Bharat Sanchar Nigam Limited (BSNL) has signed a deal with Boston Consulting Group (BCG) to strategise a revival roadmap.
Under the 34-month deal, BSNL will pay BCG Rs 1.32 billion for its consultancy services. The expected outcomes include enabling the telco to achieve government-assigned targets by strengthening existing business segments, leveraging emerging technologies, and cost- reduction while significantly improving BSNL’s service delivery in line with industry benchmarks and best practices, and transforming sales and marketing capabilities.
Under the two-phase strategy, the first phase will focus developing solutions to revive BSNL and achieve targets in verticals such as consumer fixed access, consumer mobility, and enterprise business. The first phase, focused on gap analysis and solution development, will broadly cover six areas, including an improvement in quality of service (QoS) parameters in 11 key circles – Kerala, Tamil Nadu, Karnataka, Punjab, Gujarat, UP West, UP East, West Bengal, and Rajasthan and CNTX south/north circles.
In addition, BSNL stated in the deal terms that it would like to implement an immediate and long-term plan for a reduction in the operating expenses by 5 per cent annually, in line with industry best practices.
Further, BSNL has sought the design and development of a new sales and distribution policy with a 25 per cent reduction in total outgo on commissions and incentives. In the second phase, BSNL may consider implementing the recommendations in a phased manner, subject to the availability of resources, primarily capital expenditure funds. Meanwhile, the telco will initially implement the required solutions in 10 circles, followed by a country-wide deployment in 33 circles.
Furthermore, BSNL has set a target to achieve Rs 359.6 billion in revenue from operations by the fiscal year 2027-28 FY28, up by 80 per cent compared to an estimated Rs 200.08 billion revenue in FY24. From FY25 onwards, it intends to post a 20 per cent year-over-year (YoY) rise in revenue. It is also targeting earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 121.1 billion, compared to an estimated Rs 18.39 billion in FY24.
