Oil explorer ONGC again emerged as the highest profit-making PSU of the country during 2012-13 while telecom major BSNL turned out to be the biggest loss-making enterprise, says the Economic Survey.
Stocks of public sector undertakings (PSUs) have been on fire in the past year as investors cheered an improvement in key operating metrics and embraced counters of these state-owned enterprises, analysts suggest. The S&P BSE PSU Index has gained over 90 per cent in the past year, rising much higher than the S&P BSE Sensex, which has rose nearly 19 per cent during this period, according to ACE Equity data. The BSE PSU Index, reports show, has delivered a compound annual growth rate (CAGR) of 28 per cent (including dividends reinvestments) over five years and risen by almost 60 per cent in the past year.
It is not just landlines, BSNL is losing mobile subscribers too, according to a Parliamentary panel which has pulled up the PSU for not taking effective steps to check its falling market share.
State-run BSNL has stepped up efforts to grab a bigger share of rising broadband demand in the country with the PSU planning to provide fibre-to-home based broadband services for offering next generation services to its subscribers.
State-run BSNL has questioned the Telecom Regulatory Authority of India's powers and jurisdiction in matters relating to interconnection between the PSU and other private service providers.
Even as the BSNL's call charges between metros and circles have been reduced for basic-to-basic, cell and unified access operators with inter-service area connectivity, the PSU has realigned pulse durations for various category calls within and outsi
State run BSNL on Monday it paid Rs 8,313.8 crore (Rs 83.13 billion) for Broadband Wireless Access spectrum, two days after the deadline expired, prompting the government to slap a penalty of Rs 30 crore (Rs 300 million) on the PSU.
The department for promotion of industry and internal trade has asked the telecom department and State-owned BSNL to put on hold the tender for setting up 4G network, valued at Rs 9,000 crore, after allegations emerged that the tender favoured foreign companies. The tender was floated by BSNL in March under the new management for setting up the 4G network.
About 10,000 engineers of state-run telecom firm BSNL in the country started an indefinite strike from Tuesday, demanding absorption of officers on deputation at the PSU and transparent human resource policy.
Within hours of going on indefinite strike, the employee unions of BSNL on Tuesday called off the protest after the government assured that the issue of disinvestment in the telecom PSU will be referred to a Group of Ministers.
In a setback to state-owned BSNL, the Delhi High Court on Thursday restrained the PSU from awarding any contract for their GSM network expansion till the next date of hearing on November 16.
The government on Monday rapped state-owned BSNL for poor financial performance and made a case for disinvestment in the telecom PSU through an initial public offer.
State-run telecom service provider Bharat Sanchar Nigam Ltd has placed an advance purchase order with Huawei of China on mobile equipment for 20 million GSM lines in the south zone. The PSU is also in advanced negotiations with Ericsson for the north and east zone.
The company, which has a subscriber base of 120 million, also plans to raise funds via a bonds issue. The company's impending 4G launch is also expected in the second half of the current financial year for which it would invest Rs 12,000 crore, partly through bonds.
Concerned over BSNL's falling revenue and market share, an employee association of the state-owned telecom company has sought a thorough probe into an alleged nexus between senior officials of the PSU and private operators.
Reliance Infocomm has paid Rs 130 crore (Rs 1.3 billion) to BSNL as part of its last payment due to the PSU for re-routing international calls.
Company has around 70,000 towers and it will explore various business models that can realise value of its infrastructure
In view of the strong demand, state-run BSNL will add 60 million GSM lines in 2006-07 at an estimated investment of a whopping Rs 20,000 crore (Rs 200 billion).
After dilly dallying for over 20 months, state-owned telecom firm BSNL on Friday decided to scrap its controversial Rs 35,000-crore (Rs 350 billion) tender to procure equipment for expansion of its mobile services.
Repeated attempts by the government and also management of the PSU have failed to bring the different associations to consensus on divesting government stake.
State-owned BSNL may delay opening of financial bids for its 45.5 GSM line tender beyond May 10 as most of the telecom vendors have sought more time to study the offer details.
State-owned BSNL will launch high-speed wireless Internet service based on Wi-Fi and Wi-Max technologies in the next nine months and will shortly float a Rs 10 crore (Rs 100 million) tender for equipment.
BSNL unveiled a promotional unlimited wireline broadband plan that effectively translates into less than Re 1 per GB download cost for very high-usage subscribers
Telecom PSU MTNL has paid Rs 314 crore (Rs 3.14 billion) to BSNL, which had demanded Rs 1,062 crore (Rs 10.62 billion) for carrying the former's STD traffic.
It is the biggest ever expansion of mobile phone networks in India.
The Supreme Court on Friday issued notice on a petition filed by Telecom Regulatory Authority of India challenging an order of TDSAT holding that the regulatory body had no authority to adjudicate on disputes raised by a service provider.
Bharat Sanchar Nigam Limited has failed to get security clerance from security agencies for its monitoring equipment installed in the International Long Distance Network, a glitch that may further delay the PSU's ILD entry.
Bharat Sanchar Nigam Limited has got two Mhz of additional spectrum from Department of Telecom to support its growing mobile subscriber base in the country.
In a sharp contrast to the boom in the telecom sector, the revenue of public sector BSNL may take a hit of Rs 6,500 crore (Rs 65 billion) in the current financial year adversely affecting the telecom monolith's profitability.
The Delhi high court restrained BSNL on Thursday from awarding contracts for its Rs 20,000 crore (Rs 200 billion) GSM network expansion project till November 30.
State-owned BSNL has suggested lowering of the market share limit to 40 per cent from the current 67 per cent following the merger and acquisitions of two entities in the telecom sector to avoid monopolistic situation.
State-run BSNL's losses have more than tripled to about Rs 6,000 crore during 2010-11 mainly due to hefty outgo for employees' salary and expenses borne by the PSU for procuring 3G and BWA spectrum.
Even as the implementation of MNP is likely to be delayed from the scheduled date of September 20, the PSU, which hopes to attract substantial number of users from the rivals like Bharti Airtel and Reliance Communications, has called for expression of interest for MNP gateway.
The association represents over 10,000 graduate engineers and account professionals at BSNL.
Bharat Sanchar Nigam Limited said on Friday it would seek a lower price from vendors Ericsson and Nokia ahead of awarding them an estimated $4.8 billion contract for adding 45 million GSM lines to its network.
Subscriber needs to pay Rs 19 for the service.
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