BSNL FORUM OF UNIONS & ASSOCIATIONS VISAKHAPATNAM,VIZIANAGARM & SRIKAKULAM MEMORANDUM Date: 03-11-2012. To Dr. KILLI KRUPARANI garu, Minister of State for Communications & Information Technology, New Delhi. Respected Madam, On behalf of the BSNL Forum of Unions & Associations Visakhapatnam, Vizianagarm & Srikakulam we are extending our warm greeting on assuming the charge as Minister of State for Communication & IT. It is a proud privilege for us that a person from the family of telecom had assumed the charge of the same ministry. A memorandum is submitting in view of the present situation of BSNL. In this context we request your kind attention on some of the issues mentioned below: 1. THE LANDLINES: It is but a painful reminder that we ourselves admit that the poor quality of service offered to our customers normally drives away our customers and results in land line churn. While admitting that many of the problems are beyond the control of the middle level management resolute efforts from our side can result in qualitative improvement. Therefore there should be painstaking efforts, not projecting too much the infirmities of the system, to organize ourselves and our workforce to offer the best quality service to our esteemed customers. This should be the prime and first step in restoring the confidence and trust of the customer in the Company, its executives and the workforce. Quality telephone sets or the lack of them is one big unnerving issue before the customer. The L1 set is no more appealing to him. Huge fortunes are now being spent on purchase of low-quality instruments, the sight of which the customer hates. Several valuable suggestions on the subject have still not found the pleasure of the Management for some strange reason. The transformation of the unhappy customer to an irate disconnector is achieved when he is repeatedly supplied with shabby and oft-repaired instruments. Today the mines of copper that the Company has are being neglected because we do not have any procedure in place for their upkeep and maintenance. Mere theories that the TMs have to maintain them do not yield practical results. This precious asset has to be protected by instructing and authorizing SSA heads to work out for tenable tender systems for maintenance of the external plant. Any further lapse in this direction will be more costly than we even anticipate. 1 It is but a pity that the Company is being treated as the milky cow by all the Governmental agencies and the local self-governments. They treat the BSNL as shabbily as possible and milk them by claiming huge amounts running into crores of rupees as reinstatement charges, service charges etc. They also do not have any hesitation in damaging our property during roadwidening/construction etc. activities. We believe that more co-ordination with the Local bodies will relieve the problem to a great extent. The landline sector which contributes more than 70% appears to be unwittingly neglected by the Management by deciding that best talents are not required to man them. We have highlighted this aspect especially in the context of large landline churn due to customer dissatisfaction. We believe that this sector requires much better attention from the customer point of view. We hope necessary redeployment will take place immediately. What we have pointed out above is not exhaustive but only the tip of the ice-berg. Our only fervent appeal is that our members and the Management will have to combine together to work as a team to redeem the situation in the most earnest manner. 2. LEASED LINES: This can be termed as an unexplored fund mine because of the lack of focus or casual negligence of this sector. Leased Data service is a promising & lucrative business segment. These point to point data lines require one time investment with negligible maintenance. With huge quantity of underground cable and large nos. of MLLN data switches & NIB virtual nodes (for providing MPLS-VPN circuit) throughout the country. Big enterprises like banking, financial institutions, industrial houses etc. are potential customers for the same. Demand for data circuits is huge and ever growing. But it is an irony that in spite of having so much resource, being the monopolistic infrastructure provider, we could not exploit this segment properly. A major problem area is our commercial activity. There is a huge gap between commercial processes and actual field processes. Lack of proper synchronization between different sections create unnecessary delay in providing data circuits. Due to poor coordination among different units a huge quantity of our revenue is pending or billing not done. Due to lack of commitment by the management the maintenance spares / procurement of the MLLN equipment, at present the organization is losing the existing customer base because of the non-availability of MLLN spare equipment. A single- window monitoring and complaint mechanism should be established in each SSA to ensure that the customer gets proper and prompt attention. 3. WLL: The product was perhaps launched to cover for the non-feasible areas where the landline could not reach the customer. With so many technologies on trial, finally we have settled for 2001X which suits our system quite suitably and has more or less stabilized with better acceptability. But then again the handset problems and SMPS problems haunting the field we, 2 as usual could not capitalize on the advantage. While the competitors are very keen to provide very attractive and pleasing handsets we choose the opposite route making the customer more reluctant to accept our services. We also have ‘n’ number of vendors all with non-compatible sets and SMPSs. Customers totally dislike the very sight of the heavy SMPS and want only attractive IFWTs with internal batteries. This is a very serious issue which has been repeatedly focused by us. These are issues that require immediate attention. Stick to one or two good vendors. Make our product attractive. Then we have takers. Else just blink and regret. We just can’t understand why the same mistake is being committed with every product, every time by the BSNL management. 4. MOBILE NETWORK (2G&3G): Even though BSNL started providing mobile network, in the year 2005, it stood in the second place after Airtel. After the then Governments policies and the lethargic BSNL management, procurement was delayed nearly for a period of 3 years. Even though after procurement management fails to take up the project in true spirit, the Phase –IV & V expansion works were badly delayed and substandard installation works. This will now resulting the poor network coverage and lot of maintenance problems, especially in the urban areas. 5. Wi-Max: Once again the BSNL management fail in procuring and implementing the installation and commissioning of the Wi-Max equipment for rural as well as urban locations. 6. USO FUND: Although a huge sum stacked in the USO Fund, without channels for spending, we are compelled to meet the social obligations without any compensation. The loss we incur on account of social obligations especially in the rural sector should be compensated from the fund. More than that in spite of being the only operator which meets the rural obligation, with none other catering to the rural poor man’s needs, we are also charged with 5% of the AGR just like others for the USO Fund. We should definitely be exempted from the levy for meeting all social obligations and Government requirements. 7. Refund of BWA spectrum charges to BSNL: BSNL was deliberately allocated a non-standard and obsolete BWA spectrum band after it paid market price of Rs 8313 crores on the basis of auction. The greatest infirmity of this band is that future long Term Evolution services cannot be launched from the band BSNL has been allocated. Besides, international telecom equipment manufacturers, because of the obsolescence of the band, are not naturally manufacturing equipment in this redundant band. Private operators, having paid same market price as BSNL for BWA spectrum, in sharp contrast, have been allocated upcoming competitive 3 band, having huge economy of scale in terms of cost of the equipment as well as flexibility to offer services on either Wimax or LTE. Such a huge investment that BSNL has made at a time when it is in grave financial crisis is frozen since the band has absolutely no utility. BSNL/Board has of late decided to surrender the said obsolete band and asked the government to refund the amount of Rs 8313 crores. We thus request you to impress upon MOF to initiate expeditious appropriate action to refund frozen investment that BSNL was forced to make at the time of BWA spectrum auction so that BSNL which is completely starved today because of meeting social obligations of telecom without getting compensated through envisaged policy commitments could effectively utilize this amount in expanding its operations in other potential business segments 8. Settle ITS Absorption: BSNL was formed on 1st October 2000 carving out of Department of Telecom, Department of Telecom Services etc. Except few exceptions, most of the officers and employees gave option and got absorbed in BSNL. But Group ‘A’ officers belonging to Indian Telecom Services (ITS) numbering about 1500 did not give option and continued to be on deputation to BSNL. It is almost ten years after formation of BSNL, but the absorption issue still remains unsettled. These ITS officers like DGM, GM, CGM etc. are the top executives who are expected to plan strategies for expansion and development of BSNL and ensure its implementation. But their being on long deputation and not being absorbed in BSNL has seriously and adversely affected the growth of the company. While DoT and BSNL management has assured several times that the absorption issue will be finalized early, nothing has materialized. But nothing happened and the situation has worsened. Our demand is that the ITS absorption issue should be settled immediately, without any further delay, so that the expansion & development programmes are implemented effectively. 8. Outsourcing: Despite having a good number of technical, operational and field workers, the BSNL management is outsourcing many works / jobs which could be effectively done by its workers. Now, the Pitroda Committee has recommended drastic outsourcing, with a view to further justify its proposal for reduction of workforce. The urgent need is to train & retrain the existing staff to effectively deal with the new situations and requirements. It is on a pleasing note that, the energy that we have been able to impart to this organization just by taking this bold step of attaching the greatest priority to the Company that feeds us and to which we all so dearly belong. The vision is set. The mission is also defined, but has not so far been on track. Let this fresh energy that our movement imparts redraw the course and 4 take it on the right track. We will move ahead without thinking about losses as setbacks but as opportunities- vacant lots on which to build new dreams. It is when we hit the bottom, that’s when we can start on our way up – with a brave heart. With warm and fraternal greetings, 5