market share, the company is leasing passive infrastructure to other service providers, improving customer care and after sales service, and exploring opportunities in overseas market.

"It (BSNL) is also in the process of rolling out its wimax network to take an initial lead and provide wireless broadband services in rural blocks in the country in 2010-11," the minister said.-end of the report.

Dot Proposes BSNL IPO on hold.

n a note prepared for the Telecom Commission, the Department of Telecom has stated that the proposal to go for an initial public offering should be put on hold till fundamental changes recommended by the Pitroda panel, including restructuring the company's board and absorption of Indian Telecom Service officers, are implemented. DoT reckons that BSNL's enterprise value will increase after the changes and a divestment at that stage would result in higher revenues for the Government.
 To know more please read ...DoT proposes....
Dot Proposes BSNL IPO on hold.

Thursday, April 15, 2010

20 04 10. Indefinite strike. JAC meets Minister.

15.04.2010:
JAC meets Thiru A.Raja, Hon MOC & IT.

JAC is scheduled to meet Hon MOC & IT tomorrow (16th April) at 1230 pm at Sanchar Bhavan to discuss strike demands.

K.Vallinayagam,
GS FNTO.

Questions in Parliament about JTO.

Sri Anto Antony, M.P. has raised the following questions which are expected to be answered in the Parliament on 19-4-2010.

Questions

1.  Whether the Government has withdrawn the recently held examination for  selection of Junior Telecom Engineers (JTOs) across the country? If so, give details.
2.  What were the reasons behind such withdrawal of examinations?
3. Whether there is any shortage of  JTOs in the country? If so give details, statewise.
4. Whether the Government intends to fill up the vacancies of JTOs across the country?  
5. Whether the Government has received representations from different trade unions of JTOs? 
6. What are the demands raised by JTOs and the response of the Government  thereto?
From தேசிய முரசு

CAG questions DoT cut off date decision in 2007.

The Comptroller and Audit General of India has questioned DoT’s decision in 2007 over advancing the cut-off date for consideration of grant of new 2G licences to applicants, reports PTI.

The Delhi HC has already termed the decision as irrational.

The controversy in the issue is over DoT advancing the cut-off date for considering applications for new 2G licences from October 1, 2007 to September 25, 2007.

"The decision of change of cut-off date of application retrospectively for issue of LoI to 25.09.07 in place of 1.10.07 is not only a violation of TRAI''s recommendations, duly accepted by the government, and instructions of the Prime Minister to ensuring fairness and transparency, but also unfair to the applicants who had applied between September 26, 2007 and October 1, 2007 as they were deprived of their right to be part of the initial process."

"Out of 575 applications received for issue of new unified service access licences, 343 applications are still pending for issue of licence due to non-availability of spectrum," added CAG.

The CAG estimated the loss to the government at over Rs 26,685 crore over advancing the cut-off date.

The DoT has already presented its side of justification to the CAG.---End of the report.

BSNL wants the government to pay for reducing its strength

New Delhi: State-owned Bharat Sanchar Nigam Ltd (BSNL) wants the government to pay for reducing its employee strength by up to one-third in line with recommendations made by the Sam Pitroda panel to improve performance and make the company more efficient.
BSNL will seek the financial package in a request to the department of telecommunications (DoT), according to a senior BSNL official who spoke on condition of anonymity as he’s not authorized to speak with the media.
The BSNL board will ask for the money to fund a payout equalling four-five years of salary for a voluntary retirement scheme, the official said.
The Pitroda committee wants the company to cut its staffing to 200,000 from 300,000 currently, while the company itself has said that 60,000 workers are due to retire anyway over the next five years.
The money may help blunt the resistance that it expects from worker unions to the employee-reduction plan, according to the board.
The panel was set up after a performance review on 6 January chaired by Prime Minister Manmohan Singh. The committee headed by Sam Pitroda had Deepak Parekh of Housing Development Finance Corp. and telecom secretary P.J. Thomas as its members. The panel submitted its report containing 15 recommendations on 9 February.
The BSNL board considered the recommendations on 10 March and agreed to them in principle after which they were forwarded to DoT. The forwarded suggestions were reviewed by Mint.
The Pitroda panel says the state-owned company needs to bring its staff strength closer to levels comparable with rivals. For instance, market leader Bharti Airtel Ltd has about 24,000 employees.
According to an internal DoT note seen by Mint, BSNL is expected to post a pre-tax loss of Rs2,612 crore on revenue of Rs32,966 crore for the fiscal 2010. In the year before, BSNL had posted a profit of Rs575 crore on sales of Rs35,812 crore.
The loss comes in a year when BSNL got Rs2,600 crore from the universal obligation fund to subsidize the landline business in rural areas and Rs3,080 crore as interest from surplus cash.
As per the note, BSNL’s employee cost has almost doubled from Rs7,309 crore in 2006-07 to an estimated Rs13,967 crore in 2009-10, while the customer base has risen to 90 million (including 28 million fixed-line and 62 million mobile subscribers) from 65.7 million in 2006-07.
Costs also rose because of a revision in salary, effective April 2007, that adds up to Rs4,000 crore. The arrears up to March 2010 have yet to be included in the balance sheet.
Pitroda has also suggested that the government divest a 30% stake in BSNL and that the top management be completely restructured. Another suggestion calls for the creation of two subsidiaries—one for BSNL’s tower infrastructure and another to monetise an estimated 2.5 million sq. m of vacant real estate in seven major cities.
“They have faced significant interference from the government and there is a serious lack of accountability leading to a lot of waste of resources. If the Pitroda committee recommendations are followed then they could become a viable firm again. But it may be a case of too little too late,” said a regulatory expert with a Delhi-based consulting firm, asking not to be named. He was sceptical about the implementation of the recommendations because of union opposition.
Late last year, the state-owned operator implemented the suggestions of management consulting firm Boston Consulting Group (BCG) to improve operational efficiencies. BCG had made two key recommendations—improve the sales and distribution network and turn the towers business off into a subsidiary. The telco was also asked to divide its businesses into different verticals with individuals who reported to the chairman and managing director.
“BSNL has been able to restructure its management into the suggested strategic business units and moved much of its redundant engineering staff to strengthen its distribution network. But it has been unable to get the tower subsidiary moving as yet,” the BSNL executive said.
shauvik.g@livemint.com---end of the report.

Mobile Number Portability in MTNL

Gearing up to meet the May 15 deadline for launching the mobile portability services, state-run MTNL has invited bids for installing a gateway, crucial for the MNP infrastructure.
Mobile portability service allows subscribers to change the operator while retaining the number. The launch the service has been delayers twice as the operators are still setting up the network required for the service.
MTNL has floated the Rs 8-crore tender for supply, installation, testing for the number portability gateway.
An MTNL official said it hopes to reach the testing stage of the MNP network by mid-next month. MTNL plans to implement the number portability gateway (NPGW) to support MNP fits networks in Delhi & Mumbai.
A number of operators are currently in the process to set up such gateways to support their MNP network.
"Based on the successful completion of the action taken (tests)..., we will finally decide the dates for MNP implementation," the Department of Telecom had said.
MNP was to be implemented by December 31, 2009, in Delhi, Mumbai, Kolkata and Chennai as well as in Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu.
The deadline was later changed to March 31 for launch across the country. In February, the DoT said it was planning to launch MNP by the first week of May, with initial launches in Bangalore and Chennai.
But now there are indications that MNP may be delayed even beyond the latest scheduled roll-out date of June 30.End of the report.

Wednesday, April 14, 2010

India-plans-4G-mobile-sale-Report

India-plans-4G-mobile-sale-Report

Andhra Pensioners' conference held on 10 04 10.


10.04.2010: Andhra Circle Conference :

AP Circle Conference of AIBSNLPWA was held at Vijayavada on 10th April 2010.  More than 400 comrades from various SSAs attended it. Shri K. Muthiyalu and Shri D Gopalakrishnan representing the CHQ addressed the gathering. Shri K. Venkiteswarlu, Shri K S Koteswara Rao and Shri G. Ramamohana Rao have been unanimously elected as Circle President, Circle Secretary and Treasurer.

AI BSNL PWA WEB: 14.04.2010.

Press statement supporting our indefinite strike.

Press statement supporting our indefinite strike.

Joint statement by Central Trade unions -strike 20 04 10.

Joint statement by Central Trade unions -strike 20 04 10.

MoU with Union Bank of India

Memorandum of Understanding  by BSNL and Union Bank of India regarding loans to BSNL employees is extended .End of the report..  NFTE Vellore source.-

DoT-defends-3G-policy-dismisses-CVC-charges

NEW DELHI: The telecom department has drafted a five-point defence over allegations that policy roadblocks prevented foreign telcos from participating in the ongoing auctions for third generation spectrum.

The Central Vigilance Commission (CVC) had demanded that the auctions be stopped and had alleged that the 3G policy was heavily tilted towards existing telcos and thus prevented participation by foreign players and new entrants. 
 To read more pl. go to ..DoT defends..
DoT-defends-3G-policy-dismisses-CVC-charges

BSNL is bleeding- Loss this year.

NEW DELHI: State-owned Bharat Sanchar Nigam (BSNL) may have begun its march on the road to ruin after plunging into losses for the first time last fiscal, as bureaucracy and trade unionism cripple business plans. BSNL’s accounts show a loss of Rs 2,611 crore for the year ended March 2010, from a profit of Rs 575 crore, a year ago. Its revenues fell 7.9% to Rs 32,966 crore, documents available with ET show. The company is yet to officially announce its financial results.

“The government has run this company to the ground as the telco’s board was never allowed to govern,” said BK Syngal, senior principal at Dua Consulting, and former chairman of Videsh Sanchar Nigam, another state-run telecom company that was sold to the Tatas. “Rather, BSNL was run from Sanchar Bhavan,” the building in which the telecom ministry bureaucracy is seated.

The loss is despite receiving Rs 2,600 crore as grants from the government to subsidise the landline business and Rs 3,080 crore as interest from bank deposits, according to documents.

The loss has been precipitated by a salary revision, effective 2007, where arrears have to be paid till March 2010. the revision added to its cost by Rs 3,800 crore . “We are awaiting DoT’s clarification if the arrears in wages should be included as part of our financials in 2009-10,” said Kuldeep Goyal, chairman of BSNL. “If that happens, then the balance sheet will be under pressure. If it is not included, we will declare profits.”

BSNL, once a monopoly in domestic telephony, has been deteriorating in financial performance over the years as it could not expand on time. Its business plans were thwarted at various levels of bureaucracy under influence from different quarters. It could not compete with the nimble-footed private mobile phone firms such as Bharti Airtel which were taking decisions quickly.

The only phone company that had a pan-India presence a decade ago could not buy equipments required to serve the growing market, where customer additions by private companies were running to millions a month.

BSNL’s initial tender for 63 million Global System for Mobile Communications (GSM) in 2006 was slashed to 12 million by telecoms minister A Raja. Its follow-on tender for 93 million GSM lines, the world’s largest equipment order, was cancelled after a series of controversies, even as rivals such as Bharti, Reliance Communications and the Tatas expanded to feed the expanding customer base.

The government fell back on technocrat Sam Pitroda who laid the foundation for the telecom revolution nearly a quarter of a century ago, to revive the flagging fortunes of BSNL. Mr Pitroda gave a set of recommendations which appear to have fallen on deaf ears.

The Pitroda panel, which had banker Deepak Parekh and the telecom secretary PJ Thomas as members, suggested a strategic stake sale, cut the 3 lakh staff by a third, and sell 30% of the company in an initial share sale.

With the trade unions opposing job cuts and share sale, the government abandoning stake sale as a policy, the committee’s views may just remain on paper.

The company is also proposing to split it into four regions with each zone having a managing director. These four regional heads, along with the head of finance and human resource and the overall chairman and managing director can constitute the new board.

But on the other side, Bharti is expanding business by agreeing to buy Zain’s African business, Tatas have partnered with Japan’s Docomo and Norway’s Telenor is getting aggressive in seeking customers. “Competition left them behind,” said Dua Consulting’s Mr Syngal.-End of the article.

Central Trade Unions Support BSNL Workers Strike


Coordination committee of central trade unions met at INTUC office today (13.04.2010) discussed on BSNL workers strike and their demands particularly with regard to disinvestment,VRS etc. Meeting decided that central trade unions will intervene in favor of BSNL workers. GS FNTO thanked Dr. Sanjeev Reddy, President INTUC for INTUC and other CTU support.
K. Vallinayagam
GS FN TO

Promotion policy-Workers need clarifications-FNTO

The General Secretary ,FNTO has asked BSNL management for clarifications on the following points in new promotion policy. Please continue to read
FNTO 
LH
Ref.No 4/NU/CHQ/2010                                     dated 12.4.2010
To
The General Manager (Estt)
BSNL,
New Delhi – 110 001
Sir,
     Sub:—NON-EXECUTIVE PROMOTION POLICY –REG
     Ref:—BSNL CO letter No.27-7/2008—TEII dtd 23.3.2010
        Kindly refer to the letter cited above. In order to give option under this scheme, the following doubts needs clarification. This union would be much obliged if the same is expedited as early as possible as the options are to be given within one month.
Doubts to be clarified
Para 2.3
1. An official was promoted to NE-10 scale (i.e. 7800) on 1.9.2000 and opted for pay fixation from the date of next increment which falls after 1.10.2000. It is presumed that for the purpose of promotion under this scheme he is considered to be on 7800 scale on 1.10.2000, irrespective of the date from which he is drawing pay in that scale. Please clarify.
para 5.2
2. It is stated that “All the concessions given by BSNL to Non-Executives in relation to OTBP/BCR/Grade IV/ACP etc after 1.10.2000 stands withdrawn with immediate effect.
This needs elucidation
Para 5.4
3. If the promotions already availed under OTBP/BCR/Grade IV/ACP schemes after 1.10.2000 is treated as First Promotion under new scheme (on option), the financial benefits already availed for the period upto 31.3.2008 needs to be refunded, as the first promotion under the new scheme is “Notional” upto 31.3.2008.
This is to be clarified.

Para 6.5

4. (a) If the post based promotion availed by an employee on or after 1.10.2000 but before 1.10.2004 is treated as first promotion under new scheme, whether the financial benefits availed upto 31.3.2008 needs to be refunded as the first promotion under this scheme is notional upto 31.3.2008
    (b) It is presumed that the post based promotion means vertical promotion from one cadre to another cadre through examination/ absorption etc. Kindly confirm
    (c) Whether the promotion to BCR grade IV is coming under post based or otherwise?
Para II (ii)
5. It is stated that except as provided in the instant guidelines, there will be no claim on account of any of the other provision of FR SR in the context of pay scales, pay fixation, substantive status etc. It may be clarified whether this includes the option under FRs for fixation of pay on promotion from the date of next increment or otherwise.
Thanking you.
yours sincerely,
(Sd) D. Chandrasekaran,
Offg. General Secretary,

Tuesday, April 13, 2010

DoT-extended-undue-benefits-to-Reliance-Dishnet-CAG

NEW DELHI: Country's apex auditor CAG has said the the Department of Telecom extended undue benefits to RCOM and Dishnet Wireless (now Aircel) at the cost of others while allotting spectrum in 2008.

"... the department failed to follow its own FCFS (First-Cum-First-Serve) policy resulting into an undue benefit to Dishnet Wireless Ltd and Reliance Communication Ltd in Punjab Service area," the Comptroller and Auditor General (CAG) has observed.

The DoT had last week sent a detailed reply to all the issues raised by the CAG.

The CAG said the then existing operators like Hutch (now Vodafone Essar), Bharti and Spice, who had applied for allotment of additional spectrum prior to these two companies, were not allotted the same.

"On 25.8.06, DoT denied their request for additional spectrum on the ground of non-availability of spectrum and further stated that their requests have been noted for necessary action when the additional GSM spectrum is available. 
 To know more pl. read ..DoT extended.. 
DoT-extended-undue-benefits-to-Reliance-Dishnet-CAG

"The worst is over for Air India.

Civil Aviation Minister Praful Patel on Tuesday said Air India has cut its losses by 25 per cent and the worst is over for the national carrier.
"The worst is over for Air India. The airline has managed to bring down losses from Rs.400 crore every month to Rs.300 crore," Patel told reporters on the sidelines of the US-India Business Council meet organised by the Confederation of Indian Industry.
Patel had last month informed the Rajya Sabha that Air India would incur losses of around $1.8 billion (Rs.5, 400 crore) this fiscal. The carrier had lost $445.2 million (Rs.2, 226.16 crore) in 2007-08 and $1.11 billion (Rs.5, 548 crore) in 2008-09.
Patel said the carrier will get an additional Rs.1, 200 crore in the current fiscal as announced in the budget.
The government has approved equity infusion of $160 million (Rs.800 crore) for the ailing carrier in two installments to tide over the cash flow problem and finance its fleet acquisition plans.
Patel also said that terminal three at New Delhi's Indira Gandhi International Airport would be inaugurated on July 3 by Prime Minister Manmohan Singh and UPA (United Progressive Alliance) chairperson Sonia Gandhi.
End of the report. ..

Clarification for time bound promotions to executives.-BSNL orders

Clarification for time bound promotions to executives.-BSNL orders