Free roaming to be a reality in 2013

BSNL has proposed voluntary retirement for its 100,000 employees. But will DoT accept it? What led government to sanction Rs 1,500 crore to ailing organization? Is DoT's ambitious free roaming still a distant dream? Lets find out:

For quite some time, we have been hearing about implementation of free nationwide roaming in 2013. Has the consultation process over? Or, is it still a distant dream?
Free roaming will remain our target in 2013. TRAI has done formal consultation with various stakeholders and conducted open house process and has undertaken trials within the timeframe. It's viable in 2013, but it's difficult to put precise timeframe to it.

The state-owned BSNL's financial health is worrisome. Now, the organization is all set to monetize its land assets. Is it not a bad precedent?
BSNL is facing trouble due to sinking market share in the mobile space. There are few deep seated problems that include legacy issues. BSNL maintained wireline infrastructure in rural India which was economically not viable. Wireline business has led to certain investment in infrastructure and manpower.
Today, 95 per cent of telecom is mobile connectivity. Other companies have come up in mobile era and targeted specific areas and not the entire country. In that background, a public sector organization with over 300,000 employees can't rationalize and restructure staff overnight. In order to come out of the mess- utilization of assets and putting its land to productive use are some of its measures.

Both PSUs BSNL and MTNL were ahead in getting 3G spectrum. Despite this, their market share is dwindling and making losses. What actually went wrong?
BSNL and MTNL have been asked to provide 3G services a year in advance to other operators. They went ahead and brought infrastructure. When auction opened, private companies chose circles and paid only where they wanted to do business and partnered with others.
BSNL has responded well to rural and other areas which are not well served. It laid infrastructure and backhaul for mobile connectivity. It paid Rs 30,000 and eventually its cash reserves were sucked out.

BSNL has proposed VRS (voluntary retirement scheme) for its 100,000 employees to the government. Could it be accepted?
BSNL is revamping its mobile business and is gearing up to meet head-on challenge with private operators. It pays 50 per cent of its revenue to staff, while private companies don't even pay in double digit. The challenge is how to stay competitive.
BSNL has submitted a proposal of VRS for 100,000 employees which is being looked at, though it requires a lot of money. Age profile of the organization is such that by means of natural attrition the numbers would come down in 10 years. All issues and aspects concerning reduction in manpower will be examined.

Despite resistance from private operators, government allowed Rs 1,500 crore from USO Fund to BSNL. Was it inevitable?
BSNL has been compensated with Rs 1,500 crore by USO Fund to maintain infrastructure in rural areas. In case it shuts down, it be disastrous for government operations. Both BSNL and MTNL, as a part of social responsibility provide connectivity to government programs and services.

The story was first published on ciol.com