BSNL pays unreasonably high rates for Bandwidth which results in Pathetic Plans

swatkats

swatkats

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RTI Reveals BSNL Pays Exorbitant rates for International bandwidth

BSNL pays around Rs 200/megabit per month for a total capacity of 214 Gigabits per second (Gbps) while its counterpart Telecom PSU Mahanagar Telecom Nigam Ltd (MTNL Mumbai) Which buys 1mbps for Rs 331 per month for a total capacity of 19Gbps from private wholesale providers like TATA and Reliance.

There’s always a rule in business that the more quantity you source in bulk you get more discounts, but BSNL story is totally different. The PSU buys almost 12 times higher bandwidth than MTNL and difference amount is barely little when you compare the purchase size.

To give you some idea, If you are an Small ISP which buys 1000mbps or 1Gbps would get 1 megabit for Rs 590 and medium size ISP which buys 10Gbps gets 1mbps for Rs 365 and 20Gbps for Rs 331/month. The main cause of concern to me is Private operators which buys 80Gbps int.bandwidth buy each megabit for almost Rs 215/month. Surprised?

BSNL Partly owns Europe India Gateway Submarine cable along with Bharti Airtel in India and majority of the bandwidth is sourced from EIG cable, it also sources international bandwidth from other TATA communications. BSNL’s National Internet Backbone (NIB) is the largest internet backbone in india which interconnects others routes & networks within the country.

http://broadbandtalk.in/2014/11/rti-reveals-bsnl-pays-exorbitant-rates-international-bandwidth/


BSNL is always a Mess!! :mad:
 
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swatkats said:
RTI Reveals BSNL Pays Exorbitant rates for International bandwidth

BSNL pays around Rs 200/megabit per month for a total capacity of 214 Gigabits per second (Gbps) while its counterpart Telecom PSU Mahanagar Telecom Nigam Ltd (MTNL Mumbai) Which buys 1mbps for Rs 331 per month for a total capacity of 19Gbps from private wholesale providers like TATA and Reliance.

There’s always a rule in business that the more quantity you source in bulk you get more discounts, but BSNL story is totally different. The PSU buys almost 12 times higher bandwidth than MTNL and difference amount is barely little when you compare the purchase size.

To give you some idea, If you are an Small ISP which buys 1000mbps or 1Gbps would get 1 megabit for Rs 590 and medium size ISP which buys 10Gbps gets 1mbps for Rs 365 and 20Gbps for Rs 331/month. The main cause of concern to me is Private operators which buys 80Gbps int.bandwidth buy each megabit for almost Rs 215/month. Surprised?

BSNL Partly owns Europe India Gateway Submarine cable along with Bharti Airtel in India and majority of the bandwidth is sourced from EIG cable, it also sources international bandwidth from other TATA communications. BSNL’s National Internet Backbone (NIB) is the largest internet backbone in india which interconnects others routes & networks within the country.

http://broadbandtalk.in/2014/11/rti-reveals-bsnl-pays-exorbitant-rates-international-bandwidth/


BSNL is always a Mess!! :mad:
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Why should they be bothered. It is taxpayers money. It is making so much loss and still being supported by the government. Pathetic. Believe it there are still many `old guys' in BSNL who does not know the difference between a 2mbps and 4 mbps connection in their customer service. It is high time this PSU is bought under someone more efficient to run it.
 
BSNL pays around Rs 200/megabit per month for a total capacity of 214 Gigabits per second (Gbps) while its counterpart Telecom PSU Mahanagar Telecom Nigam Ltd (MTNL Mumbai) Which buys 1mbps for Rs 331 per month for a total capacity of 19Gbps from private wholesale providers like TATA and Reliance.
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Damn:eek: these corporates can take down our nation's internet if conditions arise.:mad:
 
Its time BSNL needs reorganization through the same approach which the private telecos go for.
First thing is they need to cut down their expenditure by reducing the head count which in comparison with leading airtel is 3 times more > 3:1 and unnecessary Post Retirement benefits. Its high time they (GOVT) realize BSNL is a telecom company which is here for profits and for competition with private firms.

Later Govt can spend Tax payers money in reviving the company.

bigb123 said:
Damn:eek: these corporates can take down our nation's internet if conditions arise.:mad:
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ACT group (which is obviously Small Firm with 5Lakh Customers inc beam) buying price is similar to BSNL's. The only difference is they have 300% times less bandwidth (~75Gbps) than BSNL.
 
BSNL improving should be in our dreams. I visited BSNL office for a postpaid fan Gsm connection and you won't believe the officer incharge argued and tried to convince me that postpaid is a waste and I shouldn't bother ¡now imagine a private company official do that ¡
 
swatkats said:
Its time BSNL needs reorganization through the same approach which the private telecos go for.
First thing is they need to cut down their expenditure by reducing the head count which in comparison with leading airtel is 3 times more > 3:1 and unnecessary Post Retirement benefits. Its high time they (GOVT) realize BSNL is a telecom company which is here for profits and for competition with private firms..
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BSNL's coverage of the country with fixed lines is 87%. Private coverage of landline operators is 13%.

Those figures are inverted for mobile space.

a re-org will be dicey and their unions will go on strike and take the lines down. are you ready for it.

Unbundling the last mile is an idea that is almost ten years old. This is something the govt should try instead. Laying new line is expensive. Increase landline access to people and you will get more customers which will bring down prices.
 
BSNL, MTNL Losses at Rs. 3,785 Crores and Rs. 1,567 Crores: Ravi Shankar Prasad
(Minister of Communications and IT)

State-owned telecom firms BSNL and MTNL have incurred losses of Rs. 3,785 crores and Rs. 1,567 crores till September 30 in the current financial year and steps are being taken to revive them, government said Tuesday.
The losses are on account of decline in revenue and increase in expenditure, Minister of Communications and IT Ravi Shankar Prasad said in a written reply to the Lok Sabha.

At present, there is no proposal for disinvestment in MTNL and BSNL though the government is in the process of revival of the two firms through various short term, medium term and long term measures, he added.

"The long term measures, including merger of BSNL and MTNL, would attempt to position these PSUs to emerge as market leaders in the converged telecommunication market," he said.

BSNL's provisional and unaudited loss up to September 30 for 2014-15 fiscal stood at Rs. 3,785 crores, whereas that of MTNL was Rs. 1,567 crores, he said.

BSNL had incurred Rs. 7,019 crores loss in 2013-14, Rs. 7,884 crores in 2012-13 and Rs. 8,850 crores in 2011-12, whereas MTNL had reported a loss of Rs. 4,109 crores in 2011-12 and Rs. 5,322 crores in 2012-13.

The revenue has declined for reasons including fixed to mobile substitution leading to surrender of wireline connections, delay in expansion of GSM capacity, perceived poor quality of customer services and high reduction in income from sources other than services, the minister said.

The expenditure of these firms has increased because of legacy workforce whose salary and wages are more than 50 percent of revenue, increasing repair and maintenance costs and high interest burden in case of MTNL.

Prasad said: "MTNL has shown a profit of Rs. 7,825 crores in 2013-14 mainly due to write back of provisions on account of pensionary liabilities and spectrum amortisation costs after decisions of government taken for revival of MTNL."

The government has taken several measures in an attempt to bring the two state-run companies out of financial distress.

The measures include treatment of pensionary liabilities of government employees absorbed in MTNL who opted for combined service pension on parity with similar employees in BSNL, waiver of government loan to BSNL involving an amount of Rs. 1,411 crores and financial support of Rs. 492 crores to MTNL towards payment of minimum alternate tax.

"The government has given financial support of Rs. 6,724.51 crores to BSNL and Rs. 4,533.97 crores to MTNL on surrender of broadband wireless access spectrum," Prasad said.

He added that the two firms are separately preparing a revival plan for increasing revenue potential, identifying business opportunities, organisational restructuring to grow into customer-centric companies and developing human resources strategy in line with restructured organisational vision.
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