Educational technology ,careers and future

Wednesday, March 20, 2019

Why BSNL is in the news Just ahead of Loksabha Election

Many of the Indian citizens think that there is no need of BSNL in the era of high speed data and uninterrupted services provided by Private Telecom operators. Everyone is writing about BSNL without any knowledge about the organisation, its functioning and limitations.



While many articles have been written about BSNL many of the them has created ire from the side of BSNL employees .



Recent few disputed articles are published on www.firstpost.com. Before telling about firstpost let us take a look at the recent articles published on firstpost related to BSNL. Two articles published on 14h and 15th march for which links are given below:









 * In the first article although writer used the name of AIR INDIA and HAL for indicating loss making PSU's but center of the article is BSNL. Here writer clearly raise concerns over bailout package to BSNL by Government and suggested to dismantle it and sell citing the reasons of accumulated losses of approx 57600 crores.

Artificial-intelligence-and-future-with-AI

While it is imperative to say that writer forget to mention the profits booked by the PSU to the tune of approx 44900 crore since 2001-2009. The article also undermines the huge employement provided by PSU (currently 1.73 lakhs ). Providing employment to its citizens is the responsibility of the government, predatory pricing by RJIO and silent support of government has already caused  many small Telecom operator to shut their business, leaving  employees on their fate.



Total employee strength of all existing private Telecom players collectively is not even 50% of BSNL. BSNL provides connectivity to far flung areas of leh laddakh, North eastern areas and naxalite areas where private operator failed to provide services. What about the social obligation of the government. When matter related to national security arises government can only rely upon BSNL and MTNL. As per the article government should earn money by selling huge assets of the PSU, but if earning of revenue would have  been the prime focus of government, there was no need to form BSNL and MTNL. These two companies were built to stabilize the telecom market and avoid monopoly of private players.



* Second article published on March 15 is even more controversial as it manipulates fake figures of customers for operators. As per TRAI report Vodafone - Idea is the largest operator with more than 41 crores customers, followed by AIRTEL 36 crore customers ,RJIO is third operator with 28 crore customers, and  BSNL is at 4th place with 11.7 crore customers. But as per writer of the article RJIO is market leader with 27 crore customers, while Vodafone-Idea and AIRTEL both have 10.13 crore customer, and BSNL is having just 2.03 crore customers. Why such fake figures were published on the website is a big question mark?



Then it came to know that first post is owned by network 18 media group. Which itself is the media company owned by Reliance industries of Shri Mukesh Ambani, owner of RJIO.



In place of  justifying honest reasons for opposing bailout package to BSNL author provided wrong figures.


What to worry About?


It is surprising see that lots of negative news are being published about BSNL and other PSU's just ahead of Loksabha Elections. The state owned telecom operator is waiting for 4G spectrum since 2017 which was being delayed at the end of DOT and Government but no political party tried  to question the  Government in two years for delay in the decision of the Governemnet, which earlier charged its predessors for not allowing the telco to compete with private operators by delaying equipment procurement and policy decisions.

While Prime minister announced from Red fort in 2015 that their Government brought BSNL out of  losses to operational profits,it is disheartening that he did not utter a single word on media news about possible closure or privatisation of the State owned Telecom operator . Although BSNL has started its 4G services in few circles and likely to launch nationwide on its 3G spectrum shutting 3G service, it can provide VoLTE services only after allotment of 4G spectrum. 


While many articles published about huge losses of BSNL and its survival, a detailed analysis of profits and losses since inception of Telecom opeartor has been published on the website bsnlteleservices.com.

As per the article BSNL earned earned profit of Rs. 44990 crores from 2001-2009 and total accumulated losses from 2010-2018 is approx Rs 57878 crores. While total dues which is yet to come to BSNL is Rs. 54500 crores. Which results in net profit of Rs 41612 crore .

If we believe on these figures about BSNL then there is no need to create Hue and Cry . Still when elections are going on there are political reasons to highlight failure at the end of Government true or false. 

But the question is ,"Does India Need a Government owned telecom operator or not".

If we think as a common citizen we don't feel like it is required . But if we think about the importance of the Government organisation in telecom we will realise that in every situation of natural disaster , emergency situation Government can rely only its own organisation. As far as huge workforce of the Government organisation is concerned its the weakness as well as the strength . In any case of natural disaster BSNL restores its services ahead of all the private operators, only because of its huge workforce working in all corners of India.  




Source: firstpost.com & bsnlteleservices.com

Saturday, March 9, 2019

Why innovation is new fuel for prosperity of Indian economy

From thousands of years human has evolved with time. New inventions made by man adopted by others . From Industrial revolution to IT revolution has brought the prosperity in  nations taking the lead in innovations. 

Why India require PSU's


While Industrial revolution in England, Germany and France created their dominance in the world. 


During world war II Japan was one of the major power in the world but Atomic bomb explosion at Hiroshima and Nagasaki demolished its economy .What led Japan to retain its glory is the innovation in technology .Metro Train running in Japan although not the fastest in the world but is the safest and most punctual in the world. 

Why India is lagging in Innovation

While we expect our country to be center of innovation still we are importing major technology form Europe and other countries .If India really wants to prosper and become a developed country in coming years, we have to invest in research and development to encourage innovation. While going through list of country-wise expenditure on research and development we can easily understand where we stand in the world. While Israel spends 4.3 % ,South Korea spends 4.29%, Finland spends 3.17%, Sweden spends 3.16% ,Japan spends  3.14% of its GDP on R& D ,India just spends 0.85% of GDP on R&D. India stands at 44th place in the spending on R&D work.

This is the Gap India need to fulfill if we want bring in change in the country and reduce dependence on imports of technology. On the other hand we can say in future R&D and innovation will decide the economic prosperity of the our country .


Importance of R&D


Israel is great example to understand the importance of R&D and innovation for the growth of the nation. Israel once a small nation surrounded by Islamic countries and facing terrorism  having a troubled economy but with its  political will and transformation in technology now Israel is way ahead in Agriculture, technology, cyberspace ,defence , Infrastructure . Several  policies adopted by Narendra Modi Government are somewhat similar to the steps taken by Israel's Netanyahu Government. Promoting private sector , limiting Government sector and cutting Government spending , reducing bureaucracy involvement are the few steps which seems to be inspired from the  Israel's reforms. Although India doesn't spend too much on R&D but present Government has taken various Initiatives which may Improve R&D work in India. 

Artificial Intelligence and future with Artificial Intelligence

1.Make in India 


Make in India is an initiative to bring in major companies in India for production in India .Thus reducing India's dependence on Imports and bring new technology. While it will cut imports it will increase exports . India a attractive destination for investment due to low cost labour and huge young workforce. While many countries are struggling to find young workforce ,India is the youngest nation of the world.
Intiative of GOI to promote R&D and Business in India

2.Skill India

While India is having sufficient young workforce, biggest challenge is that India is not having sufficient skilled labour .To overcome this difficulty Government of India launched this scheme to make young Generation skilled by providing training in various fields.

to Provide skilled labour for Make In India Initiative

5G ,A Technological Advancement or threat to Environment

3.Start Up India

This is an Initiative to promote Entrepreneurship in the young Generation ,while earlier setting up business in India was quite difficult India has shown keen interest to streamline process to set new start Ups easily so that young Entrepreneurs which used to go abroad to start a business could start their business easily in India. Government of India set up a separate Start Up fund tom promote start ups in India.
Initiative by GOI to start new  Business


Although Indian Government not made very significant expenditure in R&D in these years .It has promoted R&D by taking Initiative of Make in India and Start Up India .Although in shorter term results are not visible but in longer run definitely it is going to effect economy and national development.


Ref: wikipedia & www.jpost.com

Monday, February 18, 2019

Why India require PSU's

While India is progressing rapidly with the evolution of technology .Number of  companies are investing in India looking at huge customer base available in India . But the question is ,what is the significance of BSNL and other large PSU's working in India?


Why innovation is new fuel for prosperity of Indian economy

PSU



Answer is large PSU's like BSNL are very significant in context of India. As you are aware that India is a mixed economy where Public sector companies contributes to the economy along with the private companies. While private companies are rider for the new technological advancement ,they really fail to provide financial security to sufficient people. Financial security not only to its regular employees but to all the people working for the companies. There are various factors deciding importance of Public sector units in India.





SOURCE OF  EMPLOYMENT


Due to fierce competition in Every field ,cost saving is always a challenge for a company. When competition is to provide service and products at cheap rates first thing which a company targets to reduce expenditure is expenditure on HR . Now a days most of the companies are outsourcing major workforce .Only 10-20% strength of employees are hired as regular employee, rest are engaged on contract .This contractual workforce are engaged on very low cost compared to regular employees and becomes unemployed whenever demands goes down. 



While on the other hand PSU's has their sanctioned strength of employees which far more compared to private companies .It can be understood easily by comparing employee strength of BSNL ,with other private operators. BSNL employs around 175000 people, while total employee strength of Airtel , Vodafone, Idea and RJIO  combined is nearly 50000 less than 1/3 rd of BSNL . 



SOCIAL OBLIGATION




Although most of the Indians think that they doesn't require PSU's while there are number of private companies to provide quality products and services .But these PSU's plays very crucial role to fulfill social obligations  when all private companies fail to. 


You can go back to year 2008 when sudden surge was observed in crude oil prices ,crude oil price reached upto 94 $ per barrel due to losses , Reliance industries shut down all its petrol pumps nationwide to curb losses and only restarted after March 2016 when crude oil reached approx 41$ per barrel. Only Public sector Oil companies were there to give respite to common man from soaring oil prices.



Similarly in the time of natural disaster BSNL being a Public sector operator and huge workforce always remains at forefront to provide uninterrupted services which was already observed during cyclone in Andhra pradesh,Kerala Floods,kedarnath floods. BSNL provides services in non profitable areas covering  from Leh-Ladakh to Kanyakumari and upto far-flung areas of north east.





BIG CONTRIBUTOR TO ECONOMY




All public sector companies contributes to Indian economy upto great extent .That is one reason why India absorbs various shocks of worldwide recession.



IS BAIL OUT TO PSU'S IS JUSTIFIED ?


This is very common question in the minds of every taxpayer that why tax paid by him is utilised for providing bail-out packages to PSU's to compensate for losses and question is genuine. But stopping bail-out to PSU's and let them die is not the solution. As it will not only create unemployment but also left Government with no options to fulfill its commitment towards social obligations in critical situations.

BSNL high speed FTTH Bharat Fiber(Internet)  launched to take on JIO Giga Fiber

  •  Rather  Government should  review  the  future of every PSU in next 20-30 years ,then only any action should be taken.There are various reasons for failure of any PSU which must be looked into for their revival.
  •  Although PSU's are established under companies act 1956 but they still function very much like Government organisation, what is the biggest hurdle for these PSU to earn profits. 
  • Decision making and implementation in PSU's is very slow. Due to corruption and malpractices at various levels, quality of service is very poor compared to private organisations.It can be understood by the fact that 4G is launched in India in 2016 but Government owned BSNL is still waiting for the spectrum for 4G after 3 yrs. while private companies are working on their network for 5G upgrade state owned telco is still not clear about its 4G spectrum ultimately affecting its business.
  • Recruitment by the PSU's are done in large numbers but they are really not bothered about upgrading employees with the changing technology and skills, thats why after some time efficiency of the employees degrades .



  • Accountability

Usually accountability is not fixed in many  PSU's. Higher authorities always try to avoid responsibility for any big decision . Whoever is assigned responsibility are deprived of sufficient powers.Thus causing frustration among hardworking and capable employees at various levels.


  • Dependence on Government


For making any big decision these PSU's are totally dependent of Government and it is difficult to make independent decision without interference. 

Public sector Units are very crucial for a nation like India to maintain the stability of the economy and to deal with emergency situations like natural disaster ,recession and war like situations. The only thing what is required is restructuring of PSU's in line with the private organisations and long term vision .





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