Case study analysis in order to find root cause of BSNL's fall and recommendation to bounce back.

1. THE BSNL SAGA
A CASE STUDY ON THE AILING BSNL
Presented By :
Krishnandu saha
Sanjit Datta
Karan Yadav

2. Background of the case
The situation is worsening for BSNL if a decision is not
taken by PMO, & soft loan is not provided to meet capex &
opex. BSNL will not last long, said SNFA president.
The (Dot) said that the government has not released
Rs.3,300cr credit which is sanctioned by president.
BSNL is asking for bank loan for 4G airwaves till the time of
land monetization.

3. SWOT Analysis
o Strength – First tele-communication network in India.
o Weakness – Failed to upgrade network and poor connectivity.
o Opportunity – They could get funding of $3000cr from central
government and can increase the network strength.
o Threat – Increasing competition, established 4G network like
Jio.

4. Problems in the case
1. Couldn't provide proper 4G network.
2. More salary of employees.
3. Workforce – 1.76L (Add 40,000 contract labor).
4. Vendors outstanding worth of Rs. 2500cr.
5. Expected loss for financial year 2018 -2019 is 14,000 crore
while it’s revenue is slated to be around Rs- 19,308 crore.

5. Facts
A. VRS package worth of Rs- 6365cr. To BSNL & Rs- 2120cr. To MNTL.
B. BSNL’s estimated real estate at Rs- 1Lcr. Fiber assets at Rs- 54000cr. & telecom towers
at Rs- 24,000cr.
C. India’s fourth largest operator.
D. Debt of Rs- 20,000cr.
E. Market share of BSNL is 10.72 percent as on march 2019.
F. High staff cost and absence of 4G service is the main reason for loss of BSNL. After the
entry of Reliance Jio in 2016. The revenue decreased by 2,000cr. Since 2016.

6. Alternative solution
 Disadvantage-
Discussed in a meeting, to bring back two public sector. Government is looking to
monetize land & building assets to fund VRS.
 Advantage-
Time bound monetization of land assets, mobile towers & fiber networks will help
BSNL earn some more money in their tough time.
• Solution :- Need of updragration is require.

7. Short term solution
In order to revive BSNL, besides real estate assets
monetization, the department
is looking to lease out towers and fiber
infrastructures.
No option but to pay Rs- 6000cr. to operational
creditors.

8. Long term solution
Government also need to immediately
look at assets monetization strategies
including towers & fibers to make
BSNL stay alive.

9. CONCLUSION
 To effictively revive BSNL from undergoing crisis, Government
has to take concrete steps.
 Bank Loans can help BSNL to run the current flow.
 Land monetization could help company to get back on track.
 VRS package need to be disbursed.
 To maintain stability in the market, one PSU is much needed
amongst the private rivals.