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Government Wants State-Owned Telecom Units To Collaborate More

Better utilisation of surplus staff part of the government’s plan to revive state-run telecom units.

Signage for Bharat Sanchar Nigam Ltd. (BSNL) is displayed atop the company’s head office in the Churchgate area of Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
Signage for Bharat Sanchar Nigam Ltd. (BSNL) is displayed atop the company’s head office in the Churchgate area of Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Better deployment of surplus staff and collaboration is part of the government’s four-pronged strategy to revive state-run telecom units.

Department of Telecommunications’ strategic plan includes rationalising human resources, currently at a surplus in some companies, pooling of training capacity, optimum utilisation of land and buildings and settlement of legal issues, according to a Telecom Ministry statement today.

This will help create synergies to strengthen the seven public sector companies, it said. These include Testing and Certification of Telecom Equipment, Bharat Sanchar Nigam Ltd., Mahanagar Telecom Nigam Ltd., Bharat Boradband Network Ltd., Telecommunications Consultants India Ltd., Indian Telephone Industries Ltd. and Centre for Development of Telematics.

Harnessing synergies and collaboration between the companies is not a luxury but imperative in today's environment, said Department of Telecommunications Secretary Aruna Sundararajan said at the press conference in New Delhi.

Because of the highly dynamic nature of tech and huge capital investment required, the world is moving towards consolidation.
Aruna Sundararajan, Secretary, Department of Telecommunication

Public sector telecom companies have been under stress for years now, while the private sector undergoes consolidation due to competition. Earlier this month, Telecom Minister Manoj Sinha asked three Indian Institutes of Management to indicate their interest in preparing a revival plan for the state-run BSNL.